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

 

165,187 thoughts on “Railway Industry in France”

  2. Looking to level up your vacation wardrobe? Dive into our pool-side perfect collection of the latest must-have women’s swimwear. From bikini separates that are sure to bikini dubai earn you some serious style points to effortlessly chic swimsuits, we’ve got your swimwear game covered this season. Get ready to turn heads at the beach club party with swimsuits and women’s bikinis in this season’s must-have prints and hues.

  4. Best Christian Apparel Lebanon offers a head choice of dress and frill custom-made to the insightful Christian buyer in Lebanon. With an emphasis on quality craftsmanship, immortal plans, and significant informing, our assortment takes special care of people looking to communicate their confidence with style and realness. From present day translations of exemplary images to contemporary plans enlivened by sacred text, our apparel flawlessly mixes style and confidence, permitting clients to say something of faith in each outfit. Whether you’re looking for relaxed wear, sports clothing, or frill, Best Christian Apparel Lebanon gives an organized shopping experience that celebrates and reinforces your profound excursion. Best Christian Apparel Lebanon

  5. Best Christian Apparel Lebanon offers a head choice of dress and frill custom-made to the insightful Christian buyer in Lebanon. With an emphasis on quality craftsmanship, immortal plans, and significant informing, our assortment takes special care of people looking to communicate their confidence with style and realness. From present day translations of exemplary images to contemporary plans enlivened by sacred text, our apparel flawlessly mixes style and confidence, permitting clients to say something of faith in each outfit. Whether you’re looking for relaxed wear, sports clothing, or frill, Best Christian Apparel Lebanon gives an organized shopping experience that celebrates and reinforces your profound excursion. Best Christian Apparel Lebanon

  8. Magicwin is the biggest online gaming platform in India. All popular sports with live coverage, the best collection of casino games with user friendly. Do you also want to earn money by playing online games, if yes, then we have brought for you Magicwin, a platform where you can earn lakhs by playing online. Join Magicwin, India’s Trusted Cricket ID provider. Fast Approval. Play Live Casino games, Sports. Login through Magicwin ID and Start Playing. Magicwin creating your ID Now.
    Official website:- https://magicwin.bz/

  10. Back to nature chickpeas coffee is packed with the most advance technology so you can enjoy the best quality drink. CAFFEINE FREE, ALL THE FLAVOR, NO PRESERVATIVES: Back to Nature does not taste like coffee. It has a bold roasted chickpeas flavor.
    Chickpea coffee

  11. High level articles such as this provide insightful perspectives and in-depth analysis on complex topics, offering valuable knowledge to readers seeking comprehensive understanding. High level articles

  12. Bergabunglah dengan OVO88BET, situs slot gacor pilihan untuk menang di slot88. Nikmati permainan slot gacor hari ini dengan keuntungan maksimal! slot88

  13. In the fast-paced and stressful modern life, finding personal pleasure and care is essential. “Sing Dr.,” a leading brand in Hong Kong, specializes in high-quality adult toys and personal care products, making it the ideal choice for those seeking professional options. Whether you are new to adult toys or looking for innovative experiences, Sing Dr. offers expert advice and products to meet your needs.

    Sing Dr. boasts a wide range of adult toys, from elegant items designed to enhance personal fun and intimacy with partners, all guaranteed safe and of the highest quality from top manufacturers. The team is well-trained to provide personalized advice, ensuring you find the perfect product for your desires.

    https://singdr.com

  14. 在2023年成立的川御，由執行董事何啟賢（Dennis）領導，承諾以「商宜的定價提供高品質的產品」為理念，在香港、澳門、國內及海外市場贏得了廣泛的支持和喜愛。川御品牌不僅代表了高品質，還體現了創新的商業轉型能力。例如，在2020年新冠疫情爆發期間，川御團隊迅速成立了acc+口罩品牌，憑借高品質產品迅速在市場上取得成功。

    此外，川御積極應對健康產品的需求，同時教育大眾，推出了包括在內的多種保健產品，並創立了御守系列，這些產品不僅豐富了市場選擇，也得到了消費者的高度評價。川御的生產線嚴格控制產品質量，依靠專業的研究團隊和科研創新，致力於為顧客提供最優質的保健產品，持續實踐其為全球消費者帶來最好祝福的使命。川御不斷在產品開發和服務質量上創新，為客戶提供超越期待的價值。

    https://ty-science.co

  15. https://unionus.com.hk

    【爾聯UNIONUS】集團由旗下持牌的香港會計師事務所（Audit Firm）、律師事務所（Law firm）及資產管理公司（AMC）共同創立。爾聯UNIONUS擁有龐大的專業團隊，經驗豐富，多年來為不少顧客及企業，提供全方位服務，以應對客戶日益提升的需求。服務範疇涵蓋債務重組申請、大額債務解決方案等債務分析服務，致力為你或你的企業減輕債務壓力；公司／私人報稅等會計分析服務，以及審計核數服務，以滿足企業在會計、審計核數、資產管理及法律上的需要。

