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

 

176,486 thoughts on “Railway Industry in France”

  1. Halloween varsity jackets are fashionable outerwear garments inspired by traditional varsity jackets but with a Halloween twist. These jackets typically feature Halloween-themed designs, such as spooky graphics, jack-o’-lanterns, or other festive motifs, and are perfect for adding a touch of Halloween spirit to any outfit during the holiday season.

  2. Even though it seems simple, online slots are not just about luck. Behind the random spin of the reels, there is an opportunity for players to apply strategy and increase their chances of winning. Astute players will learn game patterns, understand symbol values, and make wise use of available bonus features. This combination of strategy and luck is the key to opening the gates of wealth in the world of online slots. For further information, you can visit this website https://fusototo.eu/

  3. Kaufen Sie Forschungschemikalien

    Wir sind einer der größten Anbieter von Forschungschemikalien in Europa. Wir sind seit mehreren Jahren tätig und haben uns zu einer Top-Quelle für eine breite Palette von Forschungschemikalien entwickelt, indem wir Einzelpersonen, akademischen Forschern und wissenschaftlichen Einrichtungen auf der ganzen Welt gut erforschte und auch einige einzigartige Verbindungen zur Verfügung stellen.

  4. The rules of online slot games are simple and easy to understand. Players just need to place a bet, spin the reels, and hope to get a combination of symbols that results in wins. This simplicity makes online slots easy to learn and play for everyone, even those who are trying online games for the first time. For further information, you can visit this website https://linkr.bio/abutoto

  5. This is a very informative and useful post. I appreciate your time and effort in this. This post taught me a lot of new things. It’s wonderful to see such useful content available. This post provided useful information and advice. I’m glad this post brought the topic to light. This post was well-written and simple to comprehend. I’m excited to read more posts like this in the future. I’m confident that many readers will find this post useful. Thank you for sharing your expertise and knowledge. Fideicomiso en Vida Abogado Charlottesville VA

  6. Kaufen Sie Forschungschemikalien

    Wir sind einer der größten Anbieter von Forschungschemikalien in Europa. Wir sind seit mehreren Jahren tätig und haben uns zu einer Top-Quelle für eine breite Palette von Forschungschemikalien entwickelt, indem wir Einzelpersonen, akademischen Forschern und wissenschaftlichen Einrichtungen auf der ganzen Welt gut erforschte und auch einige einzigartige Verbindungen zur Verfügung stellen.
    Website: https://rxchemshop.net/shop-2

  7. login gandatoto

    dengan adanya bonus new member, bonus deposit, bonus referral, bonus rollingan, bonus lucky wheel, dan layanan 24 jam nonstop, kalian akan merasa lebih nyaman bermain di gandatoto.

  8. เบียร์สดไวต์เบียร์สด (Wheat Beer) เบียร์สดสไตล์เยอรมัน รสเปรี้ยว นุ่มhttps://beer6.net/

  9. Delve into the elegance of round mehndi design by mehndidig, featuring perfect symmetry and intricate detail. These circular patterns are ideal for anyone who loves balance and beauty in their mehndi. From simple to elaborate designs, find your inspiration with these gorgeous round mehndi styles!

  11. Ingat keberhasilkan para player slot okebet99 bukan seutuhnya di dalam data anda sendiri sendiri tapi melainkan untuk bandar taruhan web toto gelap manakah dalam player tentu saja kan sendiri.

  18. Agencia de Viajes es un servicio especializado en la planificación y organización de viajes, ofreciendo asesoramiento personalizado y la reserva de alojamiento, transporte y actividades para satisfacer las necesidades y preferencias de los viajeros.
    Visit- https://agenciadeviajes.com.co/

  19. We offer expert support for EX2800 Extender, ensuring peace of mind and seamless restoration in case of device resets or failures. Our team provides comprehensive assistance to safeguard your network configurations, preserving your setup’s integrity and minimizing disruptions to your connectivity experience.

