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

 

181,364 thoughts on “Railway Industry in France”

  1. Hello there, just became aware of your blog through Google, and found that it’s really informative. I am going to watch out for brussels. I’ll be grateful if you continue this in future. Lots of people will be benefited from your writing. Cheers! How to Invest in Crypto Currency

  4. Dealing with a frustrating situation where your How To Solve Exodus Wallet Stuck on Loading Issue? Don’t worry, help is here! In our latest blog post, we tackle the common issue of the Exodus wallet getting stuck during the loading process and provide you with effective solutions to get you back on track. We understand how important it is to have seamless access to your funds, so we’ve gathered expert tips and troubleshooting steps to resolve this problem.

  6. İlk depozitonuzda %200’e varan cömert bir bonusun yanı sıra düzenli nakit geri ödemeleri ve yalnızca saygın MostBet bahis şirketimizde bulunan uygun erişimden yararlanın: mostbet türkiye.

  7. The Sextra.pl website contains EROTIC CONTENT and is intended for18+ ONLY! By entering further, you declare that you are an adult, you want to watch .
    sextra

  8. Game with its enticing promises and inherent risks, continues to be a controversial topic. While some individuals may engage in responsible game for entertainment purposes, it is crucial to recognize the potential สล็อตเครดิตฟรี consequences associated with this activity. Problem game can lead to financial ruin, addiction, and negative societal impacts. Striking a balance between personal freedom and protecting individuals from the harmful effects of game is a challenge that policymakers, society, and individuals must address collectively.

  10. The APK for YouTube ReVanced Extended was created by Inotia00. Over the standard ReVanced, it includes additional functionality. It is extremely versatile and quick. You may upload as well as watch your preferred material. Revanced

  11. Aw, it was quite a good post. In idea I have to put in writing such as this moreover – taking time and actual effort to produce a excellent article… but what / things I say… I procrastinate alot through no indicates manage to get something completed. Buy Your First House

  12. Villas with regard to lease within Protaras, through RentVillaCyprus may guarantee a person how the choice as well as manage of every apartment is actually completely manufactured by all of us, to be able to make sure the actual beautiful vacations a person should have. Furthermore, guide your own lodging properly because of the safe on the internet repayment program. Villas to rent in Protaras

  13. One of the most significant drawbacks of game is the potential for addiction and the subsequent development of problem game. For some individuals, the excitement and rush of winning can become addictive, เครดิตฟรีล่าสุดได้จริง leading to compulsive behavior and financial ruin. Problem game can have severe consequences, including financial debt, relationship strain, mental health issues, and even criminal activities.

  15. Hello, this weekend is good for me, since this time i am reading this enormous informative article here at my home. ojol 77

  16. In fact your creative writing abilities has inspired me to start my own Blog Engine blog now. Really the blogging is spreading its wings rapidly. Your write up is a fine example of it 中文補習

  19. Welcome to Pujbaicallgirl.com and Go on and Enjoy With Call Girl In Chennai, the most beautiful city in India. It’s no secret that everyone holds fond memories of Chennai, the “city lovely,” very dearly. Chennai is renowned for its clean streets and many parks, in addition to its well-designed buildings. Sukhana Lake, a major tourist attraction, is only one of several stunning natural attractions in the area. Beautiful scenery and boats await you here, particularly as the sun sets. Enjoy Call Girls in Chennai & Full Night Services Available Only @ ₹2499 .
    Chennai escorts

  20. day trips in bali

    With more than 12 years of travel experience, Bali Prime Travel has the expert knowledge to design unforgettable holidays for every type of traveler

  21. I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article. ojol 77

  22. Nice post! This is a very nice blog that I will definitively come back to more times this year! Thanks for informative post. pg slot

  24. Essentials Clothing Collection Los Angeles Brand Fear of GOD Essentials Hoodies.
    Get Amazing Discount with Fast Shipping
    Essentialsclothing
    i like it very much is the nice post of today

  26. Very interesting blog. A lot of blogs I see these days don’t really provide anything that I’m interested in, but I’m most definitely interested in this one. Just thought that I would post and let you know 脫髮

