KAMIST

Indonesia’s First Panoramic Train : Views That Win the Market

Hello, OptiMIST People!

Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST we’ll dive into how customer experience is being elevated on the brand-new panoramic trains. 

Would you spend an additional Rp500.000,00 on a train ticket when you travel? Well, this train is unlike any other train you have ever seen. Let’s examine Indonesia’s first panoramic train in more detail to help us answer that question!

PT Kereta Api Indonesia (KAI) launched the country’s first panoramic train publicly six days ago. From Gambir to Yogyakarta, a luxurious panoramic train runs with fares starting from Rp750.000,00. People are already lining up in a thrill to purchase and ride this panoramic train since tickets were officially released to the public on December 24th, 2022.

You might be wondering, why do we need to pay an extra fee for a train ticket? Is there more room? Is it quicker? The answer is that a panoramic train allows passengers to have a variety of experiences while being free to take in the scenery as they travel. The enormous windows on both sides and the automatic opening and closing of the glass roof on this KAI invention allow passengers to take in the surroundings as they travel. There are also rotating seats, remote-controlled window coverings, spacious restrooms, televisions mounted on the end wall, special luggage racks at the end of the train, as well as complimentary food and beverages. Isn’t that impressive?

To set it all in motion, they’ve utilized a premium pricing marketing strategy, that is a tactic that uses specific price techniques to psychologically sway consumers. It aids in fostering favorable opinions that are entirely based on cost. Since they think the product’s quality is already excellent, consumers believe they are paying high costs for a legitimate purpose. Premium pricings supports the idea that the goods are prestigious. Successful premium pricing primarily results in higher profit margins. Effective premium brands have a better return on investment (ROI) for each good or service purchased. Sales volume is less significant to premium brands than the devoted following of a particular audience. This audience is more likely to pay and more devoted to the brand as a whole.

In this case, PT KAI marketed their just-launched panoramic train by relying on four types of assurances: quality, luxury, uniqueness, and exclusivity. Despite having to pay an additional cost, consumers are nevertheless prepared to pay more for the pleasure that the panoramic train offers. The exclusivity where there are only two units of the train, will attract more people to travel with panoramic trains. The large windows and automatic glass roof added to the train’s uniqueness in providing an experience that no other train, bus, or other mode of transportation provides.

In conclusion, even though there are many other, significantly less expensive modes of transportation, including buses, road trips by car, and by plane, the main benefit of taking panoramic trains is the superior view of the breathtaking scenery that inevitably passes by your window. Limited tickets for the recently launched panoramic train will undoubtedly sell out quickly given the upcoming holiday season and the many advantages it provides. Tickets are available for purchase through all authorized KAI channels, including the KAI Access app and KAI website.

So, what are your thoughts? Would you be willing to spend more money to ride Indonesia’s first panoramic train?

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