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Liberty University
BUSI745
Disruptive Marketing Plan – Brand Proposal Paper Assignment
Roger Jacob Howard-Robinson
April 30, 2024
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Customer expierence and the level to which it is provided must be taken into
consideration by an organization to be propositioned as a uniqe advantage over customers. When
individuals make the decision to travel for vacation, they are looking for the best value on their
travel while still getting exclusive services, destinations, and an overall experience. With this
concept Amtrak is in a unique position to offer a unique experience to their customers while
providing them superior value to reach their destination.
Disruptive Brand Plan
In recent years Amtrak has seen a sharp decline in ridership, between 2017 and 2024, the
company saw a nearly 50% decrease in ridership (Bureau of Transportation Statistics, 2024).
While some decline can be attributed to changes in travel behaviors following the global
pandemic and the climb in inflation over recent years, the decline is still drastic when compared
to airline travel and Amtrak must make a change to their marketing plans in order to turn around
this decline. Similar declines in the rail industry have been seen in history; in the 1980’s, the
British Railway experienced a major decline, the organization recognized this and choose to
make a change to their marketing campaings and introduced an easily recognizable slogan for the
organization “This is the Age of the Train” and turned around their decline in ridership and saw
an incrase in sales (Smith, 2019). When evaluating Amtrak’s recent marketing, it could be said
that it is non existant. Several ways that Amtrak could increase ridership and sales through
several different initiatives. Starting with a rebrand for the organization and their offerings to
appeal to a broader customer market, including the offerings of luxury travel, unique vacation
experience packages, and an increase in non-stop destination offerings to compete with non-stop
air travel. Amtrak must also begin investing in advertising and increasing their presence in
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commercials, billboards, and on social media to create a push for increasing train travel in
America.
Marketing Mix
The four parts to the Marketing Mix are a great foundation for the organization to
determine where they need to go with their marketing campaigns and to determine things that
need to be done to reach their target audiences.
Product
Amtrak does not make it clear to the consumer what the product is that they are offering,
other than a rail travel experience from destination A to B. Amtrak does not make it clear to the
consumer that they are not just offering transporation, but they are also offering a unique travel
experience and vacation packages to make Amtrak a one-stop shop for your vacation planning.
Organizations and brands that offer consumers both tourism and transporation services must
offer the consumer a clear and specific marketing strategy to both service offerings or else they
run the risk of the consumer not understanding the true offerings of the organization (Lohmann
& Duval, 2014). Amtrak must do better at marketing their distinct offerings between
transporation and tourism, as the person utilixing Amtrak for work travel and the family planning
a vacation are looking for two different experiences and this needs to be marketed accordingly.
Additionally, the organization lacks in their offering of virtual marketing experiences; many
destination focused brands have evolved to offer product and service visualization to the
consumer when planning their travel (An et al., 2021).
Price
Amtrak’s online marketing is focused heavily on their everyday deals and the everyday
discounts that many organizations offer (Amtrak, n.d.). Very little marketing can be found on the
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site about vacation packages or unique travel experiences (Amtrak, n.d.). A shift in the marketing
compaign utilized on just the website to shift focus to vacation travel experiences and the unique
offerings that can be found through travel with Amtrak could shift the customer focus into the
unique experience they could have traveling with Amtrak.
Distribution (Place)
Currently Amtrack travel can only be booked through the companies provided website.
Amtrak could see a significant changes in sales through offering bookings through other travel
organizations such as Kayak, Booking, and other discount travel booking agencies. Additionally,
Amtrak could partner with these websites to offer increased advertising through their platforms
as the increase in consumer marketing would be beneficial to the organization as it puts their
travel options into the minds of more customers that are seeking easier ways to book travel or
discount travel options.
