AMHS announces pricing changes to make up for shortfall

The Alaska Marine Highway System says that it will institute price increases to make up for a $43 million reduction in funding imposed by the governor and the legislature.

In a release, Department of Transportation says that the reduction amounts to a 31% budget decrease.

The state says that three main changes in pricing will be instituted during the winter season, which lasts from Oct. 1 until April 30, 2020:

1. Dynamic pricing - which will increase fares as availability decreases

2. Event pricing - for special events, a 10% price increase will be instituted four days before and after.

3. Change fees - which will be increased up to $20 two weeks before departure, $50 two weeks to three days before departure, and $100 within three days of departure.

AMHS previously announced that it was

throughout the winter. DOT spokesperson Meadow Bailey said that the winter schedule has not been changed since that time.

Still, it is unclear how much revenue the move will save.

DOT spokesperson Meadow Bailey said over email that "we can’t accurately project the revenue until it has been in place for a while. Dynamic pricing will help to reduce the operating deficit, but will not come close to replacing the $42 million in budget reductions."