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

 

174,800 thoughts on “Railway Industry in France

  1. First time i visited to your blog, and the information you have provided in the articles is impressive. Thank you for sharing useful material.

    JILI SLOT 777 on jilislot Philippines offers an exciting slot gaming experience with thrilling themes and big rewards. It’s a top choice for online slot enthusiasts looking for fun and winnings.

  2. Need reliable assignment help? The Assignment Desk is here for you! Our experts provide top-notch assistance for essays, case studies, and research papers. Achieve academic success and say goodbye to stress. Reach out to the Assignment Desk today for all your assignment help needs!

  3. This blog is definitely rather handy since I’m at the moment creating an internet floral website – although I am only starting out therefore it’s really fairly small, nothing like this site. Can link to a few of the posts here as they are quite. Thanks much. Zoey Olsen organizacja imprez firmowych warszawa

  4. There exist a couple of many different distinct levels among the California Weight loss program and each and every a person is pretty important. You’re procedure stands out as the the actual giving up with all the power. weight loss sinden 4d

  5. spotify vanced is a modified version of the popular music streaming app, Spotify, that offers users premium features for free. With Spotify Mod, users can enjoy ad-free music streaming, unlimited skips, and the ability to download music for offline listening without a premium subscription. Additionally, Spotify Mod allows users to bypass geographic restrictions, giving them access to music that may not be available in their region. Overall, Spotify Mod provides a premium music streaming experience without the cost, making it a popular choice for music lovers worldwide.

  6. Please let me know if you’re looking for a article writer for your site. You have some really great posts and I feel I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thank you! 메이저 토토

  7. فني تكييف هندي بالكويت تقدم لكم أفضل خدمات منازل تصليح وصيانة تكييف مركزي ٢٤ ساعة، فني تكييف باكستاني، رقم فني تكييف 60313102 فني تكييف وحدات وتركيب وغسيل وغاز فني تكييف

  8. Global Service Care in Pala, Kottayam is a leading provider of appliance repair services, renowned especially as a premier Samsung washing machine service centre in Kottayam. Their team of highly skilled technicians is adept at handling all models of Samsung washing machines, ensuring efficient and reliable repairs. Committed to excellence, Global Service Care uses only genuine parts and the latest diagnostic tools to deliver top-notch service. Whether it’s a minor issue or a major repair, residents of Kottayam can trust Global Service Care to restore their Samsung washing machines to optimal performance swiftly and professionally.
    http://samsung-washing-machine-repair-service-centre-in-pala-kottayam/

  9. فني تكييف هندي بالكويت تقدم لكم أفضل خدمات منازل تصليح وصيانة تكييف مركزي ٢٤ ساعة، فني تكييف باكستاني، رقم فني تكييف 60313102 فني تكييف وحدات وتركيب وغسيل وغاز فني تكييف باكستاني

  10. It is a great suggestions specifically to be able to people not used to blogosphere, quick and also correct information… Thank you regarding revealing this place. A necessity examine write-up. Manaslu Trekking

  11. فني تكييف هندي بالكويت تقدم لكم أفضل خدمات منازل تصليح وصيانة تكييف مركزي ٢٤ ساعة، فني تكييف باكستاني، رقم فني تكييف 60313102 فني تكييف وحدات وتركيب وغسيل وغاز فني تكييف ٢٤ ساعة

  12. فني تكييف هندي بالكويت تقدم لكم أفضل خدمات منازل تصليح وصيانة تكييف مركزي ٢٤ ساعة، فني تكييف باكستاني، رقم فني تكييف 60313102 فني تكييف وحدات وتركيب وغسيل وغاز فنى تكييف

  13. Thank you for sharing this good information it will help everybody from beginner to expert. I’m Mohit Singla, a skilled software engineer at Lets Rentz we recently launched Tiffin Service in Mohali order now

  14. I completely agree with your insights on digital marketing. For anyone looking to enhance their online presence, I highly recommend checking out this amazing dịch vụ entity. It’s a game-changer for improving your search engine rankings and building a robust online brand. Thanks for sharing such valuable information!

  15. Great post! I recently discovered a fantastic website that I think complements the content here perfectly. For those who love entertainment and quality streaming, check out Luong Son TV. They offer an incredible selection of shows and movies that you can enjoy in high quality.

  16. Looking for DMT vape carts in the USA? Explore our premium selection today! Elevate your experience with our top-grade DMT vape cartridges, carefully crafted for maximum potency and purity. Enjoy convenient shopping and discreet delivery nationwide.
    https://dmtcartofficaill.com/

  17.  is an innovative online platform transforming math education through gamified challenges and collaborative problem-solving, enhancing students’ critical … 99math

  18. First time i visited to your blog, and the information you have provided in the articles is impressive. Thank you for sharing useful material.

    Jili Betting offers an exciting experience with Jili Bet, providing a variety of engaging themes and big win potential. It’s perfect for anyone looking to enjoy online slot gaming.

  19. This is the good guidelines specially for you to those people new at all to blogosphere, simple along with exact information… Cheers pertaining to expressing this. Absolutely essential go through content. thc cannabisblüten kaufen

  20. Wow, What a Excellent post. I really found this to much informatics. It is what i was searching for.I would like to suggest you that please keep sharing such type of info.Thanks 메이저사이트

  21. Experience the ultimate online casino GBGVIP gaming at the industry’s top destination. Discover an exclusive selection of table and live games, along with thrilling jackpots that are guaranteed to keep you entertained.

  22. I wanted to thank you for this excellent read!! I definitely loved every little bit of it. I have you bookmarked your site to check out the new stuff you post. Seks Hikayesi

  23. Thanks for these two very informative articles and taking the time to explain what is a pretty complex topic on web management. Well written, clear and concise. Tech 4 Mind

Leave a Reply

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