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

 

165,937 thoughts on “Railway Industry in France”

  1. You there, this is really good post here. Thanks for taking the time to post such valuable information. Quality content is what always gets the visitors coming. modny rower

  2. CBD Oil

    Mile High’s Finest is the community’s answer to Colorado grown CBD products at an affordable price. We stand by our all natural food grade CBD derived from Colorado grown hemp. MHF is locally sourced and double lab tested for quality assurance. You can trust you are receiving the highest quality CBD for bulk or personal needs. Always starting 99% pure or higher.

  4. Generally, hospital furniture are representing hospitals. So it is important for hospital prestige. For example, a patient who comes to a hospital, firstly will look at the service, stuf’s demeanor and professionalism. Everyone wants to sleep in a hospital that looks clean, hygienic and comfortable. Because they want to spent money on a hospital that is considered luxuriou. Besides a quality hospital bed, the purpose of the bed is very important. For example, even if the castors used in the beds seem simple to transfer the patient from one place to another, it is very important. The better the floor of the bed, the longer the hospitalization period, the longer the patient can prevent the injuries that may occur due to pressure. General medical status should be considered when hospital management is choosing a bed. It is very important that all kinds of safety factors are planned and the most suitable environment is provided for the patient. It is also important to have protective side rails and other protective accessories, so that the patient does not fall from the bed.

    Reference: https://www.remedycation.com/

  5. This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. wyburzenia kielce

  6. 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. wyburzenia kielce

  9. 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! szczecin biura nieruchomosci

  11. You have a real talent for writing unique content. I like how you think and the way you express your views in this article. I am impressed by your writing style a lot. Thanks for making my experience more beautiful. biuro nieruchomosci szczecin

  12. Bahis siteleri casino bonusları ile ön planda. Bahis oyuncuları için bir bahis sitesine üyelik oluşturulurken ödeme seçenekleri önemlidir, çünkü herkesin aynı ödeme kanalını kullanması beklenmez, bu nedenle bir bahis sitesiyseniz öncelikli olarak ödeme sistemlerinizi olabildiğince geniş tutmanız gerekiyor. Son zamanlarda özellikle de sanal paralarla ödeme yapılıp alınabiliyor olması sayesinde Türkiye’de pek çok kişi de bu sistemleri tercih etmeye başladılar. Sistemin bu şekilde tercih edilmesinin nedeni ise güvenlik için oluyor. Güvenliği üst seviyede tutulmuş olan bir bahis sitesi bugüne kadar her zaman başarılı sonuçlar almış demektir. Yani güvenilir casino siteleri arasına girilmek isteniyorsa öncelikli olarak sanal ödeme sistemlerini dikkate almakta fayda vardır.
    ADRES : https://www.casino-giris.com/

  15. That is a really good tip particularly to those fresh to the blogosphere.
    Brief but very precise info… Thank you
    for sharing this one. A must read article!먹튀검증

  18. 게시물을 공유 해주셔서 감사합니다. 부모는 각 개인의 삶에서 세계 최고의 사람입니다. 가족의 필요를 유지하기 위해 필요하거나 성공해야합니다. 먹튀폴리스

  24. Generally I don’t read post on blogs, but I wish to say that this write-up very forced me to try and do so! Your writing style has been surprised me. Thanks, very nice post. Best of luck for the next! Please visit my website thedragonmarket.com. Best Designer Bathroom Accessories Online service provider.

  27. 지식을 공유하기 위해 노력해 주셔서 감사합니다. 제가 찾은 주제는 제가 오랫동안 연구해온 주제에 정말 효과적이었습니다. 먹튀신고

  28. Generally I don’t read post on blogs, but I wish to say that this write-up very forced me to try and do so! Your writing style has been surprised me. Thanks, very nice post. Best of luck for the next! Please visit my web sitetotaldrivewaycompany.co.uk. Best tarmac driveways reading service provider.

  29. در بازار با اسامی زیادی به این کالا اشاره می‌شود: پلکسی، پلکسی گلس، طلق پلاستیکی، طلق شیشه ای، پلکسی گلاس، فلکسی !
    که البته به جز مورد آخر همه لغات را می توان پذیرفت.

    https://mrplexi.ir/%D9%BE%D9%84%DA%A9%D8%B3%DB%8C/

  32. You will have not intended to do so, but I think you’ve managed to express the state of mind that quite a lot of consumers are in. The sense of wanting to assistance, but not knowing how or where, is one thing a lot of us are going via. wholesale packaging boxes

  33. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. 렛저 라이브 비트코인

  37. โดจิน อ่านโดจิน โดจินแปลไทย Doujin hentaiโดจิน เว็ปอ่านการ์ตูนโดจิน18 โดจินแปลไทย การ์ตูนโดจิน การ์ตูนโป๊ Hentai ทุกที่ทุกเวลา อ่านโดจิน ออนไลน์ Doujin การ์ตูนโป้ หมวดหมู่ HentaithaiDoujin-th Doujin x Doujin xx อัพเดทใหม่ Superdoujin
    โดจิน

  39. Thanks for sharing nice information with us. i like your post and all you share with us is uptodate and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job. custom leather jackets

Leave a Reply

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