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

 

166,980 thoughts on “Railway Industry in France”

  1. Very great post. I just stumbled upon your blog
    and wanted to say that I have truly loved browsing your blog posts.

    In any case I will be subscribing on your feed and I hope you write again very
    soon! 밤의황제

  2. I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. smm panel means

  3. طراحی و ساخت یخساز صنعتی
    تولید انواع یخساز
    یخساز حبه ای
    یخساز پولکی
    یخساز قالبی
    یخساز پودری
    یخساز تمام اتوماتیک
    یخساز نیمه اتوماتیک
    جهت کسب اطلاعات بیشتر در خصوص یخساز صنعتی به سایت مهتاب گستر مراجعه نمایید.

  4. You make so many great points here that I read your article a couple of times. Your views are in accordance with my own for the most part. This is great content for your readers ✅
    نقل عفش

  8. I have been looking for articles on these topics for a long time. 메이저놀이터 I don’t know how grateful you are for posting on this topic. Thank you for the numerous articles on this site, I will subscribe to those links in my bookmarks and visit them often. Have a nice day

  10. Hello, I came to visit by chance and
    I am going to see good information
    and photos.
    I also run a website.
    This is N토토, a sports blog.
    There is a translation function on the website, so please drop by if you have time.
    사설토토＆사설토토사이트＆토토사이트＆토토사이트 검증
    오랫동안 많은 업체들과 함께 데이터 베이스를
    구축하였으며
    최적의 스포츠게임을 즐기실수 있게 최고의
    토토사이트를 제공해드립니다
    사설토토 <—Click to go to my website
    I apologize again if what I wrote was inconvenient,
    and have a nice day.

  14. อย่างที่รู้กันดีว่าแสงแดดของเมืองไทย มีความร้อนที่พร้อมทำร้ายผิวทุกคนได้ตลอดเวลา หากไม่มองหาวิธีป้องกันอย่างถูกต้องโอกาสที่จะเกิดความเสียหายต่อใบหน้า ไม่ว่าจะเป็นผิวหมองคล้ำ, หน้าไหม้, เกิดฝ้า กระ มีสูง ผลิตภัณฑ์กันแดดทั้งกันแดดหน้า และกันแดดผิว จึงเป็นตัวช่วยที่ทุกคนขาดไม่ได้ แต่คำถามที่หลายคนสงสัยคือ หากต้องซื้อกันแดด ควรเลือกกันแดดตัวไหนดี ผิวแบบนี้ต้องเลือกครีมกันแดดแบบคุมมันหรือไม่ ทาแล้วซึมไว หน้าไม่เทาใช้ยังไง ต้องศึกษาให้ละเอียด

    วิธีเลือกครีมกันแดด https://www.loreal-paris.co.th/how-to-choose-sunscreen

  19. This is the right blog for anybody who wants to discover this topic. You realize a whole lot its nearly hard to argue along with you (not too I personally would want…HaHa). You actually put a different spin over a topic thats been revealed for years. Wonderful stuff, just fantastic! http://www.ogdenvalleysports.com

  24. Akçay evden eve nakliyat hizmetinde de bizi tercih edebilirsiniz. Türkiye’nin her yerine şehirler arası nakliyat hizmetimiz olduğu gibi işlemlerimizi sigortalı olarak tamamlarız. Sigortalı nakliyat sayesinde olası bir taşıma sırasında eşyanın zarar görmesi sonucu oluşan maddi hasar karşılanacak bu sayede siz de kafanız rahat bir şekilde evinizi ya da ofisinizi taşıtmış olacaksınız. Eşya taşıma işleminde ister standart taşıma ister asansörlü taşıma olsun her iki türlü hizmeti de sağlayabiliriz. Asansörlü taşıma hizmetimiz sayesinde eşyalarınız dairenizden güvenli bir şekilde araca alınacak güvenli bir yolculuk sonrasında da yine zarar görmeden dairenize kadar taşınacaktır. Hem hızlı hem güvenilir hem de profesyonel eller tarafından yapılan hizmet için bizimle iletişime geçebilirsiniz.

    Site : https://edremitevdeneve-nakliyat.com/

  28. Have you ever considered creating an e-book or guest authoring on other websites? I have a blog based on the same topics you discuss and would love to have you share some stories/information. I know my readers would enjoy your work. If you’re even remotely interested, feel free to shoot me an e mail. http://www.greendash.co

  32. Download hollywood movies, hollywood series, season movies, download korean dramas, stream american movies, download bollywood series, download nollywood movies, stream drama, action, comedy movies, mp4hdd download movies. mp4hdd movies download

  33. قیمت لوله پلی اتیلن
    قیمت لوله پلی اتیلن
    قیمت لوله پلی اتیلن
    قیمت لوله پلی اتیلن
    لوله پلی اتیلن
    لوله پلی ایتلن
    لوله پلی اتیلن
    لوله پلی اتیلن از جنس پلی اتیلن می باشد ور مصارف مختلفی کاربرد دارد.

  35. Hello There. I found your blog using msn. This is an extremely well written article. I will be sure to bookmark it and return to read more of your useful information. Thanks for the post. I’ll certainly comeback. voyance gratuite

  39. 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. Tenis de Futbol

  40. Nice post. I learn something totally new and challenging on websites I stumbleupon every day. It’s always useful to read through articles from other authors and practice something from other sites.
    Bigg Boss 15 Full Episodes

  41. I have read a few of the articles on your website now, and I really like your style of blogging. I added it to my favorites blog site list and will be checking back soon. Please check out my site as well and let me know what you think. Tenis negros

  42. We have sell some products of different custom boxes.it is very useful and very low price please visits this site thanks and please share this post with your friends. joinhoky

  43. 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. joinlapak

  44. The most preferred model in men’s clothing in summer is short sleeved shirts. Fashion is changing for men as it is for women. When we look at men’s short sleeved shirt models in the 2021 summer season, it is possible to see more vivid colors together. Quality is one of the most important aspects of the shirts that men prefer to be comfortable while working or resting during the dayInstead of using the shirt you bought for a single season, using it more will save you money, as well as allow you to wear the shirt later. Sport has come to the fore more this year in short sleeved shirt models. However, choosing a sports shirt does not mean that you cannot go to a special party or event with this shirt. Because when the shirt is combined with the right pieces, it will be a man’s most stylish outfit.

    Web Address : https://www.makrom.com/short-sleeved-mens-shirts

Leave a Reply

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