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

 

201,819 thoughts on “Railway Industry in France”

  2. Very good points you wrote here..Great stuff…I think you’ve made some truly interesting points.Keep up the good work. Trying to say thank you won’t simply be adequate, for the astonishing lucidity in your article. I will legitimately get your RSS to remain educated regarding any updates. Wonderful work and much accomplishment in your business endeavors. Thanks for the nice blog. It was very useful for me. I’m happy I found this blog.Thank you for sharing with us,I too always learn something new from your post. Thanks for every other informative site. The place else may just I get that kind of information written in such an ideal means? I have a venture that I’m just now operating on, and I have been on the look out for such information 안전놀이터

  5. May I simply say what a relief to uncover someone that really knows what they are talking about online. You actually understand how to bring a problem to light and make it important. More people have to check this out and understand this side of the story. I was surprised that you aren’t more popular because you surely have the gift. Next time I read a blog, I hope that it does not disappoint me just as much as this one. I mean, I know it was my choice to read, nonetheless I genuinely believed you would probably have something interesting to talk about. All I hear is a bunch of crying about something you could fix if you were not too busy seeking attention. You’ve made some decent points there. I checked on the net to find out more about the issue and found most people will go along with your views on this website. 토토사이트도메인

  6. Good post. I learn something new and challenging on blogs I stumbleupon everyday. It’s always exciting to read through articles from other writers and practice a little something from other websites. Howdy! This blog post could not be written much better! Reading through this post reminds me of my previous roommate! He constantly kept talking about this. I will send this post to him. Pretty sure he’ll have a great read. I appreciate you for sharing! Greetings! Very helpful advice in this particular article! It’s the little changes that produce the largest changes. Thanks a lot for sharing! 온라인카지노 후기

  7. The Pyrenees (endonyms: els Pirineus or el Pirineu in Catalan, Pyrénées in French, Pirenèus in Occitan, Pireneu in Aragonese, Pirinioak in Basque, Pirineos in Spanish) are a set of ranges (forming one mountain range) located at the north of the Iberian Peninsula and crossing the entire length of the isthmus that unites the Peninsula to the rest of Europe.

    Thanks

  9. Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include. livescore7m

  10. การเล่นเกมในปัจจุบันที่มีการนำเสนอสื่อต่างๆที่จะทำให้ผู้พัฒนาสร้างตัวเกม ทางเข้า pg slot ที่ตอบโจทย์ผู้เล่นเพื่อให้ได้สิ่งที่ต้องการนั้นเอง

  14. Betting on sports and casinos directly from your smartphone is very simple: download the Mostbet mobile app! The application is available for Android and iOS, and you can download it in a couple of minutes. It works in the same way as the desktop version – players have access to all the functionality of the bookmaker, all bonuses – free spins and free bets, cashback, loyalty program, etc. Download the app right now and start winning!

  19. Keep up the wonderful theweekndmerch piece of work, I read few posts on this internet site and I think that your blog is really interesting and holds bands of fantastic information.

  22. Personally, I have found that to remain probably the most fascinating topics when it draws a parallel to. You may find two to three new levels inside L . a . Weight loss and any one someone is incredibly important. Initial stage may be real melting away rrn the body. lose weight Pinoy Tv

  23. You have made some decent points there. I looked on the internet for more information about the issue and found most people will go along with your views on this web site. Pinoy Tv

  24. I have to express some appreciation to the writer just for rescuing me from such a crisis. After searching throughout the world wide web and obtaining views that were not pleasant, I assumed my entire life was over. Existing minus the strategies to the issues you have fixed through this short article is a critical case, as well as the kind that might have in a wrong way affected my entire career if I had not noticed the blog. Your main skills and kindness in taking care of everything was very useful. I don’t know what I would’ve done if I hadn’t discovered such a thing like this. It’s possible to now relish my future. Thanks for your time very much for your reliable and sensible help. I won’t hesitate to suggest your blog to any individual who requires guidance on this issue. A lot of thanks for each of your efforts on this site. Kim really loves doing investigation and it’s easy to understand why. We know all about the powerful method you make helpful items via your blog and as well cause participation from some other people about this topic so our favorite child is truly becoming educated a great deal. Enjoy the rest of the year. You are doing a powerful job. 꽁머니홍보방

