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

 

176,299 thoughts on “Railway Industry in France”

  2. I found your this post while searching for some related information on blog search…Its a good post..keep posting and update the information. 오피뷰

  3. It is perfect time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I desire to suggest you few interesting things or tips. Perhaps you could write next articles referring to this article. I want to read more things about it!広島市 外壁塗装

  8. Taktik88 adalah platform taruhan online terkemuka yang menawarkan beragam permainan seperti sportsbook, kasino online, dan slot. Dikenal karena keamanan yang tinggi dan layanan pelanggan yang cepat tanggap, Taktik88 menyediakan antarmuka yang ramah pengguna dan berbagai promosi menarik. Dengan fitur-fitur unggulannya, Taktik88 menjadi pilihan utama bagi penggemar taruhan untuk pengalaman yang aman dan menghibur.

    https://www.sanantoniodeprado.co/

  10. 外壁塗装を奈良で比較中ならお見積もりから自信があります。弊社は奈良県全地域からご依頼者を頂いたお客さまの口コミから広がり信頼を積み重ねてきました。 一級塗装技能士も多数在籍しており高品質な仕上がりをお約束。 奈良県で外壁塗装や塗り替え工事をご検討中ならお見積りのご依頼をお待ちしています
    奈良県の外壁塗装

  11. 外壁塗装を奈良で比較中ならお見積もりから自信があります。弊社は奈良県全地域からご依頼者を頂いたお客さまの口コミから広がり信頼を積み重ねてきました。 一級塗装技能士も多数在籍しており高品質な仕上がりをお約束。 奈良県で外壁塗装や塗り替え工事をご検討中ならお見積りのご依頼をお待ちしています.!!
    奈良県の外壁塗装

  14. 外壁塗装を奈良で比較中ならお見積もりから自信があります。弊社は奈良県全地域からご依頼者を頂いたお客さまの口コミから広がり信頼を積み重ねてきました。 一級塗装技能士も多数在籍しており高品質な仕上がりをお約束。 奈良県で外壁塗装や塗り替え工事をご検討中ならお見積りのご依頼をお待ちしています. 奈良県の外壁塗装
    奈良県の外壁塗装

  15. Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You definitely know what youre talking about, why throw away your intelligence on just posting videos to your blog when you could be giving us something informative to read?Game

  18. I’ve been absent for a while, but now I remember why I used to love this web site. Thank you, I’ll try and check back more frequently. How frequently you update your website? tuna pizza recipes

  19. Design forum & resource. Learn everything about design. UI / UX, graphic, product, architectural, interior, web design & more. Discuss design.
    Design Jobs

  21. I am very glad to know that your site is upgrading from the with simplest to more faster and synchronized form. I am quite familiar of a lot of sites since I work as a freelance writer and one of the sites that I find evolve is your site respectively. torta cubana ingredientes

  22. Experience trustworthy logistics arrangements in Columbus, Ohio with JW Logistics. Our devoted group guarantees proficient transportation of products inside the city and then some. Trust JW Logistics for solid and custom-fitted logistics administrations in Columbus, Ohio. jw logistics columbus ohio

  24. Spice Fields Cottage is a ‘unique’ 3 bedroom villa in wayanad. Enjoy your holidays at our serviced villa privately with your family or group of friends. Best stay experience guaranteed. best villas in wayanad

  25. 출장마사지는 편안한 환경에서 집중적인 마사지를 제공하는 서비스입니다. 편안하게 집이나 호텔에서 받을 수 있는 서비스로, 여행 중이거나 바쁜 일정으로 인해 마사지샵을 방문할 시간이 없는 분들에게 이상적입니다. 출장안마 서비스는 전문적인 마사지 기술과 탁월한 고객 서비스를 제공하여 개인의 건강과 웰빙을 향상시킵니다.

  26. Investigate the scholarly universe of Vernon Lee Knox, where dazzling accounts and provocative experiences are anticipated. With a different scope of works traversing different classifications, Vernon Lee Knox guarantees a vivid perusing experience for all. Find the enchantment of narrating with Vernon Lee Knox today. Vernon Lee Knox

  27. Hmm…Huziii Lake know information sites running a corresponding issue, still lake rarely gave up on and your webpage. Lake put in during the product or service that will help populars in a similar fashion i’ll likely get styles concentrated primer. 68gamebai

  28. Hmm… Lake know information sites Huziiii running a corresponding issue, still lake rarely gave up on and your webpage. Lake put in during the product or service that will help populars in a similar fashion i’ll likely get styles concentrated primer. 68 game bài

  38. The actress – who starred in films including Ruby in Paradise, Heat, and Norma Jean & Marilyn, and is part of the Silence Breakers 영주출장샵group – added that the court’s decision was a betrayal for sexual assault survivors.

  42. poker online

    MegaJackpot adalah tempat bermain judi slot gacor paling viral hari ini dan sebagai situs pencetus game slot88 online paling hoki di Indonesia.

  43. This is usually a wonderful recommendations primarily so that you can all those a novice to blogosphere, limited plus genuine information… With thanks to get spreading brussels. Very important learn posting. 羅氏鮮

  44. Bilamana mengalami kesusahan, anda mampu bertanya jawab pada bandar taruhan atau player slot okebet99 yang lain dalam hidup di dalam sana. Selain komunikasi, pilihan bonus lainnya sangat memikat termasuk game bervariasi dimana tersedia di dalam web sejenis itu.

  45. Chick-fil-A is a renowned American fast-food chain specializing in chicken sandwiches. Established in 1946 by S. Truett Cathy in Hapeville, Georgia, it has grown significantly over the decades. Chick-fil-A is celebrated for its exceptional customer service, high-quality food, and adherence to Christian values, notably closing all its locations on Sundays. The menu includes a variety of chicken dishes, from sandwiches and nuggets to salads and wraps, making it a beloved choice for many fast-food lovers.

Leave a Reply

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