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

 

166,215 thoughts on “Railway Industry in France”

  1. “Hi there! This post couldwe need develop more techniques in this regard, thanks for sharing. . . . . .
    Wow! This can be one particular of the most useful blogs We’ve ever arrive across on this subject. Basically Wonderful. I’m also a specialist in this topic so I can understand your hard work. fantastic put up, very informative.” 모두의토토검증업체

  2. I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog. I have bookmarked it and I am looking forward to reading new articles. Keep up the good wor 야동

  3. The actual challenge to become is normally you can actually SOLE check out that level of your tax discount over the internet by looking at your RATES web-site. REVERAVIT

  4. I’ve been absent for a while, but now I remember why I used to love this website. Thank you, I will try and check back more often. How frequently you update your site? REVERAVIT

  5. This blog post has opened my eyes to a whole new perspective. I never thought about the topic in this way before. Well done on presenting such a thought-provoking argument!

    Bharatbenz Truck

  7. قالب مدولار
    قالب فلزی مدولار
    کاربرد قالب مدولار
    فروش قالب مدولار
    خرید قالب مدولار
    قیمت قالب مدولار
    انواع قالب های مدولار
    تجهیزات جانبی مدولار
    Hyperlink

  9. Wonderful blog! Do you have any tips and hints for aspiring writers? Because I’m going to start my website soon, but I’m a little lost on everything. Many thanks! Excellent to be visiting your blog again, it has been months for me. Rightly, this article that I’ve been served for therefore long. I want this article to finish my assignment within the faculty, and it has the same topic together with your article. Thanks for the ton of valuable help, nice share. 토토매거진 검증업체

  10. I know your expertise on this. I must say we should have an online discussion on this. Writing only comments will close the discussion straight away! And will restrict the benefits from this information. surga777

  11. In this posting know the most important thing, the product provides you with some sort of key phrase loaded web page link an incredible practical web page webpage: olive garden

  13. All other bloggers should take note: this is what awesome blogs look like! I can’t wait to see more of your work! Not only is it engaging, but it is also creative. If you would respond with a link to your Facebook, I would be very grateful! Thanks for posting such a great blog or article. It contains wonderful and helpful information. Keep up the good work! Nice information with a really clear explanation of the issues. Thank you for sharing this. 먹튀대피소 검증업체

  15. Incredible post yet I was pondering whether you could create a litte more regarding this matter? I”d be outstandingly appreciative if you could elucidate a slight bit further. Worth it! 먹튀신고

  16. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. baaballs.com

  17. You have performed a great job on this article. It’s very precise and highly qualitative. You have even managed to make it readable and easy to read. You have some real writing talent. Thank you so much. Nice information, valuable and excellent design, as share good stuff with good ideas and concepts. I always prefer to such type of blog which provides some latest info. 토담토담토토

  21. In such a writing have an understanding of it is important, this product provide you with getting some key term charged webpage website a tremendous simple webpage site: GLUCOTRUST

  24. That appears to be excellent however i am still not too sure that I like it. At any rate will look far more into it and decide personally! dewanaga77

  25. I as of late saw your site back I are commonly glancing through which consistently. You have a heaps of data at this website so I really like your look to the web a bit as well. Keep up the best show results! uang777

  28. I thoroughly enjoyed reading this blog post. The storytelling was captivating, and I found myself completely engrossed in the narrative. Looking forward to more content like this! TVS King Duramax

  31. I thoroughly enjoyed reading this blog post. The storytelling was captivating, and I found myself completely engrossed in the narrative. Looking forward to more content like this! TVS King Kargo

  32. Welcome to the ultimate guide on creating a highly ranked “situs slot gacor” website. In this comprehensive article, we will explore the strategies and techniques that will help you outrank your competitors on Google. Our goal is to provide you with valuable insights and actionable steps to ensure your website stands out from the crowd and attracts a significant amount of organic traffic. Let’s dive in!
    situs slot gacor

  33. There is so much in this article that I would never have thought of on my own. Your content gives readers things to think about in an interesting way. Thank you for your clear information. 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. 온카맨검증커뮤니티

  34. This is my first time i visit here. I found so many entertaining stuff in your blog, especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the leisure here! Keep up the good work. I have been meaning to write something like this on my website and you have given me an idea. I am very impressed with your writing I couldn’t think of this, but it’s amazing! I wrote several posts similar to this one, but please come and see! 먹튀뱅크검증커뮤니티

  35. Hello Thank you for giving me useful informatiovisit you often. Thank you. I am also running the site. This is a related site, so please visit once. Have a niceday! Really I enjoy your site with effective and useful information. It is included very nice post with a lot of our resources.thanks for share. i enjoy this post. 카지노

  42. Identify Primary Keywords
    Begin by identifying the primary keywords related to “situs slot gacor.” These are the terms that users are most likely to search for when looking for online slot game platforms. Utilize keyword research tools, such as Google Keyword Planner or SEMrush, to discover high-volume keywords with low competition.
    situs slot gacor

  43. Long-Tail Keywords
    Incorporating long-tail keywords into your content can significantly improve your website’s visibility. Long-tail keywords are more specific and less competitive, allowing you to target a niche audience. For example, “best online slot games with high payouts” is a long-tail keyword that can attract users who are specifically searching for high-paying slot games.
    slothoki

  44. Title Tags and Meta Descriptions
    Craft compelling title tags and meta descriptions that include your target keywords. These elements appear in search engine results and influence click-through rates. Make sure your title tags are concise, descriptive, and engaging, while your meta descriptions provide a brief summary of your content.
    slothoki

  46. Hire a dissertation writer is providing the best service for all students who are concerned about their online dissertation writing, when you are hire a dissertation writer for your test and thesis writing. Our proficient experts team always ready to resolve the student’s difficulty. They are always ready to help you. You will get high grade and a 100% best quality result. For securing preferred marks, we’ve to prepare for several subjects including physics, chemistry, biology etc. However, it’s very hectic to make up your mind for such kind of assignment writing while you’re engage in other activities of life.

  49. Unveiling Slothoki: A Gaming Paradise
    What is Slothoki?
    Slothoki is a cutting-edge online gaming platform that offers an extensive array of games, designed to cater to the diverse preferences of players. From thrilling slot games to immersive live casino experiences, Slothoki provides a virtual paradise for those seeking unforgettable entertainment and the chance to win big. With its user-friendly interface, innovative features, and commitment to customer satisfaction, Slothoki has quickly risen to prominence in the online gaming industry.
    Situs Judi Slot Online Gampang Menang

  50. User-Friendly Interface and Seamless Navigation
    Slothoki prides itself on providing a user-friendly interface that ensures effortless navigation and accessibility. The platform’s intuitive design allows players to find their favorite games quickly, manage their accounts with ease, and enjoy a seamless gaming experience across various devices. Whether you prefer playing on a desktop computer, laptop, or mobile device, Slothoki ensures that you can indulge in thrilling gameplay anytime, anywhere.
    Situs Judi Slot Online Gampang Menang

Leave a Reply

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