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

 

217,542 thoughts on “Railway Industry in France”

  3. Succeed! It could be one of the most useful blogs we have ever come across on the subject. Excellent info! I’m also an expert in this topic so I can understand your effort very well. Thanks for the huge help. scrap car langley bc

  4. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don’t forget, keep sharing useful info:
    Capsa Susun

  5. Pretty good post. I have just stumbled upon your blog and enjoyed reading your blog posts very much. I am looking for new posts to get more precious info. Big thanks for the useful info. scrap car coquitlam bc

  9. What are some things you don’t like to do and why? primed What is your favorite toy to play with or what toy do you wish you had? click here for more He never wants to go on a rollercoaster again! primed Al went to the animal shelter and got four cats! click here What are some things you don’t like to do and why? primed site I got my haircut today and they did it way too short. click here for more Never do that again or I won’t be your friend! click here for more It didn’t live up to my expectations at the meeting. read more I was just added to a group chat with 300 people. primed.site Al went to the animal shelter and got four cats! more Forget it, I am done with this whole situation. primed Can I lick the bottom of the ice cream container? click here for more The chocolate chip cookies smelled so good that I ate one without asking. primed.site Can I lick the bottom of the ice cream container? primed site How big a chance is there that Tom will come? primed site What do you want to do for your next birthday? primed website I want to talk to Prince Harry when I’m in England. primed website That’s too bad you should have thought of that before! read more What do you do for Christmas and what is your favorite thing about it? primed.site What’s the big deal? People do this all the time. here You had a big fight with Tom last night, didn’t you? primed.site I have already completed 4 out of 6 tasks on my to-do list today. prime site Who’s calling on the phone this late at night? primed site Would you like a nice big piece of apple pie? read more

  10. Took me time to read all the comments, 토토사이트 but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained!

  11. I in addition to my friends have already been analyzing the great tips and hints found on your website and immediately developed a terrible feeling I never expressed respect to the blog owner for those strategies. Most of the people became as a result happy to read them and already have surely been having fun with those things. Many thanks for actually being simply kind and also for deciding upon these kinds of useful topics millions of individuals are really wanting to be aware of. Our own sincere regret for not saying thanks to you sooner. my statistics helper

  12. Your posts are always informative. This post was a very interesting topic for me too. 토토사이트 I wish I could visit the site I run and exchange opinions with each other. So have a nice day.

  15. tỷ lệ cá cược bóng đá

    K9Win cung cấp trải nghiệm đánh bạc trực tuyến tốt nhất và các trò chơi sòng bạc trực tuyến tốt nhất ở Thái Lan. Sòng bạc trực tuyến của chúng tôi là nhà của một thương hiệu nhượng quyền đáng tin cậy bao gồm sòng bạc trực tiếp. Sòng bạc trực tuyến trên điện thoại di động Trò chơi xèng trực tuyến Trò chơi cá cược thể thao và bài xì phé và hơn thế nữa, khách hàng của K9Win sẽ được thưởng thức các trò chơi đặc biệt của chúng tôi.

  16. 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 site maidinyourhometown.com. Best Cleaning services near me service provider.

  17. sa gaming

    ถ่ายทอดสดส่งตรงจากคาสิโนจริง ด้วยอินเตอร์เนตความเร็วสูง ปลอดภัยด้วยระบบเซิร์ฟเวอร์ป้องกันข้อมูลของลูกค้าในระดับสากล รองรับทุกระบบการเล่นทุกแพล็ตฟอร์ม สมาร์ทโฟน แท็ปเล็ต และ คอมพิวเตอร์ บริการด้วยมืออาชีพ ตลอด 24 ชั่วโมง และโปรโมชั้นที่ท่านไม่ควรพลาด

  24. We have sell some products of different custom boxes.it is very useful and very low price please visits this site thanks and please share this post with your friends.
    123movies

  27. keluaran sgp

    Togel Singapore merupakan variasi permainan toto gelap yang cukup ternama di beberapa negara asia termasuk di Indonesia. Di pusat-pusat perjudian besar di singapore, jenis game betting toto sgp menjadi game yang wajib ada didalamnya. Tidak heran, rasanya memang kurang jika anda penggila betting tapi belum pernah mencoba jenis permainan ini.

  28. Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can’t help but wonder, what about the other side? !!!!!!Thanks
    123movie

  32. I’ve been surfing online more than 3 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. Personally, if all webmasters and as you did, the web will be a lot more useful than ever before. Best of luck for the next! Please visit my web site clippingpathasia.com. Best Clipping Path Asia service provider.

  34. It’s a good shame you don’t contain a give money button! I’d definitely give money for this fantastic webpage! That i suppose for the time being i’ll be satisfied bookmarking together with including an individual’s Feed that will my best Msn balance. That i appearance forward that will recent messages and definitely will share the web site utilizing my best Facebook or twitter team: ) hair transplant singapore

  44. Jeunesse Hong Kong Jeunesse HK product inquiry, selling Jeunesse products independently, including reserve hk, Resveratrol and Luminesce skin care products. Customers in Hong Kong and Macao are welcome to order, provide delivery discounts, and support multiple payment methods. Same day delivery.See more Gogojns

  47. You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this…
    토토사이트

  48. I really like and appreciate your work, thank you for sharing such a useful facts andhttps://domainika.ir

Leave a Reply

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