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

 

165,873 thoughts on “Railway Industry in France”

  1. 카지노 가입 쿠폰 즉시 지급

    국내 온라인 카지노 중계 1위 업체 AATV 입니다. 요즘 pc 및 모바일로 카지노 게임을 이용하시는분들이 많아지고 있습니다.
    저희도 실제 배터분들에게 조금더 좋은 환경의 온라인 카지노를 소개시켜드리고자 노력하고있습니다. 오늘 여러분들 에게 추천 해드릴 사이트는 K9Win 입니다.

  4. I found that site very usefull and this survey is very cirious, I ‘ ve never seen a blog that demand a survey for this actions, very curious… my urls links

  5. Excellent information on your blog, thank you for taking the time to share with us. Amazing insight you have on this, it’s nice to find a website that details so much information about different artists Concise Finance London

  6. “Initial You got a awesome blog .I determination be involved in plus uniform minutes. i view you got truly very functional matters , i determination be always checking your blog blesss.

    ” Concise Finance Putney 2021

  7. Through this post, I know that your good knowledge in playing with all the pieces was very helpful. I notify that this is the first place where I find issues I’ve been searching for. You have a clever yet attractive way of writing. Concise Finance SW London 2021

  8. Excellent information on your blog, thank you for taking the time to share with us. Amazing insight you have on this, it’s nice to find a website that details so much information about different artists Express Finance London

  15. This is really good idea that eliminate delay on toll roads by collecting the electronic tolls. According to the public are suffered with this toll problem and seeking help from the government to get rid of this problem.
    pittsburgh roofing contractors

  16. When I originally commented I clicked the -Notify me when new surveys are added- checkbox and today if a comment is added I am four emails with the exact same comment. Is there any way you can eliminate me from that service? Thanks! Best hip hop producer tags

  17. I would like to thank you for the efforts you have put in writing this site. I am hoping the same high-grade web site post from you in the upcoming also. In fact your creative writing skills has inspired me to get my own website now. Actually the blogging is spreading its wings rapidly. Your write up is a good example of it. Voice tag ideas

  19. The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention. Podcast branding design

  21. Thanks for your post. I’ve been thinking about writing a very comparable post over the last couple of weeks, I’ll probably keep it short and sweet and link to this instead if thats cool. Thanks. prosoma 500mg

  22. I think other web site proprietors should take this web site as an model, very clean and wonderful user genial style and design, let alone the content. You 訂購指南

  27. Boşanma davalarının yanı sıra ceza davaları da önemlidir. Beylikdüzü ceza avukatı ihtiyacınız durumunda da bizimle iletişime geçebilirsiniz. Hukuk büromuz danışanlarına hizmet verirken belli şartlar doğrultusunda çalışır. Bunlardan birincisi bize güvenmenizdir. Davanızın başından sonuna kadar bize güvenmeniz ve sizden istenilen bilgileri eksiksiz bir şekilde teslim etmeniz gerekir. Sürecinizin başarılı bir şekilde sonuçlanabilmesi için açılan dava, belgeler, tanıklar ve mahkemede delil olabilecek her türlü şey önemlidir.

    Site: http://www.eminozturkhukuk.com/

  32. 1985 ‘ten beri Türkiye’nin en köklü ve kendisini sektörde ispat etmiş, sıhhi- su tesisat kuruluşlarından biri olan Bursa Gider Tıkanıklığı Açma 1985’ten beri sektörün içinde olup, günün şartlarına göre kendini güncellemiş bilgi, birikimi ve tecrübesi ile birlikte bu güne kadar çalışmış olduğu takım arkadaşlarını bir araya toparlayarak Bursa’da bu gün ki kurumsal yapısına ulaşmıştır. Bursa Gider Açma

  35. SITUS JOKER123 ONLINE TERPERCAYA 389SPORTS, Selaku web Joker123 terpercaya 389Sports, kita telah sediakan game yang komplit. Dibantu dengan teknologi yang sangat canggih sangat memuaskan dan melegakan, game slot online pada Joker123 hendak lebih menantang serta membagikan kebahagiaan terbaik buat kamu. Situs Resmi Joker123 Online sangat mudah untuk dimainkan bagi pemula dan proses pendaftaranya juga tidak sulit tentunya, kelebihan Situs Joker123 tentunya banyak kelebihan bonus dan keuntungan hingga 2x lipat dari game biasanya.

  36. Of course, your article is good enough, 온라인바둑이 but I thought it would be much better to see professional photos and videos together. There are articles and photos on these topics on my homepage, so please visit and share your opinions.

  38. automatic door opening system

    Caesar Door Control Co., LTD. has specialized in producing automatic doors for over ten years. Caesar products include Automatic sliding, Heavy-Duty sliding, curved sliding and telescopic sliding door operator.

  42. This is a good post. This post gives truly quality information. I’m definitely going to look into it. Really very useful tips are provided here. Thank you so much. Keep up the good works Bitcoin Era

  43. tulsa dentist Care Family Dentistry is a family-friendly, comfortable environment for patients of all ages. We believe that healthier teeth equal a healthier you. We’ll help you achieve this through regular dental checkups and by improving your general dental health and maintenance techniques.

  44. Tasarruf hayatın her alanında bulunan eylemlerden birisidir. Kişiler artan giderleri neticesinde tasarruf amacı ile hareket ederek mevcut maliyeti korumak ister. Bu gibi durumlarda ev içerisinde düşük faaliyetli bakımlar yapmak

    Ümraniye Elektrikçi

  45. This could be furthermore a reasonably great article that people definitely valued examining. Certainly not each day that benefit from the probabilities to locate a item. sscn bkn go id

  46. Ovalpools

    Urlaub zu Hause ist langweilig? Das muss nicht sein! Mit unseren Bausatz Ovalpool Stahlwandbecken holen Sie sich das Urlaubsparadies nach Hause in Ihren eigenen Garten. Das ist wirklicher Luxus, der noch vor wenigen Jahren den Reichen vorbehalten war.

  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. Singing and Spirituality

  48. The most important L . a . Weight reduction plan is usually an sensibly priced and flexible going on a diet service planned for folks who are expecting to in losing pounds and consequently essentially maintain a more fit diet. weight loss professional mixing services

Leave a Reply

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