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

 

206,788 thoughts on “Railway Industry in France”

  3. Good website! I truly love how it is easy on my eyes it is. I am wondering how I might be notified whenever a new post has been made. I have subscribed to your RSS which may do the trick? Have a great day! 英國樓盤

  6. 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 英國物業

  8. Využijte Velkorysý Bonus až 200% na váš počáteční vklad, stejně jako pravidelné platby cashback a pohodlný přístup, který je k dispozici výhradně v naší vážené sázkové kanceláři MostBet: https://1most.bet/cs/

  9. สล็อตเว็บตรง: เล่นเกมสล็อตออนไลน์ได้ง่ายๆ ที่ไม่ผ่านเว็บพนัน

    คำอธิบาย: สล็อตเว็บตรงคืออะไรและทำไมคุณควรเล่น

    สล็อต, เกมสล็อต, เกมพนัน, เกมการพนัน, เกมใหม่, การเดิมพัน

    ประโยชน์ของการเล่นสล็อตในเว็บตรง

    สู้ขีดจำกัดข้อแห่งโจทย์, ผู้ชายผู้หญิง, การชำระเงินที่ปลอดภัย

    วิธีการใช้และการสมัครสมาชิกให้เป็นสมาชิก

    ถ่ายทอดผ่าน Facebook Live, การแจ้งบัญชีจากระบบไปยัง Facebook Page Messenger Bot

    ข้อจำกัดและข้อควรระวังในการเล่นสล็อตเว็บตรง

    เกมพนัน, เกมสล็อต, การเดิมพัน, ความปลอดภัยของข้อมูลส่วนบุคคล

    สิ่งที่คุณควรทราบก่อนที่จะเลือกเล่นสล็อตเว็บตรง

    โปรโมชั่น, โบนัส, แจ็คพอต

    สรุป: เข้าถึงความสนุกและผู้ชนะใหญ่ได้ทันทีด้วยการเล่นสล็อตในเว็บตรง

  10. ميجا ستورز | متجر الكتروني سعودي معتمد من المركز السعودي للأعمال , نسعى لتوفير افضل الماركات العالمية بافضل الاسعار مع خدمة التوصيل السريع , هدفنا ان نكون وجهة التسوق الالكترونية رقم واحد بالمملكة  الكترونيات حديثة

  11. 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… otomotiftron

  13. Need A Payslip? Get a Duplicate or Replacement Payslip From Online Payroll Company Now, Online Payslips Service In 30 minutes. Avoid online wage slips printed on fake stationary. payslips online

  14. This article was written by a real thinking writer. I agree many of the with the solid points made by the writer. I’ll be back. Source

  16. If you don’t know much about big black dildo or don’t know how to choose – don’t worry – the following post outlines everything you want to know about big black dildo. large black dildos

  19. Baik itu level dan fitur yang berbeda, hadiah dan bonus yang menggiurkan, atau house edge yang kompetitif – selalu ada sesuatu di slot online terbaik untuk Anda. Jarang ada permainan yang menawarkan begitu banyak, tetapi dengan Multiplier Mountain yang melakukan hal itu – ini adalah pengalaman yang tidak boleh dilewatkan.

  25. Mencari agen slot yang terbaik memang tidaklah gampang, khususnya bagi para pemain pemula. Tapi, jikalau Anda mencari Agen Slot  terbaik, karenanya Daftar Agen Slot Terbaik dapat jadi rujukan terbaik untuk Anda.

  27. Internet search engine optimization experts apply the modern analytics service, which has a positive affect a website. SEO companies are facing great competition in the SEO field. However, they introduce guaranteed SEO services to manage with the competition.

  29. The post I was looking for! I am so happy to finally read this post. Thank you very much. Can I refer to your post on my website? Your post really touched me and helped me a lot. If you have any questions please visit my site and read what kind of posts I post. I’m sure it will be interesting. Bersama388

  30. Some of the time I have an inclination that on the off chance that you simply watch things, simply sit still and let the world exist before you – in some cases I swear that only for a subsequent time solidifies and the world stops in its tilt. Only for a second. What’s more, on the off chance that you by one way or another figured out how to live in that second, at that point you would live until the end of time. 英國買樓

  35. Great post full of useful tips! My site is fairly new and I am also having a hard time getting my readers to leave comments. Analytics shows they are coming to the site but I have a feeling “nobody wants to be first”. broadway英國

  36. 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. Broadway樓

  38. Great formed article. It will be unfaltering to any person who uses it, including me. Keep doing what you are doing – can’r hold up to scrutinize more posts. 英國物業

  41. Other than that it is an amazing transfer which he and I definitely loved analyzing. It really isn’t every day that we have a potentially open door to learn something special.

    tata 1112

  43. It’s on top of that a sublime transfer that him and I certainly cherished dissecting. It’s really not every day we have a valuable open door to know something particular.

    tata 1112

  44. ​I am jyothisinha7, walking beautycrazepro PR representative. With greater than 6 years of revel in the PR and Digital advertising and advertising Industry, helping companies gather goals with the useful aid of streamlining the method. https://beautycrazepro.blogspot.com/

  45. ​I am jyothisinha7, walking beautycrazepro PR representative. With greater than 6 years of revel in the PR and Digital advertising and advertising Industry, helping companies gather goals with the useful aid of streamlining the method. https://beautycrazepro.blogspot.com/

  48. Thanks for a wonderful share. Your article has proved your hard work and experience you have got in this field. Brilliant .i love it reading. Lets Guru

Leave a Reply

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