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
mesa168
Great post I would like to thank you for the efforts you have made in writing this interesting and knowledgeable article. Microwave solutions and tips
winsgoal
Saya menghargai penekanan Anda pada detail dan akurasi. aqiqah depok
Artikel yang sangat menarik! Terima kasih sudah membagikan. Kursus Toefl Online Bersertifikat
Discover the Beauty of Desert Safari Dubai. Are You Ready for VIP
How Do I Recover My Money From Trust Wallet, first ensure you have your backup phrase safely stored. Download Trust Wallet again, select “Import Wallet,” input your backup phrase, set a new PIN, and your funds should be restored. If issues persist, contact Trust Wallet’s support for assistance. Always prioritize keeping your backup phrase secure.
Terima kasih sudah memberikan wawasan yang berharga. Dokter Gigi Soreang
This is very educational content and written well for a change. It’s nice to see that some people still understand how to write a quality post! Trusted Kitchen Appliance Advice
Ini sungguh memperkaya pengetahuan saya. Terima kasih! jasa aqiqah jakarta selatan
This site is great. if u see my website, u can find many surprises. lets goo guys. u can do it!! http://109.123.230.38/
Marma Philosophy: Examining female to male spa near me 24 hoursthe foundational principles of Marma Therapy, including the concept of prana (life force) and the vital energy points.
You are offering such a wonderful resource here, and you do so without charge. Buy car shampoo online in lahore
Terima kasih sudah membagikan pengetahuan Anda dengan kami. Kursus Toefl Online Bersertifikat
When considering investing in the digital realm, buying cryptocurrency is a pivotal step. Individuals enter this dynamic landscape by selecting a reliable cryptocurrency exchange platform, where they can exchange traditional currency for digital assets. These exchanges facilitate buying crypto currency with ease, offering a range of options, from Bitcoin to altcoins. After signing up, users verify their identity and set up a secure wallet to store their digital holdings. Market research is crucial, as buying crypto currency requires informed decisions to mitigate risks. Investors must track market trends, understand the technology, and employ secure practices to ensure a successful experience when buying crypto currency in this rapidly evolving financial frontier.
Looking to book a budget-friendly flight with Sky Airlines? Book cheap flights through Sky Airline Low Fare Calendar. Its an online tool available with the official website of Sky Airlines. To know more about this calendar, please contact the Help Desk Department.
This article shows that you are a genuine writer and have abounded knowledge and command over this
Topic. I really appreciated you. corteiz clothing
You’re so talented and doing such a great job. It helps everyone on the team. You have grown so much in your role since starting here. If you want to know that How To Restore Safepal Software Wallet?. You can visit our website. We are providing technical support for crypto users.
The article you have shared here very awesome. I really like and appreciated your work. I read deeply your article, the points you have mentioned in this article are useful Spencer lam 好唔好
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 Spencer lam伏
Thanks for this, I am very impressed..
lease of gym equipment singapore
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. Spencer lam 好唔好
Should you feel find it difficult to, you undoubtedly is not able to; If you don’t intend, to have failing. Things are subject to intellect, reduction of hundreds exercises are hopeless prior to starting. Spencer lam伏
Amazingly accommodating post. This is my first time i visit here. I found such an extensive number of captivating stuff in your blog especially its trade. Genuinely its unprecedented article. Keep it up. 數學補習
according to that period. The slot game is broken or there is a game to win to get the slot itself. Notice that some slot games or some websites give out according to the amount of time that players will receive. Let’s see
ค่ายสล็อต888เว็บตรง
Very cozy looking rooms. Let me know if your going to Mexico. Oh and btw. you should read our Tipping in Mexico guide if you do. It will save you a lot of awkward moments. Spencer lam伏
I think this is very important to me. I enjoy reading your articles. However, there are some general things to note. The style of the website is very good, don’t forget to visit our official site Ombak88 slot
Wenn es um zuverlässige Sicherheitslösungen geht, zeichnet sich die schlüsseldienst vennhausen aus. Von Notaussperrungen bis hin zu komplizierten Sicherheitssystemen bieten Schlosser in Vennhausen schnelle, professionelle Hilfe, die für Ihre Sicherheit sorgt. Mit ihrem Fachwissen wird Ihren Sicherheitsbedenken effektiv Rechnung getragen, was sie zur ersten Wahl für Schlüsseldienste in Vennhausen macht.
This was a shocking post. It has some look at here fundamental data on this subject. Spencer lam 好唔好
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. 英文補習
The most effective means bring in some form of e-book and enjoy this almost from anywhere is during the entire fascinating process involving mp 3 mp3 audio books. The true sound e-book outlets that always one thinks of as rapidly as. Spencer lam 好唔好
I am surely having fun with your website. You absolutely have some wonderful insight and good stories. ดเิสาสล็อตเว็บใหญ่
Professional assignment writers play a crucial role in today’s fast-paced academic and professional landscape. Their expertise and dedication provide students and professionals with the support they need to excel in their assignments and projects. With their deep knowledge of various subjects and a knack for delivering well-researched and structured content, these writers offer a valuable service that helps individuals meet their goals. Whether it’s a complex research paper, a critical business proposal, or any other task, professional assignment writers contribute to producing high-quality work that reflects a commitment to excellence.
I have perused your blog it is exceptionally useful for me. I need to express profound gratitude to you. I have bookmark your site for future updates. 歷史補習
Such a strikingly essential article.I fundamentally wish to offer an animal continue for the standard information you have impeccable here on this post. 歷史補習
Immigration… […]the time to read or visit the content or sites we have linked to below the[…]… how to be better
So luck to come across your excellent blog. Your blog brings me a great deal of fun.. Good luck with the site. Spencer lam伏
I need to to thank you for ones time for this particularly fantastic read!! I definitely really liked every part of it and i also have you saved to fav to look at new information in your site. Spencer lam伏
Wow, cool post. I’d like to write like this too – taking time and real hard work to make a great article… but I put things off too much and never seem to get started. Thanks though. click here
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! Spencer lam伏
My companion referenced to me your blog, so I thought I’d read it for myself. Interesting experiences, will be back for additional! 私樓裝修
The website is looking bit flashy and it catches the visitors eyes. Design is pretty simple and a good user friendly interface. 數學補習
I have to search sites with relevant information on given topic and provide them to teacher our opinion and the article. Yellow book CPE
I recently noticed your website back i are generally looking through which on a daily basis. You’ve got a loads of information at this site so i actually like your look to the web a tad too. Maintain the best show results! 英文補習
For a long time me & my friend were searching for informative blogs, but now I am on the right place guys, you have made a room in my heart! Spencer lam 好唔好
I have perused your online journal it is exceptionally useful for me. I need to express profound gratitude to you. I have bookmark your site for future redesigns. m 巾推薦
Experience an upgraded journey with unique car accessories from VehicleEnhance. Explore our range of products today. auto enhance turn off
I found your this post while searching for some related information on blog search…Its a good post..keep posting and update the information. Profile Creating
This a good way to appreciate the teacher as they put their efforts to train students. UK dissertation Writers appreciates the teachers. 數學補習
Your blogs are easily accessible and quite enlightening so keep doing the amazing work guys. 別墅設計