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

 

163,937 thoughts on “Railway Industry in France”

  1. The Law office of Micki Buschart a Kansas City firm focused on immigration law and Deferred Action for Childhood Arrivals (DACA) We take the time to explain the process so that our clients have a better understanding of their cases, the law involved and their rights.https://www.immigrationlawyerkc.com

  7. Dengar kata permainan judi slot atau dikatakan mesin judi slot adalah permainan ketangkasan memakai mesin yang bisa bergerak saat tuas penarik diambil untuk memutar judi slot.
    judi slot

  11. 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. nursing test bank

  14. We are genuinely appreciative for your blog section. You will find a lot of strategies in the wake of setting off to your post. I was exactly checking for. An obligation of appreciation is all together for such post and please keep it up. back scratchers for elderly

  15. I discovered your this post while hunting down data about site related examination … It’s a decent post .. continue posting and upgrading data.
    토토

  16. situs slot online

    Tanganjudi telah menjalin Kerjasama dengan berbegai penyedia permainan judi online International yang sudah sangat dikenal luas dan tentunya sudah banyak di mainkan oleh masyarakat Indonesia. Beberapa di antaranya adalah Sbobet, Cbet, Joker123, Pragmatic, Habanero, Asia Gaming, Sexy Baccarat dan masih banyak lagi penyedia lainya.

  17. บาคาร่า dg

    DG Casino, the best online casino gambling website Auto deposit and withdrawal system Apply for a single website to bet on all forms such as baccarat, slots, football betting, fish shooting games,

  18. Zemalia offers best sex toys for men including male masturbators, prostate massagers, penis ring and anal plugs. All products are covered under 1 year warranty against any manufacturing defects. We ship all adult toys in discreet packaging. sex toys for men

  20. I really loved reading your blog. It was very well authored and easy to undertand. Unlike additional blogs I have read which are really not tht good. I also found your posts very interesting. In fact after reading, I had to go show it to my friend and he ejoyed it as well buy web traffic

  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 buy web traffic

  22. Nice to be visiting your blog once more, it has been months for me. Well this article that ive been waited for therefore long. i want this article to finish my assignment within the faculty, and it has same topic together with your article. Thanks, nice share buy web traffic

  23. İstanbul Nakliye ekspertizi tarafından belirlenen plan sayesinde nakliye işleminin nasıl uygulanacağı konusunda bir netlik oluşturulur ve bunun için de ne gerekiyorsa yapılır. evden eve nakliyat

  25. 荔枝角港鐵站附近的富途迷你倉聯興分店，全新裝修、配套齊備；客戶可以將家中物品如衣物、文件、紀念品、傢俬等存放於荔枝角富途迷你倉，各中小企商戶也能利用迷你倉所提供的儲物空間存取物品，有助商戶彈性調配物品﹔二十四小時全年無休，為荔枝角市民公眾及商戶提供優越的迷你倉服務﹔立即預約睇倉，獲取迷你倉價格。長沙灣港鐵站附近的富途迷你倉昌發分店，全新裝修、配套齊備；客戶可以將家中物品如衣物、文件、紀念品、傢俬等存放於長沙灣富途迷你倉，各中小企商戶也能利用迷你倉所提供的儲物空間存取物品，有助商戶彈性調配物品﹔二十四小時全年無休，為長沙灣市民公眾及商戶提供優越的迷你倉服務﹔立即預約睇倉，獲取迷你倉價格。 長沙灣迷你倉

  26. It is extraordinary to have the chance to peruse a decent quality article with valuable data on subjects that bounty are intrigued one.I agree with your decisions and will enthusiastically anticipate your future updates. 메이저사이트

  27. Easily, the article is actually the best topic on this registry related issue. I fit in with your conclusions and will eagerly look forward to your next updates. Just saying thanks will not just be sufficient, for the fantasti c lucidity in your writing. I will instantly grab your rss feed to stay informed of any updates. 꽁머니

  28. 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. liteblue usps

  29. Interesting website, i read it but i still have a few questions. shoot me an email and we will talk more becasue i may have an interesting idea for you. slotxo

  31. This kind of actually also a good placed that we in reality actually appreciated looking into. It isn’t automatically typical that we are the substitute for establish a certain factor. credit repair

  33. Hasgül Hukuk Bürosu olarak faaliyet alanlarımızda kendimize en fazla güvendiğimiz alan CEZA HUKUKU alanıdır. Büromuzda görevli olan avukatlarımızın tamamı ceza avukatı olarak faaliyetlerini sürdürmektedir. Kartal adliyesi veya Çağlayan adliyesi’nde görülecek olan davalarınızda aradığınız ceza avukatlarına firmamızdan erişebilirsiniz.

