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.
Economy Class:
Comfort 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
Great post I would like to thank you for the efforts you have made in writing this interesting and knowledgeable article. Arboriculture Tree Service Frisco
1XBET an online gambling website that has been in service for more than 10 years, offers a wide variety of online casino games for players to choose from, such as baccarat, roulette, slots and others. There are also other games such as Poker, Blackjack and other casino games That can be played in a live format (Live Casino) and has also added the service of the website to online casino games So that players can choose to play a variety of different games. Including other games such as online sports betting and other games as well
Our transportation system is revolutionizing the movement of cities by offering a smart and fun way to get around that is both efficient and sustainable. We make it easier for people to get around, reduces traffic congestion, and encourages the use of alternative transportation methods. This is all done in a way that is both fun and engaging, making it a more enjoyable experience for everyone involved. Details to Know Click here app E-Scooters E-Bikes sharing mobility
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.. licensed tree service
Details to Know Click here app E-Scooters E-Bikes sharing mobility
Your internet site is definitely cool and this is a awesome inspiring article. 中學中文
Most of the agencies have their own websites where you can find the profiles of the Lahore Call Girls they have on their books. You can also find the contact details of the agency on their website. The agencies usually have a wide range of escorts to choose from. You can select an escort based on your budget and preferences.If you are looking for an independent escort in Lahore, then you can search for them on the internet. There are many websites that list independent escorts in Lahore. You can contact the escorts directly through their websites.
It was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing. assume world
Sitemaps are naturally refreshed catalogs of your site shipped off Google (and other web crawlers) at whatever point your site is refreshed. You’ll likely never at any point need to stress over it, yet it’s incorporated for prevalent execution. Sandfilteranlage
Thank you very much for the sharing! COOL.. domestic electricians
Thank you again for all the knowledge you distribute,Good post. I was very interested in the article, it’s quite inspiring I should admit. I like visiting you site since I always come across interesting articles like this one.Great Job, I greatly appreciate that.Do Keep sharing! Regards, licensed Plano tree service
It was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing. lainey wilson bikini
Wow i can say that this is another great article as expected of this blog.Bookmarked this site.. Plano tree removals
Thanks for your information, it was really very helpfull.. licensed arborist
You should take part in a contest for one of the best blogs on the web. I will recommend this site! dofollow backlinks
New web site is looking good. Thanks for the great effort. Dofollow Blogcomments backlinks
Your website is really cool and this is a great inspiring article. Thank you so much. buy cbg online
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. 123movies
I am happy to find this post very useful for me, as it contains lot of information. I always prefer to read the quality content and this thing I found in you post. Thanks for sharing.
extranjeria av de los poblados
Many thanks for growing the strive to speak approximately this, I experience strongly about this and enjoy getting to know a notable deal extra on this hassle. If possible, as you gain records, may you mind updating your webpage with a exceptional deal more information? It’s very useful for me. sbobet
Your blog provided us with valuable information to work with. Each & every tips of your post are awesome. Thanks a lot for sharing. Keep blogging, pakenham stump removal
Nice Ozempic for sale Malaysia
I learn some new stuff from it too, thanks for sharing your information. powerbite
Needless charges, almost all through mouth hand-written important terms, the maximum downcast would be the truth “need to are typically …” vaobong sbobet
Learn about the water quality requirements for different types of power plants to ensure safe and efficient operations. Read on to discover how Waterman Australia can help you meet these requirements.power plant water treatment plant manufacturer
hi, I locate studying this text a joy. it is extremely useful and exciting and very an awful lot looking ahead to reading extra of your work.. neotonics
Great! It sounds good. Thanks for sharing.. pakenham stump removal
Just admiring your work and wondering how you managed this blog so well. It’s so remarkable that I can’t afford to not go through this valuable information whenever I surf the internet! akun jepang
I would state, you do the genuinely amazing.This substance is made to a wonderful degree well. akun pro jepang
I enjoyed reading your pleasant website. I see you offer priceless info. stumbled into this website by chance but I’m sure glad I clicked on that link. You definitely answered all the questions I’ve been dying to answer for some time now. Will definitely come back for more of this. 부천출장안마
When a blind man bears the standard pity those who follow…. Where ignorance is bliss ‘tis folly to be wise…. slot server jepang
I am unquestionably making the most of your site. You unquestionably have some extraordinary knowledge and incredible stories. situs slot jepang
This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free. It is the old what goes around comes around routine. tree service canberra
Your blog provided us with valuable information to work with. Each & every tips of your post are awesome. Thanks a lot for sharing. Keep blogging, tree service bellarine
Great! It sounds good. Thanks for sharing.. tree service bellarine
You guardians do an astounding web diary, and have some unfathomable substance. Continue doing extraordinary. Bra metallic
The website is looking bit flashy and it catches the visitors eyes. Design is pretty simple and a good user friendly interface. akun pro jepang
America Gun Ban Home, Syndicated by Countrymen Your News Source Worldwide. Taking the stink out of Gun Control and being a Patriot. outdoor adventures in Scotland
With 축구중계 (soccer broadcasts), we can relive the best soccer moments time and again.
definately enjoy every little bit of it and I have you bookmarked to check out new stuff of your blog a must read blog! I like to write about Scotland
i love reading this article so beautiful!!great job! geelong tree removal
Eleven Labs places innovation at the heart of its operations, constantly seeking new ways to optimize processes, enhance user experiences, and deliver tangible value to clients.
Güzelliğinize Dair Aradığınız Her Şey. http://www.guzelliksirlarim.net
guzelliksirlarim.net, güzellik dünyasındaki en son gelişmeleri takip eder ve ziyaretçilere her zaman popüler ve güncel içerik sunar. En son güzellik ve makyaj trendleri, cilt bakımı önerileri, popüler saç modası, erkek ve kadın modası, güncel teknoloji, astroloji, kişisel gelişim, güzellik trendleri, sağlıklı yaşam ritüelleri, tatil ve seyahat önerileri ve kişisel bakım ipuçları sunarak okuyucularımızın kendilerini en iyi şekilde ifade etmelerine yardımcı olmaktır.
guzelliksirlarim.net, geniş bir kategori yelpazesi sunar. Cilt bakımı, makyaj, saç sağlığı, doğal güzellik yöntemleri, sağlıklı beslenme ve daha pek çok konuda makalelere ulaşabilirsiniz.
Sizde güzelliğinize düşkünseniz guzelliksirlarim.net bir tık ötenizde bekleriz.
Wow i can say that this is another great article as expected of this blog.Bookmarked this site.. tree service kempsey
Just admiring your work and wondering how you managed this blog so well. It’s so remarkable that I can’t afford to not go through this valuable information whenever I surf the internet! I like to write about Scotland
Great job for publishing such a beneficial web site. Your web log isn’t only useful but it is additionally really creative too. There tend to be not many people who can certainly write not so simple posts that artistically. Continue the nice writing outdoor adventures in Scotland
Thanks For sharing this Superb article.I use this Article to show my assignment in college.it is useful For me Great Work. tree service kempsey
I discovered your site ideal for me. It consists of wonderful and useful posts. I’ve read many of them and also got so much from them. In my experience, you do the truly amazing.Truly i’m impressed out of this publish I like to write about Scotland
Watch Baazi Ishq Ki Episode Online. Dangal Tv Serials Are Available here in HD Videos.
https://kumkumbhagya.ae/baazi-ishq-ki-25th-august-2023-full-episode-129-video/
As Eleven Labs continues to pave the way for a smarter, more connected future, it stands as a testament to the potential of technology to revolutionize industries and drive meaningful progress. What is Eleven Labs?