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

 

165,111 thoughts on “Railway Industry in France”

  3. I’m excited to uncover this page. I need to to thank you for ones time for this particularly fantastic read!! I definitely really liked every part of it and i also have you saved to fav to look at new information in your site.
    소액결제현금화

  4. 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. Juwelier Steiermark

  5. I am happy to find your perceived technique for forming the post. Directly you make it basic for me to grasp and complete the thought. Thankful to you for the post. Juwelier

  7. Playing casino games online with CasinoLive8 comes with several advantages. The website provides access to various gaming options, such as live casino games, slot machines, cockfighting, sports betting, and plenty more. This indicates that there is always something fresh to experience and look forward to enjoying. https://casinolive8.com/

  9. By and by, I have discovered that to remain presumably the most interesting points when it attracts a parallel to. You may discover a few new levels inside L . a . Weight reduction and any one somebody is unfathomably significant. Beginning stage might be genuine liquefying ceaselessly rrn the body. get in shape savage axis 22-250 heavy barrel

  10. For a long time me & my friend were searching for informative blogs, but now I am on the right place guys, you have made a room in my heart!

  11. This is a very neat blog post. My school teacher suggested that I might like this blog. Similar to 먹튀검증 on my blog There is a discussion board for articles and photos. Would you like to visit my blog?

  12. This is a very neat blog post. My school teacher suggested that I might like this blog. Similar to 먹튀검증 on my blog There is a discussion board for articles and photos. Would you like to visit my blog?

  13. You have done a great job on this article. It’s very readable and highly intelligent. You have even managed to make it understandable and easy to read. You have some real writing talent. Thank you. savage 22-250 camo

  16. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog post. Its a great pleasure reading your post. I’d really like to help appreciate it with the efforts you get with writing this post. Thanks for sharing. I found your this post while searching for information about blog-related research … It’s a good post .. keep posting and updating information.

    카지노사이트

  20. This particular is usually apparently essential and moreover outstanding truth along with for sure fair-minded and moreover admittedly useful My business is looking to find in advance designed for this specific useful stuffs… https://www.ufa147.info/

  25. viplotto เว็บแทงหวยออนไลน์มือถือ รวมหวยเยอะที่สุด แทงหวยผ่านเว็บตรงไม่ผ่านบุคคลอื่น ถูกรางวัลรับเงินเข้าบัญชีได้โดยตรงไม่มีเลขอั้นแน่นอน อัตราจ่ายสูงไม่ว่าจะเป็น หวยยี่กี หวยลาว หวยใต้ดิน หวยฮานอย หวยหุ้น และหวยอื่นๆอีกเพียบ

  26. Thank you again for all the knowledge you distribute,Good post. I was very interested in the article, it’s quite inspiring I should admit. I like visiting you site since I always come across interesting articles like this one.Great Job, I greatly appreciate that.Do Keep sharing! Regards, memek montok

  28. I have been looking for articles on these topics for a long time. casino online I don’t know how grateful you are for posting on this topic. Thank you for the numerous articles on this site, I will subscribe to those links in my bookmarks and visit them often. Have a nice day

  29. I’ve been searching for hours on this topic and finally found your post. totosite, I have read your post and I am very impressed. We prefer your opinion and will visit this site frequently to refer to your opinion. When would you like to visit my site?

  30. has to say that it is the most popular classic right now with online slot games. Which has more than 50 forms for members to choose from and many game rooms, the best automatic deposit and withdrawal, has a standard deposit and withdrawal system, is a quality direct website slot that you definitely can’t overlook888xbets

  31. We are manufacturers and exporters of high quality Sportswear & Textile products. Our company produces custom designs and sizes as per our customer’s requirements. For biker jacket visit! survey

  37. I know your aptitude on this. I should say we ought to have an online discourse on this. Composing just remarks will close the talk straight away! What’s more, will confine the advantages from this data.  Juwelier

  40. I was very pleased to find this site.I wanted to thank you for this great read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you post. Juwelier Steiermark

  42. From the start You got a stunning site .I demand be gotten with paying unnecessary notice to uniform minutes. I see you got solid issue , I request be unremittingly checking your blog blesss. Updates Master

  43. Are you in search of a natural remedy to regulate your blood sugar levels? Look no further! Silver Roots Agro introduces the One and Only Insulin Plant, the top-rated product for diabetes management. With its potent anti-diabetic properties, this herbaceous plant is known to reduce glucose levels and improve insulin sensitivity. Say goodbye to synthetic drugs and embrace the power of nature with Silver Roots Agro’s Insulin Plant. Read on to learn more about its benefits and how it can help you lead a healthier life.

  46. ​There are many benefits of drinking Ikaria Lean Belly Juice. This juice is full of antioxidants and other nutrients that can help improve your overall health.

    One of the best things about Ikaria Lean Belly Juice is that it can help you lose weight. This juice is full of natural ingredients that can help boost your metabolism and burn fat. If you are looking to lose weight, then drinking this juice regularly can definitely help you achieve your goals.

    In addition to helping you lose weight, Ikaria Lean Belly Juice can also help improve your digestion. This juice is high in fiber and other nutrients that can help keep your digestive system functioning properly. If you have trouble with constipation or other digestive issues, then drinking this juice can definitely help alleviate those problems.

    https://www.outlookindia.com/outlook-spotlight/ikaria-lean-belly-juice-reviews-urgent-customer-update-should-you-buy-or-fake-claims-exposed–news-270521

  47. Remarkably! It is like you read my mind! A person seem to know therefore much relating to this, exactly like you authored it in it or something. We believe which you can do with a few images they are driving the message house a bit, besides that, this is great blog. A exceptional read. I will certainly revisit once more. Janji978

  48. This is so good to see. We have do more things like this for the military families. They are protecting us and we need to support them in this way. Slot Gacor

  49. สล็อตเว็บตรง สล็อตเว็บตรงของค่าย slot-no1 มีช่องทางที่สามารถเล่นได้หลากหลาย ทางไม่ว่าจะเป็น ทางโทรศัพท์มือถือ ทางคอมพิวเตอร์ ทางแทบเล็ด และทางอุปกรณ์อิเลคทรอนิกส์ที่รองรับอินเตอร์เน็ตและ Google เรียกได้ว่าทางไหนก็ดีเหมือนกันทั้งหมด มีโปรโมชั่นสุดฮอตฮิต โบนัส และสิทธิพิเศษรอต้อนรับผู้สมัครทุกคนสนใจเครดิตฟรี คลิกเข้ามาสมัครฟรีไม่เสียค่าใช้จ่ายได้เลย สล็อตเว็บตรงslot-no1

  50. 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. ranking seo

Leave a Reply

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