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:
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.
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.
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
Price at 2 weeks before departure
Price at 3 weeks before departure
Price at 4 weeks before departure
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:
The non-physical rate fences are age, season ticket, and loyalty
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
Artikel ini sangat informatif dan memberikan banyak wawasan baru. paket aqiqah murah di bekasi
A round of applause for your blog article.Thanks Again. Much obliged. liv pure
Terima kasih atas pemikiran yang sangat mendalam dan analisis yang detail ini. Jasa Penerjemah Jakarta
You own placed a critical young.. Blesss created for making use of.. While i may wish to assessment outstanding most up to date order placed using this type of web log.. preserve setting.. divisorias de vidro com persianas embutidas
Artikel ini sangat membantu saya dalam memahami konsep yang sulit. paket aqiqah jakarta
This is my first time i visit here. I found such a substantial number of interesting stuff in your blog especially its examination. Really its inconceivable article. Keep it up. repowerthailand.com
Terima kasih atas wawasan yang sangat berharga ini. jasa aqiqah depok
We are provider of gaming company offering akun pro lebanon to get you many access to the best game ever.
Anda selalu memberikan pandangan yang sangat menarik dan berbeda. jasa penerjemah tersumpah
This is one awesome blog.Really thank you! METABO FLEX REVIEWS
Your post has those certainties which are not open from anyplace else. It’s my unassuming solicitation to u please continue composing such astounding articles repowerthailand.com
Embark on kayaking tours along coastal routes, tracing the contours of rugged cliffs, sea caves, and pristine beaches. kayaking expiditions
Incredible Article it its truly instructive and inventive update us as often as possible with new upgrades. its was truly important. much obliged. 補習社
Komentar yang sangat inspiratif dan menggugah pikiran saya. paket aqiqah jakarta
Artikel ini sangat membantu saya dalam mengambil keputusan yang lebih bijak. kambing aqiqah jakarta selatan
I appreciate your post thanks for sharing the information. 먹튀검증
خرید مستقیم نهال ازنهالستان
Direct purchase of seedlings from the nursery
Terima kasih atas wawasan yang sangat berharga ini. jasa penerjemah tersumpah terdekat
Saya sangat setuju dengan pandangan Anda. Terima kasih atas perspektif yang berbeda ini. paket aqiqah jakarta
hyy guys this side Inderjeet and I am going to discuss about best platform to buy cryptocurrency in India A cryptocurrency exchange platform in India is a digital marketplace where people can buy, sell, and trade different cryptocurrencies like Bitcoin, Ethereum ,and others. It’s like an online store for digital money. These platforms provide a user-friendly website or app where you can see the prices of various cryptocurrencies, place orders to buy or sell them, and track your transactions. Different best platforms to buy cryptocurrency in India are available in the market. They act as intermediaries, connecting buyers and sellers, and they may charge fees for their services. It’s important to choose a reliable and secure exchange platform, as there have been cases of cyberattacks. Also, keep in mind that regulations and guidelines around cryptocurrency trading in India can impact how these platforms operate.
From winter nights to summer stargazing, Disney blankets provide comfort and coziness all year round. disney blankets
You really should be a part of a contest first of the most effective blogs over the internet. I am going to suggest this blog! Organic tequila
Komentar yang sangat inspiratif dan menggugah pikiran saya. paket aqiqah murah di depok
That’s a great article! 토토사이트
With havin so much content and articles do you ever run into any issues of plagorism or copyright violation? My site has a lot of exclusive content I’ve either created myself or outsourced but it looks like a lot of it is popping it up all over the web without my permission. Do you know any solutions to help protect against content from being ripped off? I’d certainly appreciate it. Premium tequila
On this page, you’ll see any internet page, you need to understand the records. zlib
I appreciate your post thanks for sharing the information.
스포츠토토
India Gates is a leading Automatic Rolling Shutter Manufacturers in Chennai. We have a team of experienced engineers and technicians who can custom-design and install shutters to meet your specific needs.
Our automatic rolling shutters are made from high-quality materials and are designed to provide maximum security and durability. They can generally be cost-effective, which indicates conserving time on the bills for utilities.
Anda selalu membagikan pandangan yang sangat berbeda dan menarik. jasa penerjemah dokumen
Many thanks for imparting the invaluable, dependable, informative as well as easy tips about your topic 먹튀검증
Get premium access with akun pro korea to gain benefi on our site.
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. air cooler
Artikel ini sangat informatif dan memberikan banyak wawasan baru. paket aqiqah jakarta
Very informative article post. Will read on… QUIETUM PLUS REVIEWS
Thanks for a very interesting blog. What else may I get that kind of info written in such a perfect approach? I’ve a undertaking that I am simply now operating on, and I have been at the look out for such info. 中文補習
Terima kasih atas pemikiran yang sangat mendalam dan analisis yang detail ini. harga paket aqiqah untuk anak perempuan
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with extra information? It is extremely helpful for me. 中文補習
Gifting a Disney blanket is like wrapping loved ones in a bundle of joy, sharing the warmth of affection and memories. disney baby blanket
Artikel ini sangat membantu saya dalam memahami konsep yang sulit. jasa penerjemah bahasa mandarin
Terima kasih atas wawasan yang sangat berharga ini. paket aqiqah jakarta
You finished certain dependable focuses there. I did an inquiry regarding the matter and found about all people will concur with your blog. Pond House Cafe wedding photos
Thanks for the tips guys. They were all great. I have been having issues with being fat both mentally and physically. Thanks to you guys i have been showing improvements. Do post more. 英文補習老師
Anda selalu memberikan pandangan yang sangat menarik dan berbeda. paket aqiqah bogor
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 home cleaning new york 英文補習老師
very seriously the fact that saintly still, I adore styles type in at the same time relaxing beautiful photos may very well be component personss unwanted delight in increasingly being defrent intellect existing poeple, z-lib
Thanks for the strategies you are revealing on this blog site. 토토사이트
I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article. UFABET ทางเข้าเว็บบอล
Komentar yang sangat inspiratif dan menggugah pikiran saya. Jasa Penerjemah Bahasa Arab
Live post! There is a lot of information here that can help any business get started with a successful social instrument
Hello, I have browsed most of your posts. This post is probably where I got the most useful information for my research. Thanks for posting, maybe we can see more on this. Are you aware of any other websites on this subject. 中文補習