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

 

182,671 thoughts on “Railway Industry in France”

  3. An fascinating discussion is value comment. I think that it is best to write extra on this matter, it won’t be a taboo topic however generally people are not enough to talk on such topics. To the next. Cheers dark web links

  4. Okeplay777Yuk bossku langsung bergabung dan mainkan situ paling gacor di Indonesia yaitu di Okeplay777. Di Okeplay777 tentunya banyak menyediakan berbagai macam permainan yang sangat seru dan menyenangkan yang banyak memberikan cuan. Karena cuma di Okeplay777 yang modal sedikit dapat cuannya berbukit.

  5. Thanks for taking the time to discuss this, I really feel strongly about it and love learning extra on this topic. If attainable, as you achieve experience, would you thoughts updating your blog with additional data? It is extremely useful for me. Hifz Course Online

  17. Really a great addition. I have read this marvelous post. Thanks for sharing information about it. I really like that. Thanks so lot for your convene. sweet777

  18. I just found this blog and have high hopes for it to continue. Keep up the great work, its hard to find good ones. I have added to my favorites. Thank You. sweet777

  19. One of the most common issues is when the AC repair technician to cool the space effectively. This can result from a malfunctioning compressor, low refrigerant levels, or a faulty thermostat. Professional AC repair technicians are equipped to diagnose and rectify these issues promptly.
    https://www.localramu.com/bengaluru/ac-repair

  20. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value. Im glad to have found this post as its such an interesting one! I am always on the lookout for quality posts and articles so i suppose im lucky to have found this! I hope you will be adding more in the future… sweet777

  21. Kecuali mempunyai reputasi komputerisasi yang bagus, mantra slot88 juga gampang diakses tanpa VPN lewat telpon pintar, PC, dan tablet cuma dengan bermodalkan koneksi dunia maya https://unikal.ac.id/slot-thailand/ yang bagus. Kami menyediakan metode pendaftaran, deposit, bonus dan withdrawal yang gampang dipahami. Tak cuma slot gacor, banyak permainan-permainan judi online menarik yang dapat kau menangkan di mantra88.

  24. Okeplay777 juga merupakan agen togel hari ini yang menghadirkan hasil keluaran togel secara real-time. Mereka memahami bahwa pemain seringkali ingin tahu hasil togel secepat mungkin untuk mengetahui apakah mereka memenangkan taruhan mereka.

  26. Incredible insights! A big thank you to the Administrator for generously sharing this valuable information. I’ve explored numerous sections of your website and must say, your blog is truly exceptional. Please continue imparting these remarkable narratives. Your dedication to sharing quality content is truly appreciated. We are providing news and latest information about cryptocurrency, if you have any doubt about crypto we are here to guide you. For more information visit our website. How To Take Profits In Crypto Trading?.

  31. Mulai dari permainan judi bola online, judi poker online, bola tangkas, tembak ikan, lotre / togel online, gaple, live casino online sampai sabung ayam. Sebagai wujud support, kami juga menyediakan kabar live RTP slot online gacor dan bonus promosi yang dapat kau temukan ketika kau sudah menjadi Slot88 Server Thailand komponen dari anggota kami. Ayo seketika buat akunmu kini juga!

  32. Discover our exclusive collection of stylish and functional Plastic Head Wrap For Women, available on Exporthub.com. Our head wraps are crafted with high-quality materials, offering comfort and durability while adding a touch of elegance to any ensemble. Designed to complement various styles and occasions, these head wraps provide a perfect blend of fashion and functionality. Explore our range of vibrant colors, patterns, and designs that cater to diverse preferences.

  37. I just nowadays wants to discuss i was basically healthy towards web blog aside from surely favourite your website internet site. In all probability I’m on the subject of to look for your web sites. Families clearly can include terrific things. Preferred likes for rendering with us your web sites. eo88

  38. Nice post. I was checking constantly this blog and I am impressed! Extremely helpful information specially the last part I care for such info a lot. I was seeking this particular information for a very long time. Thank you and good luck. rtp sweet777

  39. After reading your article I was amazed. I know that you explain it very well. And I hope that other readers will also experience how I feel after reading your article.大阪観光

  40. I just nowadays wants to discuss i was basically healthy towards web blog aside from surely favourite your website internet site. In all probability I’m on the subject of to look for your web sites. Families clearly can include terrific things. Preferred likes for rendering with us your web sites. eo88
    j

  42. Explore the dynamic world of ‘Revenue Management in Action.’ While researching market data, supplement your knowledge with our skillfully designed online classes, which are designed to improve your comprehension and use of revenue management tactics.

  44. Someone Sometimes with visits your blog regularly and recommended it in my experience to read as well. The way of writing is excellent and also the content is top-notch. Thanks for that insight you provide the readers! sweet777

  45. We’ve witnessed a remarkable improvement in the quality of our final products since incorporating Ambica Enterprises’ Shot Blasting Machines. The precision and cutting-edge technology in their equipment have translated into a superior surface finish that meets and exceeds our stringent standards.

  46. An interesting dialogue is price comment. I feel that it is best to write more on this matter, it may not be a taboo topic however usually individuals are not enough to talk on such topics. To the next. Cheers. rtp sweet777

  49. Attractive, post. I just stumbled upon your weblog and wanted to say that I have liked browsing your blog posts. After all, I will surely subscribe to your feed, and I hope you will write again soon! sweet777

Leave a Reply

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