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

 

207,383 thoughts on “Railway Industry in France”

  2. Your precise information allowed me to gather the necessary knowledge. I want to express my heartfelt gratitude for this amazing insight. For entertainment lovers, don’t miss out on https://mibetdangnhap.com/. They have a fantastic selection of sports betting.

  4. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here keep up the good work nyt connections hints

  7. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. nyt connections answers

  10. I’d like to have a conversation here, which isn’t something I usually do! I appreciate reading a post that can inspire belief in others. Many thanks for allowing me to comment! CapCut Pro APK

  11. زندگی در قبرس شمالی با توجه به سبک زندگی و انتخاب‌های فردی می‌تواند هزینه‌های متفاوتی داشته باشد. به طور کلی، هزینه زندگی در قبرس شمالی مانند اجاره خانه، غذا، و حمل و نقل در مقایسه با بسیاری از کشورهای اروپایی کمتر است

  13. Thank you again for all the knowledge you distribute,Good post. I was very interested in the article, it’s quite inspiring I should admit. I like visiting you site since I always come across interesting articles like this one.Great Job, I greatly appreciate that.Do Keep sharing! Regards, feet finder celebrities

  18. ترک مخدر شیشه می‌تواند فرایندی چالش‌برانگیز و نیازمند پشتیبانی حرفه‌ای باشد. استفاده از خدمات توانبخشی و درمانی تخصصی، همچنین حمایت‌های روانی و اجتماعی، برای بازیابی سلامت و بازگشت به زندگی عادی برای ترک شیشه در مشهد ضروری است.

  19. We specialize in offering comprehensive rankings and recommendations for the top 15 private Toto sites in Korea for the first half of 2024. Our goal is to help you find the safest and most reliable options for online betting. 안전토토사이트

  21. ery efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. mobile apps charlotte

  26. Looking for modafinil for sale? Modafinil Shop 24 offers a trusted platform with various options to suit your needs. Their commitment to quality and customer satisfaction makes them a top choice for anyone seeking reliable cognitive enhancement solutions.

  27. Awesome article, it was exceptionally helpful! I simply began in this and I’m becoming more acquainted with it better! Cheers, keep doing awesome! matahari88

  28. I highly encourage everyone to like and follow this blog. I am very impressed with their ability to provide valuable assistance to the public at no cost. Their dedication to helping others is truly admirable, and I believe that by supporting and following their blog, we can all benefit from the knowledge and resources they share. It’s important to show our support for those who selflessly give their time and expertise to make a positive impact on the world. Let’s all come together to like and follow this incredible blog, and help spread the word about the valuable work they do. Henry axe lever action shotgun

  29. Great comprehend, Useful website, where by done you assembled the important points through this inserting? We have received comprehend many of the particular content along with your website now, as well as I enjoy seem. Enjoy it some type of mil as well as you should support this kind of beneficial perform the job. Love in suit

  30. Thank you for sharing this good information it will help everybody from beginner to expert. I’m Mohit Singla, a skilled software engineer at Lets Rentz are you searching for home made tiffin service near me we recently launched Tiffin Service near me order now

  31. As an online game player, you are also required to know about the game you are going to play. You are required to know the playing strategy so that you do not experience defeat. If you want to know the strategy for playing online games, just visit this website https://bintangsave.id/.id

  32. I should insist seldom of which it is amazing! The blog is usually info likewise generally fabricate wonderful entitys.

  33. برای خرید پرینتر سه بعدی از برندهای معتبر مانند Creality، Anycubic، و Prusa، می‌توانید به سایت‌های فروش آنلاین معتبری مانند آذرین تک مراجعه کنید. قیمت پرینتر سه بعدی بسته به مدل و امکانات از حدود ۱۰ میلیون تومان به بالا متغیر است.

  36. ISO 28000 Consultants in Afghanistan is an international standard that specifies the requirements for a security management system for the supply chain. It helps organizations assess and manage risks to ensure the safety and security of goods, services, and infrastructure throughout the supply chain. By implementing ISO 28000, companies can enhance the resilience of their operations, improve stakeholder confidence, and comply with legal and regulatory requirements. This standard is applicable to all sizes and types of organizations involved in manufacturing, services, storage, and transportation at any stage of the production or supply chain.

  39. Nice to be visiting your blog again, it has been months for me. Well this article that i’ve been waited for so long. I need this article to complete my assignment in the college, and it has same topic with your article. Thanks, great share. situs togel

  42. I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work.

    メルレ

  43. Acknowledges designed for record an extremely successful formulation, Once i took place adjacent to your internet site apart from decipher any specific point out. I’d personally favor kinds method regarding inscription… High cut Lycra swimsuit

  44. The Fifa womens world cup 2027 is poised to be a groundbreaking event in women’s soccer, eagerly anticipated by fans and players alike. Scheduled to take place in a host nation yet to be announced, this tournament promises to showcase the pinnacle of women’s football talent. As preparations unfold, excitement builds around the world for what will undoubtedly be a historic competition. Stay updated with the latest developments and announcements regarding the Fifa womens world cup 2027.

  45. I have express a few of the articles on your website now, and I really like your style of blogging. I added it to my favorite’s blog site list and will be checking back soon…メルレ

  47. If you’re seeking commercial junk removal services in Clovis, check out local providers who specialize in clearing out office buildings, retail spaces, and industrial sites. Look for companies with positive reviews and experience in handling large-scale cleanouts efficiently. Make sure they offer eco-friendly disposal options and competitive pricing.

  49. Just to follow up on the up-date of this subject on your web page and wish to let you know just how much I prized the time you took to publish this beneficial post. Within the post, you actually spoke regarding how to truly handle this challenge with all comfort. It would be my own pleasure to collect some more thoughts from your web-site and come up to offer other folks what I have benefited from you. Thanks for your usual good effort. टर्की आगन्तुक भिसा

Leave a Reply

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