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

 

165,587 thoughts on “Railway Industry in France”

  1. Loving the information on this site, you have done great job on the content . This looks absolutely perfect. All these tinny details are made with lot of background knowledge. I like it a lot. This was a useful post and I think it is rather easy to see from the other comments as well that this post is well written and useful. I am definitely enjoying your website. You definitely have some great insight and great stories. As I website possessor I think the content material here is really good , thankyou for your efforts. 검증사이트

  2. Hochwertige Wandfolien und Möbelfolien 24H online bei Decofilms bestellen. Versandfertig innerhalb von 24 Stunden .Gratis Montagewerkzeug.Wählen Sie aus über 150 verschiedenen Dekoren… klebefolie möbel

  4. This is a great inspiring article.I am pretty much Updated Resurge Pills pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. You completed a few fine points there. Resurge Weight Loss Pills I did a search on the subject and found nearly all persons will go along with with your blog. Thanks for sharing this valuable content. In my view, if all Sonus Complete webmasters and bloggers made good content as you did, the web will be a lot more useful than ever before. Thanks for sharing. 토토사이트

  5. 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 articlk back again real soon. I like this post,And I guess that they having fun to read this post,they shall take a good site to make a information,thanks for sharing it to me. 먹튀폴리스주소

  6. 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 . I’ve been surfing online more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the web will be a lot more useful than ever before. I am happy to find this post very useful for me, as it contains lot of information. I always prefer to read the quality content and this thing I found in you post. Thanks for sharing. 먹튀검증

  8. Interesting and clear business card company.Great blog design. I like to follow your creative ideas in blogging. If you are looking for high-quality text on any topic, will help you at any time of the day quickly and efficiently. Keep delighting us with new posts! I have express a few of the articles on your website now, and I really like your style of blogging. I added it to my favorite’s blog site list and will be checking back soon . Great, i must say and thanks for sharing this informative post.I am really impressed that there is so much information about this subject that have been uncovered and you’ve done your best. 카지노쿠폰

  10. So lot to occur over your amazing blog. Your blog procures me a fantastic transaction of enjoyable.. Salubrious lot beside the scene .. This is my first visit to your blog! We are a gathering of volunteers and new exercises in a comparative claim to fame. Blog gave us significant information to work. You have finished an amazing movement . Nice information, valuable and excellent design, as share good stuff with good ideas and concepts, lots of great information and inspiration, both of which I need, thanks to offer such a helpful information here. Welcome to the party of my life here you will learn everything about me.

  11. i am for the first time here. I found this board and I in finding It truly helpful & it helped me out a lot. I hope to present something back and help others such as you helped me. I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work. I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. In fact your creative writing abilities has inspired me to start my own Blog Engine blog now. Really the blogging is spreading its wings rapidly. 먹튀검증

  13. A lower level of stress can be relieved with some activities. However, excessive stress can affect the daily life of the students along with their mental and physical health. If you are also a student and feeling stressed due to academic reasons then contact online assignment help services today. I definitely enjoying every little bit of it. It is a great website and nice share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work. Wow, excellent post. I’d like to draft like this too – taking time and real hard work to make a great article. This post has encouraged me to write some posts that I am going to write soon. 먹튀검증

  14. This is very informative and you are obviously very knowledgeable in this area. You will find a lot of approaches after visiting your post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Thanks for sharing. Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful for me. It is a very excellent blog post. I really really love it. I hope that you continue to do your work like this in the future. Thanks for sharing this with us. 먹튀검증커뮤니티

  15. An expert Jeddah lawyer in the Kingdom of Saudi Arabia is the lawyer Mohammed Al-Dosari Law Firm and Legal Consultation

  21. Oh my goodness! an excellent article dude. Thank you However I’m experiencing problem with ur rss. Do not know why Cannot register for it. Could there be any person getting identical rss difficulty? Anybody who knows kindly respond. Thnkx Its like you read my mind! You appear to grasp so much approximately this, such as you wrote the ebook in it or something. I believe that you just could do with some p.c. to force the message home a little bit, however instead of that, that is great blog. An excellent read. 먹튀사이트

  23. Oh my goodness! an excellent article dude. Thank you However I’m experiencing problem with ur rss. Do not know why Cannot register for it. Could there be any person getting identical rss difficulty? Anybody who knows kindly respond. Thnkx Its like you read my mind! You appear to grasp so much approximately this, such as you wrote the ebook in it or something. I believe that you just could do with some p.c. to force the message home a little bit, however instead of that, that is great blog. An excellent read. 먹튀사이트

