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

 

222,866 thoughts on “Railway Industry in France”

  1. Kalsarp pooja ujjain is a ritual performed to ward off the ill effects of a Kalsarp Dosh. It is believed that this Dosh is caused when all the seven planets of the solar system are placed between Rahu and Ketu. Performing the pooja helps in removing the malefic effects of this Dosh. Kalsarp Pooja Ujjain

  5. PGSLOT is a casino gaming hub with new slot games. Prepare to receive a 100% bonus with free credit that actually works. No need to do any additional conditions, get free credits and enjoy our games through the entrance to PG Slots. We are ready to give away many free credits for you in many distribution channels.

  6. I wanted to thank you for this excellent read!! I definitely loved every little bit of it. I have you bookmarked your site to check out the new stuff you post. slot

  9. เว็บ r1ufa เปิดมวยก่อนใคร เปิดมวยครบทุกการเดิมพันมวย บอล คาสิโน หวย สล๊อต ครบครัน แฟนๆไม่ควรพลาด สมัครเลย รับโบนัสทันที 20% แจกเสื้อมวย สมัคร r1ufa

  10. tiger789 เว็บเดิมพันออนไลน์ มวยเดี่ยว มวยชุด มวยยกต่อยก คาสิโนออนไลน์ บอล สนุ๊กเกอร์ บาส บาคาร่า รูเล็ต เสือ มังกร เปิดให้บริการครบ สมัครเพื่อเดิมพัน ไทเกอร์789

  11. Superb read, I just passed this onto a friend who was doing a little analysis on that. And he really bought me lunch because I discovered it for him smile So let me rephrase that: Thanks for lunch! the counter burgers

  13. British record signing Enzo Fernandez made his Chelsea debut but could not help his new side claim only their second win of 2023 as they were held by Fulham at Stamford Bridge.
    Argentina midfielder Fernandez completed a £107m move to the Blues from Benfica three days ago and Graham Potter opted to hand him an immediate start.
    He made a solid impression and almost enjoyed a dream debut when his curled effort flew just wide of the post in the second half.บาคาร่า

  16. Admin agus selalu memberikan bocoran slot setiap hari dan terbukti menjadi acuan banyak pemain untuk bermain permainan slot online. Banyak pemain sudah menikmati hasil kemenangan besar dengan menggunakan acuan bocoran admin agus.

  17. BETFLIK คือศูนย์รวมเกมคาสิโนที่มีเกมสล็อตใหม่ๆ รวมเกมให้เลือกมากกว่า 500 เกมจากค่ายสล็อตระดับโลกกว่า 15 ค่าย เตรียมรับโบนัส 100% พร้อมเครดิตฟรีที่ใช้งานได้จริง ไม่ต้องทำเงื่อนไขเพิ่มเติม รับเครดิตฟรีและสนุกกับเกมจากทางเข้า เบทฟิก ออนไลน์ เราพร้อมแจกเครดิตฟรีมากมายหลายช่องทางการจัดจำหน่าย

  18. Croydon Taxi to Heathrow Airport To or From: Having taxi service to the Airport Express cars a reliable provider of executive rental and private cars Croydon taxi service from the airport for many years. We focus on airport transfers and train station, including Croydon Taxi to Heathrow Airport To or From or Croydon Taxi to Gatwick Airport To or From and vice versa. We provide car for all purposes, but specialize directed at corporate events and drivers nights in the city, professional, polite and discreet drivers who are willing to go the extra mile to help you. We also regularly in travel eve and return to our customers upon request.

  19. Good site! I really love how it is easy on my eyes and the data are well written. I am wondering how I might be notified whenever a new post has been made. I’ve subscribed to your RSS feed which must do the trick! Have a great day! AbcSlot

  20. 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. pifansub

  21. Croydon Taxi to Heathrow Airport To or From: Having taxi service to the Airport Express cars a reliable provider of executive rental and private cars Croydon taxi service from the airport for many years. We focus on airport transfers and train station, including Croydon Taxi to Heathrow Airport To or From or Croydon Taxi to Gatwick Airport To or From and vice versa. We provide car for all purposes, but specialize directed at corporate events and drivers nights in the city, professional, polite and discreet drivers who are willing to go the extra mile to help you. We also regularly in travel eve and return to our customers upon request.

