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

 

176,522 thoughts on “Railway Industry in France”

  2. 쿨카지노 쿨카지노는 고객 여러분의 기대를 초과하기 위해 지속적으로 노력하고 있습니다. 지금 쿨카지노에 가입하여 최고의 온라인 카지노 경험을 시작해 보세요. 안전하고 신뢰할 수 있는 플랫폼에서 즐거운 시간을 보내시길 바랍니다.

  6. It is and so wonderful in addition to resourceful. I just now appreciate this colorings in addition to the person who obtains the item from the send will likely be happy. 출장마사지

  9. 나는 당신의 웹 로그 레이아웃과 함께 당신의 글쓰기 능력에 정말 깊은 인상을 받았습니다. 이것은 유료 주제입니까, 아니면 스스로 수정 했습니까? 어쨌든 좋은 고품질 글쓰기를 유지하십시오. 요즘 이런 멋진 웹 로그를 보는 것은 드뭅니다. 인디벳토토

  10. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. 토토사이트

  11. In the ever-evolving world of online gaming, staying up-to-date with the latest releases and updates is crucial for enthusiasts seeking the ultimate gaming experience. One of the most anticipated arrivals in the online casino realm is the newest addition to the Joker123 series – joker123 terbaru. This latest release promises to deliver cutting-edge features, thrilling gameplay, and exciting opportunities for players to win big. Join us as we delve into the world of joker123 terbaru and explore what sets this latest offering apart from its predecessors.

  14. Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. lifting viso milano

  16. very interesting post.this is my first time visit here.i found so mmany interesting stuff in your blog especially its discussion..thanks for the post! opi nail care

  18. Selamat Datang di Bandar Toto Macau Hari Ini Pasti di jamin jackpot dengan kesempatan menang hingga ratusan juta untuk deposit minimal 5 ribu saja rasakan kemenanganya sekarang alexistogel

  23. 나는 모든 것을 확실히 즐기고 있습니다. 훌륭한 웹 사이트이자 좋은 공유입니다. 감사합니다. 잘 했어! 여러분은 훌륭한 블로그를 만들고 훌륭한 콘텐츠를 가지고 있습니다. 좋은 일을 계속하십시오 아벤카지노 도메인 주소

  28. I in addition to my buddies happened to be digesting the excellent points located on your web site and then all of the sudden I had an awful feeling I never expressed respect to the site owner for them. All the men were absolutely thrilled to read through them and have now in truth been having fun with them. Thank you for actually being indeed kind and then for obtaining this kind of excellent useful guides most people are really desperate to know about. My honest regret for not expressing appreciation to earlier. instagram volgers kopen

  29. Chào bạn! Tôi là Đổng Huy Khải, sinh năm 1989. Tôi rất thích đi du lịch và chơi thể thao, đặc biệt là bộ môn bóng đá luôn rực cháy trong tôi. Sau khi tốt nghiệp Học viện Ngoại giao, đến nay tôi đã tích lũy được 10 năm kinh nghiệm làm việc trong lĩnh vực thể thao tại nhiều kênh truyền hình thể thao lớn tại Việt Nam. Được làm việc và đồng hành cùng với nhiều chuyên gia hàng đầu trong ngành, tôi đã tích lũy được nhiều kinh nghiệm quý báu trong việc phân tích và bình luận về bóng đá.
    Hiện nay, tôi đang đảm nhận vai trò là Bình luận viên tại Cakhia TV – một trong những kênh trực tuyến bóng đá hàng đầu tại Việt Nam. Đây là kênh chuyên cung cấp link xem trực tiếp bóng đá miễn phí với chất lượng tốt nhất, hình ảnh Full HD, âm thanh sống động, tốc độ đường truyền ổn định và đầy đủ các giải đấu lớn nhỏ trên thế giới như Ngoại Hạng Anh, Tây Ban Nha, Ý,World Cup, Euro… Ngoài ra, Cakhia TV còn cung cấp thông tin về lịch thi đấu, kết quả bóng đá, bảng xếp hạng, tỷ lệ kèo, live score và các video highlight độc quyền.
    Tôi hy vọng sẽ được đồng hành cùng các bạn trong những trận đấu hấp dẫn nhất tại Cakhia TV Trực Tiếp Bóng Đá!
    Thông tin liên hệ cá nhân:
    Địa chỉ: 213/31 Vườn Lài, Phường An Phú Đông, Quận 12, Hồ Chí Minh
    Website: https://phapluatvn.vn/

    Hastag: # #binhluanvien #cakhia #cakhiatv #tructiepbongda #xembongda #bongdatructuyen

  30. I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article… ole777

  31. Thank you for this inspiring article, it really motivates me to continue learning, and if you are looking for entertainment. Trusted gaming site with various types of games and interesting sound themes like real ones. A site with attractive bonuses and promos, don’t miss out. For further information, visit the website. https://profitpaus.com

  34. Tamildhool Watch Tamil TV serials and shows in HD for free. Your ultimate destination to stream premium episodes from Star Vijay, Zee Tamil, and Sun TV.

  35. Dunia permainan slot dipenuhi dengan banyak sekali pilihan, tetapi beberapa di antaranya menonjol sebagai yang terbaik. Permainan-permainan ini, yang dikenal sebagai permainan slot gacor, adalah permainan yang telah mengumpulkan basis penggemar setia berkat temanya yang menawan, grafik berkualitas tinggi, dan pembayaran yang besar.

  36. 정말 좋은 기사라고 생각합니다. 이 정보를 흥미롭고 매력적으로 만듭니다. 독자들에게 생각할 수있는 많은 것을 주셨고 저는 그런 종류의 글에 감사드립니다. 미라클 도메인 주소

  37. Well, the article is really the freshest on this notable topic. I agree with your conclusions and also definitely will thirstily look forward to your approaching updates. Saying thanks will not simply just be enough, for the massive clarity in your writing. I can immediately grab your rss feed to stay privy of any updates. Pleasant work and much success in your business efforts! caluanie muelear oxidize manufacturer

  39. Thanks For sharing this Superb article.I use this Article to show my assignment in college.it is useful For me Great Work. rtp leo77

  42. 이 정보를 공유해 주셔서 감사합니다. 나는 당신의 블로그 게시물을 정말 좋아합니다. 정말 유익하고 흥미로운 블로그 게시물을 사람들과 공유했습니다. ㄹ라바토토

  45. This article is an appealing wealth of informative data that is interesting and well-written. I commend your hard work on this and thank you for this information. You’ve got what it takes to get attention. WalgreensListens

  46. 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. acim

  47. At DrainEx, our commitment is to provide exceptional service and lasting solutions that prioritize your satisfaction. We aim to deliver quality workmanship with integrity and a customer-focused approach. From the initial contact to the final inspection, we aim to exceed your expectations every step of the way. Our dedicated team takes pride in their work, ensuring each project is executed with precision and care. We are dedicated to building enduring relationships based on trust and transparency.Click here : basement waterproofing windsor

Leave a Reply

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