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
I am thankful to you for sharing this plethora of useful information. I found this resource utmost beneficial for me. Thanks a lot for hard work. cetak brosur bandung
Mainkan slot hoki di pisangbet dengan minimal deposit 10ribu dan rtp live setiap harinya.
Your post is really very interesting and I also enjoy reading it. https://172.104.32.124/
It’s the same topic , but I was quite surprised to see the opinions I didn’t think of. My blog also has articles on these topics, so I look forward to your visit. safetoto
OBC4D merupakan situs togel terpercaya dan juga bandar togel Sydney, Singapore dan Hongkong resmi dan terpercaya di Indonesia saat ini.
amazing post. animeflash
It has fully emerged to crown Singapore’s southern shores and undoubtedly placed her on the global map of residential landmarks. I still scored the more points than I ever have in a season for GS. I think you would be hard pressed to find somebody with the same consistency I have had over the years so I am happy with that. ألياف البازلت
Nobody explained they has been bad, he or she is merely a laying bastard, it lets you do do injury because those give up their funds since they think they’re discovering real email expertise and that might change their own total view on lifestyle when they feel great abilitiies are present. These are certainly gullible but Uri carries a selected personality of course, if you need to believe you may. bonsai de amora
Super site! I am Loving it!! Will return once more. I’m taking your sustenance in addition. Thanks InspireTricks.com
I’ve got a comparable love affair it is the webpage understand just about everything thoroughly in addition to well then, i’ll really know what you think that. piso wifi 10.0.0.1 pause time
rtp live wow this site has been clinical cant wait to see more from you guys
Xvideoservicethief 2018 linux hdd usb port not working problem solution
Your work is very good and I appreciate you and hopping for some more informative posts. Thank you for sharing great information to us. best customised notebook
I gotta favorite this website it seems very helpful . order online Custom Notebook
Thank you for this post. You can also check my blog MyEduScholars if you want latest information on best 2022 scholarships
Fl Studio 21 Crack
It was a perfect April day for a spring wedding at Morais Vineyards in Bealton, VA. Spring was the perfect setting for gorgeous photos of this adorable couple’s wedding day.
Virginia winery wedding venue
For some it is significant, and so research the page: piso wifi 10.0.0.1 pause time
This is a superb article, Given such a great amount of data in it, These kind of articles keeps the clients enthusiasm for the site, and continue sharing more … good fortunes. sell my house fast dallas tx
The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought you have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention. sell my house fast
Simply a smiling visitor here to share the love (:, btw great pattern . edu email
Man, I really enjoyed reading this message. You have convinced me to subscribe to your blog, but where can I find the RSS feed? superitc
I was reading your article and wondered if you had considered creating an ebook on this subject. Your writing would sell it fast. You have a lot of writing talent. order online vietnamese food
This post is really magnificent. I really like this post. It is one of the best posts that I ve read in a long time. Thanks a lot for this really good post. I really appreciate it! sell my house
I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. https://deliciousvietnamesefood-1.jimdosite.com/
فواید نارون لغزنده در طب سنتی
https://arga-mag.com/874622/%d8%ae%d9%88%d8%a7%d8%b5-%d9%86%d8%a7%d8%b1%d9%88%d9%86-%d9%84%d8%ba%d8%b2%d9%86%d8%af%d9%87
asia77situs judi online tergacor se asia.
I gotta favorite this website it seems very helpful . generic viagra 250 mg price in uk
Hello there, just became alert to your blog through Google, and found that it’s truly informative. I am going to watch out for brussels. I’ll appreciate if you continue this in future. Lots of people will be benefited from your writing. Cheers! Online Live Casino
Hi there. Very cool site!! Guy .. Beautiful .. Wonderful .. I will bookmark your website and take the feeds additionally…I am glad to locate so much useful info right here in the article. Thanks for sharing… Sports Betting Malaysia
I am interested in such topics so I will address page where it is cool described. more info here
Thank you for another great article. Where else could anyone get that kind of information in such a perfect way of writing? I have a presentation next week, and I am on the look for such information.
bigwin777 Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts.
With everything which seems to be developing within this particular subject matter, many of your points of view are very radical. Having said that, I am sorry, because I can not subscribe to your entire idea, all be it exhilarating none the less. It seems to everybody that your opinions are actually not completely validated and in fact you are generally yourself not completely convinced of your argument. In any event I did appreciate examining it. deep web
All the contents you mentioned in post is too good and can be very useful. I will keep it in mind, thanks for sharing the information keep updating, looking forward for more posts.Thanks Luxury Hotels
This was a really great contest and hopefully I can attend the next one. It was alot of fun and I really enjoyed myself.. Luxury Hotel Deals
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.. Luxury Hotel Deals
It was my excitement discovering your site last night. I came here now hoping to find out interesting things. I was not dissatisfied. Your ideas for new methods on this subject were useful and an excellent help to myself. Thank you for having time to create these things along with sharing your thinking. ดูหนังออนไลน์ฟรี
It is rather very good, nevertheless glance at the data with this handle. créer une formation en ligne
There is so much in this article that I would never have thought of on my own. Your content gives readers things to think about in an interesting way. Thank you for your clear information. sildigra 250 in uk
Great weblog here! Also your site lots up fast! What host are you the use of? Can I am getting your affiliate hyperlink for your host? I wish my web site loaded up as fast as yours lol Best Online Live Casino Malaysia
Excellent to be visiting your blog again, it has been months for me. Rightly, this article that I’ve been served for therefore long. I want this article to finish my assignment within the faculty, and it has the same topic together with your article. Thanks for the ton of valuable help, nice share. offpage seo expert,
Excellent to be visiting your blog again, it has been months for me. Rightly, this article that I’ve been served for therefore long. I want this article to finish my assignment within the faculty, and it has the same topic together with your article. Thanks for the ton of valuable help, nice share. offpage seo expert,
howdy, your websites are really good. I appreciate your work. Cheap Hotel Deals
Nice post mate, keep up the great work, just shared this with my friendz Cheap Hotels
Principal That you were granted some form of excellent web page. While i deal with always be involved yourself using additionally regular a short while. while i look at that you were granted definitely amazingly wise is vital, while i deal with maybe always be normally permits with the state your blog blesss. joker gaming
Buku Mimpi Erek Erek Paling Lengkap dari urutan 00 sampai 99
Nice post. I learn some thing much harder on different blogs everyday. It will always be stimulating you just read content from other writers and employ a specific thing at their store. I’d opt to apply certain using the content on my own blog whether you don’t mind. Natually I’ll provide a link on your own web weblog. Many thanks sharing. Play Online Slot Casino
This blog is so nice to me. I will keep on coming here again and again. Visit my link as well.. Is it okay to hire a hacker
Wow, What an Outstanding post. I found this too much informatics. It is what I was seeking for. I would like to recommend you that please keep sharing such type of info.If possible, Thanks. more information