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

 

174,818 thoughts on “Railway Industry in France

  1. Dengan Honda4D, saya tidak pernah khawatir tentang keamanan data dan transaksi. Sistem keamanan mereka sangat canggih, membuat kalian pastinya merasa tenang saat bermain dan bertransaksi dengan kecepatan dp.wd yang hanya dalam hitungan detik membuat kalian tidak perlu menunggu lama untuk bermain

  2. Best Dermatologist in Zirakpur

    People often face skin issues due to a bad environment or other reasons. If you are facing such a problem, you must visit Dr. Chawla’s Clinic, one of the Dermatologist in Zirakpur. We provide our customers with the best advice. Moreover, We use ultra-modern laser treatments for treating skin issues.

  3. Best Dermatologist in Zirakpur

    People often face skin issues due to a bad environment or other reasons. If you are facing such a problem, you must visit Dr. Chawla’s Clinic, one of the Dermatologist in Zirakpur. We provide our customers with the best advice. Moreover, We use ultra-modern laser treatments for treating skin issues.

  4. Giant77 Link alternatif di atas adalah Link Gacor yang terbaru dan dengan RTP yang lagi menjamin di atas 90% jadi kebanyakan Para Pemain akan mendapatkan Maxwin dengan Petir x500 dengan minimal deposit 50k saja boskuu

  5. Pin777 Link alternatif di atas adalah Link Gacor yang terbaru dan dengan RTP yang lagi menjamin di atas 90% jadi kebanyakan Para Pemain akan mendapatkan Maxwin dengan Petir x500, x250, x100, x50 dengan minimal deposit 50k saja boskuu

  6. Does your blog have a contact page? I’m having a tough time locating it but, I’d like to send you an email.
    I’ve got some suggestions for your blog you might be interested in hearing.Either way, great website and I look forward to seeing it develop over time.
    Feel free to surf to my blog post jawara88 slot

  7. Це справді цікаво, Ви дуже досвідчений блогер. Я приєднався до вашої стрічки і з нетерпінням чекаю на нові ваші чудові публікації. Крім того, я поділився вашим сайтом у своїх соціальних мережах!
    jawara88 slot

  8. jun88 Thank you for sharing your info. I really appreciate your efforts and I will be waiting for your further write ups thanks once again.

  9. I love significantly your own post! I look at all post is great. I discovered your personal content using bing search. Discover my webpage is a great one as you.I work to create several content this post. Once more you can thank you and keep it create! Enjoy! Utility Box

  10. I’ve been trying to find a few first rate stuff at the concern and haven’t had any good fortune up till this point, You simply were given a new biggest fan!.. situs slot gacor

  11. 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… 토토사이트 추천

  12. Proses deposit dan penarikan di Honda4Dsangat cepat, hanya dalam hitungan detik. Ini membuat saya bisa langsung menikmati kemenangan saya tanpa harus menunggu lama

  13. LIATOGEL merupakan situs yang menyediakan berbagai jenis Slot Online, Bandar Togel. Di Jaman sekarang, Teknologi sudah meningkat pesat. Apapun yang kita lakukan sekarang bisa melalui online, termasuk memasang Togel atau bermain game Slot online. Maka demikian LIATOGEL menjadi salah satu situs yang menyediakan Slot Online, Bandar Togel.

  14. Its a great pleasure reading your post.Its full of information I am looking for and I love to post a comment that “The content of your post is awesome” Great work. alexistogel

  15. I have been meaning to read this and just never obtained a chance. It’s an issue that I’m really interested in, I just started reading and I’m glad I did. You’re a fantastic blogger, 메이저놀이터 one of the best that I’ve seen. This weblog undoubtedly has some facts on topic that I just wasn’t aware of. Thanks for bringing this stuff to light.

  16. Excellent points?I would notice that as someone who in reality doesn’t write on blogs a lot (actually, this can be my first publish), I don’t assume the 슬롯커뮤니티

  17. “Get in the game with Basketball Stars unblocked. Show off your skills on the court in this thrilling, unobstructed basketball showdown.”

  18. Thank you again for all the knowledge you distribute,Good post. I was very interested in the article, it’s quite inspiring I should admit. I like visiting you site since I always come across interesting articles like this one.Great Job, I greatly appreciate that.Do Keep sharing! Regards, 두정오피

  19. those thick and heavy borosilicate wine glasses are the best but they are very expensive.

  20. “Experience the thrill of hoops action with Basketball Stars unblocked. Compete against players worldwide in fast-paced, unfiltered basketball matches.”

  21. Explore the premier platform for accessing a diverse collection of high-quality, sexy photos. We offer curated galleries, updated content, and exclusive access to top-tier sources for sensual imagery. Our expert curation ensures you enjoy premium and varied photo collections. Join us to indulge in the best of sexy photography online. 야한사진

  22. 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. 슬롯사이트

  23. “Step onto the virtual court with Basketball Stars unblocked. Play, dribble, and shoot your way to victory in this unimpeded basketball extravaganza.”

  24. thank you for taking the time to talk about this, I feel strongly about it and love mastering greater on this topic. If possible, as you benefit knowledge, might you mind updating your blog with more information? it’s far extraordinarily useful for me.
    best classified sites in usa ,
    classified sites in usa ,
    classified submission ,

  25. I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. In fact your creative writing abilities has inspired me to start my own Blog Engine blog now. Really the blogging is spreading its wings rapidly. Your write up is a fine example of it. 슬롯사이트

Leave a Reply

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