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

 

176,282 thoughts on “Railway Industry in France”

  2. An attention-grabbing dialogue is worth comment. I think that it’s best to write extra on this subject, it won’t be a taboo subject however usually individuals are not sufficient to speak on such topics. To the next. Cheers 먹튀검증사이트

  4. 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 <a href="https://www.youtube.com/watch?v=NFkm8_7clt4

  9. 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. tracking elderly parents

  12. Thanks for revealing your ideas. Something is that students have a solution between fed student loan and also a private education loan where it truly is easier to choose student loan consolidating debts than over the federal student loan. track elderly parents

  16. 카지노사이트 게임을 즐길 때 사용할 수 있습니다. 많은 온라인 카지노들은 예치금 보너스를 100% 이상으로 제공하여, 플레이어들이 게임을 플레이할 때 더 많은 자금을 활용할 수 있도록 지원합니다.

  17. 일반적으로 웰컴 보너스 프로그램에는 특정 조건이 따르는데, 대부분의 경우 최소한의 예치금을 입금해야 합니다. 또한 이용 기간이나 카지노사이트 베팅 금액에 대한 일정 조건을 충족해야만 보너스 혜택을 받고 인출할 수 있습니다. 이러한 조건은 플레이어가 보너스를 최대한 활용할 수 있도록 돕는 동시에 보너스를 통해 카지노 사이트의 이용을 높일 수 있습니다.

  24. TapStar Pro, a compact NFC-enabled countertop stand, streamlines the Google review process for businesses. Available for a one-time payment, it provides lifetime usage without requiring an app or Wi-Fi. Particularly beneficial for service industries, such as restaurants, it enhances online presence effortlessly by connecting your Google review page to the TapStar Pro stand.

  26. The inclusion of a csc service work charge on credit card statements brings a sense of reassurance to cardholders, knowing that dedicated customer service representatives are readily available to assist with any inquiries or issues they may encounter. This nominal fee ensures access to a range of essential services, including dispute resolution, card replacement, and fraud protection, enhancing the overall value proposition of the credit card.

  28. This is getting a bit more subjective, but I much prefer the Zune Marketplace. The interface is colorful, has more flair, and some cool features like ‘Mixview’ that let you quickly see related albums, songs, or other users related to what you’re listening to. Clicking on one of those will center on that item, and another set of “neighbors” will come into view, allowing you to navigate around exploring by similar artists, songs, or users. Speaking of users, the Zune “Social” is also great fun, letting you find others with shared tastes and becoming friends with them. You then can listen to a playlist created based on an amalgamation of what all your friends are listening to, which is also enjoyable. Those concerned with privacy will be relieved to know you can prevent the public from seeing your personal listening habits if you so choose. 조개파티

  29. Unquestionably believe that which you said. Your favorite justification seemed to be on the web the simplest thing to be aware of. I say to you, I certainly get irked while people consider worries that they just don’t know about. You managed to hit the nail upon the top and defined out the whole thing without having side-effects , people can take a signal. Will likely be back to get more. Thanks bandar togel