  28. Your post is very helpful to get some effective tips to reduce weight properly. You have shared various nice photos of the same. I would like to thank you for sharing these tips. Surely I will try this at home. Keep updating more simple tips like this. 脫髮

  30. Should you feel find it difficult to, you undoubtedly is not able to; If you don’t intend, to have failing. Things are subject to intellect, reduction of hundreds exercises are hopeless prior to starting. 脫髮

  31. I really loved reading your blog. It was very well authored and easy to undertand. Unlike additional blogs I have read which are really not tht good. I also found your posts very interesting. In fact after reading. I had to go show it to my friend and he ejoyed it as well! 脫髮

  32. Çerkezköy Havalandırma Firması olarak, havalandırma sistemleri konusunda geniş bir yelpazede hizmet sunuyoruz. Müşterilerimize en iyi kalitede havalandırma çözümleri sunarak, sağlıklı ve konforlu bir yaşam ve çalışma ortamı sağlamayı hedefliyoruz. Sektördeki deneyimimiz ve uzman ekibimizle, her türlü ihtiyaca yönelik çözümler sunuyoruz.

    Havalandırma sistemleri , yaşam ve çalışma alanlarında temiz hava sirkülasyonunu sağlamak için büyük öneme sahiptir. Firmamız, profesyonel ekipmanlar ve güncel teknolojiler kullanarak, en iyi havalandırma sistemlerini müşterilerimize sunmaktadır. Ayrıca, müşteri talepleri doğrultusunda özelleştirilmiş havalandırma çözümleri de sunuyoruz.

  33. Interesting topic for a blog. I have been searching the Internet for fun and came upon your website. Fabulous post. Thanks a ton for sharing your knowledge! It is great to see that some people still put in an effort into managing their websites. I’ll be sure to check back again real soon. 活髮療程

  34. Awesome review, I am a major devotee to remarking on web journals to educate the web journal scholars realize that they’ve added something beneficial to the internet!..  脫髮

  36. This sort of wanting to come to a difference in her or his lifestyle, initial generally Los angeles Excess weight weightloss scheme is a large running in as it reached that strive. weight loss LIV PURE

  37. This web site is usually a walk-through its the information you wished about this and didn’t know who ought to. Glimpse here, and you’ll definitely discover it. RED BOOST REVIEWS

  40. Aw, i thought this was a very nice post. In idea I must place in writing this way moreover – spending time and actual effort to manufacture a top notch article… but exactly what can I say… I procrastinate alot through no means often get something carried out. IKARIA LEAN BELLY JUICE

  44. Excellent blog here! Also your site loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my site loaded up as quickly as yours lol mystery school code

  45. Regen CBD Gummies I virtually couldn’t go away your internet site in advance than suggesting that I really cherished the equal vintage records an man or woman provide in your internet website site traffic? Is gonna be again regularly so you can look at new posts.

  46. Hello ! I am a student writing a report on the subject of your post.Your article is an article with all the content and topics. I’ve ever wanted . Thanks to this, it will be of great help to the report I am preparing now.Thanks for your hard work. And if you have time, please visit my site as well. is one very interesting post. like the way you write and I will bookmark your blog to my favorites. Strong blog. I acquired various nice information. I?ve been keeping an eye fixed on this technology for some time
    토스카지노

  47. The 520 Area Code is home to a diverse population, reflecting the multicultural fabric of the southwestern United States. It encompasses a blend of cultures, including Native American, Mexican, and European influences, contributing to a rich and vibrant community.

  49. The railway industry in France, particularly the TGV (Train à Grande Vitesse) system, offers various train options and services. The industry operates similarly to the airline industry, with variable prices based on journey, class,CBD Bath, and date of booking. Revenue management strategies can be applied due to characteristics such as fixed capacity, variable and uncertain demand, perishable inventory, low marginal cost, and the ability to sell in advance. While there are some differences from the airline industry, such as forecasting demand and dealing with overbooking, revenue management techniques can still be implemented effectively.

Leave a Reply

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