Model Perspective

Aug 24, 2026 · Industry Insights

Should Second-Class Seats and Standing Tickets Cost the Same?

The article examines why China’s high‑speed rail charges the same 500 RMB for second‑class seats and standing‑only tickets, arguing that identical class labels mask differing passenger value, outlining the hidden costs of standing, the economic “pain‑screening” mechanism, and proposing more nuanced pricing and compensation schemes.