by

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

 

163,519 thoughts on “Railway Industry in France”

  1. Thanks for sharing. And also this article gives the mild wherein we are able to have a look at the truth. That is very quality one and offers indepth statistics. Thank you for this fine article… its a extraordinary pleasure analyzing your put up. Its full of statistics i’m seeking out and i love to put up a remark that “the content material of your post is awesome” remarkable paintings. Thank you for each other informative net web page. Where else may want to i am getting that sort of records written in this sort of best manner? I’ve a task that i’m really now working on, and i’ve been on the look out for such info. Perhaps that is a piece offf subject matter however in any case, i have been browsing approximately your weblog and it looks surely neat. Impassioned approximately your writing. I am creating a new weblog and tough-pressed to make it seem wonderful, and supply extraordinary articles. I have located plenty on your web site and that i sit up for additional updates and could be again. Introductory you acquire a tremendous blog . I warranty be engaged with further to uniform mins. 가족방알바

  2. Extraordinary blog. I extremely joyful in perusing your articles. That is virtually an remarkable perused for me. I have bookmarked it and i’m looking ahead to perusing new articles. Interesting submit. I’ve been wondering about this issue, so thanks for posting. Pretty cool post. It ‘s actually very fine and beneficial submit. Thank you. very first-rate submit, i truely love this website, maintain on it . I’m inspired, i must say. Truly not often will i come across a weblog that’s each educative and pleasing, and allow me inform you, you could have hit the nail approximately the pinnacle. Your concept is high-quality; the seize is some thing that no longer sufficient folks are talking intelligently about. I am very glad which i discovered this at my are trying to find out some issue concerning this. I found your this submit at the same time as taking a gander at for some related facts on weblog search… It is a now not all that horrendous post.. Hold posting and invigorate the facts. I’m going to study this. I’ll make sure to return lower back. 먹튀검증

  7. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. colchas, nordicos

  8. very interesting post.this is my first time visit here.i found so mmany interesting stuff in your blog especially its discussion..thanks for the post! pkv games

  9. very interesting post.this is my first time visit here.i found so mmany interesting stuff in your blog especially its discussion..thanks for the post! pkv games
    xssfhrw

  11. For older parents, retirement or a large promotion at paintings is a time whilst celebration events are going to be a notable idea. Wonderful know-how. With thanks. That is a extremely good platform. I also give you an article about fortnite. Essentially, it’s far a pc recreation. It gives a brand new pores and skin to your favorite characters. Get this skins with skin generator. Revel in your fortnite enjoy. Thank you. This is such a notable resource that you are offering and you give it away without cost. I like seeing blog that recognize the cost of supplying a quality useful resource for free. I assume this is an informative put up and it’s far very beneficial and knowledgeable. I simply tripped upon your blog and ached to mention that i have absolutely loved reading your blog submit. Thank you for sharing. You’ve got stated very interesting information ! Ps first rate web page. fantastic goods from you, guy. I have apprehend your stuff previous to and you are just too outstanding. I clearly like what you’ve obtained here, surely like what you’re saying and the way in that you say it. 토토사이트

  12. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! keep up the good work pkv games

  14. first rate web page. fantastic goods from you, guy. I have apprehend your stuff previous to and you are just too outstanding. I clearly like what you’ve obtained here, surely like what you’re saying and the way in that you say it. 토토사이트

  15. The first phase the preparation should, theoretically, be uninfluenced by the intended intensity and duration of the sound which is subsequently produced. In fact, however, so quickly are the three phases accomplished that the pianist rarely has capacity to think, in performance, of each phase separately. SMM Panel

  16. The writing fashion that you have used in this article is superb and it made the article of better excellent. Thank you a lot for this informative post . High-quality info! I latterly got here throughout your blog and were reading along. I concept i’d go away my first remark. I don’t understand what to say except that i have . That is an wonderful publish i visible thanks to percentage it. It is truely what i wanted to look wish in destiny you’ll hold for sharing this kind of incredible publish. Took me time to read all the feedback, however i virtually loved the article. It proved to be very useful to me and i am certain to all of the commenters right here! It’s usually fine while you can not simplest be knowledgeable, but also entertained! It became a superb submit indeed. I thoroughly loved reading it in my lunch time. Will truly come and visit this weblog extra frequently. Thanks for sharing. I used to be just browsing thru the internet searching out a few information and got here throughout your weblog. I am inspired with the aid of the records that you have in this blog. It indicates how properly you apprehend this concern. 안전놀이터

  17. Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. dramacool

  19. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here keep up the good work transkrypcje

  20. I have been searching for a bit for any high-quality articles or blog posts on this kind of place . Researching in Aol I at last stumbled upon this web site. Reading this information So i’m happy to convey that I’ve an extremely good uncanny feeling I came across exactly what I needed. I most definitely will make sure to do not forget this webpage and give it a look on a constant basis.

