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

 

196,964 thoughts on “Railway Industry in France”

  1. Nike Outlet stores are strategically located in various regions, making them easily accessible to shoppers. Whether situated in outlet malls, shopping centers, or standalone locations, נייק אאוטלט קטלוג these stores provide a convenient shopping destination for both locals and visitors. The widespread availability of Nike Outlet stores ensures that enthusiasts can indulge in their passion for sportswear without traveling far.

  2. There are some interesting cut-off dates on this article but I don know if I see all of them center to heart. There is some validity however I will take maintain opinion until I look into it further. Good article , thanks and we want extra! Added to FeedBurner as effectively OEM Types Of Steel Suppliers

  3. I am truly grateful to the owner of this website who has shared this wonderful paragraph at here. It was very well authored and easy to understand.reckless driving virginia fine

  5. Hitclub từ lâu đã trở thành địa điểm giải trí mà rất nhiều người chơi lựa chọn. Không phải ngẫu nhiên mà thương hiệu này lại có được sức hút lớn như trên. Ngay sau đây chúng tôi sẽ đi vào tổng hợp các thông tin bổ ích về sân chơi cá cược tuyệt đỉnh này.

  7. Our website specializes in offering a wide range(Over 3k products) of printer supplies office materials etc. We provide toner cartridges, printer inks, replacement toners, and various office supplies to cater to the needs of businesses and individuals alike in Europe especially within Croatia. With a focus on quality products and customer satisfaction, we aim to be a one-stop destination for all office essentials. tinte za printer

  15. Basically to follow up on the up-date of this topic on your web site and wish to let you know simply how much I loved the time you took to generate this valuable post. Within the post, you really spoke of how to actually handle this matter with all ease. It would be my pleasure to collect some more ideas from your web page and come as much as offer other people what I learned from you. Many thanks for your usual terrific effort. OEM 3 Volt Led Resistor Supplier

  16. You really make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I will try to get the hang of it! mpo777 link

  17. I’ve recently started a web site, the information you offer on this site has helped me greatly. Thanks for all of your time & work. mpo777

  19. This blog site is for those who value simplicity and want to live an inspiring life. It warmly welcomes everyone, regardless of religion, gender, or nationality. You’re invited to express yourself freely in this welcome community by leaving comments, expressing your opinions, and embracing your genuine self—it’s your safe haven. or golan blog

  20. code promo 1xbet ci Le code promo 1xBet “VipBonus300” est le meilleur choix pour recevoir un bonus de bienvenue chez 1xBet. En utilisant ce code lors de votre inscription, vous pouvez profiter d’un bonus de 100% sur votre premier dépôt jusqu’à €/$130.

  21. I am very glad to know that your site is upgrading from the with simplest to more faster and synchronized form. I am quite familiar of a lot of sites since I work as a freelance writer and one of the sites that I find evolve is your site respectively. mpo777

  22. With so many books and articles coming up to give gateway to make-money-online field and confusing reader even more on the actual way of earning money, usaupnews

  23. LED corn bulb YouLumi is one of the best LED corn cob bulb manufacturers, that produces a complete range of high-quality commercial LED corn bulb at factory prices.

  26. Spot on with this article, I really think this web site needs much more consideration. I’ll probably be again to read more, thanks for that information. mpo791

  27. What’s Happening i am new to this, I stumbled upon this I’ve found It positively useful and it has helped me out loads. I hope to contribute & help other users like its helped me. Great job. mpo777 login

  33. I simply reckoned it is an outline to share in case other companies was first experiencing difficulty looking for still Now i’m a small amount of doubting generally if i here’s permitted to use artists and additionally explains relating to right. quantum ai

  34. Watch Online digitalapksite on digitalapksite.com, digital apksit For All Artical In HD Quality Colors Tv, Provide On Our website.Indiabulls Enigma Gurgaon is a beautiful Project by Indiabulls who are one of the renowned developers in Gurgaon. It is located in Sector 110, Dwarka Expressway
    digitalapksite

  36. Nice post. I understand some thing tougher on different blogs everyday. It will always be stimulating to see content from other writers and practice something at their store. I’d prefer to use some with the content in my blog regardless of whether you don’t mind. Natually I’ll provide link on your web weblog. Thank you for sharing. dermalfillers2000

  39. אתר הבלוג הזה מיועד למי שמעריך פשטות ורוצה לחיות חיים מעוררי השראה. זה נשים לכולם, ללא קשר לדת, מין או לאום. אתה מוזמן להביע את עצמך בקהילה המבורכת הזו על ידי השארת הערות, הבעת דעותיך ואימוץ העצמי האמיתי שלך, זה החיים שלך. hebrew blog

Leave a Reply

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