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

 

165,248 thoughts on “Railway Industry in France”

  2. If conceivable, as you clear knowledge, would you mind updating your blog with more information? It is damned helpful in return me. Anoboy

  4. I found your this post while searching for some related information on blog search…Its a good post..keep posting and update the information. bokep jepang

  7. So part to occur over your staggering site. Your blog gets me a disappointing trade of tangling.. Salubrious gathering close by the scene. carpickusa

  11. 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

  13. Wow, 7eventzz birthday decorations are absolutely fantastic! They have an incredible talent for turning ordinary spaces into extraordinary birthday wonderlands. The attention to detail and creativity in their designs is truly remarkable.

  14. Wow, 7eventzz’s birthday decorations are absolutely fantastic! They have an incredible talent for turning ordinary spaces into extraordinary birthday wonderlands. The attention to detail and creativity in their designs is truly remarkable.

  16. Hi there, I’ve browsed most within your posts. This put up might be wherever I acquired the most valuable data for my study. Thanks for publishing, maybe we can see additional on this. Are you presently conscious of every other Internet sites on this subject matter. สล็อตเว็บใหญ่

  17. Apple gadgets in reality have a manner of emptying your economic group account — specifically when you upload all the crucial add-ons on pinnacle of the devices themselves, like chargers, cables, and times. You shouldn’t want to pay for an arm and a leg to keep your devices covered and charged. That’s why you ought to take benefit of any deal you can get.

    As a part of the VIP sale, you could shrink a further 15% off those already-discounted add-ons for your Apple AirTags. Keep your AirTags safe and cozy without breaking the financial institution for a limited time.

    Apple AirTag Keychain Holder
    Made of excessive-cease silicone, this smooth keychain holder protects your AirTag from drops, scratches, dust, water, and greater. It attaches without trouble to your keys, bag, wallet, or suitcase to make finding your stuff a breeze. Usually $29, you can use the code VIP15 and get one for simply $12.71

    Apple AirTag Protector Case(opens in a today’s tab)
    This shielding case fabricated from light-weight and strong TPU will prevent your AirTag from enduring any each day wear and tear. It’s prepared with an included carabiner, so it could without problems connect on your keys, backpack, purse, or bag. Use the code VIP15 at checkout and knock the $29 rate tag down to honestly $12.Seventy one(opens in a new tab) for a restrained time. It is available in black, grey, and

    AirTag Leather Key Ring (4-Pack)(opens in a trendy tab)
    If you have a tendency to lose a lot of your everyday necessities, you probable have more than one airbags. Get a four-% of these stylish leather-based-based keyrings that can be clipped to almost some thing, and defend all of your AirTags from everyday placed-on-and-tear. You’ll get every colour option (inexperienced and brown) in a %. Regularly $60, you may use the code VIP15 and get a % of four for the handiest $ forty-. 46(opens in a today’s tab) for a restrained time.

    HyperGear AirCover Silicone Loop for AirTag (four-Pack)(opens in a brand new tab)
    Another desire for the ones who’ve multiple AirTags, those silicone loop protectors are to be had in packs of four with all particular colors. The raised edges provide superior scratch, dirt, and water protection, even as the rugged clean-convey dangle strap makes it smooth to connect with some thing. Get 4 top-price silicone loop tags in purple, blue, white, and black for simply $16.Ninety-nine (opens in a brand new tab) (regularly $ 19. Ninety-9) with the code VIP15.

    Hypergear AirCover: Vegan Leather Keyring for AirTag(opens in a modern day tab)
    Simple and glossy, this vegan leather-based keyring has a snap-on closure, so you can pop your AirTag in and keep it secure and at ease. The raised edges provide advanced scratch safety, and the handy stainless-steel carabiner offers an easy manner to grasp it on any of your belongings. Get one for just $14.Forty four(opens in a trendy tab) (frequently $16.Ninety nine) with the code VIP15 for a restrained time. https://oneloopmarketing1403.blogspot.com/

  27. 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… ballzaahd.com

  34. I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article… ยูเวนตุส

  38. Thank you for such a fantastic blog. Where else could anyone get that kind of info written in such a perfect way? I have a presentation that I am presently working on, and I have been on the look out for such information how to find drafts on instagram

  39. This is a very unique and magnificent post with readable and informative content, I’m absolutely impressed. Thank you for sharing these amazing reads. Our writing experts provide MATLAB Assignment Help in Australia. Get MATLAB dissertation help services in the UK at an affordable price.Visit Now.

  40. Great write-up. I am a normal visitor of your web site and appreciate you taking the time to maintain the excellent site. I will be a frequent visitor for a long time. strippers for hire

  41. Este artículo es muy destacado. La profundidad de la investigación y el estilo de escritura atractivo lo hacen excepcional de los demás. Tengo que agradecer al autor por entregar un artículo tan notable.. Si buscas escorts en argentina puedes consultar esto:- chicas escort Bariloche

  43. Impressive web site, Distinguished feedback that I can tackle. I am moving forward and may apply to my current job as a pet sitter, which is very enjoyable, but I need to additional expand. Regards buy youtube comments

  45. Conclusion Steel shots is a vital component in numerous industrial applications, offering excellent cleaning, surface preparation, and finishing capabilities. Its composition, manufacturing process, and properties make it a versatile and cost effective abrasive material. With its hardness, durability, and recyclability, steel shots provides consistent and efficient performance, enhancing productivity in various industries. Whether it’s for surface cleaning, shot peening, foundry applications, abrasive blasting, or deburring processes, continues to play a crucial role in achieving high-quality and reliable results.
    https://www.abrasivegrit.in/product/steel-shot

  49. I’m not that much of a internet reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark your site to come back in the future. All the best
    keramische pannen

  50. I am wanting the same most useful work from you in the future as well. In fact your creative writing skills has inspired me. AI

Leave a Reply

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