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

 

207,063 thoughts on “Railway Industry in France”

  1. Neotonics: The Marvellous Skin and Gut Companion

    Have you heard about Neotonics Gummies? They’re a fresh addition to the world of supplements, and their mission is to boost both your skin and gut health. But what’s the secret behind Neotonics, and how does it work its wonders?

  2. Neotonics: The Marvellous Skin and Gut Companion

    Have you heard about Neotonics Gummies? They’re a fresh addition to the world of supplements, and their mission is to boost both your skin and gut health. But what’s the secret behind Neotonics, and how does it work its wonders?
    https://neotonics-buy.us

  3. Do you want to get healthier and shed some pounds? The supplement SeroLean might be the solution you’ve been looking for. This dietary supplement is intended to enhance your general health and be a useful ally on your weight loss quest. SeroLean is exceptional because of its unusual combination of all-natural components, which may aid in weight loss.
    https://serolean–us.us/

  4. “여성을 위한 전용 마사지 토닥이로 힐링과 안정을 경험하세요. 특별한 서비스로 여러분을 기다립니다. 당신의 건강과 행복을 위한 여성전용 마사지 서비스, 토닥이는 여기 있습니다. 피로와 스트레스로 지친 몸과 마음을 위로하고 치유하기 위한 최고의 선택입니다. 토닥이로 여성들에게 특별한 휴식을 선사합니다. 피로와 스트레스에서 벗어나는 여정을 시작하세요. 퍼스트 토닥이가 여러분을 돌보겠습니다. 여성 전용 마사지 토닥이로 몸과 마음을 돌보세요. 흔히 토닥 토닥 이라는 단어는 힐링 또는 심신을 위로한다는 뜻이기도 합니다.”

  7. Puravive is a Tropical weight loss supplement designed to support healthy weight loss in a way that aligns with the principles of nature. This supplement features a proprietary blend of eight powerful tropical nutrients and plants, all backed by clinical research. Puravive is specially formulated to address a recently discovered factor in weight management, brown adipose tissue (BAT) levels.
    http://puraviive-usa.com

  8. Arriving in a new city can be overwhelming, but with Airport Services’ Meet and Greet service, you’ll experience a warm welcome and a smooth transition. Our professional representatives will be there to meet you at the airport, assist with luggage, and guide you to your waiting vehicle. Enjoy the luxury of a stress-free arrival, whether you’re a solo traveler, a family, or part of a group.

    https://www.frontlineblackcar.com/

  11. I’m happy I located this blog! From time to time, students want to cognitive the keys of productive literary essays composing. Your first-class knowledge about this good post can become a proper basis for such people. nice one custom mtb jersey

  12. How Much Is Kevin Gates Worth 2023:
    Kevin Gates, the accomplished rapper and entrepreneur, has seen a steady rise in his net worth over the years. As of 2023, his financial standing reflects not only his success in the music industry but also his ventures in business. Gates’ net worth is a testament to his resilience and ability to diversify his income streams.

  13. For those just getting started, the Immediate Connect trial account is perfect. It helps to understand how it all works, to present the maximum capacity of the platform and to familiarize yourself with the environment of buying and selling bitcoins. immediate connect

  19. As the leading hospitality-driven vacation rental company in North America, Vacasa is redefining the way we travel and enjoy vacation homes.
    By taking care of our homeowners investments, creating memorable stays for guests, and giving our employees the tools to give and receive the best experiences,
    We are empowering them to invest in vacations. Georgia vacation rentals

  21. Excellent blog! Thank you for the efforts you have put into writing this post. root canal I hope the same best work from you in the future also. I thank you for this website. Thanks for sharing. Good website!

  22. Thank you for sharing a bunch of this quality content, I have bookmarked your blog. Teeth whitening Please explore the advice from my site. I will be back for more quality content.

  24. As the leading hospitality-driven vacation rental company in North America, Vacasa is redefining the way we travel and enjoy vacation homes. vacation rentals tampa fl
    By taking care of our homeowners investments, creating memorable stays for guests, and giving our employees the tools to give and receive the best experiences,
    We are empowering them to invest in vacations.