  23. Discover Best HR Software in Dubai, designed to simplify human resource management. These innovative platforms offer a range of features, including employee lifecycle management, time tracking, and payroll processing. With remote hiring capabilities and comprehensive HR management tools, they cater to diverse business needs. Whether you’re a small startup or a large enterprise, these user-friendly solutions streamline HR processes, enhance efficiency, and improve employee experience.

  26. ‘ครั้งฟต์เบียร์สด (Craft Beer)’ เป็นการสร้างเบียร์สดโดยผู้ประกอบการรายเล็ก ไม่ใช่อุตสาหกรรมขนาดใหญ่ ผู้สร้างจำเป็นต้องใช้ความสามารถแล้วก็ความคิดริเริ่มสำหรับการปรุงเบียร์สดให้มีรสชาตินานัปการhttps://beer6.net/

  27. Peppermint Dream Home Air Freshener

    Indulge your senses in the luxurious embrace of the Peppermint Dream Home Air Freshener. Step into a realm where every breath is a delightful journey through fields of fresh peppermint, weaving an enchanting ambiance of tranquility and warmth. Banishing unwelcome odors with effortless grace, this elegant fragrance transforms any space into a sanctuary of serenity and sophistication. Let the lingering essence of peppermint dreams envelop you, elevating your surroundings to new heights of blissful relaxation and comfort. Experience the allure of Peppermint Dream – where freshness meets fantasy.

  30. We hope our slot games can provide fun and satisfying entertainment for you. Feel free to explore each feature and chase big wins with your own luck. Have fun playing and may luck always be on your side, for further information please visit this website https://gamemata.org/

  31. Great post! If you’re looking to dive into renewable energy, I highly recommend Alt E. They provide comprehensive solar and wind installation services, handling everything from feasibility studies to the final utility interconnection and rebate paperwork Residential Solar Power Installation. With Alt E, you have a single point of contact for your entire project, ensuring seamless management and complete visibility from start to finish. It’s a fantastic way to make your transition to alternative energy stress-free and efficient!

  33. It a fabulous blog post As i looked at caused by have the application. Advise everything that Need be to find expectation on potential future you certainly will persist designed for writing a great wonderful blog post. 스포츠중계

  36. Elevate your space with the exquisite arm chairs crafted by MTC Bespoke Furniture. Designed with meticulous attention to detail and unparalleled craftsmanship, our Arm Chair redefine comfort and sophistication in any setting.

    Luxurious Comfort: Sink into plush cushions and experience ultimate relaxation with our arm chairs. Engineered for comfort, each chair is carefully crafted to provide ergonomic support and lasting comfort.

    Arm Chair

  38. Wipperman ile İstanbul da özgürce hareket edin! Kaliteli ve uygun fiyatlı akülü tekerlekli sandalyelerimizle engelleri aşın ve hayatın tadını çıkarın.

    akülü sandalye

  43. The Paris railway system balap 4d slot login continues to captivate with its efficiency and charm, seamlessly connecting the city’s iconic landmarks and neighborhoods. From the historic Gare du Nord to the modern marvels of the RER, navigating Paris by train offers a glimpse into the city’s rich history and vibrant culture.

  48. In France, the train is one of the most popular modes of transportation, offering convenience and efficiency for travelers. The SNCF (Société Nationale des Chemins de Fer Français) operates as France’s national railway, offering a comprehensive network of high-speed, overnight, and local train services. Beyond France, SNCF extends its services into neighboring countries such as Spain, Switzerland, and Italy, providing slot gacor seamless travel options for both domestic and international journeys. With its extensive coverage and reliable service, SNCF plays a vital role in facilitating travel within France and across Europe.

  49. In France, the train is one of the most popular modes of transportation, offering convenience and efficiency for travelers. The SNCF (Société Nationale des Chemins de Fer Français) operates as France’s national railway, offering a comprehensive network of high-speed, overnight, and local train services. Beyond France, SNCF extends its services into neighboring countries such as Spain, Switzerland, and Italy, providing slot gacor seamless travel options for both domestic and international journeys. With its extensive coverage and reliable service, SNCF plays a vital role in facilitating travel within France and across Europe.

Leave a Reply

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