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

 

182,575 thoughts on “Railway Industry in France”

  6. Create a colorful balloon garland using balloons in various sizes and colors. You can use a balloon decorating strip to attach the balloons to a wall or hang them from the ceiling.

    Birthday Decoration

  8. Great post! I am actually getting ready to across this information, is very helpful my friend. Also great blog here with all of the valuable information you have. Keep up the good work you are doing here. m&p shield 40 for sale

  9. Thanks so much with this fantastic new web site. very fired up to show it to anyone. It makes me so satisfied your vast understanding and wisdom have a new channel for trying into the world. m&p shield for sale

  11. pgslot สล็อตออนไลน์ เล่นง่าย เข้ามาเดิมพัน ได้ตลอด 24 ชั่วโมง

  13. I was looking through some of your articles on this internet site and I think this website is really informative ! Continue posting . gmail.com

  14. I regard this article for the especially researched substance and sublime wording. I got so incorporated into this material that I couldn’t stop examining. I am awed with your work and bent. Thankful to you to such a degree. gewher 98 for sale

  16. Wow. Just one word for them Splendid!! I have seen many sites in my whole life but have never seen anything like this! It is amazingly beautiful! You should also consider them. Agen Sbobet

  17. game online di situs resmi terpercaya yang banyak menyediakan berbagai permainan game online yang seru yang aman buat di mainkan dan yang lebih buat menariknya lagi game online ini menjadi ramai di mainkan karna hadiah kemenangan bermain game nya berupa uang tunai dan sangat mudah di menangkan
    WARGABET

  19. Be the precise blog if you have wants to learn about this topic. You comprehend considerably its nearly onerous to argue to you (not that I personally would needHaHa). You undoubtedly put a new spin for a topic thats been discussing for some time. Nice stuff, simply nice! 토토커뮤니티

  22. Be the precise blog if you have wants to learn about this topic. You comprehend considerably its nearly onerous to argue to you (not that I personally would needHaHa). You undoubtedly put a new spin for a topic thats been discussing for some time. Nice stuff, simply nice! 토토사이트

  29. Great site! I really love the way it is simple on my eyes it is. I am thinking about how I may be told at whatever point another post has been made. I have bought in to your RSS which may work? Have an incredible day! savage 22-250 camo

  30. Nice post. I learn some thing tougher on distinct blogs everyday. Most commonly it is stimulating to learn to read content from other writers and exercise a specific thing there. I’d would rather use some together with the content in my weblog no matter whether you don’t mind. Natually I’ll provide you with a link in your web weblog. Many thanks for sharing. pods official website

  32. Watch korean drama movies and shows Online for free releases english sub in hd, watch asian drama, dramacool, drama cool, watch drama, english subtile, watch asian.Dramacool

  33. Watch Bekaboo Hindi TV Serial Latest Episode Online, Bekabo Full Episode, Bekaboo Colors Tv Show by Voot Free Download Desi Serials.bekaboo

  36. เว็บบาคาร่าI would also like to acknowledge the quality of your writing. Your use of language is impeccable, and your writing style is engaging and thought-provoking. Your articles are not only informative, but they also challenge me to think critically and consider different perspectives.

  39. Steel shot https://www.abrasivesshots.com/blog/5+steel-shots is spherical metallic abrasive media produced by the molten steel by means of atomizing process. Metalworking Industries are the main users of Steel Shots such as ferrous and non-ferrous foundries, steel mills, forge shops and the metal fabricators, sand removal and to improve the metal surface preparation etc.

  40. Steel shot is spherical metallic abrasive media produced by the molten steel by means of atomizing process. Metalworking Industries are the main users of Steel Shots such as ferrous and non-ferrous foundries, steel mills, forge shops and the metal fabricators, sand removal and to improve the metal surface preparation etc.

  42. I truly respect this titanic post that you have obliged us. I ensure this would be goliath for far past anybody’s assumptions a monster piece of people. Prostadine \

  43. Key Which you were presented getting some sort of great blog site. As i fix possibly be operating having on top of that reliable a few moments. as i look into which you were presented certainly very reasonable is significant, as i fix quite possibly possibly be commonly validating your web site blesss. ihokibet

  45. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. internet providers toronto

  46. 나는이 웹 사이트에있는 당신의 몇몇 포스트를보고 있었다. 그리고 나는이 웹 사이트가 정말로 유익하다고 생각한다! 계속 .. 토마토도메인

  48. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. Programación ABAP

  49. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our.
    mcqs website

  50. Good post, thanks for your information.

    Keep improving your libido power and enjoy your erotic nights with super dashing call girl in Ahmedabad.

Leave a Reply

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