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

 

177,302 thoughts on “Railway Industry in France”

  1. This type of message always inspiring and I prefer to read quality content, so happy to find good place to many here in the post, the writing is just great, thanks for the post. acim online

  2. I really loved reading your blog. It was very well authored and easy to undertand. Unlike additional blogs I have read which are really not tht good. I also found your posts very interesting. In fact after reading, I had to go show it to my friend and he ejoyed it as well! acim online

  4. Nha Cai FB88 là nhà cái cá cược trực tuyến uy tín hàng đầu Châu Á, được thành lập từ năm 2008 và hiện đang sở hữu giấy phép hoạt động hợp pháp bởi First Cagayan Leisure & Resort Corporation (First Cagayan) tại Đặc khu kinh tế Cagayan, Philippines.

  5. When you play online slot games with the Login Joker123 Texas88 agent, you can place bets with a low budget but still enjoy minimal deductions. Currently, Login Joker123 slot games are the top choice in the world of online gambling, attracting both professional gamblers and beginners who are eager to win and place large bets. The Login Joker123 agent offers numerous promotions with fantastic bonuses, which can certainly boost your enthusiasm for playing online slot games with our agency.

  6. When you play online slot games with the Login Joker123 Texas88 agent, you can place bets with a low budget but still enjoy minimal deductions. Currently, Login Joker123 slot games are the top choice in the world of online gambling, attracting both professional gamblers and beginners who are eager to win and place large bets. The Login Joker123 agent offers numerous promotions with fantastic bonuses, which can certainly boost your enthusiasm for playing online slot games with our agency.

  7. Stylish folks create, the important points could be very helpful as well as beneficial, We are going to offer web page link for the website. Topcer88 Slot

  10. Thanks for your post. I’ve been thinking about writing a very comparable post over the last couple of weeks, I’ll probably keep it short and sweet and link to this instead if thats cool. Thanks. alexistogel

  11. Brighten your home with our cutting-edge Lighting Solutions in Hampstead NC. We offer a wide range of lighting options, including energy-efficient LEDs, smart lighting systems, and decorative fixtures. Our team designs and installs lighting that enhances your home’s ambiance, functionality, and aesthetic appeal.

  13. It was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing. axeslot

  14. I’ve proper selected to build a blog, which I hold been deficient to do for a during. Acknowledges for this inform, it’s really serviceable!
    小額貸款

  15. This is a good post. This post gives truly quality information. I’m definitely going to look into it. Really very useful tips are provided here. Thank you so much. Keep up the good works. axeslot

  21. When considering safety tips for pacemaker, it’s vital to understand that safety tips for pacemaker management can greatly enhance safety. Following safety tips for pacemaker care, such as avoiding strong magnetic fields and keeping electronic devices at a safe distance, is crucial. Always inform medical professionals about your pacemaker before any procedures, as adherence to safety tips for pacemaker use ensures optimal health and functionality.

  22. I’m constantly searching on the internet for posts that will help me. Too much is clearly to learn about this. I believe you created good quality items in Functions also. Keep working, congrats! casinoslotsvibes

  24. I must say, as a lot as I enjoyed reading what you had to say, I couldnt help but lose interest after a while. Its as if you had a wonderful grasp on the subject matter, but you forgot to include your readers. Perhaps you should think about this from far more than one angle. Or maybe you shouldnt generalise so considerably. Its better if you think about what others may have to say instead of just going for a gut reaction to the subject. Think about adjusting your own believed process and giving others who may read this the benefit of the doubt. https://amkebassinets.com/

  25. I am interested in looking for more of such topics and would like to have further information. Hope to see the next blog soon. slot gacor

  26. Hey there! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Superb blog and wonderful design. slot gacor

  28. 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. slot gacor

  31. Please let me know if you’re looking for a author for your site. You have some really good posts and I believe I would be a good asset. If you ever want to take some of the load off, I’d really like to write some content for your blog in exchange for a link back to mine. Please blast me an e-mail if interested. Regards! TechTester

  34. I’ve really noticed that repairing credit activity needs to be conducted with tactics. If not, you will probably find yourself destroying your standing. In order to succeed in fixing your credit score you have to ensure that from this second you pay all of your monthly dues promptly in advance of their slated date. It’s really significant given that by definitely not accomplishing this, all other activities that you will choose to use to improve your credit rank will not be useful. Thanks for sharing your strategies. TechTester

  36. We offer professional, courteous and affordable services. Our drivers have years of reliable service to their credit. We cater for special events such as weddings, concerts, corporate gatherings and other special occasions that require special transport services.

    https://www.buklup.com/

  38. An impressive share, I simply with all this onto a colleague who was simply carrying out a little analysis for this. And that he in truth bought me breakfast since I ran across it for him.. smile. So i want to reword that: Thnx for the treat! But yeah Thnkx for spending some time to talk about this, I feel strongly concerning this and love reading regarding this topic. Whenever possible, as you become expertise, do you mind updating your blog post with an increase of details? It truly is highly a good choice for me. Big thumb up due to this post! TechTester

  39. The Set for Life results are published on this website every Monday and Thursday. Check to confirm if you played the winning numbers of the popular UK draw. We post the official results of the Set for Life draw as soon as they are held. So you’re guaranteed to be among the first group of. set for life

  40. Everything you wrote in this article is very useful and useful for everyone. And we have a website that discusses very interesting slot games, with surveys carried out almost every day, it is not uncommon for the game recommendations we provide to provide profits and even very large profits. https://coin.reise/

  42. You are truly extraordinary, you have helped many people, and please see the link below to find out about the most popular online games this year and can make money, you know. https://depeo-creation.com/

  43. Once again, I would like to thank you, thanks to the information you provided, many of our friends found it helpful, and all of you were able to find out the secrets of the very cool games on Livegames. https://adamrood.com/

  44. This is a appropriate blog for everyone who is wishes to find out about this topic. You understand a great deal its practically challenging to argue with you (not that I just would want…HaHa). You certainly put a brand new spin on a topic thats been discussed for years. Great stuff, just fantastic! Nobel 32 Inch Smart LED TV 32ME7

  47. Thank you in advance for what you have provided with this extraordinary article. For those of you who are looking for a trusted online game website, immediately click the link below. https://hindiwiki.co/

  49. Pride Insurance Services in Cheyenne WY offers reliable Health Insurance Services in Cheyenne WY solutions designed to protect you and your family. With a commitment to exceptional customer care, we guide you through the complexities of insurance, ensuring you make informed decisions. Trust us to safeguard your health with quality coverage options and personalized service.

  50. Pride Insurance Services in Cheyenne WY offers reliable health insurance solutions designed to protect you and your family. With a commitment to exceptional customer care, we guide you through the complexities of insurance, ensuring you make informed decisions. Trust us to safeguard your health with quality coverage options and personalized service.

    Visit for more information: https://www.insuredwithpride.com/health-insurance-services

Leave a Reply

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