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

 

159,421 thoughts on “Railway Industry in France

  1. Live dealer games have become extremely popular at online casinos in the last few years. From a type of game that most people didn’t know existed, with recent technological developments, live casino games have come to the front of the stage, becoming one of the more exciting areas of any online casino. Learn here how this came about and what you can take from this trend. Tradisi Bet 88

  2. poker dewa

    DewaPoker ialah permainan Judi Online yang terkenal sekarang ini. Permainan Dewa Poker dimainkan dengan memakai mekanisme online

  3. adewapoker

    DewaPoker Adalah Situs Terbesar Game Dewa Poker Online Asli Indonesia Dengan Pelayanan Terbaik Dan Tercepat Dengan System Terbaru, Daftar Poker Dewa Asia

  4. Taksim Escort bayanlara olan ilgi her gecen gun artmaktadir. Burasi hizla evrimleserek, kozmopolit bir yer halini almistir. Bu nufus yogunlugunun da sikismesi gerek elbette. Aradiginiz profili bulmanizi umut ederiz.
    taksim escort

  5. While looking for articles on these topics, I came across this article on the site here. As I read your article, I felt like an expert in this field. I have several articles on these topics posted on my site. Could you please visit my homepage? 메이저놀이터순위

  6. You delivered such an impressive piece to read, giving every subject enlightenment for us to gain information. Thanks for sharing such information with us due to which my several concepts have been cleared. slotxo

  7. Thanks for an interesting blog. What else may I get that sort of info written in such a perfect approach? I have an undertaking that I am just now operating on, and I have been on the lookout for such info. slotxo

  8. I have seen some great stuff here. Worth bookmarking for revisiting. I surprise how much effort you put to create such a great informative website. Your work is truly appreciated around the clock and the globe. slotxo

  9. Nice post. I was checking constantly this blog and I am impressed! Extremely helpful information specially the last part.

  10. The funza lushaka teaching bursary 2022 Online Application is a multi-year programme that promotes coaching in public faculties. Bursaries for 2022 are to be had to permit eligible college students to complete a complete teaching qualification in a place of national precedence. Recipients of the bursary may be required to educate at a public school for the equal number of years that they acquire the bursary. Qualified recipients of the bursary can apply for suitable public college positions with the provincial training department (PED) of their preference. The PED worried will determine whether or not there may be a appropriate submit available. If there isn’t always, the applicant might be offered employment in a PED that does have appropriate vacancies. funza lushaka bursary

  11. Thanks for picking out the time to discuss this, I feel great about it and love studying more on this topic. It is extremely helpful for me. Thanks for such a valuable help again
    my result

  12. I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article… สมัคร 918kiss

  13. This is a good post. This post gives truly quality information. I’m definitely going to look into it. Really very useful tips are provided here. Thank you so much. Keep up the good works. SEO

  14. Pretty good post. I have just stumbled upon your blog and enjoyed reading your blog posts very much. I am looking for new posts to get more precious info. Big thanks for the useful info. engineered stone

  15. dewa poker

    DewaPoker Merupakan Situs Agen Judi Online Indonesia, Dewa Poker Minimal Deposit Rp10.000, Daftar Dewa Poker Sekarang Juga Menangkan Bonus Jackpot Harian.

  16. 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. smithing table

  17. Certs4it is providing Real and updated exam questions and answers with 100% guaranteed success.

  18. Wow! ✅ This could be one particular of the most beneficial blogs we’ve ever arrive across on this subject. It’s really great. I’ve also written some articles on this topic therefore you can visit
    Curso Produccion Musical

  19. امروزه مودم جیبی یا مودم 4G که مودم اسلات سیم کارت نیز نامیده می شود ، بسیار محبوب است. به دنبال پیشرفت های فنی ، آگاهی از محصولات جدیدی که می توانند زندگی ما را بهبود ببخشند ، مهم است. WiFi جیبی یا مودم جیبی یکی از آنهاست. در گذشته ما برای ارسال نامه حامل کبوتر می فرستادیم ، اما امروز ما کف دست خود را داریم و می توانیم از آن برای موارد مختلف استفاده کنیم.
    https://pendarium.ir/%D9%85%D9%88%D8%AF%D9%85-%D8%AC%DB%8C%D8%A8%DB%8C-%D8%A7%DB%8C%D8%B1%D8%A7%D9%86%D8%B3%D9%84-%D9%88-%D9%87%D9%85%D8%B1%D8%A7%D9%87-%D8%A7%D9%88%D9%84-%D9%88%D8%A7%DB%8C-%D9%81%D8%A7%DB%8C-%D8%AC/

  20. I’ve seen articles on these topics a few times, but I think your writing is the cleanest I’ve ever seen. I would like to refer to your article on my blog and write it.
    타이마사지

  21. I think this is an informative post and it is very beneficial and knowledgeable. Therefore, I would like to thank you for the endeavors that you have made in writing this article. All the content is absolutely well-researched. Thanks스포츠토토사이트

  22. What We Do
    Promero is a 20 year MSP and provider of industry-leading cyber security managed threat detection and response solutions. Our clients benefit from an enhanced security posture without the introduction of operational complexity and disruption to their organization.
    Our Mission
    Our mission is to help companies improve there ability to detect advanced threats across the endpoint, network and cloud environments, streamline and collaborate on investigations and automate the right actions to give you the best threat prevention possible.
    Our Solution
    Our solution is more than just a suite of tools, but rather the integrations of a 24×7 security operations center, security experts, technology, process and education.
    managed detection and response

  23. The For Mary website is dedicated to all Apparitions of the Virgin Mary. Marian apparitions, The Life of Jesus, Online Bible, Prayer Intentions, 54 days Rosary Novena to Our Lady of Pompeii, Catholic events. apparitions of our lady

  24. 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. smm panel

  25. Dunia303 – Mengulas erek erek 2d bergambar, 3d, 4d, seribu mimpi yang lengkap untuk mengetahui Nomor / Angka buku mimpi 1000 abjad yang benar & tepat hari ini Buku Mimpi 2D

  26. Through this post, I know that your good knowledge in playing with all the pieces was very helpful. I notify that this is the first place where I find issues I’ve been searching for. You have a clever yet attractive way of writing. the wild unknown tarot deck

  27. It was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing. moneybagg runtz

Leave a Reply

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