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

 

178,174 thoughts on “Railway Industry in France”

  5.  Embark on a seamless journey from the charming town of Coulsdon To Gatwick Airport Taxi to the bustling Gatwick Airport with our exclusive taxi service, where convenience meets sophistication. Picture a ride that transcends the ordinary, blending efficiency with a touch of luxury, ensuring your trip is as memorable as your destination.

    As you step into our Coulsdon to Gatwick Airport taxi, you’re greeted by an atmosphere of comfort and tranquility. Impeccably maintained vehicles, equipped with the latest amenities, provide a cocoon of relaxation, allowing you to unwind before your flight. Plush, ergonomic seating and a climate-controlled environment create an ambiance that sets the tone for a stress-free travel experience.

  6. In Pakistan, gloves serve myriad purposes, deeply ingrained in the fabric of daily life and specialized industries alike. From the bustling streets of Karachi to the agricultural fields of Punjab, gloves offer protection, warmth, and functionality.

    In urban areas, leather gloves crafted by skilled artisans are a staple during colder months, shielding hands from biting winds. These gloves, meticulously made with locally sourced leather, often reflect Pakistan’s rich heritage of craftsmanship and tradition. They’re not just a practical accessory but a symbol of cultural artistry.

    Moreover, Pakistan’s booming textile industry sees the production of gloves for various uses—ranging from surgical and medical gloves to industrial-grade ones used in manufacturing and construction sectors. Sialkot, a city renowned for its sports goods and equipment, also boasts a significant glove manufacturing industry, creating high-quality sports gloves for cricket, hockey, and other sports enthusiasts.

  9. Welcome to the premier Coulsdon to Heathrow Airport taxi service, where your journey becomes a seamless blend of comfort, reliability, and style. Our dedicated team of professional drivers is committed to providing you with a travel experience that surpasses expectations.

    Picture stepping into a world where punctuality meets luxury. Our fleet of meticulously maintained vehicles ensures that your ride from Coulsdon to Heathrow Airport is not just a transfer, but a voyage in sophistication. From the moment you step into our well-appointed taxis, you be enveloped in an atmosphere of tranquility and convenience.

    Phone:+44 20 8686 2777

    Address: 292 High St, Croydon CR0 1NG, UK

  13. You are very cool! I dont suppose I have read something similar to this before. So nice to search out somebody with authentic applying for grants this subject. I really appreciate starting this up. Your website is one area that is needed on the net. Totally a helpful project for bringing new things for the web! bokep asia

  24. We provide support for ap extender setup or any other issue related to your extender in the USA, UK, AUSTRALIA, CANADA. Visit

  25. Wow, cool post. I’d like to write like this too – taking time and real hard work to make a great article… but I put things off too much and never seem to get started. Thanks though. ยูฟ่า800

  31. Hello..! I have many years experience in off-page SEO. we can also help Increase Traffic to your site on google 1st page. I provide a quality service with 100% Buyer satisfaction and My team Believed in quality work Contact me. seobacklink

  32. Your sock drawer deserves a FUN & QUIRKY makeover! Discover the ultimate sock paradise at Sock Republic! Unleash your personality with our vibrant, playful, and oh-so-stylish socks available FUN & QUIRKY SOCKS. From funky designs to whimsical patterns, we’ve got the perfect pair to match your unique vibe. Elevate your fashion game and make a statement with every step you take!

  33. With havin so much content and articles do you ever run into any problems of plagorism or copyright infringement? My site has a lot of exclusive content I’ve either authored myself or outsourced but it seems a lot of it is popping it up all over the web without my authorization. Do you know any ways to help protect against content from being stolen? I’d certainly appreciate it. petirtoto

  34. Dari sekian ribu permainan slot online yang bisa Anda dapatkan di situs Gaspoll88, namun tidak semua permainan yang ada bisa memberikan Anda kemenangan yang besar.

  36. Slot Gacor merupakan salah satu Situs Kudabet terbaik di masa kini. Situs judi Kudabet ini memiliki satu sistem yang sangat baik, dan perkembangan yang sangat besar di kalangan judi bola online saat ini.

  37. JAYASPIN ialah situs game judi online 24jam terpercaya yang Disediakan banyak tipe game judi semacam, taruhan bola, c4sino, p0ker online, tembak ikan, sabung ayam. Kamu tidak wajib merasa repot lagi mencari situs judi lain.

  41. employee communication apps. Employee communication applications, such as AgilityPortal, are online platforms crafted to foster connectivity between businesses and their workforce, with a primary focus on mobile devices. These applications function as collaborative tools, providing a range of features like personalization, two-way communication chat, and interactive elements. Their significance lies in ensuring that all employees can access materials actively engaging them in their work, thereby contributing to their overall performance. Research highlights that a lack of employee engagement can lead to an annual loss exceeding $4 million. Studies show that the average office worker contends with an overwhelming 90 emails each day, with an estimated expenditure of around 28% of their workweek on reading and responding to emails. However, the integration of a communication application, exemplified by AgilityPortal, has the potential to significantly diminish this burden.

  43. Hello there, just became alert to your blog through Google, and found that it’s really informative. I’m going to watch out for brussels. I will be grateful if you continue this in future. A lot of people will be benefited from your writing. Cheers! new cake carts vape

  44. employee communication apps. Employee communication applications, such as AgilityPortal, are online platforms crafted to foster connectivity between businesses and their workforce, with a primary focus on mobile devices. These applications function as collaborative tools, providing a range of features like personalization, two-way communication chat, and interactive elements. Their significance lies in ensuring that all employees can access materials actively engaging them in their work, thereby contributing to their overall performance. Research highlights that a lack of employee engagement can lead to an annual loss exceeding $4 million. Studies show that the average office worker contends with an overwhelming 90 emails each day, with an estimated expenditure of around 28% of their workweek on reading and responding to emails. However, the integration of a communication application, exemplified by AgilityPortal, has the potential to significantly diminish this burden.

  48. As the user base continues to expand, the need for efficient and targeted communication is more crucial than ever. One essential tool in achieving this is the WhatsApp number filter, a mechanism designed to streamline and optimize contact lists for more effective interactions.

Leave a Reply

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