  24. I really like this article. I came to read this article because my friend recommended it.but i love this content more than i expect.and i want to recomnend about your story i think its little boring.but it good for student . and i love it

    ผลบอล7m

  25. I have to thank you for the efforts you have put in penning this blog. I really hope to view the same high-grade content by you in the future as well. In fact, your creative writing abilities has inspired me to get my very own blog now . I definitely enjoying every little bit of it. It is a great website and nice share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work Your content is nothing short of brilliant in many ways. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers . 토토

  28. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our . I like your post. It is good to see you verbalize from the heart and clarity on this important subject can be easily observed.. i read a lot of stuff and i found that the way of writing to clearifing that exactly want to say was very good so i am impressed and ilike to come again in future.. Very useful post. This is my first time i visit

  29. Attempting to say thank you will not just be sufficient, for the shocking clarity in your article. I will really get your RSS to stay instructed with respect to any updates. Wonderful work and much achievement in your business tries . At the point when you are prepared doing all that we have discussed in the past sections, which is thinking about your shopping list with cautious arranging exactness, discovering the medications you require recall that 토토사이트추천

  30. Have you ever considered about including a little bit more than just your articles? I mean, what you say is important and all. However think of if you added some great visuals or video clips to give your posts more, “pop”! Your content is excellent but with images and videos, this website could undeniably be one of the very best in its niche. Fantastic blog! Hello Thank you for giving me useful information. Please keep posting good information in the future I will visit you often. Thank you. I am also running the site. This is a related site, so please visit once. Have a niceday! 토토사이트

  31. I was just browsing through the internet looking for some information and came across your blog. I am impressed by the information that you have on this blog. It shows how well you understand this subject. Bookmarked this page, will come back for more. Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free . Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. 먹튀사이트

  34. I admit, I have not been on this web page in a long time… however it was another joy to see It is such an important topic and ignored by so many, even professionals. I thank you to help making people more aware of possible issues. House for sale in Dhaka

  35. Work Is Not Longer A Place Pay safely using our Payment system, release payments according to a schedule of milestones you set, or pay only upon completion. You are in control, so you get to make decisions . Interesting topic for a blog. I have been searching the Internet for fun and came upon your website. Fabulous post. Thanks a ton for sharing your knowledge! It is great to see that some people still put in an effort into managing their websites. I’ll be sure to check back again real soon. this is really interesting reading. I am glad I found this and got to read it. Great job on this content. I like it. 먹튀

  40. In Bilateral symmetry there are the same three axes as in biradial symmetry but only one pair of symmetrical sides, the lateral sides, since the other two sides, called the dorsal (back) and ventral (belly) surfaces, are unlike. Thus, only one plane of symmetry will divide.

    A form of symmetry in which the opposite sides along a midline is a duplicate of the other in terms of body parts or appearance
    Supplement
    In biology, symmetry is a characteristic of certain organisms in which there is regularity in parts on a plane or around an axis. An organism that is symmetrical (showing symmetry) would have a balanced distribution of duplicate parts on each side of the axis. It may not necessarily be an exact duplicate but an approximate repetition. An example of symmetry in organisms is bilateral symmetry.
    Bilateral symmetry is a form of symmetry in which the opposite sides are similar. The external appearance is the same on the left and right sides in a sagittal plane (such as the body plan of most animals, including humans). When an organism shows bilateral symmetry, the body plan is divisible into equal mirror halves in a sagittal plane.

    The internal body parts such as organs may not necessarily be symmetric. A taxonomic clade, Bilateria, includes animals with bilateral symmetry. These animals (also referred to as bilaterians) have left and right sides to distinguish them from those with different form of symmetry (e.g. radial symmetry) as well as those lacking symmetry (asymmetry).
    Bilateral symmetry in the plant kingdom is exemplified by the orchid and pea families.

  41. Once you know your goals, you can start your search for a medspa. The best way to find a medspa is to ask friends and family for recommendations. If someone you trust has had a great experience at a particular medspa, it is likely that you will as well.

    Best Botox providers in hawaii

  48. Hello, I have browsed most of your posts. This post is probably where I got the most useful information for my research. Thanks for posting, maybe we can see more on this. Are you aware of any other websites on this subject. merchant processing iso

  49. I am a wheelchair woodworker. Working from a wheelchair presents some unique challenges to access, mobility, and construction, but also provides different perspectives as well as strong motivation to finding solutions. These plans have been developed considering constructability from a wheelchair whenever possible. Refer to my Adaptive Mobility plans for tools and other designs to make project work easier from a wheelchair.
    Metalworking Plans

Leave a Reply

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