Friday, October 6, 2017

Luxury Trains.





Japan’s major railroad companies are focusing on providing their service to a new target market. As the country’s population is getting older, less people use trains as commuters traveling to work.  As a result, the industry shifted to please the needs of the retiring age who enjoy doing fun activities. They introduced luxury trains designed exclusively for entertainment purposes rather than being a transportation mode to go from one place to another.
Couples can pay up to $22,000 to experience traveling in a luxury train. The luxury amenities include live music, gourmet dining, and high end finishes and décor. The price reflects the fact that there are not a lot of companies that provide a service specifically for the older population as a target market. The few train companies that have decided to provide this service can justify the high price by claiming that since trains for this new target market do not have a lot of competition, that people will be willing to pay this price. Customers have put in a high value to the experience causing them to desire paying thousands of dollar for it.

Train companies have made a good decision in introducing a new type of service for a population that seems to be transitioning. Instead of continuing with their current target market, the commuters, train companies have expanded towards the retiring age as a way to remain providing services to its population as it reaches a new stage. 

By: Mariana Paramo 

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