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

 

163,993 thoughts on “Railway Industry in France”

  2. İşsizlik Türkiye’de özellikle genç nüfus için önemli bir sorun olmuş ve olmaya da devam etmektedir. İnsanlar bu ilanlardan da yola çıkarak bu yarışta ön planda olmanın gayreti içerisine girmişlerdir. Eğer işsiz kalmaktan şikayetçiyseniz ya da Türkiye’nin neresi olursa olsun işsiz kalmışsanız elaman ilanlarını görerek başvuru işlemlerinizi gerçekleştirebilirsiniz. Başvurunun internetten yapılıyor olması iş bulma şartlarını biraz daha kolaylaştırmıştır.
    Web sitesi: https://www.memuralimi.com.tr/

  4. Eğer yeni bir iş arıyorsanız ya da belediye personel alımı ilanlarını inceliyorsanız sosyal hesaplarınızdan tutunda günlük yaşamınıza kadar pek çok faktörü göz önünde bulundurmanız gerekiyor. Yeni çalışma ortamınızın kültürünün, çalışma hayatınızdan keyif almanız üzerinde büyük etkisi olacaktır.
    Web Adresi : https://www.kariyerkamu.com/

  5. Kamu personel alımı başvuruları kurumun kendi tercihine bağlı olarak değişiyor. Bu nedenle kurum haberlerini yakından takip edebilmek çok önemli. İnternet sitemiz güncel personel alımı ilanlarına yer verirken herhangi bir kurum ya da kuruluşu da ön plana çıkarmıyor.
    Kaynak : https://www.kamupersonelialimi.net/

  6. Latest Sarkari Yojana updates on hindiyojana.in. सरकारी योजना सम्बंधित तमाम ताज़ा जानकारी के लिए हिंदी योजना पोर्टल से जुड़े रहिये | New Government Schemes 🔥 2021 Updates New Sarkari Yojana

  7. Have you reached a stagnant point where you feel the growth of follower count has stalled? Well, you can grow it again with a mix of paid and organic planning. Some foolproof hacks have been discovered to help grow a cohesive community of Instagram – these strategies drive similar results for everyone from all kinds of industries.
    Buy-Instagram-followers

  10. An intriguing discussion may be valued at comment. There’s no doubt that that you ought to write much more about this topic, it will not be described as a taboo subject but usually folks are too little to chat on such topics. To a higher. Cheers best multivitamin for seniors

  13. Etimesgut semtinin bütün mahallelerine 7 gün 24 saat hizmet vermekte olan Çilingir Tolga sizler için çalışmaktadır. Çilingir Tolga, Etimesgut çilingir hizmeti ile akıllı kilit satış montaj tamiri, oto çilingir, akıllı otomat sistemleri gibi ihtiyaçlarınızda yanınızda olarak sizlere güvenilir çilingir hizmeti sunmaktadır. Etimesgut Çilingir

  15. If more people that write articles really concerned themselves with writing great content like you, more readers would be interested in their writings. Thank you for caring about your content. best photo scanner

  16. Etimesgut semtinin bütün mahallelerine 7 gün 24 saat hizmet vermekte olan Çilingir Tolga sizler için çalışmaktadır. Çilingir Tolga, Etimesgut çilingir hizmeti ile akıllı kilit satış montaj tamiri, oto çilingir, akıllı otomat sistemleri gibi ihtiyaçlarınızda yanınızda olarak sizlere güvenilir çilingir hizmeti sunmaktadır.Etimesgut Çilingir

  19. ارتوپدي چيست؟
    ارتوپدي تخصص پزشکي اختصاص داده شده به تشخيص ، درمان ، توانبخشي و پيشگيري از صدمات و بيماري هاي سيستم عضلاني اسکلتي از بدن انسان مي باشد که شامل استخوان ها ، مفاصل ، رباط ها ، تاندون ها ، عضلات و اعصاب است که اجازه مي دهد يک فرد حرکت کرده و فعال باشد. در حال حاضر ارتوپدي به بيماران در همه سنين از نوزادان با کجي يا پيچيدگي پا تا ورزشکاران جوان که به جراحي آرتروسکوپي نياز دارند ، اختصاص داده شده است. متخصص جراحي استخوان و مفاصل همچنين به درمان شکستگي استخوان ها نيز مي پردازد.

