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

 

213,731 thoughts on “Railway Industry in France

  1. I had just recently started hunting for Technology Website After six hours of nonstop Google searching, I eventually found it on your website. I’m curious as to why Google doesn’t place this kind of educational websites at the top of the list. Typically, the most popular websites are crammed with junk.

  2. Learn how to add custom tokens to your Metamask wallet with our easy-to-follow guide. No technical knowledge required! Follow our step-by-step instructions using the exact keyword “How To Add Custom Token To Metamask?” and start trading your tokens with ease. Perfect for beginners, start adding custom tokens today!

  3. Several many thanks for submitting this specifics. I just want to Permit you to are mindful which i just take a look at your web site Which i uncover it unbelievably interest-grabbing and helpful. I’m unable to wait around around to browse an abundance of your posts.สล็อตออนไลน์

  4. สล็อต66 เว็บเกมสล้อตออนไลน์ เล่นแล้วได้กำไรจริง โบนัสแตกง่าย เว็บแท้ ถูกลิขสิทธิ์​ ไม่ผ่านเอเย่นต์ เล่นแล้วรับเงินไปเลยเต็ม ๆ เครดิตแจกฟรีมากมาย เปิดให้บริการตลอด 24 ชั่วโมง

  5. This blog is disseminating valuable information to people who are most concerned of the following issues being targeted by this site. Many certainly will keep coming back to check out updated posts. 먹튀사이트

  6. Adventure in Ontario is an award winning adventure operator who specializes in cutting-edge, multi-day and multi-activity adventure treks. Our mission is to create the best possible customer experience by combining the best of outdoor adventure with personalized service.

  7. Calgary Commercial Construction is dedicated to providing our clients with superior building and home improvement services in the construction industry. We have been a leader in the industry for more than 40 years, offering both commercial and residential customers high – quality builders supply and design services at competitive prices.

  8. Land Mortgage Ontario is a type of financing that is used to purchase raw land for development or investment purposes. This financing can be provided by banks, credit unions, private lenders, or government programs, and can be structured in a variety of ways to meet the needs of individual borrowers.

  9. If you don’t have a pool, it’s time to build one. Pool Decking is the best and easiest way to add the look of boards beneath your swimming water that offers protection against spills and cracks

  10. Fitting all the requirements of professional photographers, Photography Studio brings forth a line of fully collapsible studio lighting equipment. This durable, single – light curtain conforms to industry standards and ensures long term use. It features 3 foldable sides with no need for flatting or assembly. Its appearance is simple and neat with smooth texture which provides added protection against wrinkle and dust.

  11. As a Psychiatric Nurse Practitioner Preceptor, I strive to provide my students with effective guidance and support throughout their clinical rotations. My goal is to foster their professional growth as they learn the necessary skills to become successful in the field. I take a hands-on approach, providing my students with direct supervision while they gain practical experience treating patients.

  12. Commercial Kitchen Renovation Service in Burnaby BC is the solution to your kitchen appliances renovation needs. We provide proficient and highly expert team which consists of professional electricians, appliance repair specialists and cabinet makers who work together seamlessly with complete dedication and precision to deliver absolute best results for our clients. Our experience has enabled us to develop long – term working relationship with a number of businesses throughout Burnaby, New Westminster and Central Fraser area, allowing us to provide you custom made solutions designed exclusively for your specific needs.

  13. There is no one-size-fits-all answer to this question as the best way to prepare for an IGCSE Biology Tutor HK course may vary depending on the materials you are using and your own personal teaching style. However, there are a few key tips that can help you get started.

  14. Got some work to do on your attention. The ADHD Screening Test from ADHD Screening Test will determine if you are in a position to conquer executive function challenges, but not specifically focused on the task at hand.

  15. Commercial cleaning companies in Fresno CA are an essential part of your organization. Having a clean office and other places that reside inside can improves the look, efficiency and morale of employees. Janitorial Services Fresno CA offers quality janitorial services including full – list floor sweeps, dehumidify , UV bask light sterilization at cost – effective prices.

  16. Several many thanks for submitting this specifics. I just want to Permit you to are mindful which i just take a look at your web site Which i uncover it unbelievably interest-grabbing and helpful. I’m unable to wait around around to browse an abundance of your posts.สล็อตออนไลน์

  17. Slot66 online slots that are easy to crack Convenient automatic deposit-withdrawal Available to play slots on mobile phones. No matter which game is broken No minimum deposit and withdrawal plus an unlimited number of withdrawals Apply today and get free credit. Go play every game Plus, there are a lot of new games that are broken. All slot machines must be at EMP777, click now Slot 66

  18. How do I know what kind of car I can buy? A new, never-registered car with an MSRP of less than $45,00 scrap-car-removal-calgary
    and a lease term of at least 5 years, if leased.
    There are, of course, a lot of websites that have more information

  19. สล็อต66 เว็บสล็อตที่โด่งดังมากที่สุดในตอนนี้กับเว็บของเรา สมัครง่ายพร้อมรับเครดิตฟรีและสิทธิพิเศษอื่นๆมากมาย เล่นเกมไหนก็ได้บนเว็บโบนัสรางวัลแตกเยอะแตกจริง มีเกมสล็อตให้เลือกเล่นทุกรูปแบบกว่า 100 เกม ฝาก-ถอนกับเว็บด้วยระบบอัตโนมัติ ปลอดภัย โปร่งใส มั่งคงแน่นอน 100%

  20. Pretty part of content. I just stumbled upon your weblog and in accession capital to assert that I get actually loved account your weblog posts. Any way I’ll be subscribing on your feeds or even I success you access constantly fast. Pressure Washing Near Atlanta

  21. Hey there guys, newbie here. I’ve lurked about here for a little while and thought I’d take part in! Looks like you’ve got quite a good place here Pressure Washing Near Atlanta

  22. 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. slot gacor

  23. 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. a course in miracles

  24. 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. acim

  25. 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. a course in miracles mp3

  26. A powerful share, I just given this onto a colleague who was doing somewhat evaluation on this. And he in actual fact purchased me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the deal with! However yeah Thnkx for spending the time to discuss this, I really feel strongly about it and love studying more on this topic. If possible, as you become experience, would you thoughts updating your blog with more details? It’s highly helpful for me. Huge thumb up for this blog put up! CORTEXI REVIEW

  27. When do you think this Real Estate market will go back in a positive direction? Or is it still too early to tell? We are seeing a lot of housing foreclosures in Altamonte Springs Florida. What about you? Would love to get your feedback on this. voyance audiotel sérieuse

  28. The answer is yes! Dramacool is a safe, legal, and free way to watch drama series online with english subtitles. You can find a wide variety of tv dramas/series/movies/kshow to choose from, and new ones are added all the time. So why not give it a try? You may be surprised at how much you enjoy it! With the proliferation of online services, it is difficult to test the safety of streaming TV services but after research we came here for dramacool lovers for malware virus free website for dramacool topic. Drama-cool.de is a reliable site, reputable enough for you to find and watch the best drama. we make test time to time for better performance for this visitor and time to time we ask our valueable visitors about the site.

Leave a Reply

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