Railway Industry in France

TGV 1

1. Industry Overview:

In France, one of the most popular transport modes is train.  SNCF is France’s national railway, providing high speed, overnight and local services in France and beyond into Spain, Switzerland and Italy.

>> http://www.tgv-europe.com/en

Types of Train in France:

01-TGV

02-Lunea

03-Teoz

04-TER

06-Intercites

Railway industry is quite similar to airline industry, as it sells seats for a transport from an origin to a destination. The price depends on journey, class, and date of booking. Thus, railway industry can be placed in Quadrant 2, where its service has variable prices for a predictable duration. This industry also has the appropriate characteristics to apply revenue management strategies. Those characteristics are:

– Inflexible capacity: the number of seats on a train is fixed

– Variable and uncertain demand: the demand is different depending on the time of day, day of week, origin-destination pairs, and purpose of travel

– Perishable inventory: the unoccupied seat cannot be inventoried, and the revenue of that seat is missed

– Low marginal cost and high production cost

– Product can be sold in advance

– Heterogeneous customers with different segments, varying by age, purpose of travel, independent or group, etc.

However, there are some differences that make the revenue management of railway industry is little bit different than that of airline industry.

More difficult to forecast demand and to have the accurate number of travelers on a service: no check-in procedure, open tickets (rail pass) generally allow passengers to travel on any rail service, walk up tickets are very common (a large number of passengers purchase their tickets on the day from the station)

Less difficult to deal with overbooking: passengers are often allowed to stand during train journeys hence increasing capacity beyond the number of seats

———

 2. Space

Railway industry defines space implicitly.

Normally, a train has two classes: Economy (2nd Class) and Comfort (1st Class). The seating options and services are different for each class. The price is same for different seating options in a class.

 Economy Class:
01-Class2
 Comfort Class:

01-Class 1

Trains, especially TGV has “TGV bar”, which provides a wide selection of meals and sweet snacks available for purchase. Additionally, the TGV bar offers films on DVD, magazines, games for children, Paris Metro tickets, even USB sticks for purchase. There is also a rolling snack cart that comes to the customers’ seats.

01-TGV Bar

For additional revenue, TGV offers Premium service includes 1st Class seat, meal service, and access to the TGV lounge at the train stations.

Personally, I would charge difference fares for different seating options in each class. A group will want to pay more to have a Club 4 seat. A couple will want the Duo seat or Club 2 seat. And an individual traveler will want a solo seat. As the number of seat are fixed, we can charge for each option, rather than a “first comes first served” policy.

I’m also thinking about a mini-cinema on train, especially overnight train. Normally, the overnight train have load factor less than 80%, so the train can use one car to transform into a mini-cinema with a projector and a screen. When the train is busy, the car will be transformed in normal guest car again.

——

3. Time

Railway industry defines time implicitly.

Although the duration of a journey is determined, the railway industry sells a journey rather than specifically selling time. In addition, there may be issues that cause the increase/decrease in duration of the journey.

However, the railway industry also tries to sell time explicitly with the Rail pass. With Rail pass, customers can have unlimited travel on the national rail network of France for a fixed number of days. The choices are 3, 4, 5, 6, 7, 8 or 9-day pass within a one-month period. Travel days may be used consecutively or non-consecutively.  Thus, the fare becomes rate-per-day, not anymore rate-per-trip.

>> http://www.raileurope.com/rail-tickets-passes/france-pass/index.html

The industry can sell time explicitly by providing Rail pass with weekly or monthly unit. However, I think it will not be effective as it makes the demand forecasting much more complicated.  Half-day unit won’t make sense as a trip is normally more than 3 hours.

——–

4. Price

Tickets can be purchased 60 to 120 days in advance depending on the route.

Ticket discounts are based on advance purchase, availability, and certain restrictions. Everyone is eligible to receive discounted fares by purchasing an Economy or Comfort class ticket in advance. Youth and seniors can enjoy specific discounts as well. Discounted tickets are available for youth (under 26 of age), seniors (age 60 and over) and children (generally ages 4-11) but should be verified with each product.

Price at 1 week before departure
01-Price-1st class-10AM-1wk

Price at 2 weeks before departure

01-Price-1st class-10AM-2wk

Price at 3 weeks before departure

01-Price-1st class-10AM-3wk

Price at 4 weeks before departure

01-Price-1st class-10AM-4wk

Normally, prices are reduced for 1or 2 week-advanced purchase, slightly reduced for 3-week-advanced purchased, and stay same for more-than-4-week-advanced purchase.

