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

 

181,346 thoughts on “Railway Industry in France”

  1. Way cool! Some extremely valid points! I appreciate you writing this write-up and also the rest of the website is also very good. Really enjoyed this article post.Much thanks again. Really Great. Wow! Thank you! I permanently wanted to write on my site something like that. Can I implement a fragment of your post to my website? Thanks for writing such a good article, I stumbled onto your website and read a few articles. I like your way of writing Thank you for your blog post.Thanks Again. Keep writing. Im obliged for the article. Will read on Usually I don at read post on blogs, however I wish to say that this write-up very pressured me to try and do it! Your writing style has been surprised me. Thanks, quite nice post. 토토

  3. This particular papers fabulous, and My spouse and i enjoy each of the perform that you have placed into this. I’m sure that you will be making a really useful place. I has been additionally pleased. Good perform! Keep up the good work; I read few posts on this website, including I consider that your blog is fascinating and has sets of the fantastic piece of information. Thanks for your valuable efforts. 토토

  4. Hey i’m for the first time here. I came across this board and I find It seriously helpful & it helped me out much. I hope to give something back and aid others as you aided me. KETO ACV GUMMIES

  5. I image this might be various upon the written content material? then again I still believe that it may be appropriate for nearly any form of subject subject matter, because it will continuously be gratifying to resolve a heat and delightful face or possibly pay attention a voice whilst preliminary landing. IKARIA LEAN BELLY JUICE REVIEW

  10. Discover the ultimate solution to skyrocket your social media presence without burning a hole in your pocket! Introducing our Cheapest SMM Panel, the go-to platform for cost-effective social media marketing. With our panel, you can effortlessly amplify your online visibility by purchasing likes, followers, comments, and more for your preferred social media platforms.

  11. 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. https://logincuan.online/

  13. BHC Chicken in Singapore typically operates during regular restaurant hours, which can vary depending on the location and day of the week. Most BHC Chicken outlets open for lunch and continue serving throughout the day until late evening. Some branches may have extended hours on weekends or during peak periods.
    https://www.bhcchicken.org/

  15. An interesting discussion is worth comment. There’s no doubt that that you should publish more on this issue, it might not be a taboo matter but generally people do not talk about such subjects. To the next! All the best!토토사이트

  16. Hi! I’m at work surfing around your blog from my new apple iphone! Just wanted to say I love reading through y me on Chrome. Superb Blog! 먹튀

  17. ood. Thanks for sharing such kind of blog where user can share their thoughts and information about new upcoming on internet. I am new here but don’t want to miss the chance to share something useful and authentic. Please visit us for more information 토토사이트먹튀

  18. I’ve been searching for hours on this topic and finally found your post. , I have read your post and I am very impressed. We prefer your opinion and will visit this site frequently to refer to your opinion. When would you like to visit my site? Really appreciate this wonderful post that you have provided for us.Great site and a great topic as well i really get amazed to read this. Its really good. A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post 카지노

  19. Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can’t help but wonder, what about the other side? !!!!!!Thanks . 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. 토토시대 먹튀검증

  20. 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. 토토사이트

  22. Nice read, I just passed this onto a colleague who was doing a little research on that. And he actually bought me lunch as I found it for him smile Thus let me rephrase that: Thank you for lunch! a course in miracles

  23. I wanted to thank you for this excellent read!! I definitely loved every little bit of it. I have you bookmarked your site to check out the new stuff you post. 토토사이트

  26. It’s fantastic. This is one of the top websites with a lot of useful information. This is an excellent piece, and I appreciate this website; keep up the fantastic work. Quite informative blog on how to bring an end to the issues. I like your creative blog and look forward to more insightful posts. I definitely enjoying every little bit of it. It is a great website and nice share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work. Very good message. I stumbled across your blog and wanted to say that I really enjoyed reading your articles. Anyway, I will subscribe to your feed and hope you post again soon 먹튀대피소 검증업체

  27. Hi, і read your blog occasіonally and i own a similar oone and i was just curious if you get a lot off spam remarks? If so һow do you protect agɑinst it, any plugin or anything you can suggest? I gеt so much latrly it’s dгiving me insane so any suρport is very much appreciated. Simply desire to say your article is as amazing. The clarity on your post is just excellent and that i can think you’re knowledgeable in this subject. Fine together with your permission allow me to grasp your RSS feed to keep updated with impending post. Thanks one million and please continue the rewarding work. 토토디펜드 검증커뮤니티

  29. Hey, you used to write wonderful, but the last several posts have been kinda boring… I miss your tremendous writings. Past few posts are just a little bit out of track! come on! The Myst

  37. Wow! Such an amazing and helpful post this is. I really really love it. It’s so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also . I’m impressed, I must say. Actually rarely can i encounter a blog that’s both educative and entertaining, and without a doubt, you could have hit the nail about the head. Your idea is outstanding; the thing is something that too few individuals are speaking intelligently about. We are delighted that we came across this around my try to find some thing with this. เพื่อนบาคาร่า

  38. Korena food is a culinary delight that has gained international recognition for its unique flavors, diverse ingredients, and visually appealing presentations. With a rich history and cultural significance, Korean cuisine offers a tantalizing blend of spicy, savory, and fermented flavors that captivate the taste buds.

  40. Watch Teri Meri Dooriyan online full all episodes by Sony Tv And Sonyliv. Get Teri Meri Dooriyan live free video episodes latest streaming desi serial.
    Teri Meri Dooriyan

  44. Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include. 메이저사이트

  45. I’m not sure where you’re getting your info, but good topic. I needs to spend some time learning much more or understanding more. Thanks for wonderful information I was looking for this info for my mission. Wow, marvelous blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your web site is fantastic, as well as the content! Whats Happening i am new to this, I stumbled upon this I have found It absolutely helpful and it has aided me out loads. I’m hoping to give a contribution & assist other customers like its helped me. Great job. 먹튀검증백과커뮤니티

  46. Comfortabl y, the article is really the freshest on this notable topic. I concur with your conclusions and also definitely will eagerly look forward to your incoming updates. Simply saying thanks will certainly not just be acceptable, for the extraordinary lucidity in your writing. I definitely will promptly grab your rss feed to stay privy of any kind of updates. De lightful work and also much success in your business dealings! gutter cleaning ——————-This web-site is really a walk-through you discover the data you wished relating to this and didn’t know who ought to. Glimpse here, and you’ll absolutely discover it. 안전지대 토토

  47. Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. 메이저사이트

  48. Thanks 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 writhing on, and I have been on the look out for such great information. The Myst Showflat

  49. If you are planning to relocate your home to a new location or new state. Then it is more difficult because you have started a new journey in your life. It is not only the process of relocating to a new state, it is the process of starting your life from the beginning in a new way. Packers and Movers Delhi to Pune

Leave a Reply

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