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

 

213,465 thoughts on “Railway Industry in France”

  1. Overwhelming data, central and stunning new development, as thought mistaking stuff for worked with encounters and pieces of data, stores of shocking data and motivation, the two of which I really need, seeing at thought as a particularly obliging data here. INEED Motors 6mm planetary gear motor low speed high torque electric motor

  2. รวมเว็บตรงค่ายPGลิขสิทธิ์แท้100% USUN5G เว็บสล็อตออนไลน์ แตกหนัก แตกจริง บาคาร่าและเกมสล็อตและอื่นๆอีกมากมาย เข้าเล่นได้ทั้งในระบบ Android และ Ios ระบบเกมสล็อตภาพ 3D คมชัดและสมจริง มั่งคง ปลอดภัย 100% promotion ผู้เล่นจะต้องเลือกเกมสล็อต pg เว็บตรง ของแท้ เว็บรวมสล็อตออนไลน์ ที่ได้รับความนิยมเป็นอย่างมากจากทั้งผู้เล่นในต่างประเทศและในประเทศ

  3. 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.

  7. Bodrum, a picturesque town on Turkey’s southwestern coast, is a paradise for maritime enthusiasts. The allure of its crystal-clear waters, ancient ruins, and vibrant nightlife makes it a prime destination for yacht charters, boat rentals, and luxury charter services. Whether you are seeking adventure or relaxation, Bodrum offers a unique and unforgettable experience on the Aegean Sea.
    Reference : https://charterbodrum.com/

  9. Employing a escort service lahore for the night can be an intriguing technique for investigating your sexual longings. A call young woman offers kinship and cozy organizations as a trade off for portion, permitting you to experience real euphoria with practically zero strings joined.

  13. 79king tự hào là sảnh cược trực tuyến hàng đầu tại Châu Á. Nhiều ưu đãi siêu hấp dẫn, link vào nhà cái cực chuẩn, mới nhất 2024.

  17. Extraordinary things you’ve generally imparted to us. Simply continue written work this sort of posts.The time which was squandered in going for educational cost now it can be utilized for studies.Thanks copper machining

  20. Good health is essential for overall well-being and quality of life. It encompasses not just the absence of illness but a state of physical, mental, and social well-being. Achieving and maintaining good health involves a combination of factors.

    Firstly, nutrition plays a crucial role. A balanced diet rich in fruits, vegetables, lean proteins, and whole grains provides the necessary nutrients for bodily functions and immune system support. Hydration is also vital for optimal health.https://blogs.cornell.edu/advancedrevenuemanagement12/2012/03/26/railway-industry-in-france/comment-page-1246/#comment-134841

  23. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. hei-cast

  25. Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include. hoki 22

  26. Kijangtoto merupakan situs taruhan yang menyediakan layanan permainan online dengan lisensi terpercaya. Pengguna dapat memasang taruhan pada berbagai jenis taruhan yang tersedia di platform kijang toto.

  28. I definitely enjoying every little bit of it. It is a great website and nice share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work. medical device prototype

  30. Everything is very open with a clear clarification of the challenges.
    Great post, I believe website owners should learn a lot from this site its really user genial
    It was definitely informative. Your website is very useful.
    Thank you for sharing!

    Visit Elite Furnaces

  31. Genieße leckere Shakes, die so schmecken wie der Lieblings-Milchshake aus deiner Kindheit und dabei wirken wie teure Astronautennahrung. Starte noch heute, wenn du Gewicht zunehmen möchtest. CaloVital gibt es aktuell in 15 leckeren Geschmacksrichtungen. Egal ob klassische Sorten wie Schokolade und Vanille, fruchtige Sorten wie Erdbeere, Blaubeere, Banane, Joghurt-Kirsche oder unsere Dessert-Sorten Tiramisu, Apfelstrudel, Käsekuchen. Hier ist sicherlich auch für deinen Geschmack das Passende dabei. Teste noch heute den leckeren Zunehm-Shake von CaloVital. Die Nr.1 zum Zunehmen bei Untergewicht.
    hochkalorische Trinknahrung

  36. Messiturfcom offers premium artificial turf solutions tailored for residential and commercial spaces, blending durability with natural aesthetics to create vibrant, low-maintenance landscapes latest news.

  39. Persons appreciate shopping for amazing, appealing, fascinating and from time to time attractive aromas for them selves and pertaining to others. This can be executed conveniently along with inexpensively in an on-line perfume shop. mjp 3d printing

  41. Kakek680 is an online gaming site that provides wins for members who like playing online slot games. Slot game lovers play immediately on the Kakek680 site, because it has been proven that many members will get JackPot

  46. Discover top bubble insulation manufacturers in India offering high-quality products for enhanced energy efficiency. From Supreme Industries to Aerolam Insulations, explore durable solutions that optimize thermal resistance and reduce energy costs effectively.
    https://www.tirisystems.com/

  47. Discover top bubble insulation manufacturers in India like Supreme Industries and Aerolam Insulations, known for high-quality products that enhance energy efficiency. Perfect for roofs, walls, and HVAC ducts, these solutions offer cost-effective insulation for diverse applications.
    https://www.tirisystems.com/

  49. It’s a superior strategies notably to help you the a newcomer to blogosphere, summary and even legitimate information… Bless you designed for writing this town. Required browse guide. Growth Matrix

Leave a Reply

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