Is there way of making the Caledonian Sleeper more profitable?

[Bald Rick]

By getting rid of the compartment dividers, washrooms etc you would radically increase capacity - there should be space for ~25 seats per carriage in a 1-1 configuration.

compared to 20 beds, this isnt a dramatic increase in capacity! Youd have to sell them at >80% of the price of the beds …

 

[Manutd1999]

20 beds yes, but they are all sold in pairs whereas the 25 lie-flat seats would be sold individually. The lie-flat seats could be <50% of the cost of the "twin" room.

 

[Bald Rick]

20 beds yes, but they are all sold in pairs whereas the 25 lie-flat seats would be sold individually. The lie-flat seats could be <50% of the cost of the "twin" room.

Ok, given that the beds routinely sell out you can expect typical revenue for a standard coach (6 club, 4 classic) to be in the region of £3,500 for the lowlander.

That puts the fare of a lie flat seat on the same journey would need to be £150+, and they would all need to sell (which seems unlikely). This might be attractive for some individual travellers, but not those travelling in a group. For example, a couple would pay over £300 for two lie flat seats, or £300 for a room to themselves. No contest.

 

[Meerkat]

Philosophical question - what is CS for? Why do we subsidise it? Is its purpose to be a rich person's plaything ("the Deerstalker") or is it providing an essential public service?

Like many bits of railway it exists simply because it was too politically damaging to get rid of it. The SNP wanted to use Westminster cancelling it as a political attack point, but Osborne called their bluff by throwing £50m (??) in for new trains and leaving them to fund the rest, and now the Scottish government is stuck funding it.
If you were cynical you might suggest that making it an expensive hotel on wheels is a long term wheeze to enable future cancellation by publicising how much each rich person's holiday was being subsidised. I wonder if the Highlands now have so many tourists that the marginal lost business of ending the sleepers isn't even relevant (how many people wouldn't go without the sleeper, rather than just travelling a different way?)
Yield price it and let it stumble on until the stock needs replacing. I can't see any way of making it more profitable, rather the opposite as rail inflation is probably higher than they can inflate the prices.

 

[Manutd1999]

That puts the fare of a lie flat seat on the same journey would need to be £150+, and they would all need to sell (which seems unlikely). This might be attractive for some individual travellers, but not those travelling in a group. For example, a couple would pay over £300 for two lie flat seats, or £300 for a room to themselves. No contest.

Agreed - my suggestion wouldn't be aimed at groups. But for single travellers it could be an attractive option.

I would envisage 3x offers:

Seats - low-price with no meals/extras, aimed at backpackers and other budget travellers.
Lie-flat - medium price, including an at-seat breakfast service and blanket/pillow. Aimed at single travellers, business travel etc.
Rooms - highest price including full service. Aimed primarily at luxury tourism and groups.