    憑籍爾聯UNIONUS數位創辦人多年專注於會計業和銀行業持續發展的專業經驗，我們每年成功為數以千位顧客，當中包括不少大型企業，提供各項諮詢和服務。爾聯UNIONUS提供的每一項服務，均由具備執業資格的專員和客戶關係主任獨立處理，務求為顧客提供完善、專業、具備參考價值和人性化（Humannature）的處理方案。

  20. 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. drop cable

  22. This is what piece appears to have a wide selection of targeted customers. Would you market it? It all offers a decent special distort for aspects. Maybe enjoying one bona fide or even higher to supply information on is the most essential subject. pickleball paddle material

  25. Thị trường giải trí trực tuyến tại Việt Nam đang phát triển sôi động với sự hoạt động tích cực và đầu tư từ nhiều nhà cái, lớn nhỏ sv388 SV388

  27. Airsoft Promo is a retail airsoft store that has been selling airsoft equipment under the name Bullseye Action Target in three different locations for three years. .With the confidence of our three years of experience we desired to simulate our retail sector success on the online market.
    https://airsoftpromo.com/

  28. Nhà cái ab77 – Sự lựa chọn hàng đầu của người chơi cược hiện đại. Với phong cách độc đáo, ab77 mang đến một sân chơi hoàn hảo kết hợp giữa trải nghiệm sòng bạc trực tuyến cổ điển và công nghệ hiện đại. Nhà cái này hứa hẹn mang đến những trải nghiệm đặc sắc qua các trò chơi bài cổ điển và loạt sản phẩm iGaming hấp dẫn. ab77

  30. Pretty nice post. I just stumbled upon your blog and wished to say tthat I’ve truly
    enjoyed browsing your blog posts. In any case
    I will be subscfibing to your rrss fewed and I hope you write again soon!

    فيلم

  31. Pretty nice post. I just stumbled upon your blog and wished to say tthat I’ve truly
    enjoyed browsing your blog posts. In any case
    I will be subscfibing to your rrss fewed and I hope you write again soon!

    فيلم

  32. Debet là một nhà cái cá cược trực tuyến được cộng đồng bet thủ đánh giá cao về tính minh bạch và độ uy tín. Được thành lập từ 2015 DEBET

  33. I’m impressed, I have to admit. Actually rarely will i encounter a blog that’s both educative and entertaining, and without a doubt, you may have hit the nail for the head. Your idea is outstanding; the catch is something which too little everyone is speaking intelligently about. We are very happy we stumbled across this within my look for some thing regarding this. https://paklepickleball.com/pages/paddle-buying-guide

  34. Empower your daily work with essential tools, all at your fingertips! 100% FREE and user-friendly. Merge PDFs, split PDFs, compress files, track websites and keywords, domain tools, use online calculators, unit converters, and more—all with just a few clicks! serp keyword checker

  35. 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. Cas 1451-83-8

  42. I think this is an informative post and it is very beneficial and knowledgeable. Therefore, I would like to thank you for the endeavors that you have made in writing this article. All the content is absolutely well-researched. Thanks… https://www.m0ney-ok.com/case/32

  45. Discover a premium online platform offering insightful articles, expert opinions, and engaging multimedia content on trending topics Oke4d

  46. Experience the ultimate vaping journey with Mac Oil Carts, your go-to destination for the finest cannabis oil cartridges. Immerse yourself in a world of unrivaled quality and satisfaction as you explore our extensive selection of delectable flavors and potent strains. Discover a harmony of relaxation and relief with every inhale, as our meticulously crafted carts deliver the perfect balance of indulgence and wellness. Elevate your vaping game to new heights by embracing the elevated experience that Mac Oils Carts offers. Visit our shop now and unlock a realm of elevated sensations and unparalleled enjoyment. mac oils

  47. Explore a top-tier website delivering comprehensive resources, cutting-edge research, and practical guides to empower your personal and professional growth Oke4d

  48. Experience excellence with a leading website providing curated content, actionable advice, and interactive features tailored to your interests Oke4d

Leave a Reply

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