Discover why Amtrak wants you to think of trains as your next hotel stay!

  • Amtrak launches a multiyear marketing campaign called ‘Retrain Travel’.
  • The campaign aims to position Amtrak as a ‘hotel on wheels’ rather than just a train service.
  • Amtrak received $22 billion in aid from the 2021 infrastructure law for upgrades.
  • The campaign includes digital ads that compare train travel favorably against flying.
  • Amtrak’s advertising budget increased to $43 million in 2023.
  • Passenger numbers rose to 28.6 million in fiscal 2023, with expectations for a record in 2024.
  • Challenges include limited sleeper accommodations and service delays.
  • Awareness of Amtrak is high, but only 23% of people consider using it.
  • The campaign aims to change perceptions and encourage trial among potential passengers.

Amtrak has kicked off a new multiyear marketing campaign named ‘Retrain Travel’, aiming to reshape the perception of train travel. This initiative comes as the national passenger railroad seeks to leverage a significant $22 billion boost from the 2021 infrastructure law, which is being used to refurbish stations, upgrade trains, and improve overall service reliability. The campaign’s ads, primarily found online and in transit hubs, draw comparisons between rail travel and other modes of transportation, particularly highlighting the comfort and convenience of trains. Amtrak’s chief commercial officer, Eliot Hamlisch, emphasizes a shift in strategy, positioning the company as a ‘hotel on wheels’ rather than just a train service. The new commercials showcase passengers enjoying scenic views and onboard amenities, while also poking fun at air travel with clever taglines. Despite a rise in passenger numbers, Amtrak faces challenges with limited sleeper accommodations and service delays, which can deter potential travelers. While 83% of people are aware of Amtrak, only 23% are considering using its services. The campaign aims to change this by showcasing the modern train experience and encouraging those who haven’t traveled by train to give it a try.·

Factuality Level: 7
Factuality Justification: The article provides a detailed overview of Amtrak’s new marketing campaign and its context, including financial aspects and industry comparisons. However, it includes some subjective statements and opinions from Amtrak’s marketing officer that could be interpreted as bias. While the information is mostly accurate, the article could benefit from a more balanced presentation of potential challenges and criticisms of train travel.·
Noise Level: 7
Noise Justification: The article provides a detailed overview of Amtrak’s new marketing campaign and its context within the broader travel industry. It includes relevant data, quotes from industry experts, and discusses the challenges Amtrak faces, such as capacity issues and public perception. However, while it offers insights into the campaign’s strategy and historical context, it lacks a deeper analysis of the long-term implications or systemic issues affecting rail travel.·
Public Companies: Amtrak (N/A), AMC Entertainment Holdings (AMC)
Private Companies: Wyndham Hotels & Resorts,Rail Passengers Association
Key People: Eliot Hamlisch (Chief Commercial Officer at Amtrak), Sean Jeans-Gail (Vice President of Policy and Government Affairs at Rail Passengers Association)

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Financial Relevance: Yes
Financial Markets Impacted: Amtrak’s stock and related transportation stocks
Financial Rating Justification: The article discusses Amtrak’s new marketing campaign and its efforts to improve the customer experience through infrastructure upgrades, app improvements, and staff training. This can impact Amtrak’s stock price as well as other transportation stocks that may be affected by changes in passenger demand for train travel.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses Amtrak’s marketing campaign and improvements in train travel, but it does not mention any extreme events that occurred in the last 48 hours.·
Move Size: No market move size mentioned.
Sector: Transportation
Direction: Up
Magnitude: Small
Affected Instruments: Stocks

Reported publicly: www.wsj.com