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

 

206,428 thoughts on “Railway Industry in France”

  4. All the contents you mentioned in post is too good and can be very useful. I will keep it in mind, thanks for sharing the information keep updating, looking forward for more posts.Thanks austin property taxes

  12. Thrilled at the opportunity to contribute to your WordPress platform! As a passionate user and blogger, I can’t wait to share my insights and tips. Let’s create content that resonates with the vibrant WordPress community!
    Read More:write for us wordpress.

  15. Truly, this article is really one of the very best in the history of articles.I am really enjoying reading your well-written articles.
    My site Obor138

  16. lipocavitation danger
    , while popular for non-invasive fat reduction, poses potential risks. The procedure uses ultrasound waves to break down fat cells, but it may cause skin burns, blistering, or discomfort due to the heat generated. Inexperienced technicians or incorrect settings could lead to tissue damage or uneven fat removal. There’s a chance of infection if proper hygiene isn’t maintained during the process. Patients with certain health conditions like blood clotting disorders or pregnancy should avoid it. Although generally safe when performed by skilled professionals, lipocavitation demands cautious consideration due to the inherent risks involved in altering body tissues.

  21. JAYASPIN Merupakan salah satu platform perjudian online terkemuka yang menawarkan berbagai permainan slot yang mengasyikkan dan menguntungkan. Bagi para pemain yang ingin memulai petualangan mereka di dunia slot online, langkah pertama yang penting adalah melakukan deposit dana ke akun mereka.

  22. Kudabet merupakan situs terpercaya yang ada di indonesia dan telah dipercaya oleh ribuan bahkan ratusan pemain yang memainkan permainan slot maupun judi online di indonesia.

  23. Gaspoll88 merupakan daftar situs judi Slot online gacor dengan deposit pulsa tanpa potongan dan togel terpercaya serta live rtp slot 24jam paling lengkap.

  24. LELE247 merupakan website permainan slot gacor terbaik dengan pilihan games slots terbaru dan terlengkap. Dengan pilihan permainan yang lengkap anda tidak akan bosan untuk terus bermain dan meraih kemenangan besar beserta bonus yang ditawarkan.

  26. Obor138 is a site created to be played by lovers of online slot games, semua games online disini are easy to generate quite large and easy income.

  27. PuraVive emerges as a beacon of hope for those on their weight loss journey. This dietary supplement offers a natural, science-backed approach to shedding those stubborn pounds. Packed with a blend of carefully selected ingredients, PuraVive targets the elusive brown adipose tissue, supercharging your metabolism and helping you achieve the slim, energetic body you’ve been dreaming of. Join us as we delve deeper into this revolutionary weight loss solution, offering insight into its powerful ingredients, benefits, and the science behind it all. Your transformation starts here!
    puravive

  28. Puravive is a groundbreaking weight loss supplement, meticulously designed to combat obesity and excess weight using nature’s powerful tropical nutrients and plant compounds. Its 100% natural formula focuses on increasing brown adipose tissue (BAT) levels in the body, a key factor in efficient calorie burning and weight loss. Manufactured in a GMP-certified facility, it prioritizes safety and quality. With a blend of eight scientifically-proven ingredients, Puravive not only promotes weight loss but also enhances overall health, stabilizes blood sugar levels, boosts metabolism, and strengthens the immune system. Join the journey to a healthier you with Puravive today!
    puravive

  29. Obor138 is a site created to be played by lovers of online slot games play, semua games play online disini play are easy to generate quite large and easy income.

  30. Obor138 is a site created to be played by lovers of online slot games play, semua games play online disini play are easy to generate quite large and easy income quickly.

  31. Farrow Communications is a full-service public relations and digital marketing agency. We understand the need for a clear and concise marketing strategy while paying great attention to the core message and elevating your marketing game to the next level.”
    Book publicist

  34. Puravive, a powerful weight loss supplement that offers a natural and convenient approach to shedding excess pounds. Puravive targets the power of brown adipose tissue, or brown fat, to boost metabolism and accelerate weight loss. With a unique blend of eight exotic nutrients and plants, it aims to increase brown fat levels and activate thermogenesis. Just one capsule a day with water can help you harness the potential of your body’s brown fat, all without the need for extreme diets or intense exercise. Discover the transformative benefits of Puravive and embark on a journey to a healthier, more confident you today.
    puravive

  38. A visionary creator adept at embracing the limitless spectrum of artistic expression. This versatile artist navigates effortlessly across diverse mediums, blending traditional and contemporary techniques to forge a unique and compelling artistic identity. gernalartist

  48. Your vivid descriptions and stunning photos make me feel like I’m right there with you on your adventures. Thanks for taking us along on this incredible journey of 86bos

  49. This web page is really a walk-via for the entire info you wanted about this and didn’t know who to ask. Glimpse here, and also you’ll undoubtedly uncover it. suzuki surabaya

Leave a Reply

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