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From the inception of railroads in the U.S., commercial freight railroads operated private passenger service. However, by the 1960s, travel by air and interstate highways dominated, and it was no longer profitable to operate passenger railroads.

As a result, private railroads in the U.S. were not doing well. Passenger service was one of many headwinds they had in the business, and they were essentially looking to end it. The federal government did not want to see a wholesale failure of the railroads in the country and decided to develop a solution: Amtrak.

Amtrak, founded in 1971, is a private company, but the sole shareholder is the United States Federal Government. In some regard, there is a public side to the brand. Amtrak assumed all the passenger lines managed by the different railroads throughout the country. Since then, the company has grown — cutting some lines while adding others and revitalizing the fleet.

Today, Amtrak has observed historic interest and levels of investment in passenger rail as a low-energy, sustainable way to travel. This recognition points to passenger rail as having a role to play in the future of travel in the U.S. Over the next 10 years, the company plans to move its services into new markets while improving service in existing ones.

Mark Johnson, CEO of Loyalty360, spoke with Adam Levin-Epstein, Director, Amtrak Guest Rewards, and Ross Nizlek, Director, CRM Operations & Strategy at Amtrak, about Amtrak’s Guest Rewards program, using customer loyalty data to determine program enhancements, and the brand’s commitment to “proactive service recovery.”