It is important to understand the customers’ demands and translate their expectations into design targets in developing competitive advantages in the market place. In order to identify these demands in railway services systems and then to seek the way to satisfy the customer expectations, we used Quality Function Deployment (QFD), a method to transform qualitative user demands into quantitative parameters for achieving the design quality into services system. We suggest a holistic QFD approach comprised of three stages: 1) identification of customers demands, 2) determining the weights on customers expectations, 3) deployment of design characteristics from the customers demands. In the first stage, focus group interview was used to tentatively identify customer expectations and a SERVPERF survey was carried out to assess its current position in the market. Then, factor analysis was incorporated into SERVPERF in order to classify customer expectations for the house of quality. Furthermore, the analytic network process (ANP) was used to weight the importance of the customer attributes in the second stage. As a result, the QFD identified the most important customer expectations as: accident prevention, swift reaction in case of accident, on time arrivals and departures of the train. This study also shows that driving capability, equipment for safety, training for disaster, safety education, accident case analysis, and staff training are the most critical technical requirements in railway services system.Key Words: Railway services system, SERVPERF, quality function deployment, customer demand, design target, analytic network process.