Promotion / Communications
In the United States the primary travel option for many Americans is through automobile
or air travel. Particularly Amtrak must compete heavily with air travel, and capture the unique
experiences of rail travel and the ease of this type of travel compared to flying, such as
convenient locations, avoiding the long waits at security and baggage claim, and the overall
scenic and unique experience of rail travel. Additionally, Amtrak has the unique opportunity to
capatilize on the idea of social consumer journeys, as consumers when traveling often look at
how they interact with their travel companions or are traveling as a family or large group
(Hamilton et al., 2021). Amtrak must increase their promotion of vacation packages as it is one
of their least advertised offerings. Amtrak can offer a unique travel experience for people of all
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ages, and should shift their marketing strategy to show the unique travel experiences and
vacation offerings that can be achieved through booking travel with Amtrak.
Market Segments – Current Target Market
The current marketing at Amtrak is not easily distingushiable between transportation
services and travel options. Many customers do not realize that through the company you can
book unique travel exerpiences touring highlight destinations within the United States and taking
amore scenic option of travel. Future marketing for the organization must focus on this offering
of vacation travel and the unique experiences offered to consumers of all ages, while presenting
as an econominclly valuable travel option compared to cruising, air travel, and other travel
options that consumers can choose from. A change in the marketing style and focus of the
organization can help to turn around the decrease in ridership that the organization as seen.
New Primary and New Secondary Target Market
Amtrak must accelerate their programs to make their services appealing and available to
all possible customers. This should include ways to make Amtrak an appealing travel option for
business travelors, familes, and consumers that seek to travel between destinations in a fast,
convenient and comfortable matter. It is producted that within the next ten years the amount of
cars creating road traffic will increase anywhere between ten and forty percent (Kottasz et al.,
2021). Increases like this will make road travel less appealing for consumers forcing them to
seek out economical, comfortable, and faster options for travel between their destinaitons.
Additionally, Amtrak must evaluate and enhance their campaigning around leisure and vacation
travel options for the consumer, and split between four categories of geographic, demographic,
psychographic, and behavioral (Kottasz et al., 2021).
New Primary Target Market
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According to Wattanacharoensil and Weber (2020), approximately 92% of corporate
travelors have access to the internet, with the majority of these travelors utilizing their modible
phones as a means of access to the internet and travel applications. This accessibility makes the
booking of travel for corporate travelors easier than ever before and convenient to make on the
go as the consumer is going through their daily tasks. Corporate travelers are proposed to be
more likely to book travel arrangements within three months or less before their travel date, and
are likely to travel in the seasons that do not see families traveling as often, these months being
January to March, and October to December (Wattanacharoensil & Weber, 2020). Corporate
travelers are an untapped market that Amtrak has not advertised or appealed to, and can offer
increases in revenue during lower times of travel for familes and destination seeking travelers.
New Secondary Target Market
Wattanacharoensil and Weber (2020) also observed that approximately 90% of leaisure
and destination travelers utilize the internet, with approximately 79% of these travelers utilizing
their mobile device to access the internet and travel applications. Leisure and destination
travelers make travel arrangements approximately three to six months prior to their desired travel
date, and typically travel during the late spring, summer, and early fall seasons. When evaluating
the leasuire and destination travel segment; the type of traveler can be split into four categories.
The geographic target segment being focused on region, state, city, population density, and
climate. The demographic segment of this market will include the travelers age, gender, income,
social status, education, and position within life. The psychographic segment of this target
market would take into consideration the consumers values, attitudes toward travel, personality
traits, and concerns. And the fourth category being behavioral charactistics including brand
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intent, brand loyalty and usage, and the consumer’s perceived benefits of purchasing a goods or
service including making travel arrangements (Wattanacharoensil & Weber, 2020).
Demographic & Economic Trends
It has been observed that even with advancements in technology and changes to how
business operate there has been no found substutue for face-to-face interactions, and because of
this corporate travel is still a critical aspect of every organization (Ketter & Avraham, 2021).
