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

 

213,918 thoughts on “Railway Industry in France”

  2. This design is incredible! You definitely know how to keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Wonderful job. I really loved what you had to say, and more than that, how you presented it. Too cool! voyance amour gratuite

  3. Free classified ads for cars, jobs, real estate, and everything else. Find what you are looking for or create your own ad for free!

    mawjjood

  6. Thanks for taking the time to discuss that, I feel strongly about this and so really like getting to know more on this kind of field. Do you mind updating your blog post with additional insight? It should be really useful for all of us. ویزلند

  8. Acquista la patente di guida italiana originale. Sono finiti i giorni in cui potevi farla franca facilmente senza una licenza. Visti i crescenti casi di incidenti stradali, il dipartimento ha inasprito ulteriormente le regole. Qui ti diamo la banca dati della motorizzazione possibilità di ottenere una patente di guida internazionale in lingua italiana senza alcuna formalità. patente di guida dal database della motorizzazione, contattaci.

    sito >>>> https://acquistarelapatentediguidaitalia.com

  9. Appreciates ideal for penmanship such a priceless line, Whenever i taken place next to your web blog rather than approximation some guide. I would personally have a preference for models grow in touch with manuscript… Fbisd skyward

  11. An impressive share, I just now given this onto a colleague who was simply carrying out a small analysis during this. And that he the fact is bought me breakfast since I discovered it for him.. smile. So ok, i’ll reword that: Thnx for any treat! But yeah Thnkx for spending enough time go over this, Personally i think strongly about it and enjoy reading on this topic. If it is possible, as you become expertise, would you mind updating your website with a lot more details? It really is extremely of great help for me. Huge thumb up just for this text! Porcelain Tiles

  12. สล็อต แจกเครดิตฟรี ได้ง่ายๆ ไม่ต้องฝากเงิน ไม่ต้องแชร์ ยืนยันเบอร์โทรศัพท์ เพราะเว็บเราแจกจริง ได้จริง ให้ไปรวยจริงๆ ในเวลานี้ใครๆ ก็หันมาหาเงินทางอินเตอร์เน็ตออนไลน์ pg slot เครดิตฟรี เครดิตฟรีมากขึ้นเพราะว่าทุกคนต่างเข้าถึง โชลเชียล

  15. But yet, regardless how good you will be accompanied by treating a huge rig, sometime currently, there are a situation in places ought to do selected information treating; and furthermore primarily based on your real age yet fitness level, free weight in your caravan it is a fantastically excessive do exercises. pre owned awnings 샌즈카지노

  20. But yet, regardless how good you will be accompanied by treating a huge rig, sometime currently, there are a situation in places ought to do selected information treating; and furthermore primarily based on your real age yet fitness level, free weight in your caravan it is a fantastically excessive do exercises. pre owned awnings 샌즈카지노

  21. This is a great post. I like this topic.This site has lots of advantage.I found many interesting things from this site. It helps me in many ways.Thanks for posting this again. asianwin88

  22. 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 asianwin88

  23. Some people were enthusiastic players or enjoyed music and dancing. Chances are you’ll remember that you were happiest on the running track. Even so, with increasing obligations maybe you have found no time to have pleasure in any of your interests. Are you affected by depression and want to get free from its abysmal depths without lifelong antidepresants? You could attempt and help yourself to overcome depression naturally. casinoparty

  24. Thank you a lot for sharing this with all people you really realize what you are talking about! Bookmarked. Kindly also consult with my web site =). We could have a link alternate arrangement between us! casinoparty

  28. Elite Property Maintenance LLC was established in 2016. We have been serving the greater Oklahoma City area for over 6 years. We are improving our service to Customers each year with extensive training, the latest tools and technology.
    AC repair near me

  37. รวมเกมมากมายบนโลกออนไลน์ แหล่งรวมคาสิโนชื่อดังที่คุณต้องห้ามพลาด มาเปลี่ยนชีวิตธรรมดาของคุณ ให้มีสีสันและเป็นการหารายได้อีกทาง บาคาร่า ออนไลน์ มาเลยรับรองไม่มีผิดหวังแน่นอน

  38. Extraordinary things you’ve generally imparted to us. Simply continue written work this sort of posts.The time which was squandered in going for educational cost now it can be utilized for studies.Thanks carriage doors

  40. Pain O Soma 350mg
    (Carisoprodol), as the name implies, is a medication that relieves pain since Carisoprodol is its main chemical constituent. It is an over-the-counter medication intended to relieve skeletal muscle discomfort. It functions by lessening the brain’s and the nerves’ perception of pain.

  41. I found your site perfect for me. It comprises of brilliant and valuable posts. I’ve perused huge numbers of them and furthermore got such a great amount from them. As far as I can tell, you do the genuinely amazing.Truly i’m intrigued out of this distribute cheap soccer jerseys

  42. You will discover a ton of methodologies subsequent to visiting your post. I was actually scanning for. A debt of gratitude is in order for such post and please keep it up. Incredible work. cheap soccer jerseys

  44. Thanks for this post. I definitely agree with what you are saying. I have been talking about this subject a lot lately with my father so hopefully this will get him to see my point of view. Fingers crossed! 코인카지노

  46. I’d been honored to receive a call from my friend as soon as he discovered the important recommendations shared on your site. Going through your blog posting is a real fantastic experience. Thank you for taking into account readers like me, and I desire for you the best of achievements for a professional surface area. 카지노사이트

  48. I’m glad I found this web site, I couldn’t find any knowledge on this matter prior to.Also operate a site and if you are ever interested in doing some visitor writing for me if possible feel free to let me know, im always look for people to check out my web site. SEO

Leave a Reply

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