  21. Wow! This could be one of the most useful blogs we have ever come across on thesubject. Actually excellent info! I’m also an expert in this topic so I can understand your effort. Lottery sambad

  22. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. link login ehm297

  23. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. Thanks for sharing this information. I really like your blog post very much. You have really shared a informative and interesting blog post with people.. Generally I don’t read an article on blogs, but I would like to say that this write-up very compelled me to try and do so! Your writing style has been amazed me. Thanks, very great post. Cool article it’s really. Friend on mine has long been awaiting just for this content. 먹튀사이트

  24. Wow! This can be one particular of the most beneficial blogs We’ve ever arrive across on this subject. Basically Wonderful. I’m also a specialist in this topic so I can understand your effort. It’s rare knowledgeable men and women for this topic, but the truth is be understood as you know what you are discussing! Thanks . Great Article it its really informative and innovative keep us posted with new updates. its was really valuable. thanks a lot. I really enjoyed reading this post, big fan. Keep up the good work andplease tell me when can you publish more articles or where can I read more on the subject? 메이저놀이터

  25. A debt of gratitude is in order for sharing the information, keep doing awesome… I truly delighted in investigating your site. great asset. I really appreciate this wonderful post that you have provided for us. I assure this would be beneficial for most of the people. Thank you for another informative website. Where else could I get that type of information written in such a perfect way? I have a project that I’m just now working on, and I’ve been on the look out for such information. Usually dislike any form of commenting, but when you read an excellent publish occasionally you simply have to get from those lazy techniques. That is such a submit! 안전공원놀이터

  26. My partner and i favour your overall write-up. It could be great to look at any person describe inside terms from the aerobic in addition to lucidity because of this essential problem could be swiftly noticed. slot demo

  27. You really have fantastic stories. Cheers for sharing with us your blog. I would really like to thank you for the efforts you’ve installed penning this internet web page. I’m hoping the equal excessive-grade site post from you in the imminent additionally. Simply your innovative writing competencies has stimulated me to get my own weblog now. Actually the running a blog is spreading its wings fast. Your write up is a excellent instance of it. Exquisite submit! I’m virtually on the point of across this records, is very beneficial my friend. I really like evaluation desires which understand the price of passing at the notable strong asset futile out of pocket. I virtually worshiped inspecting your posting. Grateful to you! Commonplace visits recorded right here are the most honest method to fee your power, that’s the motive why i’m keeping off to the website everyday, hunting down new, fascinating records. Many, bless your heart! I discovered your this publish whilst taking a gander at for some associated facts on blog search… It’s a not all that horrendous publish.. 메이저사이트추천

  30. Maintain the great do the job, once i recognize numerous threads within this net web page in addition to i’m certain that a global-wide-web blog website online is normally proper beneficial possesses bought bags linked with terrific records. I havent any word to welcome this publish….. Truely i’m inspired from this submit…. The individual who make this submit it turned into an first rate human.. Thanks for imparted this . Fantastic blog. I took delight in scrutinizing your articles. This is extremely a awesome scrutinized for me. I’ve bookmarked it and i’m suspecting scrutinizing new articles. Continue doing extraordinary! Appropriate put up. Thanks for sharing with us. I simply loved your manner of presentation. I loved studying this . Thanks for sharing and maintain writing. It is good to examine blogs like this. I think this is one of the most giant information for me. And i’m satisfied studying your article. However have to remark on a few widespread matters, the net web page fashion is perfect, the articles is sincerely fantastic : 우리카지노

  31. You delivered such an excellent piece to study, giving each subject enlightenment for us to advantage information. Thank you for sharing such facts with us because of which my several standards were cleared. This is extremely fascinating substance! I’ve altogether overjoyed in perusing your focuses and feature arrived at the conclusion that you are best about a sizeable quantity of them. 안전놀이터

  34. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. 100mg fentanyl

  35. I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. How to make money from Tik Tok

  36. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don’t forget, keep sharing useful info: fentanyl 100mg

  37. I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article… buy fentanyl patch

  40. tadalafil api is an oral drug for the treatment of ED, used in the treatment of erectile dysfunction and premature ejaculation, erectile function impairment, and premature ejaculation has very significant improvements.

  41. It’s appropriate time to make some plans for the future and it is time to be happy. I have read this post and if I could I wish to suggest you few interesting things or advice. Perhaps you could write next articles referring to this article. I desire to read even more things about it! 라이브카지노커뮤니티

  42. Interesting blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple adjustments would really make my blog shine. Please let me know where you got your design. Many thanks
    토토

  43. Interesting blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple adjustments would really make my blog shine. Please let me know where you got your design. Many thanks
    카지노

  44. Interesting blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple adjustments would really make my blog shine. Please let me know where you got your design. Many thanks
    온라인카지노

  48. Et bien oui et aussi pas vraiment. Certes parce que il est probable qu’on acquiert certaines sources qui certainement accusent les memes validités. Non puisque il ne suffit pas de reproduire ce que l’on a la possibilité de retouver sur des articles autres et le transposer tellement clairement; slot demo

  49. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. fentanyl 100mg

  50. Nice post. I learn something more challenging on distinct blogs everyday. It will always be stimulating to read content off their writers and practice a little something from their store. I’d choose to use some with all the content in my small weblog whether you do not mind. Natually I’ll provide a link on your own internet weblog. Many thanks sharing. judi rolet

Leave a Reply

Your email address will not be published. Required fields are marked *