  23. When we go on this journey, we think that we need to learn and understand a lot, that we need to understand what mysticism is. Yet, when we go into this mystical direction, the purpose is to release everything that stands in the way of receiving inner guidance and following that. the mystical teachings of jesus

  24. Going away with the family or maybe on business? Book your Tooting Airport Minicabs with us. we have a tendency
    to specialise in Airports taxi transfers to and from all airports for each people and teams.
    we’ll forever aim to supply you with courteous, skilled and private service at cheap costs.
    From the instant you contact oursminicabs office, we’ll going to} do everything
    we will to confirm that your booking and transfer We will discuss as smooth as possible.
    associate knowledgeable about driver with proved customers service skills associated an intensive knowledge of
    the local area space can meet you in an air-conditioned vehicle tailored to
    the amount of passengers and therefore the bags necessities specified by you.  Tooting Airport Taxis & Minicabs

  25. Most Indian Call Girls In Singapore in Singapore belong to an agency. You can contact the agency in advance to arrange a pick up. However, it is important to choose a reputable agency. You may not always be able to trust each agency. You can also opt to choose independent call girls. The girls who work independently are not bound by agency rules.

  26. Woah! I’m really loving the template/theme of this website. It’s simple, yet effective. A lot of times it’s hard to get that “perfect balance” between user friendliness and visual appeal. I must say that you’ve done a very good job with this. Additionally, the blog loads super fast for me on Safari. Exceptional Blog! software

  27. Are you looking call girl services in Pune. We provide the best call girl service in Pune. There is able escort service available with high class girls. You can fun full night with her, as per demand we provide girl for you. Just contact Pune Escort service now and enjoy your life with girl. Call: +917320073213.

  28. Restore Trezor Model T, Various technological advancements have been made that provide a wide range of benefits. The cryptocurrency market is unique in various ways, and it will be used for trading. Crypto allows you to obtain the process in a safe and secure manner. Using cryptocurrency is not the issue; the issue is where to store it, and that may be the biggest problem.

  31. Hello! I simply would like to give you a massive thumbs up for the wonderful information you’ve got here about this post. I will be returning to your site for more soon. Solar Panels

  33. Get Rid of Ants in homes or Commercial business buildings are the result of carpenter ants workers searching for food. Ants originate from outdoor nests; however, if moist or rotted wood exists inside because of water leaks or excessive moisture from bathrooms, then ants will readily nest indoors.Ants Exterminators

  35. Buildings contain many favorable hiding nesting sites for ants. Preferred sites include spaces behind walls, cabinets, appliances, behind window door frames, beneath floors concrete slabs. Most of these areas are hidden, making it difficult to determine their precise location. When the location of the nest cannot be determined or is inaccessible, insecticide baits often are a good option, especially for homeowners.Ants Exterminators

  40. homes or Commercial business buildings are the result of carpenter ants workers searching for food. Ants originate from outdoor nests; however, if moist or rotted wood exists inside because of water leaks or excessive moisture from bathrooms, then ants will readilyAnts Exterminators

  41. Croydon Taxi to Heathrow Airport To or From: Having taxi service to the Airport Express cars a reliable provider of executive rental and private cars Croydon taxi service from the airport for many years. We focus on airport transfers and train station, including Croydon Taxi to Heathrow Airport To or From or Croydon Taxi to Gatwick Airport To or From and vice versa. We provide car for all purposes, but specialize directed at corporate events and drivers nights in the city, professional, polite and discreet drivers who are willing to go the extra mile to help you. We also regularly in travel eve and return to our customers upon request.

  44. You make so many great points here that I read your article a couple of times. Your views are in accordance with my own for the most part. This is great content for your readers. Best Sound system

  50. f carpenter ants workers searching for food. Ants originate from outdoor nests; however, if moist or rotted wood exists inside because of water leaks or excessive moisture from bathrooms, then ants will readilyAnts Exterminators

Comments are closed.