The physical rate fences are the classes:
01-Booking-Class

 

The non-physical rate fences are age, season ticket, and loyalty

01-Booking-Rate Fences-1

01-Booking-Rate Fences-2

01-Booking-Rate Fences-3

01-Booking-Rate Fences-4

As the rate fences are now already too sophisticated, I would rather consolidate these fences than create new fences to confuse customers.

 

(-Thao Ly)

——–

References:

http://www.raileurope.com

http://www.tgv-europe.com

http://www.sncf.co.uk/

Amstrong and Messneir, 2010. Railway revenue management: Overview and Methods

Schroeder, Braun, and Schnieder. Revenue management in the railway industry

 

2,293 thoughts on “Railway Industry in France

  1. Railway industry in France has developed a lot in the last couple of years. In the above blog, the development has been explained in a very good manner. It can be easily seen that the changes in revenue management in the railway industry in the last few years. Thinking to write essay for you guys and highlight the growths which you have archived in the last few years. Cheers to the post and maintain the frequency.

  2. Forex and Financial Markets is not a place where all traders are going to make easy profit. Only about 10% of traders around the world can make stable profit all the time, 90% of traders will lose some or all their Portfolios at the end. This is the ugly truth you must believe in, which is why we called this market by “The Legal Casino”
    Profiting in Forex Trading doesn’t come from trading more often, but by profitable trades. The best trades aren’t available every hour or even every day, so sometimes you might have to wait for days or even weeks to find
    Best Forex Signals

  3. There are a number of reputed massage centers offering you the ultimate pleasure of rejuvenating your mind and body.

  4. Unable To Create Account On Yahoo then Just Contact Yahoo
    If in case you are not able to create an account on ATT then read the blog and articles related to the Yahoo Sign Up if then too you are unable to do so then quickly Contact Yahoo as our assistance will lead you in creating the account and will also supervise in securing your account. You can contact Yahoo by giving a ring at 1-855-792-0222. https://www.customersupport-phonenumber.com/contact-yahoo/

  5. Facing Problem while loading the Yahoo Mails then avail Yahoo Mail Support
    If you are facing a problem while loading the Yahoo Emails then monitor the internet connection and examine whether you have enabled the receiving and sending email option or not if not then enable it and then again try to load the emails but if after this also you are encountering Yahoo Mail loading problem then just simply avail of Yahoo Mail Support. You can avail of the support by giving a call at 1-855-792-0222. https://customersupport-phonenumber.com/yahoo-mail-signup/

  6. Buzz Gmail Customer Service Number To Know About Troubleshooting Channels

    If you want to sort out the whole host of your problems in an effective and timely manner, you should take the necessary help directly from the experts who are active round the clock at Gmail Customer Service number 1-833-276-4777. As the helpline remains active all the time, you can easily avail proper assistance anytime. https://attcustomerservicephonenumber.com/gmail-customer-service-number/

  7. Gmail password recovery: Use It To Know About Different Categories Of Gmail Inbox

    There are different categories of Gmail inbox such as primary, social, and promotion. If you want to know how to categorize the inbox according to the above category, you should take assistance from the Gmail password recovery number 1-833-554-7444. You are also free to get the real time aid directly from our experts. https://www.supportforhelp.net/gmail-password-recovery

  8. Hi,
    That’s an amazing post. Thanks for sharing it man.
    I totally agree with your point that Railway industries define implicity. A rail pass is so convenient, it makes works easy.
    Also,
    In short, there is a lot to learn in this world. Keep learning and keep sharing is the only rule of successful blogging.
    Anyway, that’s a great informative post. Keep up the good work. All the best and keep sharing more.

  9. Among some of the top and beautiful massage girls’ platform, you will find name of Professional Massage Shanghai comes on the top.

