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

 

176,579 thoughts on “Railway Industry in France”

  1. We still cannot quite believe I would come to be those types of checking important points entirely on your webblog. My children i are sincerely thankful for ones generosity also giving me possibility pursue our chosen profession path. Information info I acquired of the web-site. Opium poppy pods(Papaver somniferum

  3. Dreamerland AI is one of the pioneering platforms for processing images with AI artificial intelligence. Now you can customize your Image with text commands and use tools to give it a new look. The AI system analyzes and produces the most impressive results for you based on the textual information you provide. Along with that, you can use different filters and themes for your image and create your animation like you do.

  5. Sahar Tech is a leading .Com Domain Provider in Pakistan renowned for its exceptional services and customer support. Their professional team ensures seamless domain registration, making them the go-to choice for businesses and individuals looking to establish a strong online presence. With Sahar Tech, you can expect reliable and efficient service, tailored to meet your specific needs in the ever-evolving digital landscape.

  7. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don’t forget, keep sharing useful info:e-ticaret sitesi

  12. Interesting post. I Have Been wondering about this issue, so thanks for posting. Pretty cool post.It ‘s really very nice and Useful post.Thanksrundpools set

  13. Kripto Galaxy is a groundbreaking virtual universe where blockchain technology meets the cosmos. In this expansive digital realm, users explore a vibrant galaxy filled with planets, each representing a different cryptocurrency. These planets offer unique opportunities for trading, mining, and earning digital assets. With stunning graphics and immersive gameplay, Kripto Galaxy combines the excitement of space exploration with the innovative world of decentralized finance. Kripto galaxy battle

  15. Temukan jackpot terbesar di setiap permainan Mpo303, situs game online dengan reputasi terbaik dan layanan pelanggan 24 jam

  16. Take to the skies with SPRIBE’s Aviator game! Experience the thrill of high-flying adventure and big wins. Try the Aviator demo today and see why everyone is talking about this exhilarating game. Don’t miss your chance to soar—play the Aviator demo now

  24. Wall Design And Decor Solutions!

    Collection Of Unique Wall Design Ideas Discover Cabinets, Mirrors, Clocks, Premium Interior Paints, Modern Wall Art Decorations. unique wall designs

  25. Wall Design And Decor Solutions!

    Collection Of Unique Wall Design Ideas Discover Cabinets, Mirrors, Clocks, Premium Interior Paints, Modern Wall Art Decorations. unique wall designs

  28. Enhance your gaming strategy with RTP Live! Visit our site for today’s best RTP advice and stay informed on the latest developments from Pragmatic Play’s updated RTP Live offerings. daduslot88

  30. For anyone looking to combine the excitement of gaming with the potential to earn money, this site is perfect. The numerous earning opportunities are both exciting and lucrative. empiretoto

  32. For those in need of a trusted public adjuster in Florida, Darryl Davis & Associates is the top choice. Their expertise ensures you get the best possible settlement for your insurance claims. Highly professional and reliable service!

  33. I recently had the pleasure of visiting the Nexa service centre in Muvattupuzha operated by Jawan Maruti and Nexa Service, and I must say, the experience was outstanding! The staff were incredibly knowledgeable and friendly, and the level of service provided was top-notch. My car received thorough attention, and the technicians ensured everything was in perfect working order. It’s reassuring to know there’s a reliable Nexa service centre in Muvattupuzha that I can trust for all my car maintenance needs. Highly recommend Jawan Maruti and Nexa Service to anyone looking for quality automotive care!

    https://jawanauto.com/service/nexa-service-center/

  38. Considering the current market dynamics, SBI Balanced Advantage Fund emerges as a prudent choice for investors seeking a blend of stability and growth potential. Its adaptive asset allocation strategy not only mitigates risks but also capitalizes on opportunities across market cycles. This makes it a compelling option for those looking to optimize their investment portfolio with a disciplined approach.
    https://www.mysiponline.com/mutual-fund/sbi-balanced-advantage-fund/mso4066

  39. A combo shop, or combination store, merges different products or services under one roof for customer convenience. Examples include a bookstore with a café, a grocery store with a pharmacy, or a gas station with a car wash. These hybrid stores attract more foot traffic, enhance customer experience, and offer a competitive edge by providing multiple needs in a single visit.

  40. I’ve never seen such a good article in my life. I was so touched by your writing I hope you continue to write good things like this 토토사이트 I hope you have a good day with me I pray that every day will be a pleasant day

  41. A combo shop, or combination store, merges different products or services under one roof for customer convenience. Examples include a bookstore with a café, a grocery store with a pharmacy, or a gas station with a car wash. These hybrid stores attract more foot traffic, enhance customer experience, and offer a competitive edge by providing multiple needs in a single visit.

  45. Gaur Aero Mall presents a golden opportunity to secure your share of this thriving retail destination. Invest in Gaur Aero Mall and unlock a future brimming with potential.

  46. Transform your social media strategy with top-notch smm services in dubai. These services are designed to increase brand visibility and engagement through targeted content and campaigns. Leverage SMM services in Dubai to effectively connect with your audience and drive business growth.

  47. Home theater installation is a transformative process that elevates your entertainment experience by bringing the cinematic feel right into your home. A well-executed installation requires careful planning and attention to detail. Key considerations include selecting the right equipment, such as a high-quality projector or large-screen TV, a powerful sound system, and comfortable seating arrangements. Additionally, proper placement of speakers, optimizing room acoustics, and integrating smart home technology can significantly enhance the overall experience. Professional installation is often recommended to ensure everything is set up correctly, providing you with an immersive and enjoyable viewing experience.

Leave a Reply

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