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

 

217,781 thoughts on “Railway Industry in France”

  2. Laser Book 247 Bet: Discover the convenience of reading and betting on the go with the Laser Book 247 App. This user-friendly application provides access to a vast library of books and a seamless betting experience, all at your fingertips.

  6. Comfortabl y, the post is really the freshest on this deserving topic. I harmonise with your conclusions and also can thirstily look forward to your next updates. Just saying thanks will not simply just be adequate, for the extraordinary clarity in your writing. I can directly grab your rss feed to stay informed of any updates. Gratifying work and much success in your business dealings! tahitian noni

  9. 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. Diamond Pest Control Ltd

  10. My brother suggested I could possibly like this web site. He was entirely correct. This post genuinely produced my day. You can not envision just how much time I had spent for this information and facts! Thanks! Microsoft Office

  12. The article you have shared here very awesome. I really like and appreciated your work. I read deeply your article, the points you have mentioned in this article are useful 訂造不銹鋼

  13. That is why selling advertising campaigns marketing so that you could invaluable explore previous advertisment. Quite simply to jot down stronger set that fit this description. 訂造不銹鋼

  15. Awesome things you’ve generally imparted to us. Simply continue written work this sort of posts.The time which was squandered in going for educational cost now it can be utilized for studies.Thanks 訂造不銹鋼

  16. 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. 英文補習

  17. Thank you for making the sincere attempt to explain this. I feel very sturdy about this and also find out more. If its OK, as you reach more in depth knowledge, would you mind including more posts similar to this one with more information? It might be extremely helpful and great for me and my colleagues. Educational institutions

  18. The first phase the preparation should, theoretically, be uninfluenced by the intended intensity and duration of the sound which is subsequently produced. In fact, however, so quickly are the three phases accomplished that the pianist rarely has capacity to think, in performance, of each phase separately. 英文補習

  19. I was pleasantly surprised by your website’s valuable information, user-friendly design, and engaging content. Excited to delve deeper and explore more!

  23. Intriguing post. I Have Been pondering about this issue, so much obliged for posting. Really cool post.It “s truly extremely pleasant and Useful post.Thanks 不鏽鋼

  24. There are a few fascinating points at some point in this posting but I don’t know if I see these people center to heart. There may be some validity but Let me take hold opinion until I investigate it further. Good write-up , thanks and we want more! Included in FeedBurner in addition Betriebssysteme

  27. Aw, this became an exceptionally nice post. In thought I have to place in writing like this additionally – spending time and actual effort to make a good article… but exactly what can I say… I procrastinate alot and by no means often go carried out. Microsoft Office

  30. Extraordinary things you’ve generally imparted to us. Simply continue written work this sort of posts.The time which was squandered in going for educational cost now it can be utilized for studies.Thanks 電動手唧車

  31. “Sometimes I feel like if you just watch things, just sit still and let the world exist in front of you – sometimes I swear that just for a second time freezes and the world pauses in its tilt. Just for a second. And if you somehow found a way to live in that second, then you would live forever.” 手推車仔

  33. صدى المستقبل شركة سعودية منذ 2016 م متخصصة في بيع أجهزة الكترونية من الجوالات والتابلت
    والسماعات والشواحن والمنصات وكفرات الحماية والكاميرات بأفضل سعر في السعودية
    https://saada.sa/ar

  34. This article is an appealing wealth of informative data that is interesting and well-written. I commend your hard work on this and thank you for this information. You’ve got what it takes to get attention. 電動手推車

  35. I’d have to examine with you here. Which isn’t something I usually do! I take pleasure in studying a publish that can make individuals think. Additionally, thanks for permitting me to comment! Microsoft Office

  36. I’m impressed, I must say. Actually rarely should i encounter a weblog that’s both educative and entertaining, and let me tell you, you’ve hit the nail within the head. Your thought is outstanding; the thing is something that too little consumers are speaking intelligently about. I’m happy that we came across this during my hunt for some thing in regards to this. Educational institutions

  38. I know your bent on this. I should state we should have an online talk on this. Creating just comments will close the discussion straight away! In addition, will restrict the favorable circumstances from this 手推車仔

  39. 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. Go here

  40. I am glad to locate your recognized method for composing the post. Presently you make it simple for me to comprehend and actualize the idea. Much obliged to you for the post.  電動手推車

  42. I am glad to locate your recognized method for composing the post. Presently you make it simple for me to comprehend and actualize the idea. Much obliged to you for the post.  電動手推車

  44. Hualien B&B Recommendation Hualien City B&B Apple Tree Hualien B&B is newly opened and is a legal Hualien B&B. It is located 300 meters from the front exit of Hualien Railway Station and near Hualien City with convenient transportation. The B&B rooms are comfortable, warm and safe, making it your best choice for accommodation in Hualien! Welcome to Hualien to enjoy slow travel! This B&B accommodation comes with breakfast, free WiFi in every room, free parking, free travel itinerary planning, preferential ticket sales and car rental services. 花蓮民宿

  45. I am incapable of analyzing articles on-line very often, however I`m satisfied I did today. It could be very properly written, and your factors are properly-expressed. I request you warmly, please, don`t ever prevent writing.
    Website: Indoxxi
    Action
    Comedy
    Drama

  47. I’d need to check with you here. Which isn’t some thing It’s my job to do! I like reading an article that will get people to feel. Also, appreciate your permitting me to comment! roket228

  48. 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

Leave a Reply

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