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

 

163,933 thoughts on “Railway Industry in France”

  1. Hi this is somewhat of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding knowledge so I wanted to get guidance from someone with experience. Any help would be greatly appreciated! effective search engine optimization solutions

  3. You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this… deep web

  4. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. deep web

  5. KOBOITOTO Situs Judi Poker Slot Online Terpercaya

    Judi online KOBOITOTO sudah menjadi salah satu situs permainan judi online situs koboitoto yang dimainkan dengan menerapkan uang orisinil dimana web hal yang demikian memiliki banyak permainan judi yang sama seperti dicasino dan cara bermain nya juga sama, untuk dapat bermain anda cuma cukup mendaftar dan melaksanakan deposit untuk memainkan permainan yang ada. Pada industri perjudian slot online nama KOBOITOTO ini telah dikenal sebagai salah satu penyedia bermacam ragam permainan judi online yang benar-benar komplit. Meski web KOBOITOTO ini tergolong masih baru melainkan laman KOBOITOTO ini telah cakap memberikan mutu terbaik situsnya dengan kredibilitas tinggi dalam memberikan bermacam macam keperluan para anggota dalam menjalankan taruhan judi online. Tidak hanya permainan slot saja yang akan anda dapatkan dalam KOBOITOTO, namun agen judi slot online sah dan terpercaya di indonesia seperti live casino, poker, idn live, fishing permainan dan togel yang dimana tiap-tiap permainan hal yang demikian bisa anda mainkan di dalam satu sekaligus dengan tingkat kemenangan yang tinggi anda dapat mendapatkan sebuah hadiah kemenangan yang seperti itu besar dari tiap-tiap permainan judi online yang sudah disediakan oleh KOBOITOTO.

  6. You there, this is really good post here. Thanks for taking the time to post such valuable information. Quality content is what always gets the visitors coming. dark web links

  9. Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with extra information? It is extremely helpful for me. dark web

  10. Wow! Such an amazing and helpful post this is. I really really love it. It’s so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also.
    . worldnewsinside

  11. Such an enlightening website. An obligation of appreciation is all together for sharing. Furniture is a thing that we in general need in our home or workplace. In case you thinking about obtaining new goods, by then I propose you buy victorian decorations. Since it’s altogether pleasing and the arrangement is so impeccable. fullmaza

  13. Great write-up, I am a big believer in commenting on blogs to inform the blog writers know that they’ve added something worthwhile to the world wide web!.. Slot gacor

  14. Your content is nothing short of brilliant in many ways. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers. cortexi reviews

  20. تقدم ضامن للمدفوعات خدمات مبتكرة تساعد على تسهيل حياة ملايين العملاء بأكثر من 100.000 بائع تجزئة و 26 فرع في جميع أنحاء الجمهورية.

  25. Watch Online Video Yeh Rishta Kya Kehlata Hai Full All HD Latest Video Episodes Desi Serial. YRKKH Online Presents by Hotstar Official Channel.

  26. Repairus is a reputable and registered commercial fridge repair company in Toronto and surrounding cities. That will provide you with the best and highest quality of maintenance for residential and commercial fridge repair services.True Freezer repair

  30. Awesome article! I want people to know just how good this information is in your article. It’s interesting, compelling content. Your views are much like my own concerning this subject. https://1movies.movie

  31. Awesome article! I want people to know just how good this information is in your article. It’s interesting, compelling content. Your views are much like my own concerning this subject. https://1movies.movie

  33. Thank you a lot for sharing this with all people you actually recognize what you’re speaking about! Bookmarked. Please additionally talk over with my web site =). We could have a hyperlink alternate arrangement among us! TONIC GREENS HERPES

  34. Tata Amantra is a captivating residential project that offers a serene and tranquil living experience. Nestled in a peaceful setting, it presents a harmonious blend of luxury, comfort, and nature.

    The project features thoughtfully designed apartments that cater to different lifestyles and preferences. With attention to detail and quality craftsmanship, the living spaces exude elegance and sophistication. The apartments boast spacious layouts, allowing ample natural light to flood in through large windows. The interiors are adorned with premium finishes and fixtures, creating an ambiance of modernity and warmth.

  35. m88

    M88 casino nhà cái uy tín cá cược trực tuyến Rút tiền nhanh chóng, bảo mật an toàn. Nhiều ưu đãi khủng khi nạp lần đầu. Đăng Ký Ngay

  37. Wow, this is fascinating reading. I am glad I found this and got to read it. Great job on this content. I liked it a lot. Thanks for the great and unique info. milf

  40. Good – I should certainly pronounce, impressed with your website. I had no trouble navigating through all tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Quite unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your client to communicate. Nice task. TONIC GREENS

  45. Most of the time I don’t make comments on websites, but I’d like to say that this article really forced me to do so. Really nice post!
    IPTV

  48. I wish more authors of this type of content would take the time you did to research and write so well. I am very impressed with your vision and insight.
    IPTV

  50. I found so many interesting stuff in your blog especially its discussion. Really its great article. Keep it up.
    IPTV

Leave a Reply

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