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

 

213,064 thoughts on “Railway Industry in France

  1. 나는 주제에 대해 괜찮은 것들을 찾고 있었는데 지금까지 운이 없었습니다. 방금 새로운 열성 팬이 생겼습니다!. 카지노사이트

  2. “Effortlessly access your Yabby Casino account for a secure and enjoyable gaming experience. Discover a vast selection of games and exclusive bonuses.”

  3. “Log in to Yabby Casino for seamless gaming and top-notch security. Enjoy a diverse range of games and special promotions.”

  4. “Experience hassle-free access to Yabby Casino with a secure login. Unlock a wide variety of games and unique bonuses tailored just for you.”

  5. “Log in to AvantGarde Casino for a secure and seamless gaming experience. Enjoy a vast selection of games and exclusive bonuses.”

  6. “Experience top-tier gaming with AvantGarde Casino. Sign in easily to access a wide range of games and special promotions.”

  7. Hi! I corner brothas I’ve been to your blog before but after looking at many of the posts I realized it’s new to me. Regardless, I’m definitely delighted I came across it and I’ll be bookmarking it and checking back regularly!

  8. “Join AvantGarde Casino for an unparalleled gaming adventure. Secure login and exclusive rewards await you.”

  9. Hi! I indoor garden design I’ve been to your blog before but after looking at many of the posts I realized it’s new to me. Regardless, I’m definitely delighted I came across it and I’ll be bookmarking it and checking back regularly!

  10. Technological innovation has always been now there in making destin breast implants lives connected with men and women easier. In truth, thanks to technological know-how the planet involving thoughts has also been recently vanquished. Don’t make an effort to assume filthy right here people. Exactly what I’m speaking about is the like link that can take place via online dating sites along with chatting suites or even program for example ICQ, MSN or maybe MIRC. islam

  11. Supergacor77 merupakan situs judi slot online terpercaya menawarkan game slot88 resmi dengan rtp live slot tertinggi sehingga berhasil berkembang menjadi salah satu link slot gacor hari ini gampang maxwin. slot gacor hari ini

  12. “Discover endless fun at Unblocked Games 24h, offering a wide variety of games accessible anytime. Enjoy uninterrupted gaming without any restrictions.”

  13. “Unblocked Games 24h provides a diverse collection of games that you can play freely. Experience non-stop entertainment with no limitations.”

  14. “Explore Unblocked Games 24h for an extensive range of games available round the clock. Play your favorite games without any blocks or barriers.”

  15. “Log in to YabbyCasino for a seamless gaming experience with top-notch security. Enjoy a diverse selection of games and exclusive promotions tailored for you.”

  16. Hey this is kinda of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding experience so I wanted to get advice from someone with experience. Any help would be greatly appreciated! China Elastic Wall Paint Product

  17. “Access YabbyCasino effortlessly to enjoy a secure and smooth gaming adventure. Discover an extensive range of games and special bonuses.”

  18. Wow, cool post. I’d like to write like this too – taking time and real hard work to make a great article… but I put things off too much and never seem to get started. Thanks though. voucher game

  19. “Join YabbyCasino for an easy and safe login experience. Indulge in a variety of games and take advantage of unique bonuses.”

  20. Only aspire to mention ones content can be as incredible. This clarity with your post is superb and that i may think you’re a guru for this issue. High-quality along with your concur permit me to to seize your current give to keep modified by using approaching blog post. Thanks a lot hundreds of along with you should go on the pleasurable get the job done.
    voucher game

  21. Serigala69 menghadirkan sensasi baru dalam dunia slot online di Indonesia. Dengan koleksi game yang mengagumkan dan fitur-fitur inovatif, Serigala69 menawarkan pengalaman bermain yang tak terlupakan. Setiap putaran dijamin memikat dengan grafis yang Serigala69

  22. Wonderful article man! The way you have explained everything step by step is phenomenal. I really appreciate your work. Keep it up!!! In case, if you are looking 베팅어택

  23. What a fantabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much. hoki22

  24. It’s laborious to find educated individuals on this subject, but you sound like you know what you’re talking about! Thanks game digital

  25. Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work 사설토토

  26. I just thought it may be an idea to post incase anyone else was having problems researching but I am a little unsure if I am allowed to put names and addresses on here 보증놀이터

  27. paus138 represents a paradigm shift in technology, merging advanced algorithms and machine learning to solve complex challenges across industries. Its versatility and accuracy make it a powerful tool for predictive analysis, optimization, and decision-making, shaping the future of innovation.
    https://penulisngapak.com/

  28. 당신은 당신의 프로젝트가 무리에서 눈에 띄는 것을 알고 있습니다. 그들에게는 특별한 것이 있습니다. 나에게 그들 모두가 정말 훌륭하다고 생각합니다. 판도라 도메인 주소

  29. The article beautifully highlights the allure of 휴게텔 as urban sanctuaries, emphasizing their role in promoting self-care and well-being.

  30. I simply wanted to thank you a lot more for your amazing website you have developed here. It can be full of useful tips for those who are actually interested in this specific subject, primarily this very post. Your all so sweet in addition to thoughtful of others and reading the blog posts is a great delight in my opinion. And thats a generous present! Dan and I usually have enjoyment making use of your recommendations in what we need to do in the near future. Our checklist is a distance long and tips will certainly be put to excellent use. christian mysticism churches

  31. Interested in playing online casino Or want to know new online casino promotions lighterandlocal Online casino reviews Answer every casino you want to kno 슬롯사이트

Leave a Reply

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