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

 

166,058 thoughts on “Railway Industry in France”

  1. I really loved reading your blog. It was very well authored and easy to undertand. Unlike additional blogs I have read which are really not tht good. I also found your posts very interesting. In fact after reading. I had to go show it to my friend and he ejoyed it as well! 數學補習

  2. Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more. ssh client

  4. I truly awed after read this in light of some quality work and educational contemplations . I just wanna express profound gratitude for the essayist and want you to enjoy all that life has to offer for coming!. 數學補習

  7. I want you to thank for your time of this wonderful read!!! I definitely enjoy every little bit of it and I have you bookmarked to check out new stuff of your blog a must read blog 數學補習

  8. wow, great, I was wondering how to cure acne naturally. and found your site by google, learned a lot, now i’m a bit clear. I’ve bookmark your site and also add rss. keep us updated. 數學補習

  17. CPT Law, or the Common Proficiency Test Law, is a crucial aspect of the Chartered Accountancy (CA) profession. Aspiring chartered accountants must grasp the fundamental principles of CPT Law as it forms the bedrock of their legal knowledge. In this article, we will delve into the basics of CPT Law, its significance, and its role in the journey towards becoming a certified chartered accountant.
    Heading 1: What is CPT Law?
    CPT Law, an integral part of the CA curriculum, encompasses the fundamental legal principles and regulations relevant to the business and accounting domains. This initial stage of the CA program serves as a gateway for aspiring professionals to develop a solid foundation in legal matters pertaining to their future career.
    Heading 2: The Significance of CPT Law in Chartered Accountancy
    Understanding the legal framework is imperative for a chartered accountant, as they play a pivotal role in financial and business decision-making. CPT Law equips candidates with the essential knowledge to navigate the legal landscape, ensuring compliance and ethical practices in the financial realm.
    Heading 3: Key Topics Covered in CPT Law
    CPT Law covers a spectrum of topics, including contract law, partnership law, the law of torts, and the basics of the Indian Constitution. These areas provide candidates with a comprehensive understanding of legal concepts relevant to the business environment, preparing them for the challenges they may face in their professional journey.
    Heading 4: Examination Structure and Evaluation
    To successfully clear the CPT Law examination, candidates must demonstrate their comprehension of legal principles through a structured examination process. The evaluation includes multiple-choice questions and aims to assess the candidates’ application of legal knowledge in practical scenarios.
    Heading 5: Integration of CPT Law in CA Education
    The inclusion of CPT Law in the CA curriculum underscores the profession’s commitment to producing well-rounded and ethically conscious chartered accountants. The integration of legal education ensures that aspiring CAs are equipped not only with financial expertise but also with a strong ethical foundation.
    Conclusion:
    In conclusion, CPT Law plays a vital role in shaping the knowledge and ethical standards of future chartered accountants. Aspirants should approach the study of CPT Law with diligence, recognizing its importance in their journey towards becoming proficient and responsible professionals in the field of accountancy.

  20. MPO SLOT merupakan agen penyedia games online terbaik di tahun 2023 yang menyediakan banyak jenis permainan online pAenghasil uang, bahkan masih banyak sekali game penghasil uang lainnya

  27. I’m dazzled, I should state. In all respects infrequently do I run over a blog that is both useful and engaging, and let me let you know, you ve hit the nail on the head. Your blog is significant.. 搬運

  29. I am ceaselessly stunned by the measure of data accessible regarding this matter. What you introduced was all around looked into and eloquent so as to get your remain on this crosswise over to every one of your perusers. 搬寫字樓

  30. Just admiring your work and wondering how you managed this blog so well. It’s so remarkable that I can’t afford to not go through this valuable information whenever I surf the internet!  歷史補習

  31. I found your site perfect for me. It comprises of brilliant and valuable posts. I’ve perused huge numbers of them and furthermore got such a great amount from them. As far as I can tell, you do the genuinely amazing.Truly i’m intrigued out of this distribute 搬運

  32. I have added and shared your site to my internet based life records to send individuals back to your webpage since I am certain they will discover it incredibly supportive as well. 搬運

  37. Many homework on the continual hunt along with offstage on the road to winning. Definitely not attached, simple to-fall as a result of wayside; And not investigation, afterward into a path travel toward the black. 歷史補習

  39. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. 歷史補習

  40. Interesting topic for a blog. I have been searching the Internet for fun and came upon your website. Fabulous post. Thanks a ton for sharing your knowledge! It is great to see that some people still put in an effort into managing their websites. I’ll be sure to check back again real soon. bathroom renovation cost melbourne

  41. I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. 補習平台

  42. Thanks for your post. I’ve been thinking about writing a very comparable post over the last couple of weeks. I’ll probably keep it short and sweet and link to this instead if thats cool. Thanks. 歷史補習

  43. Y2K Fonts: Reviving the Digital Groove! 🎶 Y2K Fonts had a certain groove that’s hard to replicate. I’d love to hear your thoughts on how these fonts contribute to the overall vibe of a design. Any tips on using Y2K fonts to infuse projects with a touch of digital nostalgia?

  47. Im no expert, but I believe you just made an excellent point. You certainly fully understand what youre speaking about, and I can truly get behind that. 風水師

  49. Really a great addition. I have read this marvelous post. Thanks for sharing information about it. I really like that. Thanks so lot for your convene. 風水師

Leave a Reply

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