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

 

206,794 thoughts on “Railway Industry in France”

  1. An interesting discussion is value comment. I believe that it’s best to write extra on this subject, it may not be a taboo topic but usually individuals are not sufficient to speak on such topics. To the next. Cheers Garages to rent london

  3. Breathwork is a practice involving conscious control of breathing patterns to improve physical, mental, and emotional well-being. Through various techniques such as deep diaphragmatic breathing, rhythmic breathing, and breath retention, breathwork aims to enhance oxygen flow, reduce stress, and promote relaxation.

  4. The paragraph is worth to examine. The clarity as well as structure that shines from this internet site post. Now-a-days blogs are used in each in addition to every field. The information that we recieve from them are unevitable. The attribute required is the power of creativity within itself through learning, thinking, creating along with rigorous learning. Therefore the internet site post is immensely helpful for the readers. Thank you a lot for writing form a magnificent editorial. I will wait for your next editorial with grand egarness. emsculpt near me

  5. Have you ever considered publishing an e-book or guest authoring on other sites? I have a blog based upon on the same subjects you discuss and would really like to have you share some stories/information. I know my readers would value your work. If you are even remotely interested, feel free to shoot me an email. tp钱包

  6. After study many of the blog posts on the site now, we truly such as your way of blogging. I bookmarked it to my bookmark website list and will also be checking back soon. Pls take a look at my web-site as well and figure out if you agree. outdoor furniture restoration

  7. This may be a really good hints mainly that will the ones novices at blogosphere, shorter together with complete information… Kudos meant for posting ours. Extremely important look over report. 소액결제

  8. WispWillow is a mythical plant renowned for its ethereal beauty and mysterious qualities. It is often depicted as a slender, graceful tree with delicate, luminescent leaves that emit a soft, otherworldly glow. This plant is said to thrive in the moonlight, adding an extra layer of magic to its already enchanting presence.

  10. I do agree with all of the ideas you’ve presented in your post. They’re very convincing and will certainly work. Still, the posts are very short for starters. Could you please extend them a bit from next time? Thanks for the post. 鋼琴老師

  14. Sp5der Hoodies
    are perfect for daily life, outdoor activities, fitness enthusiasts, and gaming sessions. They’re great for running errands, hiking, camping, working out, or just lounging around

  15. An impressive share, I recently given this onto a colleague who was conducting a little analysis with this. Anf the husband in fact bought me breakfast since I found it for him.. smile. So i want to reword that: Thnx with the treat! But yeah Thnkx for spending any time to talk about this, I’m strongly concerning this and adore reading on this topic. If it is possible, as you grow expertise, does one mind updating your site to comprehend details? It truly is highly of great help for me. Large thumb up because of this post! ნზეტა ვიზა

  17. Compete the great get the job done, As i browse small amount of content articles in this particular websites and even It looks like that your choice of word wide web web log is without a doubt realistic important and allows gotten forums in fabulous tips. 男を放置できる女

  19. Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your website? My blog is in the very same niche as yours and my visitors would genuinely benefit from a lot of the information you provide here. Please let me know if this okay with you. Thank you! blippi impersonators near me

  23. Great post. The particular submit has an effect on plenty of important difficulties individuals community. We all can’t be uninvolved to be able to these kinds of difficulties. This kind of submit offers guidelines and also principles. Extremely useful and also sensible. https://health47.com

  24. Thank you for any other magnificent post. Where else could anyone get that type of information in such a perfect way of writing? I’ve a presentation subsequent week, and I’m at the search for such information. 教 鋼琴

  27. LOMBAQQ merupakan 16 daftar pkv games terbaru gampang jackpot 2024, beragam permainan kartu dan slot terpercaya anti rungkad untuk pecinta pkv games lomba qq Lombaqq

  28. Faffbet Online bahis ve casino oyunları, dijital çağın gelişmesiyle birlikte oldukça popüler hale gelmiştir. Bu sektörde rekabetin artması, kullanıcıların farklı platformlar arasında seçim yapmasını zorlaştırmaktadır.

  32. When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I purchase four emails sticking with the same comment. Can there be that is you’ll be able to eliminate me from that service? Thanks! video production miami

  34. I’ve observed that in the world these days, video games are definitely the latest rage with kids of all ages. There are times when it may be extremely hard to drag your kids away from the video games. If you want the best of both worlds, there are lots of educational gaming activities for kids. Great post. NSFW chatbot

  36. Wonderful illustrated information. I thank you about that. No doubt it will be very useful for my future projects. Would like to see some other posts on the same subject! Wikipedia Links

  41. sometimes affect your placement in google and could damage your high quality score if ads and marketing with Adwords. Anyway I am adding this RSS to my email and could look out for much more of your respective intriguing content. Make sure you update this again very soon.. best services

  42. score if ads and marketing with Adwords. Anyway I am adding this RSS to my email and could look out for much more of your respective intriguing content. Make sure you update this again very soon.. best services

  43. You can certainly see your expertise within the work you write. The sector hopes for even more passionate writers such as you who aren’t afraid to mention how they believe. At all times go after your heart. hongtogel

  44. You could definitely see your expertise within the work you write. The arena hopes for more passionate writers like you who are not afraid to say how they believe. Always follow your heart. best services

  46. You will find on our sites distinctive no deposit bonuses,no deposit casino , no deposit poker , no deposit bingo , no deposit forex and all the most effective deposit bonuses hongtogel

  50. ทำความรู้จักกับ ฟาเทค ยาแก้แพ้ที่กำลังเป็นที่นิยมจากวัยรุ่น
    สำหรับยา Fatec หรือ ฟาเทคหมายถึงยาที่ต้านทานอาการแพ้ที่ขายโดย บริษัท ฟาร์มาฮอฟ จำกัด มีชื่อยาสามัญก็คือ CETIRIZINE HYDROCHLORIDE จัดอยู่ในกรุ๊ปยาชนิดเซเทอริซีน ( Ceterizine ) นั่นเองโดยฟาเทค มีคุณลักษณะรักษาอาการแพ้ทั่วๆไปที่ไม่รุนแรง ตัวสารข้างในยาจะยั้งการปลดปล่อย Histamine ที่ร่างกายผลิตขึ้นเมื่อกำเนิดอาการแพ้แล้วก็ควบคุมให้อยู่ในจุดที่ปลอดภัยต่อสภาพร่างกายมนุษย์ ฟาเทค

Leave a Reply

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