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

 

167,940 thoughts on “Railway Industry in France

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  15. منصة مدرستي التعليمية في المملكة العربية السعودية: الخدمات المقدمة وطرق تسجيل الدخول

    تعدُّ منصة مدرستي واحدة من أبرز المبادرات التكنولوجية في المجال التعليمي في المملكة العربية السعودية. تأتي هذه المنصة ضمن رؤية المملكة الرامية إلى تحسين جودة التعليم وتمكين العملية التعليمية من خلال التكنولوجيا. تُقَدِّم منصة مدرستي مجموعة متنوعة من الخدمات للطلاب والمعلمين وأولياء الأمور، مما يسهم في تحقيق تجربة تعليمية متميزة ومُحسَّنة.
    الخدمات المقدمة من قبل منصة مدرستي
    1. التعليم عن بُعد:
    تُتيح منصة مدرستي للطلاب والمعلمين فرصة الوصول إلى المحتوى التعليمي عبر الإنترنت، ما يسمح لهم بالتعلم وتقديم الدروس والمحاضرات من أي مكان وفي أي وقت. يمكن للطلاب الاستفادة من الدروس المسجلة والمواد التعليمية المتنوعة، وهذا يُعزِّز من مرونة وتنوع وسائل التعلم.
    2. الواجبات والاختبارات عبر الإنترنت:
    يمكن للمعلمين إعطاء الواجبات والاختبارات عبر منصة مدرستي، وبالتالي يمكن للطلاب تسليم أعمالهم وإجاباتهم عبر الإنترنت. هذا يُسهِّل عملية التقييم ويتيح للمعلمين تتبع تقدم الطلاب بشكل فعّال.
    3. التواصل والتفاعل:
    تشجِّع منصة مدرستي على التواصل الفعّال بين الطلاب والمعلمين. يمكن للطلاب طرح الأسئلة واستفساراتهم عبر المنصة، ويستجيب المعلمون بسرعة وفعالية. هذا يُعزِّز التفاعل ويسهم في توفير بيئة تعليمية داعمة.
    4. متابعة تقدم الطلاب
    توفِّر منصتي واجهة للأولياء تتيح لهم متابعة تقدم أبنائهم في الدروس والاختبارات. يمكن لأولياء الأمور الاطلاع على نتائج الاختبارات والأعمال الواجبة والتواصل مع المعلمين لمعرفة تفاصيل أكثر عن أداء أبنائهم.
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    تسجيل الدخول للطلاب
    – يتم تزويد الطلاب بمعرّف وكلمة مرور تسمح لهم بالوصول إلى منصة مدرستي.
    – يمكن للطلاب تسجيل الدخول من خلال الموقع الرسمي للمنصة أو عبر تطبيق موبايل مُخصص.
    تسجيل الدخول للمعلمين
    – يحصل المعلمون على حسابات خاصة بهم تمكنهم من إدارة الصفوف وتقديم المحتوى التعليمي.
    – يتم توفير واجهة تسجيل الدخول للمعلمين على الموقع الرسمي للمنصة أو عبر التطبيق المحمول.
    تسجيل الدخول لأولياء الأمور
    – يُمنح أولياء الأمور حسابات تمكنهم من متابعة تقدم أبنائهم والتواصل مع المعلمين.
    – يمكن لأولياء الأمور تسجيل الدخول إلى المنصة من خلال البوابة المخصصة لهم على الموقع أو من خلال التطبيق المحمول.

    تعد منصة مدرستي التعليمية في المملكة العربية السعودية خطوة هامة نحو تطوير وتحسين العملية التعليمية باستخدام التكنولوجيا. من خلال توفير خدمات متعددة تستهدف الطلاب والمعلمين وأولياء الأمور، تُسهِّل المنصة الوصول إلى المحتوى التعليمي وتعزز التفاعل والتواصل بين جميع فاعلي العملية التعليمية. تمثل منصة مدرستي مثالًا مشرِّفًا على كيفية استخدام التكنولوجيا لتعزيز جودة التعليم وتحقيق تجربة تعليمية متميزة.

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