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

 

165,955 thoughts on “Railway Industry in France”

  7. We Provide Best Architect Service in Durban. Our architect service gives you the best satisfaction whom you want. We have lists of experienced architects in Durban.Architects Durban

  10. Need an electrician? Our Electricians offer a reliable, personal and professional electrical service which also includes emergency electrical services in Cape Town, Durban, Johannesburg and Pretoria.Contact us if your looking for a top electrician at competitive prices.

    Electrician Cape Town

  18. http://www.easternhillschildcare.com/

    Daycare, Childcare, Preschool, Kindergarten, Infant Care
    Since 1970 our Ohio Department of Education State Chartered School has cared for and educated thousands of children from the Greater Cincinnati & Northern Kentucky areas. From 6:00am to 6:45pm, children ages 6 weeks through school-age attend our year-round Child Development Programs in our 10,500 sq. foot facility located on 2 1/2 acres of age-appropriate, developmentally designed play and environmental learning centers.

  19. بزرگترین مرکز فروش ردیاب، جی پی اس و ردیاب خودرو در ایران

    مشاوره خرید ردیاب ماشین، ردیاب شخصی، انواع ردیاب آهن ربایی و جی پی اس شخصی (ردیاب شخصی) و ردیاب شارژی
    جی پی اس خودرو با بیش از 10 سال تجربه و تکیه بر فناوریهای روز دنیا درسه حوزه‌ی فروش و خدمات انواع جی پی اس ماشین و جی پی اس آهنربایی و شخصی در ارائه خدمات به عموم مشتریان فعال بوده است.

    https://gpskhodro.com/

  21. Home renovations Johannesburg can switch up the plan, feel, and by and give your living a touch of refreshment and modern beauty.

  23. https://www.3ecpa.com.hk
    open company in hk
    forming a company in hong kong
    setting up a company
    hong kong company setup services
    set up hong kong limited company
    As a Hong Kong Company Formation Service Provider, 3E

    Accounting Limited assist clients a one-stop solutions for

    your business.

  27. Lauris Online is a powerful behavioral health EHR software system that is user friendly, secure, custom and affordable. Focused on clinical outcomes and value based care, Lauris Online has been serving clients throughout Virginia, Florida, Louisiana, North Carolina, Maine, Maryland, Pennsylvania, Ohio, New Hampshire and Texas since 2008.Terpercaya.VIP

  32. Hospital and Medical Cleaning is a major critical when it comes to hygiene and patient safety. Ensuring medical areas within hospitals, and clinics are disinfected and cleaned to the best possible standard is essential for cleaning department. At Well Being Medical Supplies we provide a range of equipment for cleaning both large and small areas, from a variety of the leading manufacturers of cleaning products in the UK.
    Medical Supply Birmingham

  33. Video games have an appeal that crosses many demographic boundaries, such as age, gender, ethnicity, or educational attainment. They can be used to help set goals and rehearse working towards them, provide feedback, reinforcement, self-esteem, and maintain a record of behavioural change.Gaming

  36. http://www.acesoft.ca

    Mobile Application development,
    SEO London Ontario,
    Android Application Development London Ontario
    iOS Application development London Ontario.
    Software development London Ontario
    Highly experienced mobile app development (Android, iOS) company trusted by prestigious organizations. Other services includes SEO, branding, Web application Development, SharePoint and Software consulting.

  40. https://babiesmommies.com/

    parenting, baby care, baby products, pregnancy,

    birth, fertility, childhood development
    babiesmommies.com is a collaborative parenting community

    where you can share information and opinions, write

    product reviews or ask questions on conception, pregnancy,

    babycare, birth, childhood development, fertility and so

    much more. Come & join us now!

  41. https://babiesmommies.com/
    babiesmommies.com is a collaborative parenting community

    where you can share information and opinions, write

    product reviews or ask questions on conception, pregnancy,

    babycare, birth, childhood development, fertility and so

    much more. Come & join us now!

  42. https://photographytoursinindia.com/

    photography tours in India
    pushkar camel fair photography tour
    wildlife photography tour
    golden triangle tour
    tajmahal photography tour
    Photography tours in India is a photography company,

    especialized in organising photography tours and workshop

    in India and other Asian countries.

