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

 

165,439 thoughts on “Railway Industry in France”

  1. PG SLOTเว็บตรง แตกหนัก
    PG SLOTเว็บตรง แตกหนัก แตกง่ายเราเป็นอีกหนึ่งสุดยอดช่องทางบริการเกมสล็อตออนไลน์ที่ได้คัดสรรแต่สิ่งดี ๆ มามอบให้กับนักลงทุนอย่างสม่ำเสมอไม่เคยปิดระบบนี้เข้าเล่นได้ตลอดทั้งวัน บริการแบบเต็มที่ผ่านเว็บไซส์ SKYBET66 โดยที่ไม่มีวันหยุด มีเกมครบทุกรูปแบบไม่จำเป็นต้องไปตามหาที่ไหนไกลให้ยุ่งยากอีกต่อไป กับเกมสล็อตโบนัสแตกง่าย มากมาย ขนเกมทำเงินจากค่ายชั้นนำทั่วโลก อาทิ ค่ายเกมใหญ่สล็อต PG PP joker ค่ายเกมสล็อต ที่นิยมกันมากในตอนนี้ ค่ายเกมสล็อต PG ค่ายขวัญใจของใครหลายๆ คน ที่จัดเต็มความสนุก เว็บสล็อตแท้ ฝากถอนระบบออโต้ เพียง 1 บาท เข้ามาพิชิตเงินรางวัลก้อนใหญ่ก้อนโตได้อย่างรวดเร็วรับเงินรางวัลได้เต็มที่ที่สุด สำหรับใครที่กำลังมองหาเว็บพนันออนไลน์ที่สามารถเล่นได้ครบจบในเว็บเดียว เพียงเเอดไลน์ : @support66

  2. A spa offers a sanctuary for rejuvenation and relaxation, a haven where individuals can escape the stresses of daily life and indulge in self-care. From the moment guests step into the tranquil atmosphere, they are enveloped in a world of soothing scents, calming music, and serene surroundings. body to body massage near me The ambiance is carefully curated to promote a sense of calm and well-being, setting the stage for a transformative experience.

  3. Aw, this is an incredibly nice post. In thought I would like to put in place writing like this moreover – spending time and actual effort to create a good article… but exactly what do I say… I procrastinate alot through no indicates seem to get something accomplished. Sugar Defender

  4. Sunwin tự hào là cổng game cá cược uy tín hàng đầu thị trường tại Châu Á. Chúng tôi luôn được người dùng đánh giá cao bởi chất lượng dịch vụ cùng sự “hào phóng” trong chính sách ưu đãi, khuyến mãi. https://sunwinvui.com

  5. In the serene enclave of the Forgiven Blade Coaching dojo, a sanctuary for those seeking mastery in the art of forgiveness and self-discovery, Sensei Kaito guided his students with a wisdom honed through years of introspection and personal growth.

  7. Nhận ngay lì xì tết 2024 tại New88 bằng cách bạn đăng nhập vào New88 khuyến mãi sẽ tự động cộng vào tài khoản của bạn.

  10. konohatoto78 login
    adalah tempat terbaik untuk pecinta judi online. Dengan status resmi dan terpercaya, pelayanan terbaik 24 jam nonstop, pilihan pembayaran lengkap, dan beragamnya pilihan permainan, kami berkomitmen untuk memberikan pengalaman berjudi yang tak terlupakan kepada Anda. Jangan ragu untuk bergabung dengan kami dan mulai petualangan judi Anda hari ini!

  11. konohatoto78 login
    ?
    Salah satu hal terbaik tentang Konohatoto78 adalah beragamnya permainan yang kami tawarkan. Apa pun preferensi Anda, kami punya sesuatu yang akan Anda nikmati. Inilah beberapa pilihan permainan yang kami sediakan:

  13. Hiya! awesome blog! I happen to be a daily visitor to your site (somewhat more like addict ) of this website. Just wanted to say I appreciate your blogs and am looking forward for more to come! Büyükçekmece Escort

  14. Sara777 Com is the most trusted online Matka play app to play Matka games and win jackpots in Satta industry. Sara 777 is the most trusted and reputable gaming platform where gamers can play their favorite games without fear or worry. Sara777 is his brand founded in 2001
    sattamatka

  17. Wow, What an Outstanding submit. I observed this an excessive amount of informatics. It is what I become looking for for. I would really like to advocate you that please maintain sharing such sort of data.If possible, Thanks.

  19. 긍정적 인 사이트,이 게시물에 대한 정보를 어디서 얻었습니까? 나는 그것을 발견하게되어 기쁘다. 당신이 어떤 추가 포스트를 포함하는지 곧 확인하기 위해 곧 다시 확인할 것이다. 카지노 커뮤니티

  22. I've always been passionate about cooking, and cheat slot collection of recipes has become my go-to source for meal inspiration. Their diverse range of dishes and easy-to-follow instructions make cooking fun and delicious.

  32. As a nature enthusiast, I've discovered breathtaking hiking trails and scenic landscapes through oyo89 outdoor adventure guides. Their detailed maps and trail descriptions have helped me plan epic outdoor adventures that I'll never forget.

  33. As a nature enthusiast, I've discovered breathtaking hiking trails and scenic landscapes through oyo89 outdoor adventure guides. Their detailed maps and trail descriptions have helped me plan epic outdoor adventures that I'll never forget.

  34. I just came up to your blog and found it very insightful.I really like to compare the commercial market on behalf commercial vehicle performace accordingly there pricing.You can also check below link.
    Tata commercial vehicle

  36. I am very enjoyed for this blog. Its an informative topic. It help me very much to solve some problems. Its opportunity are so fantastic and working style so speedy. slot gacor

  38. Wow, cool post. I’d like to write like this too – taking time and real hard work to make a great article… but I put things off too much and never seem to get started. Thanks though. dowload nekopoi

  42. I am really glad I’ve found this information. Nowadays bloggers publish only about gossips and web and this is really frustrating. A good blog with exciting content, this is what I need. Thank you for keeping this web-site, I’ll be visiting it. Do you do newsletters? Can’t find it. url

  43. i’ve read some of the articles for your internet site now, and i honestly like your fashion of running a blog. I brought it to my favorites blog website list and could be checking returned quickly. Please check out my web site as nicely and let me know what you think. https://milucha.org/

  45. Bull India presents the robust JCB machine, engineered for excellence in construction. Unleash power, efficiency, and reliability on your worksite with our cutting-edge equipment. Explore innovation in every dig, lift, and move. Elevate your construction game with Bull India's jcb machine today!

  48. You have made some decent points there. I looked on the internet for more information about the issue and found most people will go along with your views on this web site read the article

Leave a Reply

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