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

 

206,795 thoughts on “Railway Industry in France”

  1. Welcome to chennaibabies.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 .

    Howdy fellas! Join us on our platform to meet a beautiful woman to chat with and make your day more magical. To be more precise, we are Chennai’s top escort agency, and we guarantee to give you the best escort services at any moment. We only use real call ladies in my area that are eager to provide the services you require. Gentlemen in Chennai can always hire a call girl whenever they want thanks to the availability of our services. Visit the punjbaicallgirl website to enjoy a Premium Call Girl in Chennai with just one call.

    Backlinks

  2. I truly value this superb post that you have accommodated us. I guarantee this would be helpful for a large portion of the general population. 英國樓盤

  3. Introducing the enchanting world of intimacy and elegance with escort service in ChennaiThere aren’t many experiences that can compare to the attraction of an escort service when it comes to indulging in opulent pleasures. These enchantresses build a tapestry of desire that surpasses purely physical attraction because they are graceful, elegant, and proficient in the arts of companionship. One can lose themselves in a beautiful world where wishes come true in the busy metropolis of Chennai, where tradition and modernity coexist. A Chennai Escort service is a private excursion that captures the mind and soul as well as ephemeral moments.

    These alluring people exude grace and elegance while giving their clients priceless memories. Every contact with an Escort is a symphony of anticipation, from stimulating chats over delicious dinners to discovering hidden passions behind closed doors.Their capacity to forge sincere connections, in addition to their physical beauty, is what makes them so alluring. These captivating entities are masters at eliminating inhibitions and bringing about liberty via pleasure. They have an instinctive awareness of human needs.

    Backlinks

  7. دما سنج آکواریوم
    خرید دما سنج آکواریوم
    قیمت دما سنج آکواریوم
    دما سنج آکواریوم نواری
    بهترین دما سنج نواری
    دما سنج آکواریوم نواری برچسبی
    Hyperlink

  8. Such a very useful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. 英國樓價

  9. We cordially invite you to enter the enchanted world of Udaipur escort service, where elegance mingles with desire and fantasies come to life against the regal backdrop of this ancient city. Udaipur, which is located in the center of Rajasthan, has long been regarded as a haven for romance and mystique, mesmerizing tourists with its palaces, lakes, and extensive cultural history. A hidden realm that reveals secrets whispered only to those seeking an incredible experience is concealed within this tapestry of grandeur.

    The Udaipur escort service embodies sophisticated sensuality and polished artistry that transcends time, going beyond simple companionship. Here, elegant muses clad in regal dress enchant visitors with their poised appeal and sharp intellect. Every encounter develops into a beautiful rendezvous where talks flow like fine threads weaving unknown stories.As these escorts continue to practice age-old traditions handed down through the generations, you can immerse yourself in the genuineness of ancient customs.
    Backlinks

  12. 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. 倫敦買樓

  15. Join the tga168.net gaming revolution and experience the best of online slots and live football betting. Let’s spin, bet, and enjoy the thrills together!

  16. Calling all tga168.bet gamers! It’s time to level up your gaming experience with online slots and live football betting. Gather your friends and let’s have a blast.

  19. Hey there, tga-slot.com gaming aficionados! Gather your friends and get ready to explore the world of online slots and live football betting. Let’s spin, bet, and conquer.

  22. Fantastic article I want to start by thanking you for the wonderful work you do. Your post is quite educational, and I carefully read it. It truly helps us out. I’m hoping other people find your post fascinating. Keep providing us with this information, please.pic n mix

  31. Optimistic Authors distributes the best online case study assignment help online. Case study projects are an essential part of researchers for commercial, law, and medicinal scholars. These preps are real-life imitations that need in-depth investigate and examination. Scholars must classify the problematic, collect, analyse, and deliver references. However, these projects can be fairly inefficient and stimulating. This is anywhere the Case study online assignment help specialists originate in.

  33. Consumers own employing a remarkable vacancy. Lake sanity doubtlessly quarry the thing at the same time at a store counsel that will help any buddys. My best online business is certainly self-possessed lots of individuals correct likely get benefited utilizing this type of society. slot gacor maxwin

  35. زایشگاه ماهی
    زایشگاه ماهی آکواریوم
    خرید زایشگاه ماهی
    قیمت زایشگاه ماهی
    زایشگاه ماهی رویال
    Hyperlink

  37. I am just commenting to let you know of the perfect experience my wife’s princess encountered studying your web site. She picked up numerous details, most notably what it’s like to have an ideal helping character to have many more very easily gain knowledge of selected advanced subject matter. You undoubtedly exceeded our own expectations. Thanks for offering such effective, healthy, explanatory and in addition fun thoughts on this topic to Gloria. retractable pergola

  40. togel online Panen4d situs togel dan agen togel online terbesar dengan deposit pulsa 10 ribu tanpa potongan , situs terpercaya yang akan memberikan anda kemenangan terbaik dan terbesar dalam melakukan kegiatan betting togel online

  43. Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have. 英國樓價

  45. I haven’t any word to value this post…..Really i am awed from this post….the individual who make this post it was an extraordinary human..thanks for imparted this to us. Play nextbet

  46. But in turning Australia’s lower order into hopping tailenders, Wood’s raw pace has changed the complexion of the series with England now carrying a weapon to be feared.BOK娛樂城

  47. Brook has the world at his feet – and more than £1m from franchise leagues in the bank – but as he stood holding a beer with his family on the outfield afterwards, he was surely reflecting on his proudest moment.娛樂城推薦

  48. You have an extraordinary feeling of composing I should state. Your post has those actualities which are not available from anyplace else. It’s my unassuming solicitation to u please continue composing such exceptional articles 英國樓盤

Leave a Reply

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