Corporate travel is an important aspect in the support of organizational initiatives in networking,
employee development, and recruitment processes. The main industries that continue to heavily
utilize corporate travel are the tech industry, healthcare, government and public organizations,
finance organizations, and manufacturing firms. When evaluating the spending categories related
to corporate travel, it is seen that the most common categories of travel spending are meetings
with customers, client vists, inter-company meetings, professional conferences, and industry
trade shows (Ketter & Avraham, 2021). Research has shown that approximately 38% of all
corporate travelers have travel plans scheduled every two to three months, while approximately
32% of corporate travelors scheduling traveling between one and two times per month, and
approximately 20% of corporate travelors are planning scheduled travel every four to six months
(Reuters, 2021). In 2021, corporate travel rose by approximately $840 billion in a two year span,
and by the end of 2024 corporate travel is predicted to reach well over $1.4 trillion in sales
showing continued growth in this travel segment (Reuters, 2021). The World Travel and
Tourism Council has reported that the United States still remains as the leader in the tourism
market compared to other countries around the globe (Reuters, 2021). Additionally, the tourism
industry within the United States related to tourism focused on destination or family vacations
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saw a rise of 20% between 2021 and 2022, with continued growth being predicted (Reuters,
2021).
Analyzing the Consumer Market
The dreams of being a travel agent are now a thing of the past as the occupation of the
travel agent has been eliminated by a new type of travel agent,. This new travel agent is the
internet, the world-wide web has made the consumer’s travel experience easier than ever and
allows the consumer to instantly book travel from anywhere in the world to go to any place in the
world. The internet is easily accessible to much of the globe’s population and makes travel
planning more easily accessible than ever (Preece et al., 2022).
Social Factors
When evaluating the social benefits of the tourism industry, there are several key
benefits; including, the preservation of local cultures, the strengthening of communities and the
sense of community, and the commercialization of an areas culture, art, and history (Hamilton et
al., 2021). Amtrak offers routes that can take travelers to over 500 destinations, in some cases
these destinations are within isolated regions and Amtrak as the only possible public
transportation to this location (Amtrak, n.d). Tourism through Amtrak can be utilized as a source
to strengthen the communities that it reaches as providing tourism and growth to these
communities in which it operates; additionally the increase in tourism to these communities and
regions creating a source of revenue for the individuals living in these areas. While there are
social benefits for the areas in which Amtrak travels, there are negative impacts. In some of these
isolated areas, the residents prefer the isolation and do not wish to have the tourism industry
change their area, culture or businsses (Hamilton et al., 2021).
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However, travel patterns are changing. The number of people that are traveling for
personal reasons, family, or coporate trips are steadily increasing (Preece et al., 2022). With this
increase the ways in which these individuals are reaching their destinations can vary between
automobiles, planes, and trains. Amtrak has an opportunity to utilize the social increase in travel
to tap into the tourism and corporate travel markets and encourage train travel as a viable option
for all consumers.
Psychological Factors
When evaluating the psychology behind travel and tourism, the key characteristics are
considered to be motivation, expectations, decision making, satisfaction, and overall experience
(Simkova, 2014). When evaluating travel on Amtrack, consumers will be reviewing and taking
into consideration the environment related to their travel experience and their destinations. The
environment will be evaluated by both the physical aspects, and the human interaction and are
two very important factors for the phychological evaluation of travel and tourism (Simkova,
2014). Amtrak has the opportunity to allow the consumer to experience what travel on Amtrak
will be like prior to making a purchase through the offering of virtual tours so the consumer can
determine what to expect when they are traveling by train.
Customer Needs
According to Willems and Brengman (2019), the tourism industry is one in which the
consumer’s experience is vital to the success of the industry. The consumers in this industry
when determining their destination not only want to know the information on the destinations
charachterisitics and inspiration, but they also want to have a preview of the destination and what
they can expect to experience when traveling there (Willems & Brengman, 2019). Individuals
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and brands that are selling travel experiences must focus less on what they are trying to sell to
the consumer, and focus more on what the consumer desires to experience.
Airlines are currently focused on the increasing demand for flights and how they can
accommodate this demand by placing more people on their flights while addressing the
consumer’s desire for affordable travel, comfort and easy access to destinations. Air travel is
limited in the comfort that can be provided to the consumer as space is limited within the
airplane and the demand to fit more passengers into the cabin (Martínez-López et al., 2020).
Amtrak is in a unique position where they can offer the consumer optimal comfort during their
travel experience while still accommodating a large number of travelers. Amtrak can offer the
consumer optimal comfort and luxury options based on the amount the consumer is willing to
pay for the area on the train they decide to buy a ticket for, which seats ranging from an economy
style all the way to a sleeper suite in which the consumer can have a private room aboard the
train, this style of accommodation can not be found on the vast majority of airlines (Amtrak, n.d).
