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

 

177,544 thoughts on “Railway Industry in France”

  1. Wow, what an insightful blog post! Your analysis really shed light on a complex issue. Thanks for sharing your expertise with us!

  3. I can see that you are an expert at your field! I am launching a website soon, and your information will be very useful for me.. Thanks for all your help and wishing you all the success in your business. 좋은느낌카지노

  4. Your post really resonated with me, and I found myself nodding along as I read through it. I especially appreciated your idea and the way you presented it.
    Thank you for taking the time to create such valuable content. Your blog is always a go-to resource for me, and I look forward to reading more of your work in the future.
    bankrupcy near me

  6. Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. myveggiehacks.com

  9. I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work. immediate proair website

  10. The Quantum Artificial Intelligence Trading Platform represents a major breakthrough for the financial markets and, conversely, provides the ability to do the best and best. Harnessing the power of artificial intelligence and quantum computing, these platforms are changing the way investors analyze markets, create trading strategies and make investment decisions. As quantum computing continues to grow, we can expect quantum AI platforms to play a significant role in the financial industry in the future. quantum-a-i

  17. This website is essentially a stroll through where you may obtain the details you were looking for about this without even knowing who needed to know. You can definitely find it if you take a quick look here.

    Rajkot Escorts

  22. Sulphur, LA’s premier General Contractor in Sulphur LA is your partner in bringing your construction visions to life. With a dedication to excellence and a focus on customer satisfaction, we handle projects of all sizes with professionalism and precision, ensuring the highest quality results that exceed expectations every time.

  23. Hey there! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Superb blog and wonderful design. Machine learning face generation

  26. CurrentPackages has established itself as the premier source in Pakistan and the Gulf countries, offering tailored packages designed to benefit everyone. With a focus on delivering reliable news on the latest package launches in various sectors such as telecommunications and technology, we strive to keep our audience informed and engaged.

  27. Achieve your development goals in Mount Dora FL with our Land Clearing Services in Mount Dora FL, expertly clearing away obstacles to make room for progress. Our efficient and thorough approach ensures your project stays on track and on budget, providing the foundation for your vision to flourish.

  29. I’m not certain the place you are getting your information, however great topic. I must spend a while learning more or working out more. Thank you for magnificent info I was searching for this info for my mission. imaginesphare

  30. I have viewed that smart real estate agents all over the place are getting set to FSBO Marketing. They are noticing that it’s in addition to placing a sign in the front place. It’s really in relation to building associations with these dealers who sooner or later will become consumers. So, once you give your time and effort to helping these traders go it alone — the “Law regarding Reciprocity” kicks in. Thanks for your blog post. imaginesphare

  31. Presenting our delightful baby knotted hats, the ideal mix of style and usefulness for your little one. Created with delicate and delicate textures, these hats give warmth and solace while adding a hint of appeal to any outfit. The exceptional knotted plan guarantees a protected fit that stays set up, keeping your baby cozy and comfortable over the course of the day. Whether you’re shielding your baby’s sensitive head from the components or basically adding a charming assistant to their troupe, our knotted hats are a high priority option to any baby’s closet. Accessible in various varieties and prints, they’re adequately adaptable to supplement any style. Treat your little beloved newborn to the solace and style they merit with our superb assortment of baby knotted hats. baby knotted hats

  33. Taxi service in Paris: Whether you’re catching a flight at Charles de Gaulle Airport or indulging in shopping along the Champs-Élysées, our Paris taxi service is your reliable transportation solution. Enjoy the convenience of door-to-door service with our experienced drivers at your disposal.

  34. 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. convert photo to sketch ai from here

  36. Thanks for sharing this helpful information! I’m excited to check out some of your articles on your future posts.

  38. I have not checked in here for a while since I thought it was getting boring, but the last several posts are really good quality so I guess I will add you back to my everyday bloglist. You deserve it my friend. pic to sketch ai from here

  39. An analysis of casino gaming revenue across the U.S. for 2008. It has been a period of adjustment for casinos, as they cope with declining demand and escalating competition.
    해외스포츠중계

  42. Explore a realm of insightful content on our high-quality blog, where every post is crafted to enlighten and engage readers with thought-provoking perspectives Markastoto

  43. Need a reliable security guard service near you in Sacramento? Dark Watch Security offers highly trained security guards and patrols to deter crime and ensure peace of mind for your property. Get a free quote today for custom Sacramento security solutions! Security patrol sacramento

  44. Dive into a world of knowledge and inspiration on our top-notch blog, delivering well-researched articles and compelling stories that cater to the inquisitive mind Markastoto

  45. Discover the epitome of excellence in blogging with our platform, where expertly curated content meets a seamless blend of entertainment and education Markastoto

  47. login 8pulsa

    Selamat Datang di 88PULSA Situs
    Judi Pulsa Online & Bola
    Terpercaya.
    Terima Semua Jenis Bank &
    Aplikasi Pembayaran Digital (OVO,
    GOPAY, DANA, DLL) TANPA
    POTONGAN 100%.

  48. Supply Chain News Logistics News The Supply Chain Report International Centre for Trade Transparency International Trade News
    For more information: Logistics News

Leave a Reply

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