Q&A of the Day – Brightline’s Orlando Expansion & The Cost to Get to and From Orlando
Each day I feature a listener question sent by one of these methods.
Email: brianmudd@iheartmedia.com
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Today’s Entry: Brian- I've been interested in seeing the Brightline Orlando expansion playout and specifically am interested in how many people will choose to use it. Now that the date has been established for trips to begin, my question is about pricing. The pricing sounded higher than I thought it might be and I wonder if it will act as a deterrent to those who might consider using it. I understand Brightline needs to make money after laying out billions to do this, however the price I heard, at $79 each way, I’d think would act as a deterrent. What are your thoughts?
Bottom Line: There’s no doubt price plays a huge role in consumer decisions. These types of conversations take me back to research from my former life as an entrepreneur and small business owner. While there is a lot that seemingly separates the wealthiest in our society from the poorest, one of my favorite consumer facts was as true 100 years ago as it is today. The two primary reasons as to why the poorest and richest among us make consumer decisions are exactly the same. Price and convenience. The only difference is the priority placed on the two. For those of more modest means, price is the top priority when making consumer decisions while convenience is the second highest priority. For the wealthiest, it’s convenience first and price second. That takes us to the price considerations associated with Brightline’s soon-to-be launched trips to Orlando from South Florida (and vice versa).
Earlier this week Brightline announced they’ll be open for business to and from their Orlando hub starting September 1st. The expansion will provide high-speed consumer rail options from as far south as Port Miami, to as far north as Orlando for the first time and with it a far more efficient way for many to make their way around the state. But of course, it does come with a price, and that price is $79 each way for adults and $39 for kids, for the “SMART” fares, or the base rates, and “PREMIUM” fares checking in at $149 each way. Clearly the premium fares which come with priority boarding, checked luggage, a meal, snacks and beverages are aimed at those who’re prioritizing convenience over price. I’ll leave them out of my analysis. You’ve asked for my thoughts on Brightline’s fares and as ever my thoughts are driven (no pun intended) by facts. I’ll compare the cost and convenience of driving to and from Orlando compared to what Brightline is set to provide. Let’s start with a drive.
I put the exact address for the Brightline terminal in Orlando into my phone. From West Palm Beach – near the Brightline station in West Palm – it showed a total commute time of 2 hours and 35 minutes across 163 miles (using I-95 as opposed to using the Turnpike which also would cloud the comparison as it includes tolls). Most recently the average miles per gallon for vehicles driven is 25.4. At current average gas prices in the Palm Beaches, at $3.69 per gallon, the total fuel cost to make the drive is $23.7 per vehicle. Then one must factor in the average cost of automotive maintenance per mile driven is 9 cents. That adds $14.67 to the total. The net cost to drive the average vehicle from West Palm Beach to the Orlando Brightline terminal under current conditions is $38.37. As for the time/convenience factor? Brightline has stated trips between Orlando and West Palm Beach will take approximately two hours. So, let’s put all of this together.
Brightline wins the convenience factor in this comparison as it’s 35 minutes quicker... Although some may argue the potential benefit of having one’s vehicle accessible to move around Orlando once there, may offset the time consideration. Conversely, it could take longer to drive if traffic conditions were especially poor. So yes, on balance, Brightline wins on convenience.
When it comes to price...well, it’s clear that driving is the far better value proposition. Not only is it $40.63 cheaper each way for a one person to drive a vehicle to and from Orlando, but the more people also traveling in the vehicle the greater the savings. For a family of four (two adults and two children) it’s $197.63 cheaper each way to drive than the base rates for Brightline. This exercise creates a clear dividing line for the consideration of whether to drive or take Brightline to Orlando.
Brightline’s new route will be best for those who:
- Value convenience over cost
- Don’t have a vehicle
Driving will be best for:
- Those who are cost conscious / Families
So those are my thoughts. I imagine some South Floridians may test it out in the early going to get a feel for it and to see what the experience is like. In time I could envision the expansion, with current pricing, being most functional for South Floridians who’re traveling for business as opposed to families visiting for entertainment. And perhaps overtime adjustments will be made to pricing based on demand as well.