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

 

177,885 thoughts on “Railway Industry in France”

  1. Selain dengan teman kantor, Outbound Jogjajuga bisa dilakukan bersama keluarga pada akhir pekan atau hari libur. Kegiatan ini banyak ditunggu oleh karyawan khususnya yang akrab dengan target pada pekerjaannya.

  3. Dengan menyempatkan Outbound Jogja Terpercaya bersama teman-teman kantor, akan menciptakan suasana yang menyenangkan dan menjalin keakraban dengan rekan kerja. Selain dengan teman kantor, outbound juga bisa dilakukan bersama keluarga pada akhir pekan atau hari libur.

  4. Kegiatan outbound selain untuk melepaskan penat, juga untuk membentuk mental yang lebih baik. Fasilitas yang tersedia di sini dapat memenuhi kebutuhan dan keinginan pengunjung. Paket Wisata Jogja Termurah juga cocok dikunjungi oleh keluarga yang memiliki anak kecil. Karena arenanya yang luas maka dapat digunakan untuk anak-anak.

  7. 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. mahjong

  11. Embark on a journey through diverse agro-solutions with Agro Company Co Ltd, featured on Exporthub.com. As specialists in the agro-industry, our profile unveils a broad spectrum of agricultural offerings tailored to meet the global market’s demands.

  12. Experience the power of revenue management in action. Optimize pricing, maximize profits, and enhance customer satisfaction with strategic strategies tailored to your business. From dynamic pricing to demand forecasting, unlock the potential of your revenue streams and drive success like never before contract dispute settlement agreement

  17. Also a thing to mention is that an online business administration program is designed for college students to be able to well proceed to bachelor degree education. The Ninety credit college degree meets the lower bachelor education requirements when you earn your own associate of arts in BA online, you’ll have access to up to date technologies with this field. Some reasons why students have to get their associate degree in business is because they may be interested in this area and want to find the general education and learning necessary just before jumping into a bachelor college diploma program. Thanks for the tips you provide inside your blog. Sugar Defender

  18. Nhà cái 123btự hào là nhà cái uy tín hàng đầu thị trường cá cược trực tuyến Việt Nam, 123B cung cấp các thể loại cá cược như xổ số, lô đề, thể thao, …

  22. Frugal living embodies a conscious and disciplined approach to managing one’s finances, emphasizing resourcefulness and value-driven choices. Those who embrace a frugal lifestyle make deliberate efforts to prioritize needs over wants, meticulously budgeting and avoiding unnecessary expenses. By seeking cost-effective alternatives, adopting sustainable practices, and minimizing unnecessary consumption, individuals practicing frugal living aim to achieve financial independence and cultivate a more intentional and fulfilling existence. This lifestyle encourages a mindful reassessment of priorities, fostering a sense of contentment and long-term financial security through prudent decision-making and a focus on essentials.

  24. Wow! This mind-blowing post has elevated my knowledge to new heights. It’s a true gem among the vast sea of information on the internet. Kudos to the author for producing such exceptional content!

    For More – Prestige Forest Hills Mumbai

  31. Cause that’s required valuable affiliate business rules to get you started on participating in circumstances appropriate for your incredible web-based business concern. Inernet marketing CBD Care Gummies

  33. At the forefront of the magical arsenal is the mastery of keyboard shortcuts. These quick incantations, ranging from the ubiquitous Ctrl+C and Ctrl+V to the lesser-known Alt+Tab and Windows+D,https://toptechytips.com/ can transform the mundane task of navigating through applications into a seamless dance of keystrokes. By embracing these shortcuts, Tech Wizards effortlessly traverse the digital landscape, eliminating the need for laborious mouse clicks and reducing the time it takes to conjure desired results.

  35. Your blog provided us with valuable information to work with. Each & every tips of your post are awesome. Thanks a lot for sharing. Keep blogging.. bedding

  37. The arcane art of multitasking is a divisive topic in the Tech Wizards’ guild, with some advocating for its strategic implementation while others caution against its potential pitfalls. Those in favor https://toptechytips.com/ emphasize the importance of context-switching spells, allowing them to seamlessly transition between tasks without losing momentum.

  42. I have been searching to find a comfort or effective procedure to complete this process and I think this is the most suitable way to do it effectively.
    diablo k2

  43. Regular visits listed here are the easiest method to appreciate your energy, which is why why I am going to the website everyday, searching for new, interesting info. Many, thank you! spl-token

  44. 7Search PPC has revolutionized pharmacy advertising, making it more engaging, impressive, and affordable for businesses of all sizes. Advertisers can now set goals for their campaigns and launch them in a variety of innovative ad formats, including banner ads, text ads, native ads, popunder ads, social bar ads, and video ads. This allows them to achieve better results.

  45. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. shibatoto

  46. Araba Oyunu Bedava En Güzel Araba Oyunları Sitesi. ArabaOyunu.Org Yarışma, Park Etme, Html5, Mobil ve Daha Binlerce 3D Simülasyon Oyunları Oyna

    araba oyunu

  47. Hello! I’ve been reading your web site for a while now and finally got the courage to go ahead and give you a shout out from Kingwood Texas! Just wanted to say keep up the good work! GlucoSlim

  48. I’ve read some good stuff here. Definitely worth bookmarking for revisiting. I surprise how much effort you put to create such a great informative website. simpkb login

  50. It’s easy to get the biggest Maxwin jackpot today and it’s easy to win playing online slots if you trust playing with official online slot games. Don’t want to miss this good opportunity because not all Gacor slot game sites are able to provide guarantees at this time. I really like it, and I look forward to hearing from you next. Thank you for the information about today’s most popular news this year. For more detailed information, please visit our website for further information Rumputbatu

Leave a Reply

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