    Aynı zamanda ticaret hukuku, iş ve şirketler hukuku, aile hukuku, icra hukuku, sözleşmeler hukuku, gayrimenkul hukuku, ceza hukuku, miras hukuku alanlarında da uzman avukatlarımız hizmetinizdedir. İnsan haklarına saygılı, dürüst ve güvenilir bir hukuk bürosu arıyorsanız doğru yerdesiniz.

    Kaynak : https://www.fatihhasgul.av.tr/

  34. Great post but I was wondering if you could write a little more on this subject? I’d be very thankful if you could elaborate a little bit further. Thanks in advance! on page

  35. I’m just seeking to models write-up. Its fantastic come across people today explain in words to the heart in combination with comprehension during this sizeable motif will likely be easily uncovered. watchasian

  36. Arbeitsplatte Küche Folie

    Chop vegetables, roll out the dough, puree soups. Sometimes the pot was too hot, sometimes the knife left an unsightly scratch on the surface. Anyone who likes to use their kitchen often knows how the worktop wears out over the years. Nevertheless, a new kitchen does not always have to be found in this case. We’ll tell you how you can beautify the worktop with kitchen foil and save time and money at the same time.

  37. Thanks for your post. I’ve been thinking about writing a very comparable post over the last couple of weeks, I’ll probably keep it short and sweet and link to this instead if thats cool. Thanks.
    Modafinil Online

  39. I am really loving the theme/design of your web site. Do you ever run into any browser compatibility problems? A few of my blog readers have complained about my website not working correctly in Explorer but looks great in Chrome. Do you have any tips to help fix this issue? slotxo

  40. We provide premium piping engineering & full-service pipe design and pipeline / pipe stress analysis services, from initial concept through final construction. We serve all types of industries across Canada & globally. Using CAESAR II and pipe stress calculations as per API, ASME B31.3, B31.1, B31.8, B31.4, CSA Z662. Piping Stress Engineer Ontario

  42. Some genuinely wonderful information, Glad I discovered this. I must say that you’ve done a superb job with this. And i am glad reading your article. Best of luck for the next! Please visit my web site soundskinsglobal.com. Best Acoustic Dampening Material service provider.

  43. I like the valuable info you provide in your articles. I’ll bookmark your weblog and check again here regularly. I’m quite certain I will learn a lot of new stuff right here! Best of luck for the next! Please visit my web site eliteautogear.com. Best car cameras service provider.

  44. Nice to be visiting your blog once more, it has been months for me. Well this article that ive been waited for therefore long. i want this article to finish my assignment within the faculty, and 안전놀이터 has same topic together with your article. Thanks, nice share.

  45. Some genuinely wonderful information, Glad I discovered this. I must say that you’ve done a superb job with this. And i am glad reading your article. Best of luck for the next! Please visit my web site Big5electronics.com. Best wholesale car audio service provider.

  46. İstanbul Evden Eve Nakliyat firmamızdan taşımacılık Hizmetlerimizi İstanbul ve Tüm Türkiye’ geneli geniş araç parkımız ve alanında yetişmiş yılların deneyimli personelleriyle yapmaktayız. istanbul evden eve nakliyat

  47. Wow! This could be one particular of the most useful blogs We have ever arrive across on this subject. Actually Magnificent. I am also a specialist in this topic so I can understand your effort. Royal Online V2

  49. I’ve been surfing online more than 3 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. Personally, if all webmasters and as you did, the web will be a lot more useful than ever before. Best of luck for the next! Please visit my website cgbuildingsolutions.co . Best Graphic Baby Bibs service provider.

Leave a Reply

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