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

 

164,712 thoughts on “Railway Industry in France”

  1. Thanks for picking out the time to discuss this, I feel great about it and love studying more on this topic. It is extremely helpful for me. Thanks for such a valuable help again
    glitter for resin

  2. Wow, What a Excellent post. I really found this to much informatics. It is what i was searching for.I would like to suggest you that please keep sharing such type of info.Thanks betting norge

  3. Seo Ranking Web se enorgullece de su equipo de líderes de la industria jóvenes y dinámicos. Impulsamos proyectos digitales con entusiasmo y pasión para crear una experiencia pura, verdaderamente inspiradora y rica. Para todo lo digital, tenemos soluciones efectivas e influyentes para llevar su negocio a la vanguardia.
    seo ranking web

  4. Multiservicios aragon es una empresa que se especializa en soluciones comerciales de facturación y pago, centrándose exclusivamente en programas de pago neto de ciclo cerrado para sus clientes de empresa a empresa. La firma fue fundada en 1978 y sus múltiples líneas de negocio incluyen: el Programa de Mantenimientos para Comunidadesy de de Servicios Múltiples, Servicios Hohar, reformas, pintores, fontaneros Servicios Hogar Múltiples, Servicios Múltiples de Europa, Aero de Servicios Múltiples y Programas de Cuentas Nacionales de Marca Privada. La empresa tiene un alcance global, con oficinas en Madrid Zaragoza, Barcelona y 350 empleados en todo el pais.
    reformas zaragoza

  5. Hurrah, that’s what I was looking for, what a material!

    existing here at this website, thanks admin of this web page.

    Feel free to surf to my webpage – 부산달리기

  6. I accidentally searched and visited your site. I still saw several posts during my visit, but the text was neat and readable. I will quote this post and post it on my blog. Would you like to visit my blog later? 메이저놀이터추천

  8. Situs Resmi Joker123 Online Versi Terbaru 389Sports situs resmi ini selalu mengalami perkembangan system kecanggihan teknologi agar bisa memudahkan para pengguna judi online yang ingin bermain judi di Situs Resmi Joker123 Online 389Sports. Fitur yang dimiliki sekarang semakin elegan dan enak dimainkan tidak bosan dan kecanggihan teknologi sangat mendukung. Bermain judi di Situs Resmi Joker123 Online ini sangatlah asik dan seru tentunya banyak sekali pilihan game slot yang terbaik dan populer yang bisa para bettor mainkan. Kamu bisa mengakses itu semua cukup dengan bermodal dengan smartphone dan jaringan internet tentunya kalian bisa langsung daftar dan memainkan game slot semua cukup satu ID saja sangat canggih bukan. Kamu juga didukung dengan Cs 24 jam non stop tanpa henti sehingga apa yang kamu ingin tanyakan bisa langsung di jawab dengan respond yang sangat cepat dan jawaban yang sangat mudah di mengerti dan akurat tentunya. Proses transaksi dan witdrawpun sangat cepat sekali berkat dukungan teknologi yang sangat canggih tidak membutuhkan waktu belasan menit cukup kurang dari 5 menit proses transaksi atau witdraw akan selesa, saldo akan masuk ke rek atau akun kalian. Dengan modal yang sangat minim kamu bisa menghasilkan pundi pudi keuntungan langsung saja daftar sekarang juga di Situs Resmi Joker123 Online 389Sports.

  9. The Scope of digital marketing is on hike. Digital Marketing Course Benefits. Thanks for sharing article……...

  11. Great post! I am actually getting ready to across this information,먹튀검증사이트is very helpful my friend. Also great blog here with all of the valuable information you have. Keep up the good work you are doing here!

  14. Ankara temizlik işi yapan firmalar arasında sektöre ilk başlayanlardanız. Ayrıca personel gönderimi yapıyoruz. İlkler arasında yer almak ve yer alabilmek bizler için tecrübe, güven, kalite standartları arasında olabilmektir. Ankara Temizlik Şirketi web sitemiz ile bizimle irtibatta olun. En güncel kampanya ve fırsatlardan sizlerde yararlanın. ANKARA TEMİZLİK FIRMASI Ankara ev temizliğinde en önemli faktör evlerde kullanılan bezlerin hijyenik olması çok önemlidir.

    https://www.ankaratemizlikhizmeti.net/

  15. Exceptional post however , I was wanting to know if you could write a litte more on this topic? I’d be very thankful if you could elaborate a little bit further. Thanks 사설토토사이트

  18. موزر آلمان با بیش از 75 سال سابقه در تولید انواع ماشین های اصلاح مو و صورت در دنیا به عنوان برندی قابل اعتماد و بادوام شناخته می شود. برند موزر آلمان در حال حاضر دارای برندهای موزر، ارمیلا و وال است که به طور مثال برند وال تحت لیسانس موزر آلمان در چند کشور دنیا تولیدات خود را روانه بازار می کند.
    https://moser-iran.org/product-category/moser-parts

