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

 

173,721 thoughts on “Railway Industry in France”

  1. Normally I do not read article on blogs, but I would like to say that this write-up very forced me to try and do it! Your writing style has been surprised me. Thanks, quite nice article. kagurabachi manga

  4. MEME4D is a trusted online slot site in the world, here it provides interesting games, apart from online slots, online lottery is also here with very big prizes, for further information you can visit MEME4D It is an online gaming site that always gives every player a win

  8. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. 1win bonus code

  15. May very well just launched some blog page, the knowledge most people furnish on this internet site seems to have made it easier everybody vastly. Thanks a lot for the purpose of your personal instance & give good results. Series Online Grátis

  17. Devops Traning Institute

    Seven mentor Best Devops Traning Institute in Pune Maharashtra India

    In the fast-paced world of software development, DevOps has emerged as a game-changer. It brings together the power of collaboration, automation, and continuous improvement to streamline the software development lifecycle. In this blog post, we’ll dive into the world of DevOps and explore its benefits and key principles.
    DevOps is a software development approach that combines development and operations teams to improve collaboration and efficiency. It focuses on automating processes, continuous integration, and continuous delivery. It promotes a culture of collaboration, communication, and shared responsibility. By breaking down silos and fostering cross-functional teams, DevOps enables faster and more efficient software delivery.
    Key principles of DevOps- Automation: Automating manual tasks, such as building, testing, and deployment, helps teams save time and reduce errors- Continuous Integration (CI) and Continuous Deployment (CD): These practices involve frequently integrating code changes and deploying them to production environments, ensuring a steady flow of updates and improvements.- Monitoring and Feedback: By closely monitoring software performance in production and collecting feedback, teams can quickly
    identify and address issues, leading to better user experiences.
    There are many benefits of DevOps it includes
    Faster Time to Market: DevOps enables faster delivery of software updates, allowing businesses to respond to market demands more quickly
    improved Collaboration: By fostering collaboration between development and operations teams, DevOps breaks down barriers and promotes a shared sense of ownership Increased Stability and Reliability: With automation and continuous monitoring, DevOps helps identify and resolve issues proactively, leading to more stable and reliable software.
    DevOps is not just a buzzword it’s a transformative approach to software development. By embracing collaboration, automation, and continuous improvement, businesses can achieve faster delivery, improved quality, and enhanced customer satisfaction. So, if you’re looking to level up your software development game.

    Best Devops classes in Pune
    Best Devops courses in Pune
    Best Devops Traning in Pune

    https://www.sevenmentor.com/devops-training-in-pune.php

  21. 온라인슬롯추천 Totum Slot Community will introduce popular slot sites that have been verified for members who enjoy online slots, and provide detailed information on key guides and areas to watch out for when using slot games.

  22. Brilliant text. A posting is affecting loads of imperative complications one’s world. Most people can’t be uninvolved so that you can all these complications. The following posting supplies plans plus basics. Pretty enlightening plus simple. bingo plus rewards

  24. our grandmother is a baby boomber and she is also a survivor of the holocaust. i’m so happy that she is still in good health till this day“ buy firewood

  27. 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. Browse this site

  28. that is just the statistics i am locating anywhere. thanks in your blog, I just subscribe your blog. that is a pleasant weblog.. sight care

  29. that is just the statistics i am locating anywhere. thanks in your blog, I just subscribe your blog. that is a pleasant weblog.. java burn

  30. Welkom bij The Cable Guy, uw betrouwbare partner voor alles op het gebied van audiovisuele apparatuur! Bij ons staat service en kwaliteit voorop. Ons ervaren team staat klaar om u te helpen met de installatie en reparatie van een breed scala aan audiovisuele apparaten. Of het nu gaat om het opzetten van een verbluffend home cinema-systeem, het installeren van geavanceerde smart home producten, het repareren van uw camerasysteem of het verbeteren van uw gamingervaring met de nieuwste consoles, wij hebben de expertise om het voor u te regelen.

  31. One of the most effective ways to combat spam calls is to use community-driven platforms like WhoCallsMe and WhoCallsMe.xyz. These websites allow users to report and look up phone numbers that have been associated with spam or fraudulent activities. Here’s how you can leverage these tools:
    link text

  32. Identify the Number: When you receive a suspicious call, note down the number. Visit WhoCallsMe or WhoCallsMe.xyz and enter the number into the search bar. These platforms will provide reports and user comments about the number, helping you determine if it’s a known spammer.
    WhoCallsMe

  33. Before diving into solutions, it’s essential to understand what constitutes a spam call. Spam calls are unsolicited calls that typically aim to sell products, offer services, or deceive recipients into sharing personal information.
    WhoCallsMe

  34. When I originally commented I clicked the -Notify me when new surveys are added- checkbox now whenever a comment is added I get four emails with the same comment. Could there be however you may get rid of me from that service? Thanks! um curso em milagres

  38. Hoist your exercises higher than ever with a definitive pre-exercise supplement in Canada. Our carefully figured out mix is created flawlessly, conveying a strong flood of energy, extremely sharp concentration, and unmatched perseverance. With painstakingly chose fixings upheld by science, each scoop lights your presentation potential, empowering you to stretch past boundaries and accomplish top outcomes. Whether you’re a carefully prepared competitor or a wellness fan, our premium pre-exercise is your vital aspect for opening powerful gains. Experience the best that Canada brings to the table and rule your preparation more than ever. best preworkout canada

  39. Sensa138
    situs game online terpercaya. kualitas grafik HD dan terpercaya. main di sini anda akan lupa waktu karena sangat seru. daftar sekarang juga di sensa138.

  40. You made a few good points there. Used to do searching on the issue as well as identified practically all individuals goes together with along with your blog. um curso em milagres

  42. Outstanding read, I just passed this onto a colleague who was doing a little investigation on that. And he actually bought me lunch because I discovered it for him smile So let me rephrase that: Thanks for lunch! um curso em milagres

  43. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. anekatoto

  45. I am impressed. I don’t think Ive met anyone who knows as much about this subject as you do. You are truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog you have got here. pmp exam certification online

  46. of course like your website but you need to check the spelling on several of your posts. A number of them are rife with spelling problems and I find it very bothersome to tell the truth nevertheless I will definitely come back again. um curso em milagres

  50. Planning a wedding in NYC, especially at City Hall, requires careful consideration. The venue’s historical significance and architectural beauty make it a prime location for weddings. A comprehensive guide can help you navigate the process, from securing the marriage license to personalizing vows, curating the guest list, and selecting the perfect photographer.
    Affordable City Hall wedding photography

Leave a Reply

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