The adjustment of transport tariff is an important management method for enterprises to cope with market competition. Market-oriented pricing is a key factor to determine whether railway enterprises can make profits. Before the reform, almost all national railways were subject to tariff regulation by the governments. After the reform, in order to create a good development environment for railways and market conditions for fair competition, and stimulate the management vitality of enterprises, many countries began to release regulation on railway tariffs. In terms of the pricing subject, transport enterprises were given more autonomy; in terms of the pricing mechanism, with transport costs as the basis, factors such as social fairness and market competition were taken into consideration to ensure that the railway would pay reasonable operating costs and gain certain profits under normal circumstances; in terms of the tariff form, a flexible and diversified pricing system were formed to fully adapt to different market demands. Most countries, such as Japan, Germany and France, have released their strict regulation on railway tariffs and adopted market-oriented government guided-pricing or market pricing policy.
The government guided-pricing is embodied in the floor (ceiling) of railway tariffs set by the government, while railway operators can flexibly set the specific prices within the tariff range set by the government. In 1997, Japan introduced a ceiling tariff system based on comprehensive cost prices. The operators were free to change fares as long as they submitted an application to and filed it with the Minister of Land, Infrastructure, Transport and Tourism or the Director-General of the District Transport Bureau in advance within the tariff ceiling approved by the Minister of Land, Infrastructure, Transport and Tourism.
Market pricing is a pricing method in which railway enterprises have greater autonomy, and the government basically does not interfere with the pricing of enterprises. Market factors are the most critical factors for enterprises to set prices. Countries such as Germany, the United States, Canada and Russia implement the market pricing policy in their "high-end" passenger transport products (HSR, tourist trains, long-distance soft sleeper trains, and deluxe soft sleeper trains, etc.).
With the advancement of railway reform in Germany, the management of passenger fares has also gone through a process from unified pricing by the government to independent pricing (for long-distance passenger transport) by transport companies according to market principles and collective pricing (for short-distance passenger transport) by regional transport associations, subject to government regulation; fully independent pricing for freight tariffs by freight companies without being subject to government regulation. The actual freight tariffs are negotiated between the freight company and the cargo owner and are defined by a contract based on the vehicles used, delivery speed, time limit for delivery, service items, etc..
France's railway passenger transport, by taking the market-oriented principle as the guideline, has introduced and continuously improved the revenue management mode, contributing to the coexistence of various fare mechanisms. The railway passenger fare mechanism has achieved a good balance between government regulation and independent pricing of enterprises, and between economic benefits of enterprises and social service objectives of public transport. SNCF has autonomy in terms of the setting and adjustment of freight tariffs. The company can set the domestic freight tariffs based on the types, characteristics and transport conditions of freight. An agreement can be reached between the client and SNCF, as long as the client gives consent. The adjustment of freight tariffs does not require ministerial approval, but must be filed with the competent administrative authority. For import, export and transit transport, SNCF shall implement the standards of freight tariffs in different railway networks according to EU regulations and international conventions.