  25. Tarimas.com es el portal líder en la distribución y venta de suelos parador con los mejores precios del mercado. Encuentra el mejor precio, opiniones y experiencias de los usuarios de parquet Parador. Comprar parquet de parador del distrubuidor N°1 es una tranquilidad y seguridad para nuestros clientes de tarima flotante y pavimentos de alta gama. Parador parquets

  26. 홀덤 포켓에서 운영하는 홀덤펍과 홀덤바는 일반적으로 사용 시간에 따른 이용료를 지불하고 참여합니다. 플레이어들은 같은 칩을 받아 지정된 시간 동안 게임을 즐기며, 시간이 지나면 추가 요금을 지불하고 게임을 계속할 수 있습니다. 또한 토너먼트 형식의 게임도 있으며, 이는 참가비를 내고 시작하고, 리바인이 불가능한 경우가 대부분입니다. 게임은 인원과 시간에 따라 블라인드가 상승하며, 탈락 인원이 증가하면 테이블 및 방수가 줄어듭니다. 마지막 1인이 우승 상금을 받으며, 개최하는 토너먼트마다 순위별로 상금이 차등 지급됩니다. texasholdempokeri.net

  27. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. สล็อต168

  28. While i acquired on your web log however adding awareness just a bit touch submits. Nice technique for potential, We are book-marking during a period find versions conclude spgs way up. สล็อต168

  30. Dude, that 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. Regards : Tekniksipil.id

  31. Gelişen Esenyurt’ta Nakliye Sektörü: Geleceğe Yönelik Trendler

    Esenyurt bölgesindeki nakliye sektörü, sürekli bir evrim içindedir ve geleceğe yönelik pek çok trendi bünyesinde barındırmaktadır. Bu trendlerden biri, dijitalleşme ve online platformlardaki artan etkinlik. Nakliye firmaları, çevrimiçi rezervasyon sistemleri ve dijital platformlarda daha etkin bir şekilde varlık göstererek müşterilere kolaylık sağlamaktadır.

    Ayrıca, Esenyurt’taki nakliye firmalarının sürdürülebilirlik konusuna verdiği önem de göze çarpmaktadır. Elektrikli araç kullanımı, geri dönüşüme önem verme ve çevre dostu ambalajlama gibi uygulamalar, taşımacılık sektörünün çevre üzerindeki etkisini azaltmaya yönelik çabaları temsil etmektedir.

    Esenyurt bölgesindeki nakliye firmalarının lojistik ağlarındaki entegrasyon da bir diğer önemli trenddir. Veri analizi ve lojistik yönetimi konularındaki teknolojik gelişmeler, taşımacılık süreçlerini daha verimli hale getirirken müşterilere daha hızlı ve güvenilir hizmet sunma imkanı sağlamaktadır.

    Esenyurt Nakliye

  32. Rekabetin Göbeğinde Zeytinburnu Nakliye Sektörü: Hizmet Çeşitliliği ve Müşteri Odaklılık

    Zeytinburnu’nda nakliye sektörü, giderek artan rekabet ortamında müşteri memnuniyetini ve hizmet kalitesini artırmak için çeşitli stratejiler benimsemektedir. Bu rekabetçi dinamikler, müşterilere daha geniş bir hizmet yelpazesi sunma, maliyetleri optimize etme ve müşteri odaklılık konusunda yeni standartlar belirleme konusunda firmaları teşvik etmektedir.

    Hizmet Çeşitliliği ve Esneklik

    Zeytinburnu’nda faaliyet gösteren nakliye firmaları, müşteri ihtiyaçlarına daha iyi cevap verebilmek adına hizmet çeşitliliğini artırmaktadır. Sadece evden eve taşımacılık değil, aynı zamanda özel eşya taşıma, ofis taşıma, depolama hizmetleri gibi farklı alanlarda uzmanlaşma çabasındadırlar. Bu, müşterilere daha özelleştirilmiş ve ihtiyaçlarına uygun çözümler sunma kapasitesini artırmaktadır.

    Zeytinburnu Nakliye

Leave a Reply

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