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

 

166,921 thoughts on “Railway Industry in France”

  2. Normally I don’t read post on blogs, but I would like to say that this write-up very pressured me to check out and do so! Your writing taste has been surprised me. Thank you, quite nice article. gclub88888

  5. Thankful to you for your post, I look for such article along time, today I find it finally. this post give me piles of instigate it is to a marvelous degree relentless for me. 놀이터 추천

  11. Hmm… Their appreciate websites finding a pertaining complexity, nonetheless their have prevented sign in online site. Their further in your device for helping populars additionally i’ll actually turn out to be products specialized primer. Garage door repair

  14. I visit your blog regularly and recommend it to all of those who wanted to enhance their knowledge with ease. The style of writing is excellent and also the content is top-notch. Thanks for that shrewdness you provide the readers! buy THC gummies Australia

  15. Fabulous post, you have denoted out some fantastic points, I likewise think this s a very wonderful website. I will visit again for more quality contents and also, recommend this site to all. Thanks. weed edibles australia

  16. تصليح غسالات Kuwait Washing Machine Repair offers fast and reliable appliance repair services for residents and businesses in Kuwait. Our experienced technicians specialize in diagnosing and fixing a wide range of washing machine issues, ensuring your appliance is running efficiently and effectively. We pride ourselves on prompt service, affordable rates, and a commitment to customer satisfaction. Whether it’s a minor repair or a major overhaul, trust Kuwait Washing Machine Repair to keep your laundry routine running smoothly.

  17. I admire what you have done here. I like the part where you say you are doing this to give back but I would assume by all the comments that this is working for you as well. 세종마사지

  18. Muha Meds is a popular brand in the cannabis industry, known for its high-quality and reliable products. With an extensive range of cannabis vape cartridges, Muha Meds has gained a reputation for delivering a consistent and enjoyable vaping experience.
    Muhameds

  26. In today’s fast-growing world, the need for transportation solutions has become increasingly important. Whether for a family vacation, a group outing, or a business trip, van rental services have become a flexible and cost-effective option. Our company provides a comprehensive guide to renting a family van, highlighting its benefits and important considerations to remember.
    van rental atlanta

  27. I can see that you are an expert at your field! I am launching a website soon, and your information will be very useful for me.. Thanks for all your help and wishing you all the success in your business. Joyce Vance neck Surgery

  28. 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.토토사이트

  32. I do not realize if it’s simply me or if all of us else experiencing problems collectively along with your weblog. It appears as although a number of the text in your content cloth are on foot off the show screen. Can someone else please provide feedback and permit me know if this is going on to them as well? This might be a problem with my net browser because I’ve had this appear in advance than. Thanks คาสิโนสด

  33. roro4d roroslot member bergabung dengan situs website terpercaya yang ada di indonesia membuat kita menjadi sangat nyaman dalam bermain. Semua kemudahan dan kenyamanan dalam bermain ditawarkan website online terpercaya yang ada di indonesia. Semua pembayaran dan penarikan saldo dilakukan dengan sangat aman serta cepat, jika anda ingin bergabung di situs website terbaik terpercaya roroslot online resmi indonesia.

  34. Apakah Anda seorang pelatih, manajer, atau anggota staf, memiliki persediaan dan peralatan yang tepat sangat penting. Dalam artikel ini, kami akan memberikan daftar komprehensif perlengkapan dan peralatan kantor sepak bola untuk membantu Anda menjalankan tim Anda secara efisien.
    kantorbola

  35. property for sale in madeira Discover the beauty of island living with Exclusive Homes Madeira! Our website is your gateway to exquisite properties in Madeira, offering a curated selection of modern villas, newly constructed homes, and luxury apartments. With user-friendly tools like our IMT Tax Calculator and a rich blog section full of insights about Madeira’s real estate market, we make your property search enjoyable and informative. Our dedicated team is ready to assist you in finding the perfect home that matches your lifestyle. Visit Exclusive Homes Madeira, where your dream Madeira home awaits you. Explore now at [Exclusive Homes Madeira]

  36. أولاً وقبل كل شيء، ينبغي للشخص البحث عن الأثاث المستعمل في المواقع الموثوقة والمعتمدة متل هذا الموقع. يمكن الاطلاع على المواقع الإلكترونية المتخصصة في بيع الأثاث المستعمل والتي تضمن جودة القطع وتقديمها بأسعار معقولة.

  37. I am really glad I’ve found this information. Nowadays bloggers publish only about gossips and web and this is really frustrating. A good blog with exciting content, this is what I need. Thank you for keeping this web-site, I’ll be visiting it. Do you do newsletters? Can’t find it. 안전놀이터

  40. ¡Ven y descubre el vibrante mundo de JoseM Website! Reconocido como un destacado blog sobre diseño y desarrollo web, tecnología, emprendimiento y negocios, JoseM Website te ofrece la oportunidad de sumergirte en el vasto universo digital. Alimentamos tus ideas innovadoras y expectativas, guiando tus pasos en este camino de tecnología y emprendimiento con nuestra experiencia y consejos prácticos. Es inspirador y educativo, es vanguardista pero accesible. ➡ https://josemwebsite.blogspot.com ⬅ 😊 ¡Tus conocimientos sobre diseño web, desarrollo web, tecnología, emprendimiento y negocios, a sólo un clic de distancia!

Leave a Reply

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