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:
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.
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.
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
Price at 2 weeks before departure
Price at 3 weeks before departure
Price at 4 weeks before departure
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:
The non-physical rate fences are age, season ticket, and loyalty
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
Your blog would increase in ranking if you post more often..”“ Tiranga Games
Brown leather jackets are timeless classics that effortlessly สล็อต ฝาก-ถอน true wallet ไม่มี บัญชีธนาคาร
movies, 918kissauto
it offers a distinct style. สล็อตออนไลน์
get your class done. JILI WALLET
It is brilliant blog. JOKER AUTO WALLET
it has been months for me JOKER WALLET
terrain to foster stability collaboration? สล็อตเว็บตรง
solid LED lighting organization in the USA? In this way, Live22 auto
.
conflicts continue to unfold. MEGA888 AUTO
digital marketing landscape. PG SLOT AUTO
.
So it’s time to install the extension to broadcast PG SLOT AUTO WALLET
I would recommend checking this out for pussyslot
Ayo168 Gacor Terparah yang setiap bermain mendapatkan Jackpot
yang melambangkan suatu permainan slot itu gampang menang เว็บสล็อต 168 ฝาก ถอน true wallet
HID, เว็บสล็อตวอเลท
Ayo168 Gacor Terparah untuk Mendapatkan Jackpot Setiap harinya Hanya di AYO168
be friendly on Instagram, slotxo wallet
sistem kamera superior, สล็อต ฝาก-ถอน true wallet ไม่มี บัญชีธนาคาร
This became one of the top trending outfits because สล็อตเว็บตรง
Our platform offers a safe fun way to meet other singles online. PUSSY888 เว็บตรง
Thank you for a wonderful share. 918KISS AUTO
Impressive web site, สล็อตjili วอเลท
Our experts specialize in Safe ສລ໊ອດອອນລາຍ
For specified, Betflix wallet
But one thing i would like to say this is taking a main part PUSSY888 เว็บตรง
Me personally I recently read this blog bought a สล็อตฝากถอนวอเล็ท
i understand that your appropriate know-how in playing with all JOKER SLOT
Also visit this awesome blog เว็บสล็อต xo ออ โต้
even though I still can’t afford it แลนด์ สล็อตออโต้
Your article is very helpful for me. สล็อตออนไลน์
I look forward to delving into the articles 918KISS AUTO
there’s always something new to try. สล็อตjili วอเลท
It’s a thoughtful reflection on the balance between enjoying เว็บสล็อตออโต้
So, เว็บหวยออนไลน์ จ่ายจริง
we often wonder how we can infuse that same ສລ໊ອດອອນລາຍ
KUBET là nhà cái cá cược trực tuyến uy tín và chuyên nghiệp hàng đầu tại thị trường Việt Nam. Nhà cái KUBET liên kết với nhiều đối tác phát hành uy tín, mang đến nhiều sản phẩm chất lượng phục vụ người chơi mọi lúc.
Địa chỉ: 208 Phạm Văn Chiêu, Phường 9, Gò Vấp, Thành phố Hồ Chí Minh, Vietnam
Hotline: +84339896366
Website: https://www.6kubet.com/
We offer a range of services including all types of landscaping Betflix wallet
KUBET là nhà cái cá cược trực tuyến uy tín và chuyên nghiệp hàng đầu tại thị trường Việt Nam. Nhà cái KUBET liên kết với nhiều đối tác phát hành uy tín, mang đến nhiều sản phẩm chất lượng phục vụ người chơi mọi lúc.
Địa chỉ: 208 Phạm Văn Chiêu, Phường 9, Gò Vấp, Thành phố Hồ Chí Minh, Vietnam
Hotline: +84339896366
Website: https://www.6kubet.com/
….
telling the stories of their wearers solidifying their สล็อตฝากถอนวอเล็ท
this comprehensive issue, JOKER SLOT
I’ve been searching for some decent stuff on the subject and haven’t had any luck up until this point, You just got a new biggest fan! 메이저사이트추천
Excellent. เว็บสล็อต xo ออ โต้
just like you. แลนด์ สล็อตออโต้
Nics post, สล็อตออนไลน์</a
with us! Your blog is helpful, เว็บสล็อตออโต้
These is apparently just like definitely great. Most of these modest items are designed through the use of variety of base consciousness. I love these significantly 가입머니
I’ve explicit many of the articles in เว็บหวยออนไลน์ จ่ายจริง
Thank you for such a well written article. It’s full of insightful information and entertaining descriptions. Your point of view is the best 가입머니
Tulisan yang menarik dan mudah dipahami, saya su