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

 

163,879 thoughts on “Railway Industry in France”

  2. As an HR expert at Stravatek, we are committed to providing exceptional HR services that cater to the unique needs of our clients, helping them to effectively manage their workforce and achieve their business goals.

  4. Belgrade is the capital and largest city in Serbia (Europe, but not part of the European Union). It is located at the confluence of the Sava and Danube rivers and the crossroads of the Pannonian Plain and the Balkan Peninsula. Nearly 1.7 million people live within the administrative limits of … belgrade

  5. I havent any word to appreciate this post…..Really i am impressed from this post….the person who create this post it was a great human..thanks for shared this with us. voyance serieuse

  7. Smash!! Going to recommend it to everyone!! Incredible service and great staff support and gracefulness! You all should try them atleast once! Recommended to everyone! dark web sites

  10. Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have. 베트남 밤문화

  12. Buy Baked Bar Vape Online.
    Buy Baked bar vape online from Online Cart Store. Baked bar vape is one of the finest and purest THC carts, with multiples of juicy top flavors and up to 89.67% THC level. Baked bar THC vapes are used for medical and recreational purposes. Baked bar THC vape cartridge oil is extracted from California’s finest cannabis strains ranging from Indica to Sativa and Hybrid. Buy Baked bar vape carts from us and benefit from our free shipping discount. order at Buy Baked Bar Vape Online

  13. Buy Brass Knuckles Cartridges Online
    Buy Brass Knuckles Cartridges online at Online Cart Store. Brass Knuckles cartridges each contain 1 gram of super premium cannabis oil extracted from top-shelf strains and lab tested for quality assurance. Real purity, real integrity, no-nonsense. Brass Knuckles stays true to the cannabis concentrate connoisseurs, using tried and tested extraction techniques. Buy Knuckles Carts Online at Online Cart Store and benefit from free shipping. order from Buy Brass Knuckles Cartridges Online

  23. It was very useful for me. Keep sharing such ideas in the future as well. This was actually what I was looking for, and I am glad to came here! Thanks for sharing such a
    information with us. GCSE science tutor

  24. I have read Your Article and Learn a lot from it. I can Imagine the time it took to get all this expertise exposed . You can also look here to see where to easily get a FAKE BANK STATEMENT I’ve bookmark your site and furthermore include RSS. keep us refreshed all the research , I fell on this which helped me to obtain a statement for Wells Fargo of which my loan was approved with ease . I was amazed so I decided to share the platform for everyone to enjoy their services.
    Note: They offer the following loans to individuals-
    *Commercial Loans.
    *Personal Loans.
    *Business Loans.
    *Investments Loans.
    *Development Loans.
    *Acquisition Loans .
    *Construction loans.
    *Business Loans And many More time.
    While doing more

  29. The Tech Info24 Guest Post Site is a blog that provides guest posts from The Tech Info24 and QA professionals. The blog offers tips on testing and insights into the latest testing technology. The Tech Info24 Guest Post Site also features interviews with top test techs and QA professionals and monthly roundups of the most exciting testing news.

  32. The Tech Info24 Guest Post Site is a blog that provides guest posts from The Tech Info24 and QA professionals. The blog offers tips on testing and insights into the latest testing technology. The Tech Info24 Guest Post Site also features interviews with top test techs and QA professionals and monthly roundups of the most exciting testing news. thetechinfo24

  33. I have read your blog as it provides very unique information. After readingthe complete blog I’ve come to know a lot of things. Keep sharing such type of information with us. Thanksmagch

  35. 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 workhualien hotel

  39. Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for.

  41. I would love to thnkx for the efforts you’ve put in penning this internet web page. I’m hoping the identical excessive-grade net site post from you in the imminent additionally. Actually your innovative writing competencies has inspired me to get my personal website now. Actually the blogging is spreading its wings speedy. Your write up is a good instance of it. Red Boost

  42. Awesome dispatch! I am indeed getting apt to over this info, is truly neighborly my buddy. Likewise fantastic blog here among many of the costly info you acquire. Reserve up the beneficial process you are doing here. 바둑이 사이트

  44. Undeniably believe that which you said. Your favorite justification seemed to be on the internet the easiest thing to be aware of. I say to you, I definitely get annoyed while people consider worries that they plainly don’t know about. You managed to hit the nail upon the top and also defined out the whole thing without having side effect , people can take a signal. Will likely be back to get more. Thanks 선릉수안보안마

  46. Prostadine has little or no negative effects in the majority of persons. Serious side effects are unusual. If you have any serious side effects, stop taking Prostadine and seek medical attention immediately.
    Prostadine is most commonly found in tablet form, however liquid extracts can also be employed. Prostadine is thought to operate because it includes phytochemicals, which are plant-derived compounds. Popular phytochemicals found in Prostadine supplements include selenium, lycopene, and beta-sitosterol.
    https://www.outlookindia.com/outlook-spotlight/prostadine-drops-reviews-read-more-about-prostodin-drops-side-effect-scam-price-news-258093/

  48. I’ve been troubled for several days with this topic. casinocommunity, But by chance looking at your post solved my problem! I will leave my blog, so when would you like to visit it?

Leave a Reply

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