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:
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:
Comfort Class:
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.
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
Price at 2 weeks before departure
Price at 3 weeks before departure
Price at 4 weeks before departure
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:
The non-physical rate fences are age, season ticket, and loyalty
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
When a blind man bears the standard pity those who follow…. Where ignorance is bliss ‘tis folly to be wise…. 電動手唧車
You recognize your tasks stand out of the crowd. There is some thing specific approximately them. It appears to me they all are brilliant.
Website: Indoxxi
Western
Animation
Documentary
I wish more authors of this type of content would take the time you did to research and write so well. I am very impressed with your vision and insight. Blog posts writing
This is a wonderful product, taking into account all the information about it, this type of product that prevents user interest in the site, and you will share more … good luck. 電動手推車
This is very smart, really an intelligent idea. This is my first time in your blog and I really love it. Thanks for this awesome post. 電動手推車
Emery cloth is a unique textile material that has found applications beyond the fashion realm. Known for its abrasive quality, emery cloth is commonly used in industrial settings for sanding and polishing. However, its introduction to the fashion industry has added a new dimension to the concept of unconventional materials in clothing.
Read more about us
Please share more like that. ufaเว็บตรงไม่ผ่านเอเย่นต์
Thank you very much for the sharing! COOL.. ufabet เว็บตรง ไม่มี ขั้นต่ำ
Thanks for the valuable information and insights you have so provided here… ufabet เว็บตรง ไม่มี ขั้นต่ำ
Thanks for always sharing here an informative article. สมัคร หวยดาวโจนส์
naza easy to play, get real money
This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information.. 슬롯 사이트
Very nice design and style and fantastic subject matter, very little else we want : D. Glucoberry
Superbly written article, if only all bloggers offered the same content as you, the internet would be a far better place.. knee support
Great response 슬롯 사이트
Thank you for your very good information and feedback from you. car dealers san jose how to change your iphone name
A formidable share, I just given this onto a colleague who was doing a bit of analysis on this. And he the truth is bought me breakfast because I discovered it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to debate this, I feel strongly about it and love reading more on this topic. If doable, as you turn into expertise, would you thoughts updating your weblog with more details? It’s extremely helpful for me. Massive thumb up for this weblog submit! gutter cleaning grimsby
If doable, as you turn into expertise, would you thoughts updating your weblog with more details? It’s extremely helpful for me. Massive thumb up for this weblog submit! gutter cleaning grimsby
Sangat membantu dalam memecahkan masalah saya Jasa Pest Control
Engaging insight into Revenue Management in Action! Navigating the complexities of strategic pricing and demand optimization is important. Seeking assistance with case studies? Our platform gives expert Case Study Writing Help for comprehensive information.
Thanks, that was a really cool read! knee support
Therefore, I would like to thank you for the efforts you have made in writing this article. 안전한 바카라 사이트
le. 안전한 바카라 사이트
Hello! Thank you very much for the very interesting post and tips, I enjoyed reading this. I learned a lot of interesting and educational things. I will definitely put your advice into practice. I also tried how it works and I liked playing online casino game bonuses https://jennycasino.com/ and slot machines.
Hello, this is a fastidious post. I actually loved reading this.
Agri King Tractor
You can Escort Service in Aerocity a comfortable relationship with our call girls and enjoy their company in various positions. If you wish to take a call girl on a tour, we can arrange that as well, making your trip even more exciting. If you’re seeking an erotic and high-class sexual experience in an open environment, we have a wide range of options available in our Call Girls in Aerocity section. You can find detailed information about each category, and we encourage you to explore our offerings. We are confident that you will find our services exceptional and worth your while. https://www.chandaokelle.com/
Will you mind basically if I quote one or two of your current topics providing that I provide you with credit along with sources back to your websites? My online site is within the exact same area of interest as yours and my viewers will utilise several of the critical information that you present right here. Be sure to let me know if it is okay with you. Take care! alpha tonic reviews
Its an incredible joy perusing your post.Its brimming with data I am searching for and I want to post a remark that “The substance of your post is marvelous” Great work. 籠車
Its an incredible joy perusing your post.Its brimming with data I am searching for and I want to post a remark that “The substance of your post is marvelous” Great . 籠車
Very nice article, I enjoyed reading your post, very nice share, I want to twit this to my followers. Thanks!. wash bins
The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought you have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention. mia malkova bf
This is truly a decent and useful, containing all data furthermore greatly affects the new innovation. A debt of gratitude is in order for sharing it 籠車
Absolutely pent subject matter, appreciate it for selective information . Audio Processing
I love your wp format, where did you get a hold of it? AI Voice Enhancement
I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. Thanks… landscapers orewa
Your blog stands out in a crowded online space. I always look forward to your new posts. 補習社
Thank you so much Love your blog.. wash bins
It turns out that even the hottest port has a few places where you can get off the beaten path. Here are some recommendations that will make you feel like you’re in the know 物理補習班
I definitely enjoying every little bit of it. It is a great website and nice share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work. I really appreciate this wonderful post that you have provided for us. I assure this would be beneficial for most of the people. 物流籠車
PR cikkek megjelentetése a Best Blog
oldalon
I havent any word to appreciate this post…..Really i am impressed from this post….the person who create this post it was a great human..thanks for shared this with us. pemkot bandar lampung
A good blog always comes-up with new and exciting information and while reading I have feel that this blog is really have all those quality that qualify a blog to be a one. 物理補習班
If someone week i really ashen-haired not actually pretty, whether you will lite grope a present, thought to follow us to displays bursting with ends of the earth considerably? Inside the impeccant previous, sea ever have dried-up, my hubby and i only may very well be with all of you connected thousands of samsara. 物理補習班
I definitely enjoying every little bit of it. It is a great website and nice share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work. I really appreciate this wonderful post that you have provided for us. I assure this would be beneficial for most of the people. 物理補習班
Manga Oku
You have a genuine capacity for composing one of a kind substance. I like how you think and the way you speak to your perspectives in this article. I concur with your mindset. Much obliged to you for sharing. 佐敦補習
You completed certain reliable points there. I did a search on the subject and found nearly all persons will agree with your blog. 佐敦補習
I am hoping the same best effort from you in the future as well. In fact your creative writing skills has inspired me. 籠車
Wow, I’m impressed by the comprehensive security guard services offered by Eagles Point Security in San Diego! Their commitment to safety is evident in every aspect of their work. Whether it’s event security, corporate protection, or residential patrols, they have the expertise and professionalism to handle it all. Check out their website for more information: Security Guard Services in San Diego.
Hey there! I’ve been eagerly searching for ways to access Hulu in Australia, and stumbling upon your blog post was a game-changer! Your insights and tips on making it work Down Under are incredibly helpful. I followed your recommended steps, and now I’m enjoying my favorite Hulu shows without any geo-restrictions. Thanks a bunch for sharing this valuable information – you’ve made my streaming experience a whole lot better!