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

 

178,345 thoughts on “Railway Industry in France”

  1. +92 3001191915
    If you are looking for escorts or escorts in Lahore, you have come to the right place.
    Our escorts are professionally trained to relax and delight their clients.
    https://topmodels.pk

  2. Periodically clearing the cache on your Android phone could help the device run more smoothly. The cache on your Android phone is a collection of small data files that your web browser and apps use to operate more quickly. To learn more, click here. how to clear cache on android

  6. Thank you so much for sharing this great blog.Very inspiring and helpful too.Hope you continue to share more of your ideas.I will definitely love to read. Word to PDF

  7. I found your this post while searching for information about blog-related research … It’s a good post .. keep posting and updating information. Word to PDF

  9. Thank you for some other informative website. The place else may just I get that kind of information written in such a perfect method? I have a venture that I am simply now running on, and I’ve been at the glance out for such info. best Excel to PDF

  11. Great Information sharing .. I am very happy to read this article .. thanks for giving us go through info.Fantastic nice. I appreciate this post. pdf tools

  12. Hey! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in exchanging links or maybe guest writing a blog post or vice-versa? My blog covers a lot of the same topics as yours and I believe we could greatly benefit from each other. If you are interested feel free to send me an e-mail. I look forward to hearing from you! Superb blog by the way! แทงมวยออนไลน์

  14. Extremely helpful post. This is my first time i visit here. I discovered such a large number of intriguing stuff in your blog particularly its exchange. Truly its extraordinary article. Keep it up. 課程管理系統

  15. Great Information sharing .. I am very happy to read this article .. thanks for giving us go through info.Fantastic nice. I appreciate this post. Fortnite

  17. Best female companions are looking for you to give their best to satisfy your lusty needs and desires. You have to take care of your heart because we can easily say that after seeing our Pune call girl you will fall in love with them. All of our escort models are mature and know everything about sexual pleasure for which you are waiting for a long time. Visit my site https://www.hotescortgirls.in/pune.html

  19. Thanks for the points you have shared here. One more thing I would like to talk about is that personal computer memory demands generally increase along with other improvements in the technological innovation. For instance, when new generations of cpus are made in the market, there is certainly usually an equivalent increase in the dimensions preferences of both the computer memory and also hard drive space. This is because the software program operated simply by these processor chips will inevitably increase in power to take advantage of the new technological innovation. free advertising

  20. Yoon Sang-jik, secretary-general of the bidding committee, thanked Samsung Electronics for its active public relations cooperation and said, “Unlike other   먹튀

  23. Wedding Planner in Dubai, Event Management in Dubai, ‘Sada al Afrah’ a renowned event management company in Middle east with world class equipment. One of the top event management companies in Dubai with 5 star rating. belly dancer in dubai

  24. After study a few of the blog articles for your website now, and that i really like your method of blogging. I bookmarked it to my bookmark site list and are checking back soon. Pls consider my internet site too and inform me what you consider. Smart Watch Apple Price in Pakistan

  28. In the brand-new horror game poppy playtime, you’ll be stranded in a massive toy factory by yourself while being pursued by a terrifying beast. Are you prepared for this journey? Start now and have fun!

  30. While yoha live is a game that includes a lot of people actively playing, games have to from a
    particular time. As for well-known bingo sites, there are a lot of them, so bingo players don't have to
    yoha live
    wait too long. The particular game should begin at any time, the time you log in – 24 hours a new
    day, daily regarding the year.

  34. situs judi togel online Togel Online yang merupakan permainan judi online yang sangat digemari oleh semua orang, dengan cara bermain yang sangat mudah dan hasil yang akan keluar bisa membuat anda bisa menjadi jutawan. Disaat ini mudah buat kita untuk menikmati permainan judi togel

  38. It what will be the final match or their inaugural season the Suns will finish 2-20 and yoha live avoid the wooden spoon if the Power lose to Melbourne. Expect the Suns to take it up to the Hawks early but be blown away in the second half.

  40. Truly, this article is really one of the very best in the history of articles. I am a antique ’Article’ collector and I sometimes read some new articles if I find them interesting. And I found this one pretty fascinating and it should go into my collection. Very good work! ngos in ghana

  41. Most beneficial gentleman speeches and toasts are made to enliven supply accolade up to the wedding couple. Newbie audio system the attention of loud crowds should always think about typically the great norm off presentation, which is their private. best man speaches محامي في الرياض

  49. PEAKERR provides Best SMM Panels Services & Cheap SMM Panel Services In The World. For Youtube Views Panel, TikTok Services Panel, Facebook Services Panel, Instagram Services Panel, And Many More, We Are Providing All Services At Cheap Rates For Reseller SMM Panels. Resell Our SMM Services And Make Money Online. We Have Many Free SMM Panel Services & Give You Some Test Funds For Check Our Services Quality. We Always Try to Provide High-Quality Services At a Cheap Rate. Check best smm panel

Leave a Reply

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