ORLANDO — Gutsy. There is no other way to describe the splash Brightline made — or the revenue risk it took — after the company flipped the switch on what, by year’s end, would become 32 trains each day between South Florida and Orlando. Service began Sept. 22 to much fanfare.
The $6 billion effort began more than a decade ago. That’s when Fortress Investment Group founder Wes Edens started turning 20th Century mogul Henry M. Flagler’s Florida East Coast Railway and then-undervalued adjacent real estate into a high-capacity conduit for passenger and freight.
Make no mistake: If deep pockets coupled with private activity bond financing couldn’t be obtained, urban right-of-way didn’t already exist, vacant swampland adjacent to the east-west Beachline Expressway wasn’t available, or the Orlando International Airport Authority hadn’t recognized the value of Edens’ vision to reserve a path for tracks and a terminal, all the pieces may never have fit together. That’s useful to keep in mind when other regions ask, “Why can’t we have what Brightline is doing in South Florida?”
But the march to Orlando includes many aspects worth emulating. Despite the COVID-19 pandemic, construction never stopped, even while operations were paused when the world was hibernating. With confidence bred by incrementally establishing service in 2018 — from a West Palm Beach-Fort Lauderdale startup in January to operation to downtown MiamiCentral in May — ownership knew it had developed an expandable winner. At one point, it forged a partnership with the Virgin conglomerate before management realized it had developed a brand stronger than what Richard Branson had to offer; it continues to fight a damages lawsuit resulting from exiting that deal.
Other challenges throughout the year included delays related to Federal Railroad Administration certification of the technology that allows 110-mph operation through populated areas, where grade crossings are equipped with quad gates: a combination Wabtec I-ETMS positive train control/Alstom automatic train control system. An initial “late spring” debut was pushed back several times; speeds were finally elevated from 90 mph between West Palm Beach and Cocoa on Dec. 4.
And there was the ongoing concern by marine interests that led to an arbitrarily imposed, potentially disruptive U.S. Coast Guard bridge lift schedule across the single-track St. Lucie River Bridge at Stuart, Fla. The schedule was eventually changed. U.S. Congressman Brian Mast (R-Fla.), who led the opposition, later took credit for securing federal funding for a new bridge that will ease rail and marine operating concerns.
How Brightline did it
What is so special about the Brightine playbook? For starters, marketing 101 basics of an organization intent on growing its business. These include:
Product: The key to generating repeat customers is to make sure every journey is nearly flawless. This includes ticketing; the station experience; onboard information, amenities and service; and connectivity at the destination. Again, deep pockets were necessary to build an inviting environment. Remember, however, the task was to create primary demand for this mode of transportation against the alternatives familiar to the region’s travelers: driving, flying, and possibly TriRail and SunRail commuter trains. Aside from some trainsets’ advertising wraps that don’t offer a clear view when sun hits the window, Brightline has succeeded.
Promotion: From its 2018 launch, the company has been focused on filling seats the next day. Anyone who has ridden its trains, and thus has a profile in the booking database, gets regular emailed suggestions about why and where to travel. As with fundraising emails, recipients can always “unsubscribe.” But even if a message about a Miami Heat game, Fort Lauderdale wine festival, or Carrie Underwood concert in Orlando doesn’t pique interest, they are reminders the train can factor into travel plans. Through Dec. 20, Brightline had sent 195 emailed suggestions in 2023, 92 since July 1. Another significant innovation has been incorporating “first-mile” and “last-mile” Brightline+ booking connectivity through shuttles and ride-share services.
Price: With the September Orlando launch, the company has used these notifications to tout targeted discounts to boost patronage during inevitable valleys of demand. Advance-purchase $39 “Smart” class fares with “Kids Ride Free” offers on holidays, and $49 pricing on multiple off-peak departures in early January 2024, have been counterbalanced by sellouts and Miami-Orlando fares as high as $219 one way in Smart and $309 in Premium.
The November 2023 Florida Development Finance Corp. revenue bond report — the monthly source of Brightline ridership and revenue information — shows Orlando passengers comprised 45.5% of the 205,607 November trips but contributed nearly 75% of $11.3 million in total ticket revenue. The longer journeys also meant “ancillary revenue,” which includes baggage fees and food sales, totaled $2.6 million compared with $1.2 million for the same month in 2022 when trains only operated shorter distances.
To keep the momentum going while adopting sales tactics used by the cruise industry, the company has begun paying commissions to agents capable of including Brightline in travel packages for foreign and out-of-state visitors, an important component of future growth. Locally, additional patronage can be expected from intermediate stops along FEC’s north-south main line. The company has begun vetting locations; proposals were due Dec. 22.
Future prospects
The successful Miami-Orlando launch played no small role in the FRA’s decision to grant $3 billion in Federal-State Partnership funding for a 186-mph, electrified Brighline West rail corridor between Las Vegas and Southern California.
A federal funding vote of confidence will also be needed to advance a joint Brightline-SunRail “Sunshine Corridor” route through metropolitan Orlando to the convention center and attractions on the way to Interstate 4. Unlike the Miami-Orlando right-of-way, this segment has no cleared path. Only if that financial and construction challenge can be overcome will Brightline trains be able to take advantage of the Interstate 4 median, where space for tracks to Tampa is reserved and waiting. But without what Brightline has already demonstrated getting to Orlando, it wouldn’t be possible.
Previous News Wire coverage:
“Coast Guard bridge plan ignores practices elsewhere, realities of railroad operation: Analysis,” June 18, 2023.
”Brightline delays new Miami-Orlando ticket sales to Sept. 15,” Aug. 7, 2023.
“Brightline inaugurates Orlando service,” Sept. 22, 2023.
“Brightline’s new ballgame,” Sept. 25, 2023.
“Virgin Group wins lawsuit against Brightline in British court,” Oct. 12, 2023.
“Pricing hints at early patterns of Brightline ticket demand: Analysis,” Oct. 18, 2023.
“Brightline launches process to add station north of West Palm Beach,” Oct. 26, 2023.
“Congressman says Stuart, Fla., will receive grant for new FEC-Brightline drawbridge,” Dec. 18, 2023.
Coming Sunday: The No. 1 story of 2023.
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