  10. Confronting Problem While Accessing AT&T account then contact at AT&T Phone Number

    If you are new AT&T user and facing a problem while accessing the AT&T account then first check that whether you are entered correct login details or not and check whether your internet speed is coming good or not. If all the things are working properly and then to you facing the issues then feel free to contact AT&T Phone Number i.e. 1833-276-4777 at any time. https://www.att-customerservice.com/

  11. Fronting Server Error while opening AT&T then contact AT&T Phone Number

    If you are facing error while opening the AT&T then firstly delete the browser cache and cookies and then again try to open AT&T and if then too you confront issues then contact AT&T Phone Number i.e1833-276-4777 . You can reach us whenever you want as we are 24/7 accessible to help you. Our professionals are enough knowledge that they can resolve your all issues within no time. https://attcustomerservicephonenumber.com/

  12. زبان بدن یا ارتباطات غیر کلامی ( Body Language ) یکی از بهترین قسمتهای آموزش اصول و فنون مذاکره بحساب می آید که معمولا مغفول واقع می گردد.
    هرچند به غلط اما با آموزش زبان بدن و یادگیری تکنیک های زبان بدن اساتید می‌کوشند ذهن خوانی را در دوره مذاکره به فرد بیاموزند.
    http://www.mazyarmir.com/%D8%A8%D8%B1%D8%AA%D8%B1%DB%8C%D9%86-%DA%A9%D8%AA%D8%A7%D8%A8-%D8%B2%D8%A8%D8%A7%D9%86-%D8%A8%D8%AF%D9%86-%D8%A7%DB%8C%D8%B1%D8%A7%D9%86%DB%8C/

  13. How To Do login Xfinity?

    If you are a new user then you might be having a question that How To Do Xfinity login? For login into your account first, open the login Xfinity page and then in the login page enter the login credentials such as email id and password and after that just click on the sign-in option, on doing this you will successfully able to login into your Xfinity account. 1-833-554-7444 https://www.supportforhelp.net/blog/xfinity-login/

  14. Confronting Issue While Doing login Xfinity?

    If you are confronting issues while doing the login Xfinity then check that whether you are using the correct URL for doing login or not and then check that you entering the correct details or not. Sometimes when the internet speed did not come in an appropriate manner then also user encounter login issue so while doing the login must assure that your internet is speed is coming good. 1-833-554-7444 https://www.supportforhelp.net/blog/xfinity-login/

  15. Thank you for sharing such a informative post with us, it will beneficial for everyone, It is one of the best sites that I have visited. Delimapoker I am looking forward to read more blogs post from here

  16. One Conversation on Yahoo Live Chat Can Resolve Your Issues Immediately

    On a daily basis, you are encountering issues then for immediate resolution drop a text on Yahoo Live Chat as our assistance will instantly resolve your all problems. You can drop a text at Yahoo Live Chat at any time as our assistance is 24/7 active to provide you a reliable solution. If in case you are not able to drop a text then you also contact at 1-855-792-0222 . https://www.customersupport-phonenumber.com/yahoo-live-chat/

  17. Resolve Your All Problem by availing Xfinity customer service

    If you are Xfinity user then you might be facing some issues related to it if yes then just avail of Xfinity Customer Service by giving a ring at 1-833-554-7444 at any time. By availing this service you can re3solve you all issues in a faster and accurate way. Our professionals are all-time accessible to provide the customer helpful solution. https://www.supportforhelp.net/xfinity-customer-service-phone-number

  18. wah banyak juga ya yang berburu backlink dofollow disini, kira” sy yang baru datang dari tahun 2019 masih manjur gak ya, btw jangan lupa mampir juga ya gais di
    Galeri Info
    sudah dofollow juga loh 🙂

  19. البته تعداد اساتیدی که در آموزش‌های خود از این اصول حرفه‌ای استفاده می‌کنند بسیار محدود است و معمولاً آنچه که در توضیحات دوره این افراد می‌بینید صرفا جنبه تبلیغاتی دارد و حتی یک نمونه هم برای ارائه ندارند. نمونه‌ای از انیمشن‌های آموزشی یونی ‌لند را می‌توانید در دوره معادلات دیفرانسیل و دوره ریاضی مهندسی ببینید.

    https://uniland.ir/product/%D8%A2%D9%85%D9%88%D8%B2%D8%B4-%D8%AC%D8%A7%D9%85%D8%B9-%D9%85%D8%B9%D8%A7%D8%AF%D9%84%D8%A7%D8%AA-%D8%AF%DB%8C%D9%81%D8%B1%D8%A7%D9%86%D8%B3%DB%8C%D9%84/

  20. Know about recovering your account with Yahoo Help

    For hassle free elimination of all sorts of technical problems, you’ll always need Yahoo Help . If the same situation is with you then you’re needed to dial our contact number. Our team works efficiently to resolve your technical problem within a few minutes. So, get connected with competent techies for more information 833-293-2333. https://www.my-contactsbackup.com/yahoo-customer-service-number/

Leave a Reply

Your email address will not be published.