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

 

216,284 thoughts on “Railway Industry in France”

  1. In the world of www, there are countless blogs. But believe me, this blog has all the perfection that makes it unique in all. I will be back again and again 축구중계

  2. 모든 댓글을 읽는 데 시간이 걸렸지 만 기사를 정말 즐겼습니다. 그것은 나에게 매우 도움이되는 것으로 판명되었고 여기의 모든 댓글 작성자에게 확신합니다! 정보를받을 수있을뿐만 아니라 즐길 수있을 때 항상 좋습니다. 먹튀검증

  3. Similarly to Knight and Day from earlier this summer, once the second half rolls around, most of the appeal is lost, and the movie becomes more of a financial thriller than a buddy-cop comedy. akustikelemente

  5. Spotify Premium APK is an unofficial, modified version of Spotify’s app that provides premium features like ad-free listening and offline playback for free. However, using it poses significant risks, including legal issues, security threats from malware, and lack of updates. It undermines the revenue for artists and violates Spotify’s terms of service.
    https://spotifyplusapks.com/

  7. Hello! I just would like to give a enormous thumbs up for the excellent information you’ve here on this post. I will likely be coming back to your weblog for much more soon. Property Listings

  8. I have used a lot of juicers in the past and I created this blog to help juice lovers make the right decision in choosing the type of juicer that best fit their needs. There are several good masticating juicers to choose from.  falli artificiali

  10. Join the fun at MANTAP168, your ultimate slot gaming site. Register easily and access a wide array of high RTP slot games on any device. Take advantage of daily opportunities for maxwin jackpots. MANTAP168 offers a smooth and exciting gaming experience. Sign up today and start your journey to big wins! Mantap168

  12. Foodsy Exports is India’s premier basmati rice manufacturer in India. Known for its delicious, fragrant aroma and unique flavor, Foodsy exports is proud to provide this staple of Indian cuisine to customers worldwide.

  13. I’m impressed, I must say. Truly rarely can i encounter a blog that’s both educative and entertaining, and without a doubt, you might have hit the nail around the head. Your concept is outstanding; the issue is something there are not enough folks are speaking intelligently about. I am happy i always came across this within my seek out something with this. care certificate

  16. Thank you for any other informative site. The place else could I am getting that kind of information written in such a perfect approach? I have a mission that I’m just now running on, and I have been on the look out for such info 토토사이트추천

  17. Thanks for sharing nice information with us. i like your post and all you share with us is uptodate and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job 토토사이트추천

  18. 모든 댓글을 읽는 데 시간이 걸렸지 만 기사를 정말 즐겼습니다. 그것은 나에게 매우 도움이되는 것으로 판명되었고 여기의 모든 댓글 작성자에게 확신합니다! 정보를받을 수있을뿐만 아니라 즐길 수있을 때 항상 좋습니다. 홀덤나라

  20. Goatbet เดิมพันกีฬาออนไลน์กับ Goatbet: แทงบอล บาส NBA เทนนิส และอื่นๆ

  25. 매우 유쾌한 기사, 나는 귀하의 게시물, 예외적으로 괜찮은 공유를 숙독 해 주셔서 감사합니다. 나는 이것을 지지자들에게 트위트해야합니다. 매우 감사! 먹튀검증

  27. As a call center solutions provider, we offer comprehensive services and cutting-edge technology to optimize your customer support operations. Our tailored solutions include advanced call routing, interactive voice response systems, real-time analytics, and seamless integration with CRM platforms.

  28. As a call center solutionsprovider, we offer comprehensive services and cutting-edge technology to optimize your customer support operations. Our tailored solutions include advanced call routing, interactive voice response systems, real-time analytics, and seamless integration with CRM platforms.

  29. Amazingly accommodating post. This is my first time i visit here. I found such an extensive number of captivating stuff in your blog especially its trade. Genuinely its unprecedented article. Keep it up. sexsshop

  30. The most effective means bring in some form of e-book and enjoy this almost from anywhere is during the entire fascinating process involving mp 3 mp3 audio books. The true sound e-book outlets that always one thinks of as rapidly as. taboo sex shop

  31. Hi there, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam feedback? If so how do you stop it, any plugin or anything you can suggest? I get so much lately it’s driving me crazy so any support is very much appreciated. kanjengtoto

  32. 안녕하세요. GOOGLE을 사용하여 블로그를 찾았습니다. 이것은 아주 잘 쓰여진 기사입니다. 나는 그것을 북마크하고 당신의 유용한 정보를 더 읽기 위해 돌아올 것입니다. 게시물 주셔서 감사합니다. 꼭 돌아 올게요. 꽁머니

  36. Wow! This could be one particular of the most beneficial blogs We’ve ever arrive across on this subject. Actually Wonderful. I’m also an expert in this topic so I can understand your effort. kanjengtoto

  38. This was such an informative read! I learned so much from your well-researched content. Keep up the great work!

  39. Good – I should certainly pronounce, impressed with your site. I had no trouble navigating through all the tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your client to communicate. Nice task. kanjengtoto

  41. This is my first time i visit here and I found so many interesting stuff in your blog especially it’s discussion, thank you. 99math

  42. Great Information sharing .. I am very happy to read this article .. thanks for giving us go through info.Fantastic nice. I appreciate this post. poker88

  44. Introducing Antido Natural Mosquito Repellent Incense Sticks, your family’s ultimate defense against dengue, malaria, and chikungunya. Our vegan formula is crafted with 100% natural actives, including joss powder, camphor, ghee, and laban powder, ensuring a safe and effective way to repel mosquitoes without harming the environment.

    Antido Mosquito

  47. Thanks For sharing this Superb article.I use this Article to show my assignment in college.it is useful For me Great Work. 99math

  48. Thanks For sharing this Superb article.I use this Article to show my assignment in college.it is useful For me Great Work. 99math

  50. Salah satu aspek yang membuat Agenolx unggul adalah dukungan pelanggannya yang luar biasa. Tim dukungan pelanggan Agenolx terdiri dari profesional berpengalaman yang selalu siap membantu pemain dengan berbagai pertanyaan atau masalah yang mereka hadapi. Layanan pelanggan tersedia 24/7 melalui berbagai saluran komunikasi, termasuk live chat, email, dan telepon, memastikan bahwa bantuan selalu tersedia kapan saja dibutuhkan. Agenolx juga memiliki bagian FAQ yang komprehensif di situs web mereka, yang mencakup jawaban untuk pertanyaan umum mengenai pendaftaran, deposit, penarikan, dan masalah teknis lainnya. Dengan pendekatan yang proaktif dan responsif terhadap dukungan pelanggan, Agenolx memastikan bahwa setiap pemain merasa dihargai dan didukung, menciptakan pengalaman taruhan yang positif dan memuaskan bagi semua pengguna.

Leave a Reply

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