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:
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.
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.
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
Price at 2 weeks before departure
Price at 3 weeks before departure
Price at 4 weeks before departure
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:
The non-physical rate fences are age, season ticket, and loyalty
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
Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more. 토토사이트
Wonderful blog! Do you have any tips and hints for aspiring writers? Because I’m going to start my website soon, but I’m a little lost on everything. Many thanks! how to make restaurant website
If you are looking for more information about flat rate locksmith Las Vegas check that right away. Poker Online
Some truly wonderful work on behalf of the owner of this internet site , perfectly great articles . togel online
이것은 정말 좋은 소식입니다, 내가 게시물을 좋아합니다, 공유 주셔서 감사합니다 .. 스포츠토토
아주 좋습니다. 필요한 지식을 찾았습니다. 귀하의 게시물에서 일부 정보를보고 참조하겠습니다. 감사합니다 토토
Wonderful post! This post has uncovered hidden treasures on blog commenting. 토토사이트
You have done a amazing job with you website 토토사이트
Excellent information on your blog, thank you for taking the time to share with us. Amazing insight you have on this, it’s nice to find a website that details so much information about different artists. 토토사이트
This is my first visit to your web journal! We are a group of volunteers and new activities in the same specialty. Website gave us helpful data to work. 토토사이트
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. ocean freight agent in china
Korean Drama
live sports free broadcast
스포츠중계
해외스포츠중계
라이브스포츠중계
해외축구중계
http://livech24.com/
Great job for publishing such a beneficial web site. Your web log isn’t only useful but it is additionally really creative too. Paykwik
Extremely overall quite fascinating post. I was searching for this sort of data and delighted in perusing this one. Continue posting. A debt of gratitude is in order for sharing.data science institutes in Hyderabad
Happy to chat on your blog, I feel like I can’t wait to read more reliable posts and think we all want to thank many blog posts to share with us.
Business Analytics Course in Bangalore
Bunu duymak gerçekten güzel. güncelleme ve iyi şanslar için teşekkür ederim. hasta yatakları
절대로 문제를 해결하고 선택 정보를 제공합니다. 사설토토
A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. Topographic Survey in Kolkata West Bengal
Wonderful goods from you, man. I have understand your stuff previous to and you’re just extremely great.I actually like what you’ve acquired here, certainly like what you are stating and the way in which you say it. You make it entertaining and you still care for to keep it wise.I can’t wait to read far more from you. This is actually a terrific website.Naati Pinky Ki Lambi Love Story Full Episode
Blog gönderiniz için gerçekten minnettarız. Gönderinizi ziyaret ettikten sonra birçok yaklaşım bulacaksınız. Tam olarak arıyordum. Böyle bir gönderi için teşekkürler ve lütfen devam et. Harika iş. vinç kiralama
Mükemmel ve çok heyecan verici bir site. İzlemeyi seviyorum. Eğlenmeye devam et.
Büyük yazı ve harika bir web sitesi. Bilgi için teşekkürler! kiralık sepetli vinç
You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this… ENP
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. 카지노사이트
Much obliged for sharing useful data.
https://talktoastro.com/article/goddess-lakshmi-mantra
이 기사는 훌륭한 영감을주는 기사입니다. 저는 여러분의 훌륭한 작업에 매우 만족하고 있습니다. 토토
We are really grateful for your blog post. You will find a lot of approaches after visiting your post. Great work Vendita online dischi underground
رپورتاژ آگهی رایگان در سایت بست فارسی
You have completed certain reliable points there. I did some research on the subject and found that almost everyone will agree with your blog.
Data Analytics Course in Bangalore
I curious more interest in some of them hope you will give more information on this topics in your next articles 카지노사이트
You are really a very high talented singer!!! I really love your music!! 카지노사이트
Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more. 카지노사이트
wow… what a great blog, this writter who wrote this article it’s realy a great blogger, this article so inspiring me to be a better person 카지노사이트
I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article. online store in chicago
Tekniko Global is an award-winning mobile app development company in Delhi and other city or countries. We develop high-quality
Best web hosting company
https://hostcafeday.com/
นี่เป็นบทความที่ยอดเยี่ยมมีข้อมูลมากมายบทความประเภทนี้ช่วยให้ผู้ใช้สนใจเว็บไซต์และแบ่งปันต่อไป … ขอให้โชคดี แทงบอล
perfect post! Keep it up! https://nautilusmarketing.co.uk/
dewacekiqq Sebuah Situs Poker Online Indonesia Terpercaya Di Dunia
บทความดีๆมีข้อมูลให้อ่านมากมาย Great Man คอยโพสต์และอัปเดตให้ผู้คน.. ขอบคุณ บาคาร่า
โพสต์ที่น่าประทับใจจริงๆ ฉันอ่านทั้งหมดและจะแบ่งปันกับวงสังคมของฉัน ฉันชอบบทความของคุณและวางแผนที่จะเขียนซ้ำในบล็อกของฉันเอง แทงบอล
เป็นบล็อกที่เจ๋งมาก การเชื่อมโยงเป็นสิ่งที่มีประโยชน์มากคุณช่วยได้มาก แทงบอล
เป็นสิ่งที่ฉันอยากเห็นความหวังในอนาคตคุณจะแบ่งปันโพสต์ที่ยอดเยี่ยมเช่นนี้ต่อไป แทงบอล
Truly overall quite fascinating post. I was searching for this sort of data and delighted in perusing this one. Continue posting. Much obliged for sharing.business analytics training
A debt of gratitude is in order for sharing useful data.
http://www.integralbiosciences.com/
It is really what I wanted to see hope in future you will continue for sharing such a excellent post. startrade nightprofit
ขอบคุณสำหรับการปรับปรุงเว็บไซต์ที่ดีมาก .. คาสิโน
I hope it will be helpful for almost all peoples that are searching for this type of topic. I Think this website is best for such topic. good work and quality of articles ThanksMere Sai Episode Online
I visit your blog regularly and recommend it to all of those who wanted to enhance their knowledge with ease. The style of writing is excellent and also the content is top-notch. Thanks for that shrewdness you provide the readers! 카지노사이트