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

 

166,504 thoughts on “Railway Industry in France”

  2. Kediri Toto, selain sebagai bentuk hiburan, juga menjadi sarana untuk mendukung kegiatan amal dan pembangunan di Kota Kediri. Meskipun tidak terlepas dari kritik, penting untuk memahami bahwa regulasi dan pengawasan yang baik dapat meminimalkan dampak negatif dan memastikan bahwa manfaatnya dapat dirasakan oleh seluruh masyarakat.

  4. I’m very happy to read this. This is the kind of manual that needs to be given and not the random misinformation that’s at the other blogs. Appreciate your sharing this greatest doc. 私人補習

  6. AiBET168 สล็อตเว็บตรง เบทขั้นต่ำ 1 บาท เว็บตรงลิขสิทธิ์แท้ ทางเข้า คาสิโนออนไลน์ แตกหนัก สมัครสมาชิก aibet168.com สล็อตมือถือ True Wallet Kub ฝาก-ถอน aibet168

  8. Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. moaseo

  9. Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. moaseo https://www.wlrecoveries-ltd.com/

  10. There are a few fascinating time limits in the following paragraphs however I don’t determine if I see all of them center to heart. There is some validity however I will take hold opinion until I explore it further. Good article , thanks so we want extra! Included with FeedBurner as properly 私人補習

  13. So Aspinall had created the social and legal framework to take the next logical step to further his ambitions for upward mobility and in 1962 he opened the Clermont Club in Berkeley Square. It quickly became famous for the Mayfair set that frequented it and for Annabel’s in the basement, the dance and dinner club that became London’s most fashionable and exclusive evening spot. To make the gaming as discreet and exclusive as possible, membership in the gaming rooms was deliberately limited to 600 and included 5 dukes, 5 marquesses and 20 earls.  stake casino

  18. We are a group that love to watch Drama and we want to share what we love with the whole world. We hope that you like our website and enjoy your stay here at MyAsianTv

  22. I like the valuable info in your articles. I’ll bookmark your blog and check again here regularly. I’ll learn plenty of new stuff right here! Best of luck for the next! Regards mushroom chocolate

  24. Natuna4d adalah pilihan yang menarik bagi para penggemar judi online di Indonesia. Dengan berbagai permainan, fitur unggulan, dan komitmen terhadap keamanan pemain, Natuna4d muncul sebagai salah satu platform judi online terkemuka di tanah air. Bagi mereka yang mencari pengalaman judi online yang seru dan terpercaya, Natuna4d layak dipertimbangkan.

  25. I find your blog content very informative. I love how you break down complex topics into easy to understand language. You also have a great layout and design. I’m sure other readers will also appreciate your work. Keep up the good work! slot online

  26. French Bulldog Puppies For Sale! We breed Fluffy French Bulldogs and standard short coats in all colors. We breed for health, temperament and structure. We are a small program that provides the best care to all of our dogs and puppies. We strive to produce the best quality for the best price. We raise our puppies to be ready to transition to their new homes. They will be socialized with other dogs, children, and inside and outside noises such as vacuums, TVs, lawnmowers, and other noises of everyday life. Our puppies come with a one-year genetic health guarantee, 1 month of pet insurance, and other surprises. We also provide stud services

  27. Pavzi.com is a startup by passionate webmasters and bloggers who have a passion for providing engaging content that is accurate, interesting, and worthy to read. pavzi.com We are more like a web community where you can find different information, resources, and topics on day-to-day incidents or news. We provide you with the finest web content on every topic possible with the help of the editorial and content team.

  28. JNANABHUMI AP provides all the latest educational updates and many more. The main concept or our aim behind this website has been the will to provide resources with full information on each topic jnanabhumiap.in which can be accessed through the Internet. To ensure that every reader gets what is important and worthy about the topic they search and link to hear from us.

  29. Board Model Papers 2024 Download with Suggestions for 10th Class Textbooks 2024 Pdf Download and SSLC New Syllabus Sample Question Paper 2024 and different types of model papers boardmodelpaper.com and question papers for following the website and Arts, Science, Commerce Stream Subject Wise Solved Question Bank for Hindi & English Medium Students with Exam Pattern & Blueprint and subject Wise with 11th & 12th Question Bank 2024 for General & Vocational Course Languages & Subjects Important Question for the above link.

  30. This form of message constantly inspiring and that i prefer to read quality content material, so happy to discover accurate area to many here inside the publish, the writing is just first rate, thanks for the publish. Dalmatian

  38. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. Flowforce Max

  39. Facial services encompass a range of skincare treatments designed to promote skin health, rejuvenation, and relaxation. These services are often offered by professional estheticians or skincare specialists in spas, salons, or dermatology clinics.

  49. This is very interesting, bbabanatural You’re a very skilled blogger. I have joined your feed and look forward to seeking more of your excellent post. Also, I have shared your web site in my social networks!

Leave a Reply

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