  25. 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. pragmatic slot

  26. I simply wanted to post a quick word so as to appreciate you for all of the great facts you are showing on this site. My time consuming internet research has at the end been rewarded with reputable details to exchange with my classmates and friends. I would repeat that most of us readers are unequivocally blessed to be in a remarkable network with many perfect people with very helpful methods. I feel really lucky to have seen the web page and look forward to tons of more awesome times reading here. Thanks a lot once more for everything. Thank you a lot for providing individuals with an extremely splendid possiblity to read critical reviews from here. It is usually very brilliant and as well , full of amusement for me and my office co-workers to search your website at a minimum thrice in one week to read through the fresh guidance you will have. And lastly, I’m also at all times pleased with the stunning tactics you serve. Certain two ideas in this posting are definitely the finest we have had. 토토사이트가입코드

  27. I have to show my respect for your kindness in support of visitors who have the need for assistance with this important theme. Your real commitment to passing the solution up and down had been remarkably beneficial and have specifically made associates like me to arrive at their pursuits. Your important guidelines means a whole lot a person like me and substantially more to my office colleagues. Warm regards; from all of us. I simply needed to thank you so much once more. I’m not certain what I might have done without these solutions provided by you over such situation. It had been a real terrifying setting in my circumstances, however , understanding the skilled manner you dealt with it forced me to weep over contentment. Now i’m happier for the support and pray you know what a great job that you are doing educating most people all through your web blog. I am sure you’ve never got to know any of us. Thanks for sharing, this is a fantastic article.Thanks Again. Great. 가입머니 주는 사이트

  28. Wow! Such an amazing and helpful post this is. I really really love it. It’s so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also . I’m impressed, I must say. Actually rarely can i encounter a blog that’s both educative and entertaining, and without a doubt, you could have hit the nail about the head. Your idea is outstanding; the thing is something that too few individuals are speaking intelligently about. We are delighted that we came across this around my try to find some thing with this. 스피드키노

  33. You there, this is really good post here. Thanks for taking the time to post such valuable information. Quality content is what always gets the visitors coming. GPT

  35. Your post is very helpful to get some effective tips to reduce weight properly. You have shared various nice photos of the same. I would like to thank you for sharing these tips. Surely I will try this at home. Keep updating more simple tips like this.  PET PHOTOGRAPHY

  36. Revenue Management in Action is a great and informative blog I like it and I have also good news about event management software is the next-gen automated cloud-based event and venue management software to book and manage your theatres and performing arts centers. Dramacool

  38. Everything you need to get the most out of your health insurance, from discounts for members to consulting services, is right here at Live the Orange Life. For example, when referring to the official Home Depot website. The LiveTheOrangeLife website is a resource for warehouse workers across the country. Through this site, employees have access to all of their benefits in one convenient location.

  39. Mostbet dunyodagi eng yaxshi bukmekerlik kontorliklaridan biri boʻlib, oʻzbek oʻyinchilari orasida juda mashhur. Sport tikish, kazinolar, lotereyalar va boshqalar onlayn va mobil ilovada mavjud. O’zbekistonlik barcha o’yinchilar uchun ajoyib bonuslar mavjud: mavsumiy sovg’alar, bepul aylanishlar va har kuni bepul garovlar, keshbek, promo-kodlar, garov sug’urtasi va boshqalar. Mostbet UZ’da ro‘yxatdan o‘ting va yutib oling!

