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

 

182,571 thoughts on “Railway Industry in France”

  5. This is very interesting, You are a very professional blogger. I’ve joined your feed and look ahead to seeking more of your excellent post. Additionally, I’ve shared your web site in my social networks. 토토검증

  9. Regular visits listed here are the easiest method to appreciate your energy, which is why why I am going to the website everyday, searching for new, interesting info. Many, thank you  物流籠車

  12. Are you on the lookout for a reliable CPA near you?
    Look no further! Finding the right Certified Public Accountant (CPA) is crucial for ensuring your financial success. In today’s fast-paced world, having a trustworthy financial advisor by your side can make all the difference. So, let’s delve into the key factors to consider when searching for a CPA near me.

    Local Expertise Matters: When choosing a CPA, prioritize local expertise. A CPA well-versed in the regulations and tax codes of your specific location can provide tailored advice that caters to your unique financial situation[<a

  15. riches888 เว็บพนันออนไลน์ ให้บริการอย่างครบครัน ที่มีค่ายเกมคาสิโนสด บาคาร่า สล็อต เสือมังกร รูเร็ต ไฮโล ที่ครอบครุมบริการทั้งหมดทุกค่ายที่มีชื่อเสียงโด่งดัง ริการด้วยระบบ AI AUTO ชั้นนำได้มาตราฐานระดับโลก และพบกับโปรโมชั่นสุดคุ้มเงื่อนไขไม่ยุ่งยากแบบจัดเต็ม

  18. Thank you for sharing this interesting essay about the world of online gambling with us. As a reputable supplier of Sky247, we are dedicated to providing our customers with a safe and dependable online betting environment so they can enjoy the thrill of cricket betting.

  19. You can call 1-800-544-2943 or Check your Target gift card balance, you will need the 15-digit card number and 8-digit access number. hear your last five transactions. Follow these steps if you have saved a Target Gift Card to your Target account.
    check target gift card balance,

  21. Bid farewell to areas with poor connectivity and welcome uninterrupted access with the LAOSGE wifi extender setup I’m here to guide you through the process, making sure your WiFi network is established effortlessly, guaranteeing a robust and dependable signal throughout your home or office. Prepare to encounter a heightened sense of internet freedom. Let’s enhance your WiFi connectivity collectively!

  29. Cultural preservation is vital for maintaining the identity and uniqueness of rural communities. Efforts should be made to conserve indigenous knowledge, traditions, and art forms. Cultural exchange programs and festivals can be organized to celebrate diversity and promote mutual understanding between rural and urban populations.

    https://ssmandal.net/

  31. Grace store we Manufacturer Made of Stainless Steel Products Like Bathroom Accessories Kitchen Accessories and Home Accessories our Factory Located in Gujranwala Pakistan

  35. I haven’t any word to appreciate this post…..Really i am impressed from this post….the person who create this post it was a great human..thanks for shared this with us. bong88

  36. The banking industry faces numerous risks, which necessitate the adoption of well-defined risk management strategies. The insights derived from Download CAIIB Previous Year Questions Paper in the CAIIB examination highlight the importance of identifying and assessing risks, as well as implementing specific strategies to manage credit risk, market risk, liquidity risk, and operational risk. By adhering to these risk management principles, banks can enhance their stability and ensure sustainable growth in a challenging and dynamic environment.

  45. french chic As a French Woman living in France, I have access every day to what real French Women are wearing, why and how. I will teach you how you can address your style problems and preoccupations.

  47. The details you supply in your write-ups. Maintain sharing of this type info. I truly value your operate in this article. Below we are examining simply exactly how to the setup hp printer. You can resolve those concerns with the assistance of 파라오우리카지노

Leave a Reply

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