  30. https://genericbucket.com/product/nortimer-25mg-tablet-nortriptyline-usa-fast-delivery/
    About Nortimer 25 Tablet 10’s
    Nortimer 25 Tablet 10’s belongs to a group of medicines called ‘tricyclic antidepressants’ primarily used to treat depression. Additionally, it is also used to treat neuropathic pain and bedwetting at night. Depression is a mental illness or disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.
    Nortimer 25 Tablet 10’s contains Nortriptyline that works by affecting certain chemical messengers (serotonin, norepinephrine) in the brain which communicate between brain cells, thereby regulating mood and preventing depression. Besides this, Nortimer 25 Tablet 10’s also the transmission of pain signals, thereby provides relief from neuropathic pain.
    Take Nortimer 25 Tablet 10’s as prescribed by your doctor. You are advised to take Nortimer 25 Tablet 10’s for as long as your doctor has prescribed it for you depending on your medical condition and response to the treatment. In some cases, you may experience certain common side-effects such as increased heart rate, flushing, drowsiness, weight gain, difficulty in urination, orthostatic hypotension (sudden lowering of blood pressure on standing), dryness in the mouth, tingling in the arms or legs, blurred vision (dilated pupils). Most of these side effects do not require medical attention and will resolve gradually over time. However, you are advised to talk to your doctor if you experience these side effects persistently.
    To treat your condition effectually, continue taking Nortimer 25 Tablet 10’s for as long as your doctor has prescribed. Inform your doctor if you have suicidal ideation or behavior symptoms, heart disease, seizure disorders, glaucoma, thyroid problems, kidney and liver problems. Do not take Nortimer 25 Tablet 10’s if you are pregnant or breastfeeding unless prescribed by the doctor. The safety and effectiveness in children less than 18 years of age have not been established, so Nortimer 25 Tablet 10’s should not be given to them. Avoid consuming alcohol along with Nortimer 25 Tablet 10’s as it could lead to increased drowsiness and dizziness. Consult your doctor immediately if you have suicidal thoughts such as killing or harming yourself. Rise slowly from sitting or lying position as Nortimer 25 Tablet 10’s causes orthostatic hypotension (sudden lowering in blood pressure leading to dizziness on standing). Keep your doctor informed about your health condition and medicines to rule out any side effects.
    Uses of Nortimer 25 Tablet 10’s
    Treatment of Depression
    Medicinal Benefits
    Nortimer 25 Tablet 10’s belongs to a group of medicines called tricyclic antidepressants used to prevent depression. It works by affecting certain chemical messengers (serotonin and/or norepinephrine) in the brain which communicate between brain cells, thereby helps in regulating mood and treats depression. Nortimer 25 Tablet 10’s prevents the transmission of pain signals, thereby provides relief from neuropathic pain.
    Directions for Use
    Nortimer 25 Tablet/capsule: Take it with or without food as advised by your doctor and swallow it as a whole with a glass of water. Do not crush, chew or break it.Oral solution: Shake the bottle before use. Check the label for directions and take it as prescribed by your doctor with the help of a measuring cup provided with the pack.
    Storage
    Store in a cool and dry place away from sunlight
    Side Effects of Nortimer 25 Tablet 10’s
    Increased heart rate
    Flushing
    Drowsiness
    Weight gain
    Difficulty in urination
    Constipation
    Orthostatic hypotension (sudden lowering of blood pressure on standing).

  32. Fractional cmo agency provide part-time, high-level marketing expertise, catering to businesses’ needs without the commitment of a full-time CMO. They offer strategic guidance, campaign management, and marketing insights tailored to clients’ budgets and objectives, fostering efficient and effective marketing strategies.

  33. thank, I thoroughly enjoyed scaning your article. I really appreciate your wonderful knowledge and the time you put into educating the rest of us. serasi189.xyz

  35. Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you can do with a few pics to drive the message home a little bit, but other than that, this is excellent blog. A fantastic read. I will definitely be back. 먹튀검증

  38. We absolutely love your blog and find many of your post’s to be what precisely I’m looking for. can you offer guest writers to write content for yourself? I wouldn’t mind producing a post or elaborating on many of the subjects you write regarding here. Again, awesome website! serasi189.sbs

  43. It’s not that I want to replicate your web page, but I really like the style and design. Could you tell me which design are you using? Or was it especially designed? serasi189.icu

  44. Saurabh Chandrakar: Meet the visionary behind Chandrakar Production House, Saurabh Chandrakar. His passion for music and spirituality converges in the enchanting melodies that echo through the corridors of time.

  45. Khám phá top những nhà cái uy tín hàng đầu với https://top1nhacaiuytin.com, đảm bảo mang lại trải nghiệm cá cược an toàn, công bằng và đáng tin cậy nhất. Đăng ký ngay để tham gia vào thế giới cá cược trực tuyến và nhận các ưu đãi hấp dẫn từ các nhà cái hàng đầu

  46. I’m really impressed with your writing skills and also with the layout on your weblog. Is this a paid theme or did you customize it yourself? Either way keep up the nice quality writing, it’s rare to see a nice blog like this one today.. Jiji Ghana

  48. Seek refuge from the mundane and immerse yourself in the excitement of online Hold’em at our welcoming gaming haven! With a diverse range of games, generous bonuses, and round-the-clock action, every visit promises endless entertainment.

    카지노홀덤사이트

  50. Ascend to new heights of poker greatness and conquer the virtual felt at our premier Hold’em destination! With thrilling tournaments, high-stakes action, and generous rewards, the sky’s the limit for your gaming journey.
    Indulge in the ultimate gaming experience and elevate your poker play to new heights at our luxurious Hold’em retreat! With opulent surroundings, exclusive bonuses, and VIP treatment, every visit is a royal affair.


    온라인카지노

Leave a Reply

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