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

 

208,470 thoughts on “Railway Industry in France”

  5. I am glad to see this brilliant post. all the details are very helpful and good for us, keep up to good work.I found some useful information in your blog, it was awesome to read, thanks for sharing this great content to my vision, keep sharing.
    บาคาร่าAE SEXY

  6. รวมเว็บ SPINIX ที่บอกได้เลยว่า ผู้เล่นสามารถได้รับกำไรจากการเล่นเว็บแห่งนี้ได้อย่างง่ายดายซึ่งเว็บตรงมีความน่าดึงดูดใจหลายแบบด้วยเหมือนกันไม่ว่าจะเป็นในเรื่องของโปรโมชั่นที่บอกได้เลยว่าจัดหนักจัดเต็ม

  8. where-to-donate-pop-tabsPop Tab Cancer is a type of cancer that is caused by the eating of fast food and other processed foods. The disease is named after the hamburger pocket (a popular Fast Food restaurant chain in the 1970s and 1980s). Pop Tab cancer drugs work by stopping the growth of tumors in the stomach, small intestine, andoma.

  9. เว็บmega gameสล็อตออนไลน์ที่ดีที่สุดแห่งปี 2023 ที่รวมระบบเกมจากทุกค่ายเกมสล็อต เปิดให้บริการตลอด 24 ชั่วโมง ให้คุณเล่นได้ทุกเกม เกมส์สล็อตชื่อดังมีระบบฝาก-ถอนที่ทันสมัย (ระบบอัตโนมัติ) ตลอดทั้งวัน และอีกช่องทางสามารถทำรายการผ่าน True Money Wallet ซึ่งเป็นบริการเปิดเว็บ เกมบนเว็บรองรับทุกระบบปฏิบัติการ นี่คือเกมสล็อตวิดีโอ 3 มิติที่มีภาพที่สวยงาม และเอฟเฟกต์เสียงที่น่าตื่นเต้น

  10. เว็บmegagameใหม่มาแรงอันดับ 1 ที่เสนอ “โบนัส” & “เครดิตฟรี” ไม่จำกัด รับโปรตั้งแต่ครั้งแรกที่สมัคร สูงสุด 100% เล่นง่าย ได้เงินจริง เลือกเล่น สมาร์ทโฟนทุกรุ่นมีเกมฟรี น่าลองทั้งเกมระดับตำนาน

  11. เกมใหม่ล่าสุดในบรรดาเกมสล็อตแมชชีนทั้งหมด เมก้าเกมอัปเดตทุกครั้งที่มีเกมใหม่ออกมา รวมถึงเกม และแบรนด์อื่นๆ อีกมากมาย เกมสล็อตแมชชีนแสนสนุก มีรางวัลให้ลุ้นแจ็คพอตใหญ่ทุกวัน และสามารถซื้อฟรีสปินสำหรับผู้ที่ต้องการเข้าสู่รอบพิเศษได้ทันที

  12. เกมสล็อตออนไลน์ที่รวบรวมเกมสล็อตที่น่าสนใจ ตื่นเต้น ลุ้นระทึก เมก้าเกมส์พร้อมทั้งสูตรสล็อตให้ได้เงิน และเราเสนอโหมดทดลองเครดิตสล็อตฟรี คุณสามารถทดลองเครดิตสล็อตออนไลน์ได้ฟรีทุกค่าย สล็อต ไม่ต้องฝาก ไม่ต้องแชร์ ไม่ต้องลงทะเบียน

  17. 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 補習中文

  19. New York Leather Company (NLC) is the manufacturer of the best-quality replicas of the Biker Jackets worn by the celebrities, famous personalities, and popular characters in their various appearances. We provide you the best and the top-notch quality product with the such amazingness that they just keep you satisfied as long as you wear it. Not just the huge amount of Women Leather Jackets present at this extraordinary store are for casual wear. women leather jackets

  23. That first offered me personally about this point of view to cope with something which gives a crucial description improving ? here

  30. it’s really nice and meanful. it’s really cool blog. Linking is very useful thing.you have really helped lots of people who visit blog and provide them usefull information. 링크찾기

  31. If you’re looking for Audio Services, you’ve come to the right place. We offer a variety of audio services to help you with your project. We can provide you with production music, sound effects, and voice-over services.

  32. This is my first time i visit here. I found so many entertaining 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 leisure here! Keep up the good work. I have been meaning to write something like this on my website and you have given me an idea. Ovalpool

  35. Best Quality Assignment Help Online Worldwide. All assignment help online provided by our expert authors to students is available at affordable prices. Assignments for various degrees are as much essential as learning the subject. We are available 24*7 for your immediate assignment help.

  38. I think this is a better than average article. You make this data intriguing and locks in. You give perusers a considerable measure to consider and I welcome that sort of composing. 中文補習社

  41. It turns out that even the hottest port has a few places where you can get off the beaten path. Here are some recommendations that will make you feel like you’re in the know 補習社

  43. After research just a few of the blog posts on your website now, and I really like your method of blogging. I bookmarked it to my bookmark website list and can be checking again soon. Pls check out my website as properly and let me know what you think. Subaru Electric Cars

  45. virtual-reality-is-here-users-to-explore-and-interact/!Virtual Reality is a technology that allows users to experience virtual realities. These virtual realities are created by placing a computer screen in front of users and making them feel as if they are there. This technology can be used for business and personal use, but it is most popular right now for exploring the world around them in an interactive way.

  46. Nice post. I learn some thing very complicated on different blogs everyday. Most commonly it is stimulating you just read content off their writers and rehearse a specific thing from their website. I’d would prefer to use some while using content on my small weblog whether or not you do not mind. Natually I’ll provide you with a link on your web weblog. Appreciate your sharing. Edu email 2023

  47. You will find lots of businesses that offer Escorts in Islamabad nevertheless, you ought to pick the most suitable companion in making structures together with them. Here’s a listing of a Few of Those businesses.

  49. I’ve been exploring for a little for any high quality articles or blog posts on this kind of area . Exploring in Yahoo I at last stumbled upon this website. Reading this info So i’m happy to convey that I’ve a very good uncanny feeling I discovered just what I needed. I most certainly will make sure to don’t forget this website and give it a look regularly. Armando Pantoja Net Worth

Leave a Reply

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