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

 

182,835 thoughts on “Railway Industry in France”

  1. Khas Stores has become my go-to destination for all things fashion and home decor! Their commitment to quality and style sets them apart from the rest.

  2. Welcome to the site of the best place to play online slots. With a wide selection of interesting games and the opportunity to win big prizes, don’t miss the opportunity to join us and experience an exciting and exciting playing experience. Come on, don’t waste your time and immediately register on the Abutogel site to enjoy the excitement of playing online slots. For clearer information, you can visit our website https://integremedia.com/

  3. 전 세계적으로 매우 어려운시기가 될 것이기 때문에 저는이 정보를 절대적으로 좋아합니다. 좋은 일이 확실히오고있다 바카라사이트

  4. Hudsonville Ice Cream at Superior Street Mercantile is a must-try! It’s the perfect treat on a hot summer day.

  5. I’ve been eyeing the Pure Albion T-Shirt Collection for a while now, and I finally placed my order. Can’t wait to receive them and represent my hometown in style!

  6. You actually make it look so easy with your performance but I find this matter to be actually something which I think I would never comprehend. It seems too complicated and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it! 온라인카지노

  7. Woodbridge Brewing Co. is my favorite spot to watch the game with friends. The sportsbar atmosphere is electric, the drinks are flowing, and the food is delicious. It’s the perfect place to cheer on your team!

  8. In many ways, airlines offices serve as windows to the world, offering a glimpse into the vast and interconnected network of destinations that make up the global travel landscape. Behind every reservation made and every flight scheduled lies a story – of adventure, exploration, and human connection. And within the walls of these offices, dedicated teams work tirelessly to turn those stories into reality, ensuring that every journey is safe, smooth, and memorable.

  9. watchani is a fantastic anime streaming that allows users to watch their favorite anime shows on their mobile devices. With a vast collection of anime.

  10. I am happy to find this post Very useful for me, as it contains lot of information. I Always prefer to read The Quality and glad I found this thing in you post. Thanks pikacoustics.com

  13. I love the look of your website. I recently built mine and I was looking for some design ideas and you gave me a few. May I ask you whether you developed the website by youself? pisangbet daftar

  14. MAIN55 telah mendarat sebagai pionir dalam dunia perjudian daring, menghadirkan peluang bagi para penggemar slot online untuk mengarungi lautan taruhan yang tak tertandingi. Dengan koleksi game yang menggiurkan, MAIN55 adalah destinasi terbaik untuk mengejar jackpot dan keseruan.

  15. Disposable vapes
    have revolutionized the vaping industry with their convenience and simplicity. These single-use devices offer hassle-free vaping experiences, eliminating the need for refilling e-liquids or charging batteries. With a wide variety of flavors and nicotine strengths available, disposable vapes appeal to vapers of all preferences. Their compact size and lightweight design make them perfect for on-the-go use, providing a satisfying nicotine hit anytime, anywhere. While some may argue about their environmental impact, disposable vapes continue to be a popular choice among vapers for their ease of use and portability.

  16. downloadchatgpt.me is an advanced AI chatbot engineered by OpenAI. It’s crafted to excel in a myriad of tasks, ranging from resolving your queries to rendering intricate information.

  17. You need to know that slot games are very entertaining games to play, with very big prizes in the form of cash. For further information, you can visit our website MEME4D is a trusted online slot game site and always provides jackpots every day.

  18. You lost me, friend. I mean, I assume I get what youre indicating. I have an understanding of what you are saying, but you just appear to have forgotten that you will find some other people inside the world who view this issue for what it really is and may possibly not agree with you. You may be turning away a decent amount of people who may have been fans of your website. MSN Guest Post

  21. Sweet blog! I found it while surfing around on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thank you Guest Post on MSN.com

  22. vipdorama is the best free for all drama lovers: K-Drama, J-Drama, C-Drama, and many more.
    Answer questions according to your level of knowledge in the Doramas in Spanish quiz.

  23. Finally, I found such an informative article on your website. This was very useful for us to enrich our knowledge and hopefully, you keep it continuing day to day for sharing an informative article. Cause now I think it’s a little bit hard to find like yours. I can’t wait for your next post as soon as possible. Thank you. Mahindra Jeeto Price

  24. 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 升中補習

  25. 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. 升中補習

  26. The way you delve into the lives of these icons on Celebrity Biography is truly captivating. Each post is like a journey through time, offering glimpses into the highs and lows of these larger-than-life figures. Keep up the amazing work! Can’t wait to read more and discover new stories about the stars who shape our culture.

  27. I’ve always believed that manga holds a special kind of wisdom, and your blog truly brings that to life. Exploring the depth and meaning behind manga quotes is like embarking on a journey through the hearts and minds of characters, uncovering truths that resonate with our own experiences. Your analysis adds another layer of understanding to these already powerful words, making them even more impactful. Thank you for shedding light on the beauty and wisdom found within the pages of manga. Can’t wait to see what insights you uncover next!

  28. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. slot bet 100

  30. Its my great pleasure to visit your blog and to enjoy your great posts here. I like it a lot. I can feel that you paid much attention for those articles, as all of them make sense and are very useful.  呈分試補習

  32. Great post! I just came across your blog and was impressed by your interesting content. I look forward to reading more and learning from your future posts. Thanks for sharing valuable information. If you’re into games with real money involvement, I suggest trying out this one.https://phgamingauthority.com/primebet/

  33. Great post! I just came across your blog and was impressed by your engaging content. I’m looking forward to delving deeper and learning from your future posts. Thanks for sharing such useful information. If you’re into games with real-money involvement, I suggest checking out this one. https://phgamingauthority.com/primebet/

  35. Finally, I found such an informative article on your website. This was very useful for us to enrich our knowledge and hopefully, you keep it continuing day to day for sharing an informative article. Cause now I think it’s a little bit hard to find like yours. I can’t wait for your next post as soon as possible. Thank you. Eicher pro 6055 price

  36. I appreciate the thorough research you put into this article. It’s evident you know your stuff!”

  38. “This post inspired me to take action. I’m going to start implementing these tips right away.”

  40. Playing online lottery at a popular online lottery bookie will give you a greater chance of winning. Because we have also collaborated with the most complete and official online lottery market this year. What is certain is that it has a valid certificate and has hundreds of thousands of loyal members this year. This lottery has the largest, most complete lottery market and in fact all online lottery players know this market. For clearer information, you can visit our website https://angkakeramatabu.com/

  45. The best online lottery agent site has various lottery markets with various themes. And of course the lottery masters who have a leading reputation. Their support not only adds credibility to our predictions but also provides unique views and valuable insights into the world of lottery. 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 https://racikansedap.com/

  46. DANA55 bukan sekadar portal game online biasa. Ini adalah destinasi utama bagi para penggemar taruhan daring yang mencari pengalaman taruhan terbaik dengan pasaran terluas untuk slot online dan sportsbook.

Leave a Reply

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