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

 

165,178 thoughts on “Railway Industry in France”

  1. Hey there! This post couldn’t be written any better! Reading this post reminds me of my old room mate! He always kept chatting about this. I will forward

  3. สล็อตออนไลน์ เลือกเกมที่มีอัตราตัวคูณต่ำ เพื่อผลรางวัลที่ล้ำค่า
    สล็อตออนไลน์ นั้น บางคนอาจจะดูว่าง่ายเหมือนปอกกล้วยเข้าไป แต่จริง ๆ แล้ว เกมที่ง่ายเหมือนปอกกล้วยเข้าปากนั้น ๆ อาจจะไม่ได้ง่ายอย่างที่เห็น แต่ให้เลือกเกมที่ตัวคูณต่ำ คือเกมที่จะทำเงินที่ดีที่สุดให้กับคุณ การที่จะรู้ว่าเกมใดก็ตาม ที่จะสามารถทำเงินให้กับคุณนั้น ให้คุณดูอัตราคูณที่ต่ำเกมนั้นจ่ายให้กับคุณ วิธีเล่นสล็อตสำคัญในการพิจารณา การทำเงินจากเกมสล็อต ก็คือว่าตู้ใดก็ตาม ที่มีอัตราการจ่ายตัวคูณถี่ต่ำนั่น แสดงว่าโอกาสที่วงล้อจะหมุนออกรางวัลจะสูงตามเกมที่มีรูปแบบอัตราการจ่ายที่สูง มีความตื่นเต้นเร้าใจก็จริง แต่โอกาสในการที่จะพิชิตแจ็คพอตนั้น จะเป็นไปได้ยาก ดังนั้นถ้าคุณคิดที่จะเล่นเพื่อสร้างรายได้ อย่างเป็นกอบเป็นกำให้พิจารณาตู้สล็อตที่มีอัตราตัวคูณต่ำก่อนเป็นอันดับแรก pg slot เว็บตรง

  4. Openteleshop is able to provide you with all of the tools to begin a homecare agency. call us nowadays! Our revel in, assets, and validated tactics are the nice inside the industry! call Now. analyze more today. offerings: We educate Care Protocols, Recession proof commercial enterprise, worthwhile career.
    https://openteleshop.pk/

  5. 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 pgslot

  8. شرکت لوله باز کنی در تهران بزرگ یکی از برترین های این حوزه می باشد که سالیان سال است در این زمینه فعالیت دارد و آماده ارائه خدمات در باز کردن انواع لوله های حمام، توالت فرنگی و ایرانی، حیات، آشپزخانه و…
    ✓خدمات لوله باز کنی وتخلیه چاه در تهران
    ✓خدمات لوله باز کنی با دستگاه تراکم هوا
    ✓خدمات لوله باز کنی با دستگاه موتور پمپ
    ✓خدمات لوله بازکنی با دستگاه قوی فنر زنی
    ✓انجام خدمات لوله کشی درتهران

  11. Pisangbet adalah situs slot online terpercaya dan situs slot gacor paling gacor 2022. Situs judi slot online Pisangbet menyediakan Freespin hingga 200 x untuk member baru.

  18. 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! 먹튀검증

  20. 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. 릴게임사이트

  22. You make so many great points here that I read your article a couple of times. Your views are in accordance with my own for the most part. This is great content for your readers. 토토사이트

  25. https://eurasianundergroundfirearms.com/

    cheapest online gun store best website to buy black market guns with FFL
    used shotguns for sale online, cheap real guns for sale, largest online gun retailers, used shotguns for sale by owner
    Order cheap used guns online, old guns for sale cheap, used guns for sale, largest online gun sales, cheapest online gun store
    online gun dealers, best rated online gun dealers, buy gun online, best online gun sales sites, nebraska gun dealers
    largest online gun parts store

  27. Really I enjoy your site with effective and useful information. It is included very nice post with a lot of our resources. Thanks for share. i enjoy this post.

  28. I’ve been troubled for several days with this topic. 카지노사이트, But by chance looking at your post solved my problem! I will leave my blog, so when would you like to visit it?

  29. I was looking for another article by chance and found your article 카지노게임사이트 I am writing on this topic, so I think it will help a lot. I leave my blog address below. Please visit once.

  38. Whatever solution or combination of solutions the operator chooses, the Sports Broadcasting brand ensures the world’s bt quality.
    gazatv
    가자티비

  43. Whatever solution or combination of solutions the operator chooses, the Sports Broadcasting brand ensures the world’s bst quality.
    gazatv
    가자티비

  44. I have to show my respect for your kindness in support of persons who should have help with this situation. Your very own commitment to getting the message around became rather advantageous and have regularly made men and women just like me to achieve their objectives. Your own warm and friendly key points means a great deal to me and extremely more to my office colleagues. Best wishes; from each one of us. Matestation x

  49. Excellent Blog! I would like to thank for the efforts you have made in writing this post. I am hoping the same best work from you in the future as well. I wanted to thank you for this websites! Thanks for sharing. Great websites! 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. I would also motivate just about every person to save this web page for any favorite assistance to assist posted the appearance. Nice post. I was checking continuously this blog and I am impressed! Extremely useful info particularly the last part 🙂 I care for such information much. I was seeking this particular info for a long time. Thank you and good luck. 먹튀검증

  50. I am definitely enjoying your website. You definitely have some great insight and great stories. Your article has piqued a lot of positive interest. I can see why since you have done such a good job of making it interesting. I am incapable of reading articles online very often, but I’m happy I did today. It is very well written, and your points are well-expressed. I request you warmly, please, don’t ever stop writing. Nice post. I was checking constantly this blog and I’m impressed! Extremely useful info specially the last part I care for such information a lot. I was seeking this certain info for a long time. Thank you and good luck. 사다리사이트

Leave a Reply

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