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

 

178,075 thoughts on “Railway Industry in France”

  1. In today’s fast-paced world, the quest for knowledge and personal development is more critical than ever. Enter brainsclub, a community dedicated to fostering intellectual growth, networking, and skill enhancement.

  2. We have a ready treasure that waits for your arrival. This treasure consists of some very beautiful Group cards that are apt for any situation. You just have to explore them once and get all the benefits.

  9. This is a great high resolution screen which you have shared for the users. Making a website is not an easy task but managing a good website is really a hard work. As far as this website is concerned, I am very happy. 電動手推車

  11. KANTOR BOLA adalah Situs Taruhan Bola untuk JUDI BOLA dengan kelengkapan permainan Taruhan Bola Online diantaranya Sbobet, M88, Ubobet, Cmd, Oriental Gaming dan masih banyak lagi Judi Bola Online lainnya. Dapatkan promo bonus deposit harian 25% dan bonus rollingan hingga 1% . Temukan juga kami dilink kantorbola77 , kantorbola88 dan kantorbola99 . rtpkantorbola

  13. That’s the reason center on it’s essential to precise ground moves well before writing. Might be attainable so that you can extra advisable text that way. sport mats

  14. As we conclude this journey through the vibrant tapestry of Savasatan, it becomes evident that this celebration goes beyond mere traditions. Savasatan serves as a bridge connecting generations, cultures, and communities.
    Savasatan

  15. Finding the right community can make all the difference in the vast digital landscape, where connectivity is key. Enter vclub.one, a unique online platform that transcends the conventional social networking experience.
    vclub.one

  16. Good composed article. It will be steady to any individual who uses it, including me. Continue doing what you are doing – can’r hold up to peruse more posts. 裝修工程

  19. That’s the reason center on it’s essential to precise ground moves well before writing. Might be attainable so that you can extra advisable text that way. gigaslot

  20. Very cozy looking rooms. Let me know if your going to Mexico. Oh and btw. you should read our Tipping in Mexico guide if you do. It will save you a lot of awkward moments. 裝修設計

  24. By and by, I have discovered that to remain presumably the most interesting points when it attracts a parallel to. You may discover a few new levels inside L . a . Weight reduction and any one somebody is unfathomably significant. Beginning stage might be genuine liquefying ceaselessly rrn the body. get in shape 手推車仔

  25. tiktok 18 Discover the thrill with TikTok 18+ APK download. Dive into exciting content and entertainment. Install TikTok 18 Plus now for non-stop fun!

  26. I’m constantly searching on the internet for posts that will help me. Too much is clearly to learn about this. I believe you created good quality items in Functions also. Keep working, congrats! 電動手推車

  29. Discover a new realm of success with Rankoholic, a leading Digital Solutions Company specializing in high-quality leads for Real Estate, Interior Design, and Accounting sectors. Our emphasis on cost-effectiveness is complemented by bespoke lead generation strategies crafted for each industry’s distinct needs. Rankoholic ‘s reputation for results and personalized service sets us apart, ensuring maximum return on investment for our clients. Dive into targeted Real Estate leads, personalized Interior Design prospects, and specialized Accounting opportunities – let Rankoholic drive your business growth.

  30. You have done a great job on this article. It’s very readable and highly intelligent. You have even managed to make it understandable and easy to read. You have some real writing talent. Thank you. 電動手唧車

  31. Discover a new realm of success with Rankoholic, a leading Digital Solutions Company specializing in high-quality leads for Real Estate, Interior Design, and Accounting sectors. Our emphasis on cost-effectiveness is complemented by bespoke lead generation strategies crafted for each industry’s distinct needs. Rankoholic ‘s reputation for results and personalized service sets us apart, ensuring maximum return on investment for our clients. Dive into targeted Real Estate leads, personalized Interior Design prospects, and specialized Accounting opportunities – let Rankoholic drive your business growth.
    Visit – https://rankoholic.com/

  33. This is a smart blog. I mean it. You have so much knowledge about this issue, and so much passion. You also know how to make people rally behind it, obviously from the responses. 電動手唧車

  34. In the dynamic landscape of client acquisition, Rankoholic emerges as a trailblazer, providing cutting-edge Digital Solutions for Real Estate, Interior Design, and Accounting industries. Our commitment to affordability is matched by a personalized touch, delivering premium leads customized to the nuances of each sector. Rankoholic ‘s track record of success and tailored strategies guarantees the highest ROI for our clients. Whether you’re in Real Estate, Interior Design, or Accounting, partner with Rankoholic to navigate the complexities of the modern market and achieve unparalleled growth.
    Visit – https://rankoholic.com/

  35. This is only the data I am discovering all over the place. A debt of gratitude is in order for your website, I simply subscribe your online journal. This is a decent blog.. 手推車仔

  37. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. fuji388

  40. Impressive web site, Distinguished feedback that I can tackle. I am moving forward and may apply to my current job as a pet sitter, which is very enjoyable, but I need to additional expand. Regards Joseph Daher Batman

  42. Great job for publishing such a beneficial web site. Your web log isn’t only useful but it is additionally really creative too. There tend to be not many people who can certainly write not so simple posts that artistically. Continue the nice writing 電動手唧車

  44. That’sthe factor marketing that you choose to perfect due diligence in advance of producing. Additionally, it is likely to jot down better ad utilizing this type of. cushions covers

  45. Persons appreciate shopping for amazing, appealing, fascinating and from time to time attractive aromas for them selves and pertaining to others. This can be executed conveniently along with inexpensively in an on-line perfume shop. 私樓裝修

  46. Database assignments can feel like tangled queries, but help is just a click away. Database management assignment help connects you with experts who unravel the complexities, step-by-step. No more drowning in normalization or struggling with joins. Get personalized guidance, from schema design to query optimization. Conquer those deadlines with confidence and understanding. Remember, true learning thrives with a helping hand. So, ditch the frustration and unlock the power of your database knowledge!

  48. Very interesting blog. A lot of blogs I see these days don’t really provide anything that I’m interested in, but I’m most definitely interested in this one. Just thought that I would post and let you know 籠車

Leave a Reply

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