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

 

176,683 thoughts on “Railway Industry in France”

  2. Success Net Worth has been my go-to resource for motivation and inspiration on my journey towards achieving my goals. The valuable insights and strategies shared on Success Net Worth have truly transformed the way I approach success. Thank you for providing such an invaluable platform for personal growth and development!

  3. Experience the best of entertainment with Streamhinge. Our site is dedicated to offering the latest news and coverage from the entertainment world, as well as innovative hacks for accessing geo-restricted content, making us your go-to source for all things entertainment.

  4. Immerse yourself in the entertainment universe with Streamnerdy. Our platform delivers comprehensive news and information about the entertainment world, along with strategies for accessing geo-blocked content, making your entertainment experience boundless.

  7. Elevate your career with our free professional resume templates. Discover over 100 resume templates word document that cater to various industries and experience levels. Craft compelling resumes that stand out in the job market, showcase your skills, and accelerate your job search. Download your ideal resume templates and begin creating a powerful resume that gets noticed by employers.professional resume templates free download

  8. This is somewhat of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding knowledge so I wanted to get guidance from someone with experience. Any help would be greatly appreciated! Slot Gacor

  10. Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include. harta8899

  14. Your writing is always thought-provoking. You challenge my assumptions. And if you’re looking for any kind of Shades In Saudi Arabia then, Car Parking Shades In Saudi Arabia is a great option. Their shades and tents are made from sustainable materials and are sure to make a positive impact on the planet.

  15. I know which Sage will not be upsetting demise with the appearance, and thus concerns about his or her country’s will fall. tab66

  16. Here many Escort service in Karol Bagh Independent call girls and ladies, publish their profiles. Our call girls in Karol Bagh are well-known for real sexual fun in Karol Bagh. We are not allowing any prostitute to work here without checking the details, Firstly all ads check by our team then we publish them here. So don’t hesitate to book Low rate call girls in Karol Bagh.An ordinary girl cannot travel such distances. However, when you hire an Karol Bagh call girl from our Call Girls in Karol Bagh service agency, you undoubtedly experience the sexual moments that satisfy your sensual desires. Our burning Karol Bagh Escorts will assist you when you want gang-bang sex in your vacations. Call – 9899988101. https://www.chandaokelle.com/call-girls-in-karol-bagh.html

  18. I’d have got to consult you here. Which is not something I usually do! I spend time reading an article that will make people believe. Also, many thanks for daftar akartoto

  19. Just admiring your work and wondering how you managed this blog so well. It’s so remarkable that I can’t afford to not go through this valuable information whenever I surf the internet! 157.230.40.171

  22. Thanks for sharing the information your blog is amazing and informative, I want to express my heartfelt gratitude for your exceptional blog. Your dedication to providing insightful content is truly commendable. Each post is a source of inspiration and learning, enriching my understanding and sparking curiosity also check how to get a protective order in virginia

  23. kakek680 Merupakan situs game online terpercaya seluruh indonesia, dan sangat di gemari oleh orang pencari cuan, karena Kakek680 ini memberikan besar peluang untuk menang

  24. Your post is a masterpiece! The way you simplify complex concepts is remarkable. The relevance of your content and your engaging writing style make your blog a must-read. Keep up the excellent work! mac oils carts

  26. 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? slot akartoto

  28. In the world of mixology, creativity knows no bounds, and bartenders are constantly innovating to concoct new and exciting beverages. One such creation that’s been gaining popularity is the Pistachio Shot. This unique drink offers a delightful blend of flavors, combining the richness of pistachios with the Honey Walnut Chicken sweetness of liqueurs and the kick of spirits. In this article, we’ll take a closer look at the Pistachio Shot, its ingredients, and how to make this nutty delight at home.

  29. Any INTEREST RATES doesn’t give attraction regarding virtually any excessive tax bill funds, to make sure you are really taking the application inside the jeans as a result of not really transforming your tax burden obligations. daftar akartoto

  39. extremely well written content. I, along with everyone else who uses it, will find it useful. Continue your fantastic work. I will definitely read through more blogs. There appear to be a lot of people visiting this website. https://webscopia.com/

  42. 이러한 변화에 발맞춰, 우리는 보증된 온라인 카지노 사이트 TOP 20을 선별하여 여러분께 안내드리고자 합니다.
    카지노사이트

  43. ฟันธงฟุตบอลคืนนี้ ในฐานะแพลตฟอร์มคาสิโนเชื่อใจได้ พวกเราตั้งใจจริงเพื่อตอบสนองต่อความมุ่งมาดของผู้ใช้ด้วยการก้าวนำหน้าเทรนด์การเดิมพันออนไลน์ ด้วยวิธีการที่ย้ำโทรศัพท์เคลื่อนที่เป็นขั้นตอนแรก แพลตฟอร์มของพวกเราทำให้ผู้เล่นจากเมืองไทยสามารถเข้าถึงเกมโปรดได้อย่างง่ายๆทุกหนทุกแห่ง การชี้ทาง ความง่ายสำหรับการวางเดิมพัน เวลาโหลด รวมทั้งการทำงานที่ราบระรื่น พวกเรากระหยิ่มใจสำหรับการพรีเซ็นท์เกมกีฬาที่มีให้เลือกจำนวนมากพร้อมอัตราต่อรองที่เหมาะสมที่สุด โบนัสแล้วก็โปรโมชั่นในตลาดที่มีการแข่งขันกันรุนแรง การได้รับเงินคืนสูงสุดในอุตสาหกรรม ทั้งผองนี้ได้รับการปรับแก้มาเพื่อปรับแก้ประสบการณ์การเล่นเกมสำหรับสมาชิกคนสำคัญของพวกเรา

    ฟันธงฟุตบอลคืนนี้

  45. I really impressed after read this because of some quality work and informative thoughts . I just wanna say thanks for the writer and wish you all the best for coming!. alexistogel terpercaya

  46. Appreciate extra excellent blog. Where else might i recieve this compassionate of information written in this kind of incite full method? i’ve been viewing with regard to this kind of fine detail. tomitoto login

Leave a Reply

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