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

 

181,329 thoughts on “Railway Industry in France”

  2. kamagra oral jelly, is considered one of the best and safest medicines to treat erectile dysfunction in men. Erectile dysfunction is a disorder mostly seen in men that restricts the ability to attain the needed hardness to achieve an erection.

  10. Saat ini permainan judi online kian diminati oleh banyak pemain judi online yang melangsungkan suatu permainan judi online yang ada pada sebuah situs judi online yang terpercaya sehingga para pemainnya yang melangsungkan permainan judi online dalam situs judi Bakarat online yang terpercaya bisa menghasilkan kemenangan yang besar dan berlipat ganda. Hal ini tentunya bisa dimenangkan dalam sebuah situs judi bakarat online yang terpercaya sehingga para pemainnya bisa melangsungkan kemenangan yang banyak dan juga menjanjikan untuk para pemainnya.

    Bakarat online merupakan TEXAS88: Situs Judi Bakarat Online | Agen Live Baccarat Casino, yang memiliki lisensi standar internasional disebut merupakan salah satu situs terbaik dengan menyediakan daftar live baccarat terpercaya yang pernah ada. Dengan jumlah pemain atau member judi situs judi bakarat online yang sangat banyak mencapai Ribuan bergabung setiap bulannya. Situs bakarat online bisa memberikan keamanan dan kenyamanan ketika saat melakukan taruhan judi bakarat terbaru.

  15. Some truly wonderful work on behalf of the owner of this internet site , perfectly great articles . …

  24. Pada awalnya permainan judi slot hanya dapat dimainkan secara langsung, namun seiring perkembangan zaman dan canggihnya teknologi, kini judi slot dapat dimainkan secara online dan kamu bisa daftar slot online hanya dengan menggunakan smartphone kamu dalam waktu singkat dan cepat. Tidak hanya itu saja saat ini kamu bisa bermain judi slot online dan deposit menggunakan e-wallet. Salah satunya kamu bisa bermain slot habanero di situs slot gacor 389SPORTS. Bahkan di situs slot 389SPORTS kamu bisa bermain slot demo secara gratis, sehingga kamu bisa bermain slot dan mencari pola permainan slot kamu sendiri sebelum bertaruh di permainan game slot uang asli. slot online

  29. สินค้าตอบแทนในตอนนี้นั้น กล่าวได้ว่าแปลงเป็นส่วนใดส่วนหนึ่งในชีวิตของคนรุ่นหลัง ที่ไม่ว่าใครก็สามารถใช้งานได้ เนื่องจากว่าถ้าหากใช้งานอย่างถูกทางย่อมจะมีผลให้กำเนิดคุณประโยชน์ และก็ส่งผลดีต่อร่างกายแน่ๆ สำหรับสินค้าชดเชยอย่างพอตพอเพียงดกระแสไฟฟ้าระบบปิดแบรนด์ดังจากประเทศมาเลเซีย มีมาตรฐานการสร้างในระดับสากล ได้ประสิทธิภาพ และก็มีความปลอดภัยสูง เดี๋ยวนี้ยังส่งออกจัดจำหน่ายไปๆมาๆกกว่า 60 ประเทศทั้งโลก ทั้งยังโซนยุโรป อเมริการ ออสเตรเรีย แต่ว่ายอดนิยมสูงที่สุดอาจจะจำเป็นต้องชูให้กับในแถบทวีปเอเชีย ที่มีผู้ใช้งานสินค้าตอบแทนเยอะที่สุดอีกด้วย

  30. Situs link sbobet adalah salah satu alternatif sbobet untuk bisa memulai sebuah taruhan bola secara online dengan sangat mudah tanpa hartus menggunakan VPN apabila situs tersebut terblokir di Indonesia. Dengan adanya link sbobet aktif di agen bola terpercaya 389Sprts para member bisa dengan mudah untuk melangsungkan taruhan. Daftar link sbobet disini

  32. First, shadows are the reflection of our existence in the space. Then, our shadows overlap, intertwine, communicate. In this project, shadows are turned into subjective via crypto representations of our mind states. Instead of being distorted by the source of light, the audience will be able to control their own shadows by wearing the headsets that collect EEG data from them and accordingly form fake shadows projected onto the ground beside them.

  33. Has aterrizado en la página de la derecha. España original Licencia de conducir en línea, España Licencia de conducir para la venta y otros documentos para varios países como: Estados Unidos, Australia, España, México, España, Reino Unido, España, Reino Unido. España Esta lista no está completa. Para obtener más información y realizar un pedido, visite nuestro equipo de correo electrónico.comprar españa licencia de conducir en línea ,

  35. Prueba de carnet de conducir en Madrid. La prueba de la licencia de conducir es siempre una tarea muy difícil para la mayoría de las personas. Esto se debe a la naturaleza tensa del examen teórico del permiso de conducir y del examen práctico del permiso de conducir. Sin embargo, le proporcionaremos Comprar licencia de conducir en Madrid sin que tenga que realizar una prueba de licencia de conducir. <a href="Comprar licencia de conducir en Madrid

  36. comprar una licencia de conducir en Girona? Sí, puede comprar una licencia de conducir registrada en línea con nosotros. Sea dueño de un verdadero estadounidense también si tiene la intención de viajar a los Estados Unidos, pero no desea tener el estrés de obtener una licencia de conducir que sea la licencia de conducir y Nosotros entregamos en 10 días como máximo sin demoras, sin extra costos de los costos mencionados en nuestro sitio web, y sin excusas de ningún tipo.<a href="Comprar licencia de conducir en Girona

  44. Thanks so much with this fantastic new web site. very fired up to show it to anyone. It makes me so satisfied your vast understanding and wisdom have a new channel for trying into the world.Mike Hoffman FNAF

  45. Thanks so much for this great article; this is the kind of thing that keeps me going through the day. Ive been looking around for your article after I heard about them from a friend and was thrilled when I was able to find it after searching for some time. Being a avid blogger, Im happy to see others taking initiative and contributing to the community. I just wanted to comment to show my appreciation for your post as its very encouraging, and many writers do not get the credit they deserve. I am sure Ill be back and will send some of my friends. https://webpressive.com/web-slot-bet-1bath/

  47. We are impressed by the content presented on this site, so I will recommend it to my friends. This blog is similar to the blog that I’m running right now. growtentshop 2 in 1 grow tent is one of the most popular articles, so I think it will be helpful for you to take a look over it. Buy the best keyword right now at the best prices!

  49. Thanks for sharing this piece of information with us! Your blog is helpful, so keep it up! As I see, you got many followers here, so it will be nice if I let one of my best articles here. I’m running a blog about indoor gardening, so Click Here and find more information about it!

  50. Are you a doctor or Lege with Swedish, Finnish or Norwegian license and want to work in Norway? Visit http://www.bonliva.no to see available vacancies. Bonliva offers long and short term assignments in hospitals and primary care units. We will provide free housing as well as travel expenses for our nurses and doctors.

Leave a Reply

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