  19. First of all, thank you for your post. 메이저사이트 Your posts are neatly organized with the information I want, so there are plenty of resources to reference. I bookmark this site and will find your posts frequently in the future. Thanks again ^^

  20. مجموعه آرایشگاهی آس در منطقه تهرانپارس، یکی از بزرگترین و قدیمی ترین مجموعه‌های آرایشگاهی شرق تهران است که علاوه بر سالن آرایشگاهی عمومی دارای سالن آرایشگاهی VIP، سالن آرایش داماد و سالن آرایش کودک نیز می‌باشد. در این مجموعه پرسنل متخصص و با تجربه در زمینه آرایش مردانه، گریم و آرایش کودک تحت نظر محمد کاشانی به ارائه خدمت به مراجعین عزیر میپردازد.

    https://asbarber.com/

  21. A dynamic website design is one that you can make changes to as and when needed. As opposed to static websites, dynamic websites display content differently on each page. Consequently, visitors are never bored as they are constantly engaged.

    Dynamic Website Design

  28. Digital marketing is a marketing method with a high rate of preference and more advantageous compared to traditional media in today’s technology world, where you can promote your product and service in electronic environment. Digital marketing method is the name given to the marketing process of a company or brand in the digital environment. It is the newest and most developed open marketing method today. The leading companies of this efficient marketing method using digital channels are internet, social media marketing and mobile platforms.
    REFERENCE:https://vallettasoft.com/digital-marketing-agency-malta/

  29. eth to paypal

    Sell Ethereum for PayPal in dollars at a favorable rate on the site of Exchanger24. Only we can transfer cash out Ethereum to PayPal for real money for your wallet in 5 minutes.

  30. Thank you for some other informative website. The place else may just I get that kind of information written in such a perfect method? I have a venture that I am simply now running on, and I’ve been at the glance out for such info. cheap backlink service

  31. I was reading your article and wondered if you had considered creating an ebook on this subject. Your writing would sell it fast. You have a lot of writing talent. smm panl

  33. This post is very good I am very happy to see this post. Thanks for sharing such a wonderful article. keep up the work… your site is great, and it’s helping us a lot.. this post is unique and interesting, thanks for sharing this awesome info

    blog

  36. The American Lifeguard Association has been offering lifeguard courses for over 30 years.ALA helps with the development of testing protocols and the administration of health and safety program at swimming pools, waterparks, and beaches. ALA emphasizes public awareness of responsibility in aquatic environmental issues to protect the world we live in. It has worked diligently on environmental issues to help keep our beaches and waterways cleaner for our future generations. The skills taught in our national program reflects ECC science and findings from the United States Lifeguard Standards Coalition Report. With our training program, you will not have to wait for a group class. Our training programs can be taken anywhere, and are utilized by individuals, schools, universities and community pools both here in the United States and abroad. The American Lifeguard Association is one of only a few national certifying agencies for lifeguards. The U.S. Department of Labor has determined that the American Lifeguard Association offers lifeguard certification programs similar to those provided by the American Red Cross.
    Lifeguard class

  39. Business Strategy are the broad primary outcomes towards which effort and actions are directed in a business. They are whats, not hows and a business might have multiple goals to achieve. For example, “we must be a leader player and increase our share in the home loan market”. Normally there is no measurement in the definition of a goal and only gives you the general direction of the company.

  40. In most people’s vocabularies, design means veneer. It’s interior decorating. It’s the fabric of the curtains of the sofa. But to me, nothing could be further from the meaning of design.
    피망포커칩

  41. Togel singapore menjadi salah satu pasaran togel online yang paling banyak dicari oleh para pemain togel online. Lantaran dalam permainan togel singapore tersedia hadiah hadiah yang menarik perhatian para pemain togel online.

  42. Hello! I could have sworn I’ve been to this site before but after checking through some of the post I realized it’s new to me. Nonetheless, I’m definitely happy I found 메이저토토사이트 and I’ll be book-marking and checking back frequently!

  43. Domino qq higgs

    69qiuqiu merupakan situs judi online terpercaya dengan game populer dominoqq, bandarq, dan qiu qiu online. Dengan minimal depo wede Rp.20.000 daftar sekarang juga!.

  44. I will definitely recommend your website to everyone. You have a very good gloss. Write more high-quality articles. I support you.
    야동

  45. Great Post for Beginner to understand. I finally found great post here. Thanks for information.keep sharing more articles.
    마사지

  46. جراحی ترمیم بینی در شیراز یکی از متداولترین جراحی هایی است که توسط پزشکان ماهر و خبره این شهر انجام می گیرد.

  48. لیزر موهای زائد یک عملکردی است که در طی آن موهای ناخواسته در نواحی مختلف در بدن مانند صورت، پشت لب، پیشانی، گوش و گردن، شکم و ناحیه تناسلی، چانه و گونه رشد می‌نماید،

Leave a Reply

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