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

 

182,751 thoughts on “Railway Industry in France”

  3. A Sub-Inspector (SI) in the National Investigation Agency (NIA) is an officer who serves in the specialized federal law enforcement agency of India responsible for handling cases related to terrorism, insurgency, and other serious crimes that have national and https://careerwill.com/blog/ssc-cgl-sub-inspector-in-nia-salary-job-profile-career/ international implications. The NIA was established in 2009 to combat and investigate cases that threaten the security and sovereignty of India.

  6. I recently came across your article and have been reading along. I want to express my admiration of your writing skill and ability to make readers read from the beginning to the end. I would like to read newer posts and to share my thoughts with you. 49s

  7. A Sub-Inspector (SI) in the National Investigation Agency (NIA) is an officer who serves in the specialized federal law enforcement agency of India responsible for handling cases https://careerwill.com/blog/ssc-cgl-sub-inspector-in-nia-salary-job-profile-career/ related to terrorism, insurgency, and other serious crimes that have national and international implications. The NIA was established in 2009 to combat and investigate cases that threaten the security and sovereignty of India.

  13. Dengan grafik terbaik dan gameplay yang halus, Slot Demo Bisa WD pasti akan menghadirkan kesenangan untuk anda yang gemar bermain judi online. Jelajahi berbagai permainan klasik kami di situs game Slot Demo Bisa WD terpopuler ini. Dengan situs game terpopuler ini anda akan menyukai sensasi dan kegembiraan yang tak terduga dari aksi bermain game yang penuh hiburan yang membuat anda terkesan.

  14. Agen judi Panen77 merupakan salah satu situs judi slot gacor online terbaik dan terpercaya di indonesia 2023, tentunya situs ini akan memberikan sensasi berbeda bagi member slot gacor maxwin saat bermain game slot gacor terbaru mudah menang.

  15. 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. 카지노검증

  27. You delivered such an impressive piece to read, giving every subject enlightenment for us to gain information. Thanks for sharing such information with us due to which my several concepts have been cleared. linkjackpot

  31. 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! Aria wedding pictures

  34. Many thanks to the weblog loaded with numerous information. Halting by your blog site aided me for getting what I used to be on the lookout forIt is a great Internet site.. The look appears Great.. Preserve Operating like that!../gmdf

  36. Betting Bonus Codes The Sports Illustrated Sportsbook MCBET200 provides new users with $200 in bonus if they place an initial bet of or more and. unlock free bets and bonus offers. We have exclusive betting promo codes to use at betting sites in your country.

  40. Thanks in support of sharing such a good thought, article is fastidious, thats why i have read it entirely. visit my website for more money : INTER77

  41. This article raises important points that need to be considered. It sparked a meaningful discussion in my mind.

  43. Obsidian vs NotionWith years of experience in productivity and digital note-taking, I understand the challenges and obstacles that individuals face when it comes to staying organized and achieving their goals. I created LordNote to provide individuals with a comprehensive resource for boosting their productivity and taking their note-taking skills to the next level.

  46. The concept of Meat Shop Drop began with the idea of revolutionizing Halal meat. There’s a gap in the market for Halal online meat shops and we are trying to fill it. At Meat Shop Drop we come to work every day with the aim of making Halal meat accessible to everyone all over the UK. Not only our meat is freshly prepared, but we have also introduced a variety of cuts that aren’t readily available otherwise.
    Meat Shop Drop

  47. Affinity price isn’t solely driven by practicalities. Serangoon’s rich heritage and vibrant community add an intangible yet invaluable dimension to the valuation. The area’s historical significance, affinity at serangoon floor plan coupled with its contemporary cosmopolitan vibe, contributes to the premium associated with Serangoon’s properties. Residents are not only purchasing a physical living space but also becoming part of a culturally diverse and harmonious neighborhood.

Leave a Reply

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