  41. I truly wanted to send a simple word in order to thank you for all of the lovely secrets you are giving here. My particularly long internet lookup has finally been compensated with extremely good information to share with my partners. I ‘d believe that most of us visitors are very fortunate to be in a wonderful website with many awesome people with very helpful solutions. I feel very much privileged to have seen your entire web site and look forward to so many more enjoyable minutes reading here. Thanks again for everything. Thank you a lot for providing individuals with an exceptionally superb chance to read critical reviews from this web site. It’s always so kind and packed with a lot of fun for me personally and my office fellow workers to search your site at a minimum 3 times in a week to see the fresh guides you will have. And of course, I’m also usually happy concerning the fabulous tactics you serve. Certain 3 ideas on this page are absolutely the best we’ve ever had. I together with my guys have been reviewing the nice points located on your web blog and then the sudden developed a terrible feeling I had not thanked the web blog owner for those strategies. All the ladies appeared to be as a result glad to see them and now have surely been making the most of them. Many thanks for turning out to be really helpful and also for selecting such important themes millions of individuals are really needing to be informed on. Our own honest regret for not expressing gratitude to sooner. 메이저놀이터

  43. I am happy to find this post very useful for me, as it contains lot of information. I always prefer to read the quality content and this thing I found in you post. Thanks for sharing. 메이저사이트

  44. I am happy to find this post very useful for me, as it contains lot of information. I always prefer to read the quality content and this thing I found in you post. Thanks for sharing. vpn on steam deck

  45. I am happy to find this post very useful for me, as it contains lot of information. I always prefer to read the quality content and this thing I found in you post. Thanks for sharing. darkfox market link

  46. This content is really amazing according to topic category. I am really inspired by this blog and appreciate this. Thanks for sharing with us such an informational content. Mahindra 245

  47. Thank you a lot for giving everyone an exceptionally brilliant opportunity to check tips from this web site. It is often very lovely and as well , packed with a lot of fun for me and my office co-workers to search your blog minimum three times in a week to study the new items you have got. And lastly, we are at all times satisfied for the cool knowledge you serve. Some two ideas in this article are indeed the most efficient we have ever had. My spouse and i have been really lucky when Chris could conclude his research via the precious recommendations he grabbed when using the weblog. It is now and again perplexing to simply possibly be giving for free helpful tips which often a number of people have been making money from. Therefore we know we need you to give thanks to for this. Most of the explanations you made, the simple blog menu, the friendships you will help to promote – it’s got everything excellent, and it’s really aiding our son and our family believe that this article is exciting, which is extremely vital. Thank you for the whole lot! 먹튀검증

  48. O‘zbekistonlik futbolchilar dunyoning eng yaxshi bukmekerlik idoralaridan biri – Mostbet UZni tanladi! Har kuni o’yinchilarga bonuslar va sovg’alar – bepul tikish, naqd pul, promo-kodlar, tikish sug’urtasi. Yangi boshlanuvchilar uchun xush kelibsiz bonus – 125%+ gacha bepul aylanishlar! Tikishlar onlayn va mobil ilovada mavjud – ro’yxatdan o’ting va g’alaba qozoning!

  49. I needed to compose you the little remark just to say thanks a lot once again about the striking opinions you’ve documented in this article. It’s quite seriously open-handed with you to supply openly just what many people might have advertised for an e-book to get some profit for themselves, especially considering the fact that you could possibly have done it if you desired. Those points also served like a good way to be sure that the rest have similar desire just like my very own to see very much more in terms of this problem. I am sure there are a lot more pleasant sessions up front for people who take a look at your blog. I am extremely impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you customize it yourself? Either way keep up the excellent quality writing, it is rare to see a great blog like this one nowadays.. I think other web site proprietors should take this website as an model, very clean and fantastic user genial style and design, let alone the content. You are an expert in this topic! 메이저공원놀이터

  50. This unique blog is without a doubt cool and informative. I have discovered many interesting advices out of this source. I ad love to return again soon. Thanks a lot ! You ave made some good points there. I checked on the web for additional information about the issue and found most people will go along with your views on this website. This particular blog is no doubt entertaining and besides informative. I have picked a bunch of useful things out of this blog. I ad love to visit it again and again. Thanks a bunch! Merely wanna say that this is very helpful , Thanks for taking your time to write this. 토토사이트

Leave a Reply

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