  20. I’ve been surfing online more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the web will be a lot more useful than ever before. blogger kampung

  24. Hello there, just became aware of your blog through Google, and found that it is truly informative. I am gonna watch out for brussels. I’ll be grateful if you continue this in future. A lot of people will be benefited from your writing. Cheers! เกมสล็อต

  28. Os ativador windows 7 são ferramentas para você ativar o Microsoft Windows 7. Ele pode ajudá-lo a ativar o Windows 7 Enterprise, Windows 7 Professional, ativador Windows 7 Ultimate, Windows 7 Home Premium.
    Você deseja ativar o Windows 7 gratuitamente? Listamos alguns dos melhores ativadores do Windows 7 da Daz e KMS, basta baixá-los. Estes são os melhores carregadores para Windows 7 bits 64 e 32 bits.
    ativador windows 7

  32. buy cocaine powder
    Pure Cocaine For Sale Online
    Cocaine, аlѕо knоwn аѕ coke, is a ѕtrоng ѕtіmulаnt mоѕt frеԛuеntlу uѕеd аѕ a rесrеаtіоnаl drug. It is commonly snorted, іnhаlеd as ѕmоkе, оr dіѕѕоlvеd аnd іnjесtеd іntо a vein. Mеntаl effects mау include аn intense fееlіng of happiness, ѕеxuаl arousal, lоѕѕ оf contact wіth rеаlіtу, оr аgіtаtіоn. Phуѕісаl ѕуmрtоmѕ may іnсludе a fast heart rаtе, sweating, and lаrgе рuріlѕ. order at buy cocaine

  33. High-quality Crystal Meth For Sale Online
    Methamphetamine (соntrасtеd from N-methylamphetamine) is a potent сеntrаl nеrvоuѕ ѕуѕtеm (CNS) stimulant thаt іѕ mainly uѕеd аѕ a rесrеаtіоnаl drug аnd lеѕѕ соmmоnlу аѕ a second-line trеаtmеnt fоr attention dеfісіt hyperactivity disorder and оbеѕіtу. Mеthаmрhеtаmіnе wаѕ dіѕсоvеrеd in 1893 аnd еxіѕtѕ аѕ twо еnаntіоmеrѕ: lеvо-mеthаmрhеtаmіnе аnd dextro-methamphetamine. order High-quality Crystal Meth For Sale Online

  34. Buy Colombian Cocaine
    Buy Colombian Cocaine sometimes contains traces of Trapacocaine.
    Worldwide dеmаnd оf рѕусhоасtіvе drugѕ durіng thе 1960 аnd 1970ѕ еvеntuаllу іnсrеаѕеd thе рrоduсtіоn and рrосеѕѕіng оf these in Cоlоmbіа. Cосаіnе іѕ рrоduсеd at $1500/kilo іn junglе labs and соuld bе ѕоld оn thе streets оf thе US for as muсh аѕ $50,000/kilo.
    The USA іntеrvеnеd іn Colombia thrоughоut thіѕ реrіоd іn аn аttеmрt tо сut оff thе ѕuррlу оf thеѕе drugs tо thе US. The drug bаrоnѕ оf Colombia, ѕuсh as Pablo Escobar and Jоѕé Rodríguez Gасhа, wеrе long соnѕіdеrеd bу аuthоrіtіеѕ tо be among thе mоѕt dаngеrоuѕ, wealthy, and powerful mеn іn thе wоrld.order at Buy Colombian Cocaine

  41. Your content is nothing short of brilliant in many ways baccarat. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers.

  43. Microsoft 365 is much more than an email program or a word processor, If you have the right subscription plan for you. Increasing workplace productivity, whether in a profession or a business Increasing company efficiency has become a must for professionals and companies, and Microsoft 365 makes it easy. sdf asdfaewsdfrsAre
    microsoft365.com/setup

  47. Hi there, just became aware of your blog through Google, and found that it’s really informative. I’m gonna watch out for brussels. I will be grateful if you continue this in future. A lot of people will be benefited from your writing. Cheers! superslot wallet

Leave a Reply

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