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

 

208,020 thoughts on “Railway Industry in France”

  3. The WL WN527A2 AC1200 router setup involves connecting the router to a power source and modem, accessing the web interface via a browser, and following the on-screen instructions to configure network settings.

    WL WN527A2 AC1200 Router Setup

  7. I and also my pals appeared to be checking out the excellent solutions located on your web page while immediately got a horrible suspicion I had not expressed respect to you for those techniques. My guys ended up for that reason stimulated to see them and have in effect certainly been taking advantage of them. Thanks for genuinely considerably kind and also for getting such extraordinary information millions of individuals are really wanting to be informed on. My sincere apologies for not saying thanks to you earlier. belanja33.net

  9. You really should take part in a contest for starters of the finest blogs over the internet. I am going to recommend this page!
    EVO158

  10. I see your point, and I totally appreciate your article. For what its worth I will tell all my friends about it, quite resourceful. Later
    EVO158

  11. 안녕하세요 좋은 정보를 공유하고 싶습니다. 좋은 정보를 얻으십시오. 좋은 정보를 얻을 것입니다. 코로나 때문에 모두 힘들 겠지만 최선을 다해주세요. 코로나가 곧 사라지 길 바랍니다. 누구나 힘들 겠지만 더 견디고 좋은 결과를 얻을 수 있기를 바랍니다. 감사합니다 먹튀검증

  12. Get unlimited female escorts for fun and entertainment. Amritsar escorts service +919990174838 has a variety of female escorts for erotic or sexual service. If you want to make a female partner then visit our website.
    https://www.amritsarescort.co.in

  16. partnering with Local Marketing Geek offers businesses a strategic advantage in navigating the complexities of the local market landscape. Their expertise enables businesses to cut through the clutter, stand out amidst competition, and establish a strong foothold within their community.

  17. Camel International Trading Limited is a well-established trading company known for its expertise in sourcing and exporting a diverse range of products. Specializing in electronics, household goods, and textiles, they are dedicated to delivering high-quality products to their global clientele.

  20. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. situs judi bola online asia

  23. demonstrates how hard he works to impart his best informationThis essay demonstrates your authenticity as a writer and your understanding of this subject. You are
    really appreciated.
    Hellstar

  24. You there, this is really good post here. Thanks for taking the time to post such valuable information. Quality content is what always gets the visitors coming. Asian massage

  25. Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can’t help but wonder, what about the other side? !!!!!!Thanks Asian massage

  26. Extremely fascinating online journal. Alot of online journals I see nowadays don’t generally give anything that I’m keen on, however I’m most definately intrigued by this one. Recently felt that I would post and let you know. ethical principles in nursing

  27. This is very educational content and written well for a change. It’s nice to see that some people still understand how to write a quality post.Thanks for share.
    watch here

  29. Wow, I’m truly impressed by Nex Global Enterprises! Their commitment to providing a wide array of general and industrial hardware and accessories at competitive prices is unmatched Hardware Supplies Singapore. It’s fantastic to see a company prioritize diversity and affordability while maintaining top-notch quality. As a market leader, Nex Global Enterprises sets the bar high for others in the industry. Kudos to their team for their dedication and excellent service!

  33. A hot tub, also known as a spa or Jacuzzi, is a large tub or small pool filled with heated water and used for relaxation, Hot Tub hydrotherapy, and socializing. Hot tubs are typically made of materials like acrylic, fiberglass, or wood and come in various shapes and sizes to accommodate different numbers of people.

  35. A wide variety of facilities has been provided by Gaur Wave City Ghaziabad is according to the needs of their residents who are looking for luxurious amenities for them. Where many continue having fun with friends and family within their households on holidays, Gaur Wave City apartment’s clubhouse which was designed perfectly will serve as an ideal spot for relaxation in friendship circles.

    https://gaur-wave-city.com/

  37. It turns out that even the hottest port has a few places where you can get off the beaten path. Here are some recommendations that will make you feel like you’re in the know completo slim fit uomo

  39. Thank you for your site post. Velupe and I happen to be saving for just a new book on this subject and your article has made us all to save money. Your opinions really responded all our issues. In fact, above what we had thought of ahead of the time we came across your great blog. I no longer nurture doubts including a troubled mind because you totally attended to each of our needs here. Thanks buy trustpilot reviews

  40. Thank you for your site post. Velupe and I happen to be saving for just a new book on this subject and your article has made us all to save money. Your opinions really responded all our issues. In fact, above what we had thought of ahead of the time we came across your great blog. I no longer nurture doubts including a troubled mind because you totally attended to each of our needs here. Thanks buy trustpilot reviews

  41. In Dubai’s dynamic railway industry, animation studios in dubai are indispensable for crafting high-fidelity renders. Leveraging state-of-the-art software and expertise, these studios meticulously design 3D models of trains, tracks, and stations. These renders aid in planning, design visualization, and marketing efforts, driving innovation and efficiency within the sector.

  42. Effectively composed data. It will be useful to anyone who uses it, including me. Keep doing awesome. Without a doubt I will look at additional posts. This site appears to get a lot of guests. RWS PERCUSSION CAPS

  44. Excellent .. Amazing .. I’ll bookmark your blog and take the feeds also…I’m happy to find so many useful info here in the post, we need work out more techniques in this regard, thanks for sharing.  reggiseni in silicone

  48. 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. ae888.top

Leave a Reply

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