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

 

166,380 thoughts on “Railway Industry in France”

  1. This article is an appealing wealth of informative data that is interesting and well-written. I commend your hard work on this and thank you for this information. You’ve got what it takes to get attention. BOLA1

  3. Much appreciated such a great amount for this data. I need to tell you I agree on a few of the focuses you make here and others might require some further survey, however I can see your perspective. 英文補習

  4. 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. 1xBet promo code today

  9. 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.
    Pakistan Crisis

  11. You make so many great points here that I read your article a couple of times. Your views are in accordance with my own for the most part. This is great content for your readers.
    Pakistan Crisis

  13. You’ve completed in excellent work. t suggest to my frtends ind personilly wtll certitnly dtgtt. t’m conftdent they’ll be gitned from thts webstte.
    Pakistan Crisis

  14. I like this post,And I figure that they having a great time to peruse this post,they might take a decent site to make an information,thanks for sharing it to me. dse英文補習

  19. I was surfing net and fortunately came across this site and found very interesting stuff here. Its really fun to read. I enjoyed a lot. Thanks for sharing this wonderful information. best fitness app

  20. It is the best portal to pay bills online within minutes without any complications. It avails maximum possible flexibility to users to complete their tasks in real quick time. Apart from bill payments it also avails most popular and reputed brands products to customers in affordable prices. PayTM came into existence in 2010. 中文補習

  23. I utilized it for a month and saw a discernible distinction in myself. Presently I don’t short of going out with my companions and so forth. 補習社

  24. Hello, i think that i noticed you visited my website as a consequence i came to “go back the desire”. I’m trying to find things to decorate my net web site! I suppose its good enough to use some of your thoughts! This is the fantastic attitude, despite the fact that is just not help to make each sence in any respect preaching about that mather. Without a doubt any technique many thanks similarly to i had undertaking to promote your personal article in to delicius nonetheless it is apparently a catch 22 situation using your facts websites can you please recheck the concept. Thank you over again.very interesting post. This is my first time visit here. I found so many interesting stuff in your blog especially its discussion.. thanks for the post! 먹튀패스 먹튀검증업체

  28. Awesome article, it was exceptionally helpful! I simply began in this and I’m becoming more acquainted with it better! Cheers, keep doing awesome! i read a lot of stuff and i found that the way of writing to clearifing that exactly want to say was very good so i am impressed and ilike to come again in future.. Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more.I feel very grateful that I read this. It is very helpful and very informative and I really learned a lot from it. 토토

  30. 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. 英文補習

  32. 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. พักยก77

  35. Great write-up, I am a big believer in commenting on blogs to inform the blog writers know that they’ve added something worthwhile to the world wide web!.. 數學補習

  36. Thank you so stuff you post. I am always searching online for articles that can help me. There is obviously a lot to know about this. I think you made some good points in Features also. Keep working, great job . Nice post! This is a very nice blog that I will definitively come back to more times this year! Thanks for informative post.

  37. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. Great post. I used to be checking continuously this blog and I’m impressed! Extremely helpful info particularly the final section I deal with such info much. I was looking for this certain info for a long time. Thank you and best of luck. 카이소

  38. I need you to thank for your season of this magnificent read!!! I definately appreciate each and every piece of it and I have you bookmarked to look at new stuff of your blog an absolute necessity read blog! 補習社

  39. I discovered this is a useful and intriguing post so i suspect as much it is extremely valuable and educated. I might want to thank you for the endeavors you have made in composing this article. It’s a good place for kids to have fun! Not to mention, even adults would certainly enjoy. Good thing, it’s not that far from where we live in. I’m planning to purchase a new car soon and hopefully, you’ll be open once the pandemic is over. The purchase process went extremely quickly, they answered all my questions and gave quality advice. Delivery – on time and even a little earlier, which is very pleased. Excellent communication and quality of work. 검증나라

  40. It’s a cold day so my nose is cold Still, have a warm day! Please go in here .Best wishes for a Happy New Year! I hope this year will be a more happier and more smiling year~ There is good information . You have done a great job. I will definitely digg it and personally suggest to my friends. I am confident they will be benefited from this web site. Wow, this is really interesting reading. I am glad I found this and got to read it. Great job on this content. I like it. I am jovial you take pride in what you write. It makes you stand way out from many other writers that can not push high-quality content like you 카지노프렌즈

  41. Thanks for your marvelous posting! I really enjoyed reading it, you happen to be a great author. I will remember to bookmark your blog and may come back in the foreseeable future . Nice post. I learn some thing more difficult on various blogs everyday. It will always be stimulating you just read content using their company writers and use a little something from their site. I’d prefer to use some with all the content in my small weblog no matter whether you don’t mind. Natually I’ll provide you with a link on the internet weblog. 토토서치 먹튀검색

  42. I know your aptitude on this. I should say we ought to have an online discourse on this. Composing just remarks will close the talk straight away! What’s more, will confine the advantages from this data.  補習社

  44. Thanks for posting this info. I just want to let you know that I just check out your site and I find it very interesting and informative. I can’t wait to read lots of your posts. Porno Videos

  45. 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. มวยพักยก77

  46. Extraordinary blog. I took pleasure in scrutinizing your articles. This is extremely a marvelous scrutinized for me. I have bookmarked it and I am suspecting examining new articles. Continue doing magnificent! مل بت

  47. I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article… พักยก77

  48. This is my first time i visit here. I found so many interesting 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 enjoyment here! keep up the good work Apunkagames

  49. 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. เว็บพักยก

Leave a Reply

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