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

 

167,382 thoughts on “Railway Industry in France”

  4. İnsanlar olarak günlük olarak sadece şeker çubukları ve cips yiyor olsaydık, hayatta kalabilirdik, ama asıl soru ne kadar süre ve ne kadar iyi hissedeceğimizdir? Kediniz için satın aldığınız mama, kedinizin sadece hayatta kalmak için değil, canlı ve sağlıklı bir yaşam sürmesi için ihtiyaç duyduğu vitaminleri, mineralleri ve besinleri sağlamalıdır. en ucuz kedi maması 15 kg

  6. You have a real talent for writing unique content. I like how you think and the way you express your views in this article. I am impressed by your writing style a lot. Thanks for making my experience more beautiful. office 365 support

  10. Very interesting blog. Alot of blogs I see these days don’t really provide anything that I’m interested in, but I’m most definately interested in this one. Just thought that I would post and let you know. Urgent Indian Visa

  12. Best American Healthcare University offers DSD Director of Staff Development certification training course online. Our profound DSD training meets DSD certification California requirements as it is approved by the board of Registered Nursing. LVNS and RNs take this course. This course is a requirement for nurses who have had at least two years experience as a nurse and at least one year in patient care and wish to become the Director of Staff Development in the long term care facility or teach Certified Nurse Assistants. It is an online course estimated to be completed in 24 hours. DSD Certification online

  13. Online slots PG SLOT offers PG camp games, PGSLOT slots, AUTO systems, free credit giveaways, slots for real money, slots, the hottest direct website in 2021

  14. Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include. All car parts

  15. It was wondering if I could use this write-up on my other website, I will link it back to your website though.Great Thanks. Cici4d

  20. I’m impressed, I must say. Rarely do I come across a blog that’s both equally educative and interesting, and let me tell you, you’ve hit the nail on the head 야동

  22. I was seeking this particular information for a very long time. ✅ I also have some information related to this Topic on my website
    poker88asia

  23. SEXDUPY.PL – Sprawdź anonse erotyczne, ogłoszenia towarzyskie atrakcyjnych kobiet. Przeglądanie anonsów erotycznych dziewczyn jest darmowe. Masaże, sex randki, namiętne spotkania
    warszawa

  24. Your ideas inspired me very much. 토토커뮤니티It’s amazing. I want to learn your writing skills. In fact, I also have a website. If you are okay, please visit once and leave your opinion. Thank you.

  27. 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 car body cover

  28. I have learned newer and more effective things by means of your blog. One other thing I’d like to say is that newer personal computer operating systems are inclined to allow extra memory to get used, but they likewise demand more memory simply to function. If a person’s computer can’t handle extra memory and also the newest computer software requires that memory increase, it could be the time to buy a new Laptop. Thanks เว็บแทงบอล

  29. Thank you so much for the post you do. I like your post and all you share with us is up to date and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job projektowanie logo

  30. 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 sendinblue vs mailchimp

  32. You have a real talent for writing unique content. I like how you think and the way you express your views in this article. I am impressed by your writing style a lot. Thanks for making my experience more beautiful.
    biofeedback software

  33. Wow, What a Excellent post. I really found this to much informatics. It is what i was searching for.I would like to suggest you that please keep sharing such type of info.Thanks
    biofeedback

  36. 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. sendinblue email marketing

  37. I wish more authors of this type of content would take the time you did to research and write so well. I am very impressed with your vision and insight. sendinblue tutorial

  38. I really loved reading your blog. It was very well authored and easy to understand. Unlike other blogs I have read which are really not that good.Thanks alot! 먹튀폴리스

  45. Get higher yield and less electricity bill with Spider Farmer grow tent kit that can fit at any corner of your home. It comes with full spectrum led grow light and carbon filter. grow tent

Leave a Reply

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