Currently, the airline, cruiseline, and hotel industry are extremely saturated with
competition and this can create stalls in consumer growth and decreased market share as they are
having to compete with multiple brands (Martínez-López et al., 2020). However, Amtrak is in a
position where there is very little competition, particularly competition with rail travel that offers
the shear number of destinations that Amtrak offers (Amtrak, n.d). Amtrak has the opportunity to
provide travelers with a unique travel experience while experiencing partically no competition as
there is not another brand the same as Amtrak. Amtrak can meet consumer demands that the
other travel industries can not by providing unique experiences, comfortable travel, and easy
access to many destinations within the United States.
Positioning
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The new positioning of Amtrak should be focused on the path to modernization of train
travel and a unique travel experience that can not be compared to any other. Through this
repositioning, Amtrak will offer the consumer increasingly enhanced amentiies, improved access
to new and premium consumer travel experiences, upgraded infrastcture to offer the consumer
increased capacity and luzury accomodations, and partnerships with large travel brands such as
booking.com and Kayak to provide increased marketing and viewership among consumers
searching travel experiences. For Amtrak to increase its ridership this repositioning will be
crucial to make consumers more aware of the experiences that the organization can offer, and the
destinations that they can visit while traveling comfortably by rail.
Competition
Amtrak is the only passenger train that can access many parts of the United States,
traveling to 46 states (Amtrak, n.d). The competition that Amtrak faces would be domestic travel
that offers similar access to the same states, but offering the consumer a slightly different travel
experience. Amtraks two largest competitions would be from Airlines and Buslines.
Criteria for
Comparison Amtrak Repositioned
Amtrak Airlines Buslines
Price – MSRP
Range
Average price of
$50-$150,
Average Cross
Country trip is
$300
Maintain a
similar pricing
structure to
current pricing
Average price of
an airline ticket
is between $250-
$500 with a
cross country
flight
Avreage ticket
price is between
$25 - $100 with
the average cross
country ticket
being $250
Product Unique
Attributes
Unique travel
experience
offering the
consumer many
different
booking options
and access to
views that can
be obtained in
other travel.
Unique travel
experience
offering the
consumer many
different
booking options
and access to
views that can
be obtained in
other travel.
Access to many
destinations.
Fastest travel
option. Typically
multiple travel
options per day.
Unique travel
experience for
the consumer.
Slowest option
for travel, but
increased
destinations as
can access more
locations than
Amtrak or
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airlines.
Placement –
Points of
Distribution
Lowest number
of destinations
available.
Limited to 46
states.
Lowest number
of destinations
available.
Limited to 46
states.
Quickest travel
option. Multiple
travel options
per day. Can
travel to all 50
states and
outside of the
country.
Highest number
of available
destinations.
Promotion –
where / how do
they advertise
Does not partner
with other travel
brands or
booking
agencies.
Increased
partnerships
with other travel
brands and
booking
agencies.
Increased
advertisement.
Highest amount
of promotion
compared to
other travel
options. Easily
recognizable.
Commonly
known, very
little advertising.
Consumer
Experience
Unique
consumer
experience,
opportunities for
improvement
Unique travel
experience with
access to many
destinations
while offering
the consumer a
memorable
travel experience
Consumer
experience is
dependent upon
the booking
type. Often
crowded and can
experience
delays and
cancellations
Slowest form of
travel. Crowded
buses with
limited space.
