Guide to the TechWeb Network


The InformationWeek -- Blogs


Topics:   Green Computing

  • Email this page E-mail this page
  • |  Print this page Print this page
  • |   Bookmark and Share

Amtrak's Choice: Wi-Fi Or Die


Posted by Cora Nucci, May 12, 2008 11:19 AM

Train travel, glamorized by film noir, is in vogue once again, thanks to soaring oil prices and the dismal state of air travel. But attractive prices alone won't fill those railcars with business passengers.

Commuters are abandoning their SUVs and minivans and riding the rails again, now that gas prices are approaching $4 per gallon. For many in Boston, Los Angeles, and San Francisco, it has become cheaper to ride the subway or commuter train to work than drive the gas guzzler in the driveway.

And for inter-city jaunts, Department of Energy stats show that travel on Amtrak is 18% more efficient than flying or driving.

No wonder train travel is up. During fiscal year 2007, more than 25.8 million passengers traveled on Amtrak, setting a record for the most passengers ever since Amtrak began operation in 1971. Total ticket revenue for fiscal year 2007 was more than $1.5 billion, an increase of 11% over the previous year. It was the fifth straight year of increases for Amtrak. And for the first quarter of fiscal year 2008, more than 7 million passengers traveled on Amtrak, an increase of 11%, and revenue was up 14.6%, to more than $434 million.

Amtrak is so giddy about the uptick in ridership, that it celebrated its first annual National Train Day on Saturday, May 10. You can't blame Amtrak for giving itself a pat on the back. The national passenger railroad has been struggling financially for years, losing "a half billion dollars annually, a total debt of $3.4 billion, deteriorating infrastructure, and a White House that for the last seven years has wanted to see it dismantled," according to the Boston Globe.

On the surface, things are looking up for the little railroad that might. But the nation's passenger railroad has a long way to go before it becomes solvent. If Amtrak wants to retain the new business travelers it's attracting these days, it's going to have to get serious about providing Wi-Fi access.

Sure, Amtrak has contracted with T-Mobile to provide wireless in five key stations along the Northeast corridor: New York, Philadelphia, Wilmington, Baltimore, and Washington, D.C. But what about all the other stations? And more important: What about Wi-Fi access onboard, where passengers spend the bulk of their travel time?

In the Bay Area, arguably one of the most connected communities in the country, efforts to put Wi-Fi on CalTran never left the station.

Compare that with activity on the East Coast railway route in the U.K. Since free onboard Wi-Fi was introduced last year, "usage has tripled the number of users to date," according to a National Express spokesman. More than 85% of customers carrying a laptop use the Wi-Fi service.

Why aren't we being offered the same level of service here in the United States? Business travelers are Amtrak's bread and butter. It should be hustling to make Wi-Fi a priority -- to make it free, make it fast, and make it available in every car on the line. This is the time to do it. High oil prices are placing a golden opportunity in Amtrak's lap.

If Amtrak doesn't act fast, it will see its numbers take another dive. Travelers have found an even cheaper option. That would be the bus, where the glamour quotient is admittedly low, but the Wi-Fi is there for the taking.

« Complete Virtualization | Main | U.S. Apple Stores Selling Out Of iPhone »



Tomorrow's CIO: Do you have what it takes?
Find out at the 2008 InformationWeek 500 Conference
Sept. 14-16, St. Regis Resort, Monarch Beach, Calif.


Sign up now for the weekly InformationWeek Blog Newsletter.


This is a public forum. United Business Media and its affiliates are not responsible for and do not control what is posted herein. United Business Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers.

Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of United Business Media LLC and may be edited and republished in print or electronic format as outlined in United Business Media's Terms of Service.

Important Note: This comment area is NOT intended for commercial messages or solicitations of business.