Sample Essay

The UK Rail establishment has been operating on a questionable pricing structure by employing price discrimination strategies for earning variable rates of profits on the same journey.The article by Alderson and Ehman (2007) published in the Telegraph highlighted the how a train journey from the same departure point to the same destination could have thirty different fares based on a number of variables. “Prices vary from £16.50 for the cheapest single to £347 for the most expensive return journey. The cost of the fare depends on what time a passenger travels, what route is chosen, how far the booking is made advance, whether the return date can be specified, what class a passenger selects and whether the ticket is refundable” (Alderson and Ehman, 2007).


In chapter ten of the book by Farham (2005) provides the various discriminating pricing strategies employed by the companies to increase their profits. Through the text it is identified that the discriminating pricing strategy that is being employed by the UK Rail for their train travel tickets is a cumulative one. TheUKrail establishment is employing perfect price discrimination as well as peak and off peak pricing strategies and multi market pricing strategies.

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