To compete with airlines and buslines, Amtrak must boost their advertising and their
partnerships with other brands. When comparing the prices of Amtrak to these two travel options
the cost of Amtrak is not drastically cheaper than the airlines; however, the airlines are easily
recognizable and have more advertisement than Amtrak. Amtrak offers less destinations than
either competitior, but can offer the consumer a unique travel experience to the desintaitons that
it does offer services too. Amtrak has the opportunity to change how it does advertising to
present to the consumer the unique travel experience that they offer and reinvent the idea of rail
travel, they also have the opportunity to offer the consumer a unique booking experience where
they can show the consumer what they can expect when traveling Amtrak, views of the train car,
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virtual tours, and overviews of the destinations that they can visit. Amtrak must make themselves
stand out among the travel industry as the most unique, convenient, and comfortable travel
experience that the consumer can take, whether they are traveling for work, personal, or family
vacation. To increase ridership through rail travel, Amtrak must reevaluate their marketing
scheme to represent themselves to the consumer, and to be seen by the consumer, through
increase advertising and by partnering with other travel brands and travel booking sites. Sasmita
and Suki (2015), describe that the concept of brand is the most valuable asset that an
organization can pocess and is recognized as one of the essential reasons for consumer
purchasing choices.
Market Research Plans
Based on trends within the travel industry, Amtrak should perform market research on the
infrastructure capabilities of rail travel within the United States. Amtrak must also perform
market research to understand what the consumer is looking for within travel marketing to
understand how to making appealing marketing to the consumer as well as what the consumer is
looking for within their travel experience. Specific questions should be asked to the consumer of
the likliehood of utilizing Amtrak for travel if the organization offered new services such as
expedited corporate focused travel, or competitive pricing on vacation packages. Amtrak must
also perform market research to determine if consumers will recognize Amtrak as a unique and
leading brand in transport both in public transport and for tourism transport. Market research
should also be performed to determine the impacts of Amtrak being associated with other travel
brands and booking websites. An understanding should be developed of how increased
marketing and presence in the travel industry will impact Amtrak and its passengers and how this
can be used to benefit the organization.
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Promotion Plans
Amtrak should debute and promote a fresh and modern travel brand and option for
transport. The brand should be focused on reliability, efficiency, and the best customer
experience in travel while offering unique travel experiences and comfortable travel. Amtrak can
utilize this opportunity to promote their brand as a leader in comfortable and unique travel
experiences that accommodates the consumer’s desire for travel by offering comfortable and
luxury accomodations and one stop shop travel planning at a convenient price point. Amtrak
should promote vacation packages to allow the consumer to book travel to multiple destinations
of their choosing or pre-designed vacation packages to areas such as national parks, state
highlights, or scenic routes. Amtrak must also increase their marketing to be seen by more
consumers, so that consumers can understand that rail travel is convenient and comfortable, far
more comfortable than airline, bus or car travel.
Social Marketing
Amtrak does not have a large presence on social media. Research has shown that social
media marketing can be challenging and introduce new risks and issues to the organization
(Scholz & Smith, 2019). Amtrak must first focus on a fresh take of their brand prior to amping
up social media marketing. Amtrak does not want to face what has been described as a social
media firestorm of negative reviews or comments by entering social media marketing prior to the
company being ready (KKbler et al., 2018). Once the brand has been refreshed and given a
modern take and repositioned them selves as a leader in travel, the organization should incrase
the amount of social media marketing they utilize.
Public Relations
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Amtrak should utlize a refresh of their brand to garner awards within the travel industry,
and focus on safety in order to achieve awards from safety commities. This will provide the
brand with free publicity as they achieve these awards and attract consumers. Amtrak could also
offer a free giveway that will be picked up by the press and word of mouth would add in sharing
the idea of a contest where someone was awarded with a free trip. Often free publicity is good
for a brand; however, there are risks to free publicity as the perceived perception of the brand
when the marketing is free may not be what the brand expects and may not present the brand in
the most flattering manner or in the way that the brand would want to be presented.
Traditional Marketing
The current mission of Amtrak is to provide the consumer with “safe, efficient and
effective intercity passenger rail mobility, consisting of friendly, high-quality service that is trip-
time competitive with other travel options” (Amtrak, n.d.). Amtrak when refreshing their brand
to be an industry leader in travel, the organization should focus on how they are performing their
marketing. Amtrak should evaluate options for tranditional marketing campaigns in travel
magazines, travel websites, and on television. Amtrak should also look at the creation of guest
loyalty programs including branded credit cards that allow the consumer to build loyalty points.
