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

 

208,826 thoughts on “Railway Industry in France”

  1. For those of you who consider pets people, having nigoal123 pets means you definitely don’t live alone because they are great companions to talk to.

  4. I came to this site with the introduction of a friend around me and I was very impressed when I found your writing. I’ll come back often after bookmarking! baccaratcommunity

  9. 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.Electric Bicycle

  10. A number of men may be familiar with Prostadine because it is used to treat prostate issues. The natural component prostaglandin E is derived from the prostate gland of animals. There are also pill forms of this medication that can be purchased. The average man is always on the lookout for better ways to maintain his health. Perhaps you’ve heard of Prostadine before. However, what is Prostadine, and what benefits does it provide? The nutritional supplement prostadine has been shown to benefit prostate health by increasing urine production. Prostadine has also been used effectively to treat enlarged prostates. The prostate can be shrunk with the help of a drug called prostadine. Successful in reducing the size of the prostate gland and relieving urinary symptoms without any side effects. Use of prostadine, however, may have unintended consequences. This article will discuss the upsides and downsides of using prostadine.
    A medication called prostadine can be used to shrink the prostate. Urine output is increased while the prostate gland’s size decreases. Prostadine is used to treat both prostatic hyperplasia and urinary incontinence. The latest weight-loss pill Prostadine is promoted as a miracle drug that facilitates effortless weight loss in a short amount of time. Prostadine is a natural herbal supplement marketed as an easy way to lose weight without making any changes to one’s diet or level of physical activity. Prostadine has been shown to ameliorate a wide range of medical conditions, including erectile dysfunction (ED), BPH, and prostatitis (ED). The claims that prostadine is both safe and effective are not well supported by the available data.
    The prescription drug prostaglandin can be used to treat an enlarged prostate. The active ingredient of Prostadine is finasteride, which blocks type II 5-alpha reductase. Prostadine works to prevent an enlarged prostate by reducing dihydrotestosterone (DHT) levels, which are increased during the further processing of testosterone. Inflammation of the prostate gland is brought on by this condition, which is called prostatitis. The prostate, a small, walnut-shaped gland that is part of the male reproductive system, is a key component. localized in the pelvic floor just in front of the rectum and below the bladder. The prostate gland secretes a fluid that makes up part of the sperm.
    Can you explain what Prostadine is?
    The natural supplement prostadine has been shown to be effective in treating a variety of prostate problems. The prostate enlargement known as benign prostatic hyperplasia (BPH) is the condition most often treated with prostadine. Prostadine is effective in treating prostate inflammation (prostatitis) as well.
    The testosterone-lowering effects of Prostadine are attributed to this action. The hormone testosterone plays a role in stimulating the expansion of the prostate. The prostate gland will begin to atrophy as testosterone levels drop. This can help reduce the urgency, frequency, and severity of urinary symptoms associated with an enlarged prostate.
    Your options for using prostaglandin E1 are either orally or topically. The pill form is for oral consumption, while the cream or gel form is for topical use. In general, prostadine is taken twice a day, though the recommended dosage varies from person to person.
    Talk to your doctor about trying prostadine to treat your prostate problems.
    Why Prostadine Is a Good Thing to Take
    The natural supplement prostaglandin E1 (Prostadine) is intended to facilitate prostate restoration. The prostate is a small gland about the size of a walnut that sits below a man’s bladder. Seminal fluid is produced, which is essential for the survival and movement of sperm. In addition to regulating urination, the prostate is involved in other bodily functions.
    Benign prostatic hyperplasia, or prostate enlargement, is a common problem in older men (BPH). Incontinence issues like hesitancy, weak stream, dribbling, urgency, and frequency can result. Even though BPH is not fatal, it can severely impair a man’s quality of life.
    https://www.outlookindia.com/outlook-spotlight/prostadine-drops-reviews-read-more-about-prostodin-drops-side-effect-scam-price-news-258093/

  15. dramacoolDramacool | Korean Drama, Asian Drama,Movies English sub Watch and download Korean drama online, movies, on Dramacool, Kissasian, Fastdrama, Dramabeans, …

  18. Thank you for submitting this article. This is information I have been looking for. I’ve been hoping to find clear and concise content like yours. Your unique points helped me think about this information differently. مشاهدة افلام

  19. Nice post. I understand something much harder on diverse blogs everyday. Most commonly it is stimulating to learn to read content off their writers and employ a little something from their site. I’d opt to use some while using content on my own weblog whether you do not mind. Natually I’ll provide link in your internet blog. Many thanks sharing. link gacor

  21. game opnline yang menarik banyak perhatian yang menyediakan jenis pilihan game online lengkap yang menguntungkan sangat mudah di mainkan game online yang ramai di kuinjungin WARGABET

  22. I’m continually scanning on the web for posts that will support me. An excess of is obviously to find out about this. I trust you made great quality things in Functions too. Continue working, congratulations! Link Bong88

  26. I want you to thank for your time of this wonderful read!!! I definately enjoy every little bit of it and I have you bookmarked to check out new stuff of your blog a must read blog! Bong88

  27. I was very impressed by this post, this site has always been pleasant news Thank you very much for such an interesting post, and I meet them more often then I visited this site. Bong88

  28. situs game online yang lagi ramai di mainkan karna banyak hadiah yang menarik yang sangat mudah di menangkan kalian juga harus segera mencoba nikmatin sensasi berbeda bermain di situs game online resmi yang lagi ramai ini BONZPLAY

  29. The digital currency market offers great opportunities for investors to earn stunning earnings. Crypto traders and investors are interested in investing in and trading digital currency. Through a crypto ATM, investors and traders can invest in and trade crypto assets. You can find it at several locations. When you want to use bitcoin, you can use the map to find a Bitcoin ATM In Colombia

  30. You have a great sense of writing I must say. Your post has those facts which are not accessible from anywhere else. It’s my humble request to u please keep writing such remarkable articles Bong88

  42. สล็อต gclub เล่นผ่านแอพ สล็อตจีคลับ888 ระบบ ฝาก-ถอน ออโต้ ใช้แค่เบอร์โทรล้อคอินระบบง่ายๆ ที่สำคัญเราคืนยอดเสีย 10% ทุกวันจันทร์ ไม่ติดเทริน์ถอนออกได้เลย จะเล่นสล็อตคิดถึงเราสิคะ gclubvip888

  43. This article is an appealing wealth of informative data that is interesting and well-written. I commend your hard work on this and thank you for this information. You’ve got what it takes to get attention. free eltoro tips

  44. Situs ArenaBocah Slot Online Aman dan Terpercaya Dengan Cashback Kekalahan Hingga 100% Tanpa TO

  50. I recently realized your website the other day and that i happen to be following it’s routinely. You’ve got great deal of tips proper here so i delight in your lifestyle of online site likewise. Preserve acknowledge that there are succeed! massagestudio wien

Leave a Reply

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