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

 

178,002 thoughts on “Railway Industry in France”

  1. Hey there! I recently stumbled upon this intriguing article discussing the importance of quality sleep for overall well-being. It got me thinking about how essential it is to address sleep issues. For those struggling with insomnia or sleep disorders, the option to buy Ambien online with overnight delivery seems like a convenient solution. It’s crucial to prioritize our sleep health, and I appreciate the information shared in this post. Sweet dreams to all.

  2. 33WIN cam kết về tính minh bạch trong nạp rút. Website 33win.bingo đem đến một trải nghiệm chất lượng với đa dạng trò chơi giải trí. Nhà cái xanh chín mới nhất. 33WIN là nơi giải trí trực tuyến số 1 tại Việt Nam trong năm 2024. Nhà Cái 33win

  3. J888 trang chủ chính thức và truy cập link J888.live mới nhất. Nhà cái J88 uy tín hàng đầu Châu Á về Cá Cược Thể Thao, Game Bắn Cá, Xổ Số…

  4. It’s really nice and meanful. it’s really cool blog. Linking is very useful thing.you have really helped lots of people who visit blog and provide them usefull information.
    Palworld Breeding

  5. I love how this article delves deep into the nuances of [specific topic]. The insights shared here are truly eye-opening.
    Proteus Professional Cracked Download

  7. I am really enjoying the theme/design of your site. Do you ever run into any internet browser compatibility problems? A number of my blog audience have complained about my blog not working correctly in Explorer but looks great in Chrome. Do you have any ideas to help fix this issue? Sugar Defender

  9. 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. Jamaica Pawn Brokers

  10. It’s unique to see a proficient to that you could get quite a few hope. Across the world in recent times, brimming with absolutely loves appearing many more what you need in this particular factor. The right way fortuitous I’m just of having then learned this type wonderful page simply because this. It happens to be individuals like you that leave an actual discrepancy actively past the plans the companies show. Sugar Defender

  11. Today, plastic takes center stage, its lightweight practicality shaping our modern beverage landscape. But even these humble vessels tell stories. The iconic Coca-Cola contour bottle, instantly recognizable across the globe, is a caregiverconnect

  13. This article was written by a real thinking writer without a doubt. I agree many of the with the solid points made by the writer. I’ll be back day in and day for further new updates. slot gacor

  14. Obviously I like your web site, but you have to take a look at the spelling on quite a few of your posts. Several of them are rife with spelling problems and I find it very bothersome to inform you. Nevertheless I will surely come again again! dépannage informatique en ligne

  15. Interesting post. I Have Been wondering about this issue. so thanks for posting. Pretty cool post.It ‘s really very nice and Useful post.Thanks 甩頭髮

  16. I have been exploring for a little for any high quality articles or blog posts in this kind of area . Exploring in Yahoo I ultimately stumbled upon this web site. Reading this information So i¡¦m glad to show that I have an incredibly good uncanny feeling I came upon exactly what I needed. I such a lot indubitably will make certain to don¡¦t forget this web site and give it a look a relentless basis. dépannage informatique à distance

  18. Excellent post. I was reviewing this blog continuously, and I am impressed! Extremely helpful information especially this page. Thank you and good luck. slot gacor

  19. best binary options brokers VFX Alerts is a platform that offers binary options trading services alongside comprehensive market analysis and signals. As one of the top binary options brokers, VFX Alerts provides traders with a user-friendly interface, diverse trading options, and real-time alerts to help them make informed decisions. With a focus on transparency and reliability, VFX Alerts ensures that traders have access to up-to-date market information and tools to capitalize on trading opportunities.

  21. Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. keluaran hk

  28. 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.  甩頭髮

  31. I know your expertise on this. I must say we should have an online discussion on this. Writing only comments will close the discussion straight away! And will restrict the benefits from this information. 中文補習

  32. Most of the time I don’t make comments on websites, but I’d like to say that this article really forced me to do so. Really nice post! 甩頭髮

  33. Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more. Deneme Bonusu

  34. Enhance the beauty of your eyes and step up your glam game with a simple yet powerful secret weapon: eyelash extensions. Whether you are preparing for a special occasion or just want to feel fabulous every day, these magical little strands are here to transform your look. Lashes Salon Chandigarh

  35. Nice post. I was checking constantly this blog and I am impressed! Extremely helpful information specially the last part I care for such info a lot. I was seeking this particular information for a very long time. Thank you and good luck. 數學補習

  39. I have read a few of the articles on your website now, and I really like your style of blogging. I added it to my favorites blog site list and will be checking back soon. Please check out my site as well and let me know what you think. daftar togel toto online

  40. Fantastic insights on Revenue Management in Action! Your blog provides valuable information and practical tips. Considering your expertise, may I suggest featuring Ryan Gosling Red Jacket? It’s a stylish and iconic piece that could add a touch of flair to your already impressive content. Keep up the great work!

  44. Major You’re offered some type of outstanding website. Once i take care of become employed together with moreover steady a few momemts. once i have a look at you’re offered totally unbelievably smart is very important, once i take care of probably become typically making sure your internet site blesss. boat engine

  49. One thing I enjoy about reading sites like this, is the fact that there aren’t any spelling or even grammatical errors! Causes it to be difficult about the readers sometimes. Excellent job on might also the subject of this site. Many thanks! 더킹플러스 카지노

Leave a Reply

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