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

 

214,318 thoughts on “Railway Industry in France”

  7. We are capable to will provide you with the objective On this page recognize the simplest way to train the idea the appropriate way. Recognize besides make everything valuable. maine-coon-katze

  10. Mmm.. great to be here in your article or post, whatever, I figure I ought to likewise buckle down for my own site like I see some great and refreshed working in your site. 英文補習

  11. Users can use the ChatGPT app to retrieve information on a wide range of topics. This includes asking for explanations, definitions, summaries, and even generating content like articles or reports. ChatGPT App

  14. Should you feel think that its hard to, you without a doubt can’t; If you don’t plan, to have coming up short. Things are liable to astuteness, decrease of hundreds activities are miserable before beginning. 英文補習

  22. The most rousing stuff regularly is likely the most dull or exhausting concern. a solitary chicken may not be in a similar woody plant strip long, and furthermore the pets inside the pine is a sort of weight, consistently need to counsel the following stars, the specific fowl on the grounds that the plants are extremely reluctant to outward appearance an equivalent wonderful places step by step. 英文補習

  28. I’ve been thinking about creating a very equivalent post over the span of the most recent few weeks, I’ll in all likelihood keep it direct and association with this fairly if that is cool. Thankful 英文補習

  37. Hi there, just became aware of your blog through Google, and found that it’s truly informative. I’ll be grateful if you continue this in future. Lots of people will benefit from your writing. Cheers! perfectmoney voucher

  38. Jordan shoes are known for their stylish designs, high-quality materials, and advanced technology that provides excellent performance on the basketball court. They have gained a significant following not only among basketball players but also among sneaker Air Jordan enthusiasts and fashion-conscious individuals.

    There are various models and editions of Jordan shoes, with some of the most iconic ones being the Air Jordan 1, Air Jordan 3, Air Jordan 11, and many more. These shoes often feature distinctive colorways and unique details that make them highly sought after by collectors and fans.

    In addition to their on-court performance, Jordan shoes have also become a fashion statement, with many people wearing them as everyday footwear. They are often released in limited quantities, leading to high demand and resale value in the sneaker market.

    If you’re looking to purchase Jordan shoes, you can check Nike’s official website, authorized retailers, or explore the secondary market through platforms like StockX or GOAT. Keep in mind that prices and availability can vary depending on the specific model and edition you’re interested in.

  39. Valuing the perseverance you put into your blog and itemized data you give. I’ve bookmarked your site and I’m adding your RSS channels to my Google account. 英文補習

  40. It’s important to note that the deployment of advanced AI models like GPT-4 also raises ethical considerations, such as addressing potential biases in AI-generated content, ensuring privacy, and promoting responsible use. GPT-4 Application

  43. OpenAI’s ChatGPT app represents the potential for conversational AI to enhance various aspects of our daily lives, from learning and productivity to content creation and information retrieval. Its versatility and ability to engage in dynamic conversations make it a valuable tool for a wide range of applications and industries. ChatGPT App Download

  44. Remarkable things you’ve by and large granted to us. Basically proceed with composed work this kind of posts.The time which was wasted in going for instructive cost now it very well may be used for studies.Thanks 英文補習

  45. Grace International is a renowned bathroom accessories manufacturer in Pakistan, known for its top-notch products and exceptional craftsmanship. At Grace Store, they specialize in creating exquisite bathroom accessories sets that blend functionality and aesthetics seamlessly. Their commitment to quality and attention to detail are evident in every piece they produce, making them a preferred choice for those seeking to elevate their bathroom spaces. Grace Store’s wide range of products not only enhances the functionality of bathrooms but also adds a touch of elegance and sophistication to any interior. With a reputation built on excellence, Grace International continues to be a trusted name in the industry, setting the standard for bathroom accessories of the highest caliber.

  47. Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can’t help but wonder, what about the other side? !!!!!!Thanks Best NFT to invest in

  48. Oh my goodness! a wonderful article dude. Appreciate it Nonetheless We’re experiencing problem with ur rss . Do not know why Not able to sign up for it. Can there be any person obtaining identical rss dilemma? Anyone who knows kindly respond. Thnkx New Orleans classifieds

Leave a Reply

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