Financial Viability of Plan
For Amtrak to increase ridership, a change must be made. If Amtrak continues their
current operations and marketing the brands growth will likely stall and profits will not increase.
However, by reaching more consumers the organization has the opportunity to increase ridership
and increase profits. Research has found that consumers are spending a significant amount of
time planning and researching travel options (An et al., 2021). Consumers are utilizing travel
sites to customize their travel and vacation packages. With over a million searches per day, if
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Amtrak is able to partner with these travel sites the organization has the opportunity to increase
ridership by millions of passenges per year (An et al., 2021). Additionally, airlines are spening
over $100 million on advertising and their sales are consistently increasing (United States
Department of Transportation, 2021). For Amtrak to compete with airline travel, they will have
to increase spending to pull consumers from airline travel to rail travel and focus marketing on
how rail travel is more convenient and comfortable than air travel. To meet consumer demand
and increase their ridership and grow the brand, the organization is going to have to put the
financial aspects aside to make this overhaul of the brand and to bring new customers to the
organization and profits will inevitability increase as they are able to increase ridership.
Relationship Marketing
All companies within the tourism industry rely on relationship marketing. The change in
Amtrak’s marketing will focus on customer comfort and satisfaction, throught the creation of a
great customer experience and a comfortable, convenient and unique travel experience for the
consumer. Through the creation of destination vacation packages, changes to the brands website
to include virtual tours of the trains, and increased marketing, the brand will increase its targeting
consumer base and offer consumers with a refreshed brand for the modern age and draw the
consumer to the unique travel experience. Through providing a loyalty program, Amtrak will
encourage consumers to return to the brand for consumer travel or destination travel as they will
have the ability to earn points for discount travel or upgrades just as seen through airline loyalty
programs.
Socially Responsible Marketing
Amtrak currently has focused on the reduction of greenhouse gas emissions and reducing
the brands carbon foot print (Amtrak, n.d.). However, to be socially responsible the organization
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should look at more than just a focus on sustainability. The organization should also look at how
they can give back to the community, particularly the communities in which the organization
operates. In some rural areas that Amtrak travels to, increased tourism may not be observed as a
benefit; however, if the organization can give back to the communities thorugh donations or
supporting infrastructure, the communities will benefit not only from the increased tourism but
also through the organization’s socially responsibly marketing.
Christian Integration for Amtrak
Luke 6:31 “And as you wish that others would do to you, do so to them” (English
Standard Version, 2001). Luke 6:31 is an important verse to integrate within the travel industry.
Travel brands should treat the consumer in the same way that they would want to be treated, and
to offer the consumer with the best travel experience possible. Amtrak should focus on customer
satisfaction and increasing ridership by offering the consumer the most convenient and
comfortable travel experience available, and through the offering of top-notch customer service
where the customer feels valued and important to the brand. Treating the customer and ensuring
they have the same experiences that the leaders of the brand would want to have.
Recommendations
Amtrak has a great base that is prepared for growth. Improvements to the website with a
more interactive book experience as well as more advertisement on the website about vacation
packages or destination specific travel will draw the consumer to Amtrak. The brands
development of relationships with other travel brands and with booking websites will allow the
brand to increase their presence with the consumer and draw the consumer to the brand for their
travel needs. Amtrak must increase their marketing to show the consumer that only Amtrak can
offer this unique, convenient and comfortable travel experience that can provide the consumer
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with a broad choice of accomodations and destinations at a great value. Amtrak must present to
the consumer that the brand can be used for corporate travel, destination travel, and family
vacations, and that the brand can be a one-stop shop for the consumer’s travel needs and
planning the perfect trip.
Conlusion
The recommendations provided will increase ridership for Amtrak as the perception of
public transport can be changed to show that the brand is more than just a way to get form point
A to point B, but is a unique and comfortable travel experience. Amtrak has the opportunity to
become a leading travel brand as there is not another travel experience in the United States that
can compete on the exact same level and offer the same experiences as rail travel. Amtrak has a
unique opportunity that no other travel brand currently has, and can offer the consumer with a
travel experience that only Amtrak can, and through a brand refresh and increased marketing the
consumer can come to realize what Amtrak has to offer.
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