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

 

207,072 thoughts on “Railway Industry in France”

  2. It is the best portal to pay bills online within minutes without any complications. It avails maximum possible flexibility to users to complete their tasks in real quick time. Apart from bill payments it also avails most popular and reputed brands products to customers in affordable prices. PayTM came into existence in 2010. 搬屋公司

  6. They are created by artists and published on online platforms where readers can access them for free or through a paid subscription service.

    Webtoon xyz

  7. I needed to thank you for this incredible read!! I unquestionably adored each and every piece of it. I have you bookmarked your site to look at the new stuff you post. 上門迷你倉

  8. Appreciating the persistence you put into your blog and detailed information you provide. I’ve bookmarked your site and I’m adding your RSS feeds to my Google account. 上門迷你倉

  10. 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. 搬屋存倉

  11. WILD OVERLORDS Evoplayสล็อตแตกหนัก และเกมบนมือถือ และเป็นเพียงเหตุผลที่อุตสาหกรรมจะเปลี่ยนไปสู่สิ่งใหม่ ๆ ต่อไป อุตสาหกรรมเกมได้เริ่มเปิดรับบริการดิจิทัลแล้ว สล็อตเว็บใหญ่ ดังนั้นจึงเป็นเรื่องปกติที่พวกเขาจะเริ่มให้บริการดิจิทัลของตนเองเช่นกัน ทางเข้าสู่ระบบ สารบัญ เกมฟรีได้เงิน

  12. Like many other abstract concepts, happiness can have different definitions depending on human values ​​and life circumstances. The generally accepted http://valet.pp.ua definition of happiness is a state of emotional well-being, contentment, and enjoyment of life.

  14. Undoubtedly, I’m fully agreed using this unique enlightening short article, And that i just want say this details could be pretty helpful and enlightening. I even have some important piece of anxious details !!!!!!A lot of many thanks.บา คา ร่า วอ เลท

  15. Excellent things from you, guy. Ive have a look at your things before and youre just too incredible. I love what youve obtained here, love what youre declaring and the manner you assert it. You make it pleasing and you continue to manage to hold it clever. I cant wait to study greater from you. This definitely is clearly a first rate weblog. Cortexi

  16. I become very pleased to find this internet site. I desired to thank you in your time for this superb submit!! I virtually revel in reading it and I have you bookmarked to check out new belongings you blog post. Cortexi

  17. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. arte contemporanea

  18. Wow! This could be one of the most useful blogs we have ever come across on thesubject. Actually excellent info! I’m also an expert in this topic so I can understand your effort. arte contemporanea

  21. สล็อต66 สล็อตเว็บตรง ไม่ผ่านเอเย่นต์ ฝากถอนง่ายไม่มีขั้นต่ำ ผ่านระบบออโต้ อัปเดตสล็อตเกมใหม่เพียบ คอสล็อตตัวจริงห้ามพลาด โปรโมชั่นเกินต้านสุดคุ้ม ให้คุณได้ลุ้นรับรางวัลพิเศษแบบจุใจ มาพร้อมระบบทดลองเล่นได้ทุกเกม ทุกค่าดังชั้นนำอีกด้วย อย่ารอช้ารีบเลย

  22. Romantizm birçok insanın içinde olsa da aslında nasıl dışarı çıkarması gerektiğini bilmedikleri bir durumdur. Romantizm denildiğinde genelde kadınlar akla geliyor olsa da romantik erkeklerden de bahsetmek mümkündür. Bu duygunun içten ve samimi gelmesi çok önemlidir. Çünkü istenmeden gösterilen bir duygu yapmacık olarak ortaya çıkacağından dolayı karşısındakini inandırmakta mümkün olmayacaktır. Romantik olmaktan bahsedildiğinde ilk akla gelen şey ise romantik sözler olmuştur. Çünkü bir erkek karşısındaki kadının kendisine yakınlığı ne olursa olsun onu etkilemek ve onun hayatına dokunmak istiyorsa mutlaka bunu en güzel şekilde yapması ve kadının duygularına hitap etmesi gerekiyor.

    Site : https://sozdefterim.com/romantik-sozler

  27. While the decision to use Nembutal is a deeply personal one, having access to this medication can offer individuals the freedom to make their own end-of-life choices. Nembutal Pillen

  29. It’s great to hear about the popularity of train travel in France and the SNCF’s extensive railway network! If you’re a fan of collecting travel souvenirs, adding a cool keychains to your collection is a fun way to remember your train journeys. You could look for keychains that feature iconic landmarks or symbols from the countries you’ve visited or even ones that are shaped like miniature trains. Don’t forget to pick up a unique keychain on your next train adventure! 🚂🗺️🔑 #TrainTravel #SNCF #France #TravelSouvenirs #Keychains #IconicLandmarks #MiniatureTrains #AdventureAwaits #Collectibles

  30. Cortexi Cortexi is a powerful and effective hearing support and all-day energy helper. Thousands of people enjoy taking Cortexi every day with great results and we have not received a single complaint yet. Once your body adapts to the ingredients you will notice less noise and better ear health.

  37. woooow, amazing blog to read, thanks for sharing, and move on. finally, i found the best reading blog site on google, thanks for sharing this type of useful article to read, keep it up,

    토토사이트

  38. Everything is very open with a precise clarification of the issues. It was really informative. Your site is very helpful. Thanks for sharing! Feel free to visit my website;
    토토사이트

  41. I’ve been troubled for several days with this topic. totosite, But by chance looking at your post solved my problem! I will leave my blog, so when would you like to visit it?

  43. The spray works by relaxing the blood vessels in the genital area. This lets more blood move into the tissues. This can make you more sensitive and make your medicine for constipation in pakistan orgasms stronger. The spray’s affects can last for a few hours, which makes it a popular choice for people who want to improve their sexual experiences.

  45. VigRX Plus is also made to improve the quality and length of erections. This is because it has ingredients like Epimedium vigrx plus in pakistan islamabad Leaf Extract and Hawthorn Berry, which are known to improve blood flow to the penis and support healthy erectile function.

  47. I’ve been troubled for several days with this topic. baccaratcommunity, But by chance looking at your post solved my problem! I will leave my blog, so when would you like to visit it?

Leave a Reply

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