Some statistics -- Durango and Silverton railroad operating results:
https://www.dora.state.co.us/pls/efi...ment_id=157860
2011
Passengers.........................229,956
Passenger Miles................9,567,179
Passenger Train Miles............45,851
Pax Miles/Pax Train Mile.............209
Passenger Revenue..........$12,803,839
Total Revenue................$15,356,822
Operating Expense..........$14,974,427
Net Income........................$382,395
Pax Miles/Pax...........................41.6
Pax Revenue/Pax....................$55.68
Pax Revenue/Pax Mile...............$1.34
Pax Revenue/Pax Train Mile....$279.25
Tot. Revenue/Pax Train Mile....$334.93
Tot. Oper. Exp./Pax Tr. Mi.......$326.59
I post these just to give some dimensions to discussions of the economics of rail. While the D&SNGRR is a tourist railroad, you can also slice up airline operating results and transit agency results to look at average ridership per departure, per mile, passenger (revenue) yields, net income, etc.
What the D&S shows is that with a limited service, over about 45 miles of track, nowhere near a major city, a little railroad gets about a quarter of million rides per year - mostly in the summer season, I expect. The revenue yields are substantially higher than most conventional passenger services, but so are the operating costs, which is not surprising. Also, note that the average train had 209 passengers per mile, which is a significant number, especially considering it is a small narrow gauge line pulled with steam locomotives. This means that peak trains probably carried substantially more passengers.
I tend to think a more pragmatic approach to rail could work in Colorado. Focusing on yield management, going only as fast as necessary to fill a train every hour or so, keeping operating cost as low as possible -- it might work.