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

 

178,036 thoughts on “Railway Industry in France”

  1. Best Family Restaurant in Zirakpur Chandigarh

    Discover the ultimate family dining experience at Nazaare the best family restaurant in Zirakpur Chandigarh , Chandigarh. Delight in delicious meals, friendly service, and a welcoming atmosphere suitable for all ages. Whether it’s a family gathering, a special celebration, or a casual meal out, Nazaare offers a diverse menu and a comfortable setting for everyone to enjoy. Treat your loved ones to a memorable dining experience at Nazaare . Explore our menu and make your reservation today!

  2. I was surfing the Internet for information and came across your blog. I am impressed by the information you have on this blog. It shows how well you understand this subject. 400 high da pa

  3. Giới thiệu Cwin địa chỉ cá cược uy tín, được cấp phép và đăng ký hợp pháp tại Costa Rica.Tại đây chúng tôi cung cấp những dịch vụ cá cược như : cá cược thể thao, casino, bắn cá đổi thưởng, hàng ngàn game bài nổi tiếng … Bên cạnh đó là những khuyến mại vô cùng hấp dẫn giành cho người chơi mới, thưởng hàng tuần, hoàn trả tiền thưởng cực cao và đội ngũ nhân viên CSKH chuyên nghiệp.
    Địa chỉ: 9 Đ. Mễ Trì, Mễ Trì, Nam Từ Liêm, Hà Nội, Vietnam
    Website: https://cwin.directory/
    Phone: 0976.788.122
    #cwin #cwin_directory #dang_nhap_cwin #link_vao_cwin

  4. DeltaMath is an interactive online platform for math practice, offering customizable problem sets, instant feedback, and progress tracking for students and Unblocked Games 6x

  6. It’s a cool experience playing online slot games, it’s really entertaining because the player population continues to grow. If you are interested in information related to this slot game, you can read it on the site we provide. For more complete information, visit the website http://mggslot.com

  7. Giới thiệu Cwin địa chỉ cá cược uy tín, được cấp phép và đăng ký hợp pháp tại Costa Rica.Tại đây chúng tôi cung cấp những dịch vụ cá cược như : cá cược thể thao, casino, bắn cá đổi thưởng, hàng ngàn game bài nổi tiếng … Bên cạnh đó là những khuyến mại vô cùng hấp dẫn giành cho người chơi mới, thưởng hàng tuần, hoàn trả tiền thưởng cực cao và đội ngũ nhân viên CSKH chuyên nghiệp.
    Địa chỉ: 9 Đ. Mễ Trì, Mễ Trì, Nam Từ Liêm, Hà Nội, Vietnam
    Website: https://cwin.directory/
    Phone: 0976.788.122
    #cwin #cwin_directory #dang_nhap_cwin

  9. Giới thiệu Cwin địa chỉ cá cược uy tín, được cấp phép và đăng ký hợp pháp tại Costa Rica.Tại đây chúng tôi cung cấp những dịch vụ cá cược như : cá cược thể thao, casino, bắn cá đổi thưởng, hàng ngàn game bài nổi tiếng … Bên cạnh đó là những khuyến mại vô cùng hấp dẫn giành cho người chơi mới, thưởng hàng tuần, hoàn trả tiền thưởng cực cao và đội ngũ nhân viên CSKH chuyên nghiệp.
    Địa chỉ: 9 Đ. Mễ Trì, Mễ Trì, Nam Từ Liêm, Hà Nội, Vietnam
    Website: https://cwin.directory/
    Phone: 0976.788.122
    #cwin #cwin_directory

  12. Cwin là một địa chỉ cá cược đáng tin cậy, đã được cấp phép và đăng ký hợp pháp tại Costa Rica. Chúng tôi mang đến cho bạn các dịch vụ cá cược đa dạng như: cá cược thể thao, casino, bắn cá đổi thưởng và hàng ngàn trò chơi bài nổi tiếng. Ngoài ra, còn có những khuyến mãi hấp dẫn dành cho người chơi mới, thưởng hàng tuần, hoàn trả tiền thưởng cao và đội ngũ chăm sóc khách hàng chuyên nghiệp.
    Địa chỉ: 9 Đ. Mễ Trì, Mễ Trì, Nam Từ Liêm, Hà Nội, Vietnam
    Website: https://cwin.directory/
    Phone: 0976.788.122
    #cwin #cwin_directory

  14. Cwin là một địa chỉ cá cược đáng tin cậy, đã được cấp phép và đăng ký hợp pháp tại Costa Rica. Chúng tôi mang đến cho bạn các dịch vụ cá cược đa dạng như: cá cược thể thao, casino, bắn cá đổi thưởng và hàng ngàn trò chơi bài nổi tiếng. Ngoài ra, còn có những khuyến mãi hấp dẫn dành cho người chơi mới, thưởng hàng tuần, hoàn trả tiền thưởng cao và đội ngũ chăm sóc khách hàng chuyên nghiệp.
    Địa chỉ: 9 Đ. Mễ Trì, Mễ Trì, Nam Từ Liêm, Hà Nội, Vietnam
    Website: https://cwin.directory/
    Phone: 0976.788.122
    #cwin #cwin_directory #dang_nhap_cwin #link_vao_cwin

