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

 

165,205 thoughts on “Railway Industry in France”

  2. Steel shot is the most widely used method in sand & shot blasting industries for cleaning, stripping, and improving a metal surface. The grade or size of the steel shot will determine the finishing done on the surface of the metal.

  3. I am impressed. I don’t think Ive met anyone who knows as much about this subject as you do. You are truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog you have got here. EatPubb

  5. Looking to boost your business with the highest quality steel shots? Look no further! Ambica Enterprises steel shots suppliers is the best in the business. We offer a wide range of sizes and grades, so you can find the perfect fit for your specific needs. Plus, our steel shots are made with superior quality and durability that you can depend on. Get your steel shots today and give your business the edge it needs! Website – Steel Shots Suppliers

  8. คาสิโนออนไลน์ฝากถอนไม่มีขั้นต่ํา https://5m.live/online-casino-deposit-and-withdrawal-no-minimum/ วิธีที่ดีที่สุดในการทำเช่นนั้น? ตามที่กล่าวไว้ในหัวข้อส่วน
    วิธีที่ดีที่สุดคือการใช้เว็บไซต์ของเรา สมัครสมาชิก

  9. This web site seems to get a sizable ammount of visitors. How do you obtain visitors to this? It provides a good person twist on issues. I guess having something authentic or considerable to give information on is the most important element. pro cbd hemp gummies reviews

  10. Hey! Someone in my Myspace group shared this website with us so I came to look it over. I’m definitely loving the information. I’m book-marking and will be tweeting this to my followers! Wonderful blog and outstanding design and style. pg slot

  11. To observe picked up against your site even now setting up procedure in plain english only one minimal little bit of submits. Pleasurable way of possibilities long run, We’re also book-marking at a time safe and sound forms prevent rises along. great cbd gummies reviews

  12. Just pure brilliance from you here. I have never expected something less than this from you and you have not disappointed me at all. I suppose you will keep the quality work going on.

  13. Nice post. I find out something more difficult on distinct blogs everyday. It will always be stimulating you just read content using their company writers and use a little from their site. I’d would rather use some while using the content in my blog regardless of whether you don’t mind. Natually I’ll provide you with a link in your web blog. Many thanks sharing. youtube

  14. I discovered your website website online and check many of your early posts. Keep in the top notch operate. I simply additional increase RSS feed to my MSN News Reader. Looking for forward to reading far more by you at a later date!… slot garansi kekalahan

  19. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. Samsung Galaxy M10s

  24. คาสิโนออนไลน์ฝากถอนไม่มีขั้นต่ําhttps://5m.live/online-casino-deposit-and-withdrawal-no-minimum/ คือ การเพิ่มโอกาสในการหารายได้เสริม บนช่องทางการเดิมพันที่ปลอดภัย เว็บเดิมพันของเราไม่จำกัดขั้นต่ำในการใช้งาน ซึ่งอนุญาตให้คุณสมัครและทำการเดิมพันจริงได้แม้ว่าคุณจะไม่มีประสบการณ์เลยก็ตามเมื่อคุณเดิมพันทีมโปรดแล้วได้เงิน ยิ่งคุณเดิมพันมากเท่าไหร่คุณก็จะได้รับเงินมากขึ้นเท่านั้นด้วย โบนัสต้อนรับที่ยอดเยี่ยม

  26. Wonderful post, it is very inspiring and informative content. Are you searching for some popular Roblox Avatar ideas? Then, you’ve come to the right place. There are many popular Roblox shirt ideas, as the possibilities are nearly endless when it comes to customization. I would suggest you can read one blog about Roblox Avtar, Here are a few ideas to get you started.

  27. I admit, I have not been on this web page in a long time… however it was another joy to see It is such an important topic and ignored by so many, even professionals. I thank you to help making people more aware of possible issues. Samsung Galaxy On6

  28. Goyal Builders Dwarka Mor offering you best flats in Delhi. We are the top builders in Dwarka Mor, Delhi

  31. https://aerowheel.co/
    Aerowheel: Aerowheel is a leading shot blasting machine manufacturer in India, with more than two decades of experience in the industry. The company offers a wide range of shot blasting machines, such as table type shot blasting machines, hanger type shot blasting machines, and tumblast shot blasting machines. The machines are designed for various applications, such as automotive, aerospace, construction, and metalworking. Aerowheel’s shot blasting machines are known for their high-quality, durability, and efficiency.

    Choosing the best shot blasting machine manufacturer in India is an essential consideration for businesses that want to ensure high-quality and efficient operations. In this comprehensive guide, we will provide an overview of shot blasting technology, the benefits of using shot blasting machines, and factors to consider when selecting the best shot blasting machine manufacturers in India.

  32. 플레이포커머니상 – 한국에서 온라인 포커를 플레이하려면 플레이 포커 어워드 에이전트를 사용하여 상금 상금에 액세스해야합니다. 나열된 웹 사이트에서 당신은 플레이 포커 머니 마켓을 입력하고 최고의 플레이 포커 골드 가격을 얻을 수 있습니다. 너의 놀이를 얻기 위하여는 부지깽이 돈 교환은 오늘 목록으로 만들는 웹사이트에 간다. 머니상

  36. Great Author John deere 5310
    This blog is such a wonderful, unique, quality contents, full of knowledgeful. I like your all blog, But this one is meaningful & thoughtful.

  39. Thanks for sharing beautiful content. I got information from your blog. keep sharinghttps://srislawyer.com/abogados-de-divorcio-richmond-va-henrico-hanover-chesterfield-powhatan/

  41. I would like to convey my admiration for your generosity in support of men and women that have the need for help with this particular concern. Your special dedication to getting the message all over had been wonderfully productive and have all the time made professionals much like me to attain their dreams. Your own invaluable tutorial means a great deal to me and additionally to my office workers. Thank you; from everyone of us. 1xbet

  42. Levetrade – Your Personal Trading Assistant. Access prime CFD trading opportunities in Forex, Commodities, Indices, and Shares with industry-leading tools and personalized assistance. Utilizing state-of-the-art technology, Levetrade delivers a transparent trading environment that meets the industry’s highest standards, providing traders worldwide with an efficient and hassle-free trading experience. We equip our clients with all the necessary tools to realize their full trading potential. Trading online levetrade

  46. Our Four & Six Passenger legal golf cart rentals are street legal and fall under the Florida Statutes as a Low Speed Vehicle. They can be driven on roads with a speed limit of 35 mph and below. Considering these are registered vehicles, drivers must have a valid driver’s license and insurance. Insurance, license, and credit card must be presented before confirmation of rental.

  47. <a href=https://5m.live/online-casino-deposit-and-withdrawal-no-minimum/ส่วนนี้เกี่ยวกับการ ฝากและถอนคาสิโนออนไลน์ ไม่มีขั้นต่ำ มันจะให้รายละเอียดเพิ่มเติมเกี่ยวกับสิ่งเดียวกันแก่คุณเราไม่ควรคิดว่าการฝากและถอน คาสิโนออนไลน์ เหล่านี้ไม่มีขั้นต่ำ

  49. All I Need is My Ball is a fun story about a young boy and his basketball books for kids. Kids and adults alike will enjoy experiencing the pure joy that playing ball can bring to a child. In a world of overstimulation, this book reminds us of a few of life’s simplest gifts through the story of a boy, a ball, and his imagination.

  50. I beloved as much as you will receive performed right here. The comic strip is attractive, your authored material stylish. nonetheless, you command get bought an nervousness over that you would like be handing over the following. unwell without a doubt come more before once more since precisely the same nearly very steadily inside of case you defend this increase. 사설토토사이트

Leave a Reply

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