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

 

164,005 thoughts on “Railway Industry in France”

  3. On the request of one client, we are providing Surat Escorts with about 50% off. We offer the cash payment option in order to allay the customer’s concerns about safety.

  4. I would also love to add that when you do not currently have an insurance policy or maybe you do not take part in any group insurance, you might well make use of seeking the aid of a health insurance broker. Self-employed or people who have medical conditions generally seek the help of any health insurance broker. Thanks for your blog post. abonnement iptv

  6. Demolition Services in Tallahassee FL: Our Tallahassee-based demolition services prioritize safety, efficiency, and environmental responsibility. Whether it’s demolishing old buildings, clearing land for redevelopment, or removing hazardous structures, our skilled team ensures meticulous planning and execution. Trust us to handle your demolition needs in Tallahassee with professionalism and care.

  7. Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with extra information? It is extremely helpful for me. Cortexi

  8. Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! Java Burn

  11. This distinction allows the individual to then decide of the accompanying tools that should be chosen for the purpose of enhancing the business experience and also to contribute positively to the ease of running the business entity. 메이저사이트

  12. This distinction allows the individual to then decide of the accompanying tools that should be chosen for the purpose of enhancing the business experience and also to contribute positively to the ease of running the business entity. 메이저사이트

  13. Bail Bond Services in Indianapolis IN: Our Indianapolis-based bail bond services ensure a seamless and efficient process for securing release. With a focus on client needs, we navigate the legal system with expertise and compassion, providing support and guidance every step of the way.

  15. The internet has been considered as one of the best ways to find a reputed and known SEO company. Apart from high quality services, its response towards customers is prompt and satisfactory. Search a company and get associated with it for your SEO services. comment utiliser un code promo 1xbet

  16. I’ve observed that in the world these days, video games are definitely the latest rage with kids of all ages. There are times when it may be extremely hard to drag your kids away from the video games. If you want the best of both worlds, there are lots of educational gaming activities for kids. Great post. comment avoir son propre code promo 1xbet

  25. Educational apps are invaluable tools for modern learners of all ages. With their interactive features and diverse content, these apps make learning accessible anytime, anywhere. educational apps

  33. 솔슬롯 주소

    솔슬롯 카지노 온라인 사이트는 솔카지노에서 슬롯머신 게임을 즐기는 온라인 유저를 위한 슬롯 전용사이트로써 34종의 다양한 슬롯머신 게임을 준비하여 플레이어들의 기대를 충족 시키고 있습니다. 지금 접속하시면 회원가입 쿠폰증정!!

  35. Get to know Street Art. Creative Expressions in Public Spaces, street art which is a form of art that appears in public spaces. This art often contains social, political or cultural messages conveyed through murals, graffiti, stencils and various other techniques, Art Street art is often discussed among the public because of its controversial impression, for further information, visit this website https://kesyah88888.bcz.com/

  36. North Lake Tahoe Boat Rental started with a passion for being on the water, the feeling of relaxation and yearning to share that experience with others. We had come to the realization that there are too many people who visit Tahoe, that do not have the ability to get out on the Lake. We’re here to fix that. We are attempting to include as many people as possible in sharing our passion.

  37. Study the significant practices for Magento 2 extension development and customization for e-commerce online stores with the best tips and custom solutions

  39. Avoid cigarettes and alcoholic drinks. Smoking and consuming alcoholic drinks can have a bad impact on body health. Avoid these two habits to maintain body health. For further information, visit this website https://medium.com/@imunkita

  41. More hotels have worked on their organizations and conveniences by embracing in vogue applied sciences and unnecessary end machines and units for their guests to utilize. A couple of the most remarkable redesigns embrace overhauling cumbersome 4K Live IPTV Televisions to present day plasma, Drove, or LCD screens.

  44. Now many people are looking for entertainment through reading. One of the most popular is adult novels. For literature lovers who are looking for exciting and in-depth stories, reading adult novels can be an exciting and captivating experience. On this site we provide adult stories, don’t miss out, visit the website. https://ceritahot35.wordpress.com/

  45. You reported this wonderfully.. Thanks! This is nicely expressed! !Valuable posts, Thanks a lot. Thanks! Helpful information Thanks a lot.gogoanime

  46. I definitely enjoying every little bit of it. It is a great website and nice share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work. video chat lucky

  47. I visit your blog regularly and recommend it to all of those who wanted to enhance their knowledge with ease. The style of writing is excellent and also the content is top-notch. Thanks for that shrewdness you provide the readers! webcam roulette

  49. That could be at the same time the best send in that in reality preferred examining. It’s actually not every single day that many of us support the chance to figure out the very first thing.
    Lifeguard class

Leave a Reply

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