  15. Cwin là một địa chỉ cá cược đáng tin cậy, đã được cấp phép và đăng ký hợp pháp tại Costa Rica. Chúng tôi mang đến cho bạn các dịch vụ cá cược đa dạng như: cá cược thể thao, casino, bắn cá đổi thưởng và hàng ngàn trò chơi bài nổi tiếng. Ngoài ra, còn có những khuyến mãi hấp dẫn dành cho người chơi mới, thưởng hàng tuần, hoàn trả tiền thưởng cao và đội ngũ chăm sóc khách hàng chuyên nghiệp.
    Địa chỉ: 9 Đ. Mễ Trì, Mễ Trì, Nam Từ Liêm, Hà Nội, Vietnam
    Website: https://cwin.directory/
    Phone: 0976.788.122
    #cwin #cwin_directory #dang_nhap_cwin

  16. Cwin là một địa chỉ cá cược đáng tin cậy, đã được cấp phép và đăng ký hợp pháp tại Costa Rica. Chúng tôi mang đến cho bạn các dịch vụ cá cược đa dạng như: cá cược thể thao, casino, bắn cá đổi thưởng và hàng ngàn trò chơi bài nổi tiếng. Ngoài ra, còn có những khuyến mãi hấp dẫn dành cho người chơi mới, thưởng hàng tuần, hoàn trả tiền thưởng cao và đội ngũ chăm sóc khách hàng chuyên nghiệp.
    Địa chỉ: 9 Đ. Mễ Trì, Mễ Trì, Nam Từ Liêm, Hà Nội, Vietnam
    Website: https://cwin.directory/
    Phone: 0976.788.122

  18. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. Private Offices

  23. I recently placed an order for fresh fish from Seaberry, and I couldn’t be more satisfied with the experience! The fish was incredibly fresh, perfectly packaged, and delivered right on time. It’s so convenient to have high-quality seafood available at the click of a button. If you’re looking to order fresh fish, I highly recommend trying Seaberry. The taste and quality are unmatched, making it a great choice for seafood lovers.

    https://seaberryonline.com/subcategory-list

  28. Aviator game by Spribe is a crash game where players bet on a rising multiplier. The goal is to cash out before the plane crashes. It’s a blend of luck and strategy, offering high risk and high reward.

  30. WASP Fitness is an online store offering a range of fitness supplements tailored to enhance various aspects of physical health and performance. Their product lineup includes pre-workout supplements such as gummies and powders designed to boost energy and focus before workouts. For post-exercise recovery, they provide products like BCAAs, glutamine, and creatine to aid in muscle repair and reduce soreness. They also offer metabolism support supplements aimed at increasing metabolic rate and assisting with weight management. To support hormonal health, WASP Fitness features testosterone-boosting products that help increase muscle mass and energy levels. Additionally, their sleep support supplements are formulated to promote deep, restful sleep, ensuring optimal recovery and overall well-being. The website caters to different fitness needs and goals, providing high-quality supplements to help individuals unlock their full potential.

  31. New Jersey boasts a vibrant street food scene, offering a diverse array of flavors and cuisines from around the world. From savory tacos and gourmet burgers to exotic kebabs and traditional desserts, the state’s street food vendors and food trucks cater to a variety of tastes, making it a haven for food enthusiasts.
    https://food-street.us/

  32. Jumperfit Trampoline I recently explored Kinder Art Impex, and I am thoroughly impressed with their offerings. The website provides a diverse range of high-quality art supplies suitable for both professional artists and hobbyists. Their user-friendly interface makes browsing and purchasing effortless. I particularly appreciated the detailed product descriptions and the vibrant images that truly showcase the items’ quality. The customer service is exceptional, with prompt responses and helpful advice. Shipping was timely, and my order arrived well-packaged. Overall, Kinder Art Impex is a reliable and excellent source for art materials. Highly recommended!

  33. Thank you for the valuable information mentioned in the blog! It has been incredibly helpful and informative. I appreciate the insights shared and look forward to more such content. Thanks again for your effort and time in putting this together! Slot Malaysia

  35. How Much Liposuction Cost in India The Health Harbour offers a wide range of medical treatments and services including stem cell therapy, cosmetic surgery, fertility treatments, dental care, orthopedic surgeries, Ayurveda, obesity management, and eye care. They emphasize personalized care and global accessibility through their Health Harbour Pass. Their website is user-friendly, providing easy access to information about their treatments, destinations, packages, and appointment scheduling. The platform also features testimonials, doctor profiles, and a resource hub to assist patients in making informed healthcare decisions.

  37. Best Liposuction Surgeon in India The Health Harbour offers a wide range of medical treatments and services including stem cell therapy, cosmetic surgery, fertility treatments, dental care, orthopedic surgeries, Ayurveda, obesity management, and eye care. They emphasize personalized care and global accessibility through their Health Harbour Pass. Their website is user-friendly, providing easy access to information about their treatments, destinations, packages, and appointment scheduling. The platform also features testimonials, doctor profiles, and a resource hub to assist patients in making informed healthcare decisions.

  45. I am really loving the theme/design of your web site. Do you ever run into any browser compatibility problems? A few of my blog readers have complained about my website not working correctly in Explorer but looks great in Chrome. Do you have any tips to help fix this issue? Board-certified psychiatric care

Leave a Reply

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