  43. Canelo Alvarez, boxing’s unified middleweight champion, is set to make his 2019 debut against Daniel Jacobs on Saturday in the T-Mobile Arena in Las Vegas. The first part of the series is already out. It is Episode 1 Roots, and it dives straight in to the backstory for each fighter in their own words. You hear Canelo speak about his youth in a difficult environment in Mexico, and how he sought safety and a way out in a local boxing gym. It is especially gripping to hear https://canelovsjacobsfights.com/ speak about his cancer diagnosis, which almost took his career and ability to live a normal life. You’ll also get to see the private jets, promotional studio time, and press conferences that are a part of promoting a fight that has the attention of the world. It isn’t clear how many more episodes are coming, or if they will all be posted to YouTube, but you will definitely get every episode if you have DAZN.

  44. Mario Lopez and Sheryl Underwood have been named hosts for the 46th annual Daytime Emmy Awards on May 5 at the Pasadena Civic Auditorium. Organizer the National Academy of Television Arts & Sciences unveiled the news today when it also revealed that David Osmond will host the Daytime Emmy Creative Arts ceremony May 3. “I am thrilled to have one of the most entertaining combinations in daytime television hosting our grand gala at the Pasadena Civic Auditorium,” said David Michaels, SVP Daytime at NATAS. “With their combined wit and charm, plus America’s favorite arbiter, Judge Judy, receiving this year’s lifetime achievement award as well as the best of daytime nominated in all genres and a stellar list of presenters yet to be announced, it promises to be a memorable night for the daytime community.”https://emmyawardsdaytime.com/ cover a wide variety of programming including soap operas, talk shows, game shows, children’s shows, animation and more. In recent years the awards have also expanded into the online streaming realm, just like their primetime counterparts, so digital drama series and programs from Netflix and Amazon are also represented.

  45. Mario Lopez and Sheryl Underwood have been named hosts for the 46th annual Daytime Emmy Awards on May 5 at the Pasadena Civic Auditorium. Organizer the National Academy of Television Arts & Sciences unveiled the news today when it also revealed that David Osmond will host the Daytime Emmy Creative Arts ceremony May 3. “I am thrilled to have one of the most entertaining combinations in daytime television hosting our grand gala at the Pasadena Civic Auditorium,” said David Michaels, SVP Daytime at NATAS. “With their combined wit and charm, plus America’s favorite arbiter, Judge Judy, receiving this year’s lifetime achievement award as well as the best of daytime nominated in all genres and a stellar list of presenters yet to be announced, it promises to be a memorable night for the daytime community.”https://emmyawardsdaytime.com/ cover a wide variety of programming including soap operas, talk shows, game shows, children’s shows, animation and more. In recent years the awards have also expanded into the online streaming realm, just like their primetime counterparts, so digital drama series and programs from Netflix and Amazon are also represented.

  47. انجام پایان نامه , مشاوره و آموزش پایان نامه ارشد و دکتری در نیک مشاور

    انجام پایان نامه در موسسه نیک مشاور
    ارائه با کیفیت ترین خدمات مشاوره و آموزش انجام پایان نامه

    موسسه نیک مشاور طی سالها تلاش توانسته مجموعه ای از مجرب ترین فارغ التحصیلان رشته های مختلف که از دانشگاه های معتبر داخلی و خارجی مدرک تحصیلی خود را اخذ کرده اند رو دور هم گرد آورد و به جرات می توان گفت یکی از کاملترین کادرهای آموزش و پژوهشی در بین تمامی موسسات مشاوره و آموزش انجام پایان نامه و مقاله در اختیار موسسه نیک مشاور می باشد. موسسه نیک مشاور توانسته با رضایت بیش از ۹۵ درصد مشتریان خود مهر تایید را از مشتریان گرفته و یکی از مطمئن ترین موسسات مشاوره و آموزش انجام پروپوزال و پایان نامه لقب بگیرد که این بزرگترین افتخار ما می باشد که به آن می بالیم.

    https://nikmoshaver.com/

  49. Awesome post . Norton Antivirus is very useful for device .it helps to keep you device safe and secure from virus. If any problem call norton com/setup for get solution of any problem.

Leave a Reply

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