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

 

182,573 thoughts on “Railway Industry in France”

  2. but I don’t have access to real-time data or specific schedules beyond my last update in September 2021. For the latest and most accurate information about New Zealand’s fixtures in the 2023 ICC Cricket World Cup, including dates, opponents, and venues, I recommend checking official sports news websites, the International Cricket Council (ICC) website, or other reliable sports news sources closer to the event. These platforms will provide you with the detailed and up-to-date schedule of New Zealand’s matches in the 2023 Cricket World Cup. New zealand matches schedule for world cup 2023

  5. looking and searching for free movie download sites to download any latest movies in HD for mobile or PC for free? We got you the free movie download sites. Movies have become something among the locals, with a fantastic display and lively storylines to capture your attention. So we worked on getting the top free movie download sites for you. Visit our website free movie download sites for mobile

  8. Thanks , I’ve just been looking for information approximately this subject for ages and yours is the best I’ve came upon till now. sincanoto.com
    But, what concerning the conclusion? Are you positive about the supply?

  12. This is very Amazing and Very Informative Artical we get alot of Informations from this artical we really appreciate your team work keep it up and keep posting such a informative articles.
    ufacasino online

  13. Slot online bukan ulang satu buah hal yang awam di indonesia. Judi slot satu buah permainan yang dulunya dimainkan melalui mesin slot kini sudah mampu dimainkan lewat situs gacor anjay123 dunia digital. Mengingat era lantas yang menginginkan main judi slot wajib berangkat ke casino.

  14. Which is some inspirational stuff. Never knew that opinions might be this varied. Thank you for all the enthusiasm to provide such helpful information here. UFABET.com

  19. Our administrations are accessible in all urban communities of Minneapolis and its environment. We are having long periods of experience which empowered our clients and customers to confide in our administrations. Phy 補習班

  21. Much thanks to you again for all the learning you distribute,Good post. I was keen on the article, it’s very moving I ought to concede. I like visiting you site since I generally go over fascinating articles like this one.Great Job, I extraordinarily acknowledge that.Do Keep sharing! Respects, 佐敦補習

  22. Slot Gacor merupakan daftar web site judi slot gacor online https://www.anjay123.com/ paling baik di Indonesia & agen judi online yang membawa game slot online terlampau terkenal & terlengkap kala ini. Bergabung & main slot online bersama dengan Slot Gacor,

  24. Gunakan Akun selanjutnya untuk memasuki halaman permainan slot Kamboja paling baik serta bermain bersama pakai kiat atau kiat jitu agar Anda dapat beroleh https://www.anjay123.shop/ kemenangan. Jangan lupa tarik kemenangan atau withdraw sekiranya udah beroleh keuntungan serta jangan tamak waktu bermain.

  27. IMADA, inc is dedicated to providing accurate measuring devices for every need. Some of the many high-quality instruments we manufacture are durometers. Durometers are important to the manufacturing sector due to their functionality in measuring the hardness of certain materials.How to choose the right durometer

  29. Arlington TX cosmetic dentistDr. La and his team has been working hard to create a “patient friendly” environment for over 23 years. His patients are very important to him, and he strives to be family-friendly, yet maintain a professional personality to ensure that your office visit is as pleasant as possible.

  30. excellent submit, very informative. I’m wondering why the other experts of this sector do not notice this. You must proceed your writing. I am confident, you’ve a huge readers’ base already!바카라

  36. But deep down, a flicker of integrity refused to be extinguished. Mateo knew that his discovery held significance beyond its monetary value—it was a piece of history, a glimpse into a world that had long been lost. 메이저사이트추천

  39. But Mateo realized that there were rewards far more valuable than material wealth—self-respect, the admiration of his children, and the preservation of history for future generations. 조아툰

  40. In that moment, Mateo’s mind brimmed with possibilities. Could it be a relic from a forgotten era or an artifact left by an ancient civilization? 툰코

  41. Former President Donald J. Trump’s political action committee, which began last year with $105 million, now has less than $4 million left in its account after paying tens of millions of dollars in legal fees for Mr. Trump and his associates. 블랙툰주소

  43. “The government also encourages all firms to implement the Flexible Wage System as the uncertainties ahead continue to underscore the need for resilience and flexibility in wage structures.” 토토사이트

  45. Dental Health: Oral health is often overlooked, but it’s integral to overall health. Poor dental hygiene can lead to gum disease, infections, and even systemic health problems like heart disease. Regular dental check-ups and proper oral care are essential for maintaining a healthy smile and manavis skin care

Leave a Reply

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