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

 

222,866 thoughts on “Railway Industry in France”

  3. Calendly boasts a range of features to enhance scheduling efficiency. These include calendar integration, customizable availability, automatic time zone detection, and reminders. The platform also offers paid plans with advanced functionalities for more complex scheduling needs. What is Calendly

  4. Welcome to Edinburgh Airport Transfers Ltd, your trusted partner for seamless and reliable transportation services in the heart of Scotland’s capital, affectionately known as ‘Auld Reekie.’ We specialize in handling all your transportation needs with ease and efficiency. Edinburgh tours

  5. Aluminum coated steel, otherwise called aluminum coated or aluminized steel, is a composite material that joins the strength and sturdiness of steel with the erosion opposition and lightweight properties of aluminum. In this cycle, a slight layer of aluminum is applied to the outer layer of steel through hot-plunging or a comparable strategy, making a defensive boundary against rust and different types of erosion. This covering upgrades the life expectancy and execution of steel, making it reasonable for a large number of uses in ventures, for example, car, development, and assembling. Aluminum coated steel is esteemed for its adaptability, as it offers amazing formability, weldability, and paint grip while keeping up with cost-viability. Normal purposes incorporate material and siding materials, auto parts, domestic devices, and air conditioning frameworks. Its capacity to endure cruel natural circumstances while staying lightweight and practical settles on aluminum coated steel a favored decision for different primary and ornamental purposes. aluminum coated steel

  6. Enhance Your Outdoor Space with Prime Construction Group! Our expert team specializes in top-quality Awnings Services in Long Island NY. From stylish designs to durable installations, we ensure your outdoor areas are both functional and visually appealing. Trust us to provide personalized solutions that meet your needs and elevate your property’s look. Contact us today!

  7. This article provides an insightful analysis of the railway industry in France, drawing interesting parallels with the airline industry. The unique characteristics of railway services, such as inflexible capacity, variable demand, and perishable inventory, make revenue management strategies particularly relevant. It’s fascinating to see how SNCF and TGV have adapted to these challenges, offering various classes and seating options to cater to different customer segments.

    The idea of transforming a train car into a mini-cinema for overnight journeys is especially innovative and could enhance the passenger experience while optimizing the use of space. Additionally, the concept of charging different fares for various seating configurations within each class could further maximize revenue and meet diverse customer preferences.

    For anyone interested in exploring effective revenue management and digital marketing strategies in the transport sector, I recommend visiting Sales Amplifiers at https://salesamplifiers.com. They offer valuable insights and solutions tailored to industries with similar dynamics.

  8. My Private Service: Premier Chauffeur Service in Paris Discover the elegance and convenience of our Chauffeur Service in Paris with My Private Service. Whether you’re traveling for business or leisure, our team of professional drivers is here to ensure a seamless and luxurious journey. Experience the best of Parisian transport with My Private Service, where our commitment to excellence and customer satisfaction is unmatched. Book with us today for a journey that combines luxury, comfort, and reliability.
    Chauffeur Service in Paris

  11. Find the most recent Christmas outfits for kids with Drip Infinity, highlighting bubbly plans and comfortable materials to keep your little ones upscale and comfortable this Christmas season. From delightful dresses to enchanting sweaters, track down the ideal troupe for happy festivals. christmas outfits for kids

  12. در این مطلب از سایت آسیانیوز به مجموعه های برتر چاپ ساک دستی در تهران اشاره کردیم. تمامی مراکز معرفی شده جز مجموعه های با سابقه، معتبر و دارای مجوز کسب هستند که شما میتوانید با خیال راحت برای سفارش ساک تبلیغاتی به آنها مراجعه کنید.

  13. Onze dakkapellen zijn van hoge kwaliteit tegen een scherpe prijs en we geven een garantie van 15 jaar. We leveren door heel Nederland en plaatsen een dakkapel binnen één dag. Vaak is er geen vergunning nodig, afhankelijk van de gemeente en de plaatsing van de dakkapel. Voor specifieke informatie kun je onze vergunningenpagina raadplegen. dakkapel Leeuwarden offerte

  14. Professional Appearance: Create a personalized scheduling link that reflects your brand, allowing clients and colleagues to easily access your availability. Calendly

  15. As i can see this write-up. I think Persons healthy many exertion for producing that write-up. Now i am attracted to your livelihood. Calendly

  16. I know of their column. As i learn Persons healthy getting some sort of a lot of realize its tricky to help found of which document. As i coveted by people process. What is Calendly

  18. Onze prijzen zijn scherp en inclusief btw en arbeidskosten. Gebruik onze online tool om eenvoudig een persoonlijke offerte op te stellen. Vaak is er geen vergunning nodig voor het plaatsen van een dakkapel, afhankelijk van je gemeente en de locatie van de dakkapel. 0900dakkapel heeft meer dan 25 jaar ervaring en levert hoge kwaliteit voor de beste prijs, door heel Nederland. Van Amsterdam tot Maastricht, wij zorgen voor een snelle en professionele installatie van je dakkapel binnen één dag. dakkapel Leeuwarden offerte

  20. Hello, i have seen your article on some of people websites
    you have a great website to read it sir
    dont forget come to my site also sir !!
    Rajasawit77

  21. hello, thank you its a great website here to improve my site, i have read all your article probably so far so good
    haha
    i hope you can come and visit my site here
    Rajasawit77

  22. 個人的にお気に入りのエロゲ・同人・エロマンガ・エロアニメの作品紹介と、FANZA・DLsiteのセール情報を勝手気ままに発信中.
    エロマンガ

  24. 投稿sirotd020 やよい【素人動画】【素人ダイジェスト動画】 ※VR作品・またはダイジェスト動画がない場合は表示されません。 この作品をフルで楽しむ 風俗に興味があり面接に来てくれた人妻のやよいさん！！旦那さんが毎晩仕事から疲れて帰ってくるので全然夜の営みがなく欲求不満との事！…2024年7月15日騎乗位oregr002 ひとみ【素人動画】【素人ダイジェスト動画】 ※VR作品・またはダイジェスト動画がない場合は表示されません。 この作品をフルで楽しむ 普段はバーテンダー働くひとみさん。彼氏もいなくてえっちもしばらくしていなく毎日オナニーをして自分を慰めているという。自慢のチャー…2024年7月15日色白scute657…
    しろうとパラダイス

  25. Looking for a brighter smile? Teeth whitening in Adelaide offers quick, safe, and effective results. Achieve a dazzling smile with professional treatments tailored to your needs. Book your appointment today and experience the confidence of a radiant smile!

  41. Absolutely fantastic article! The insights are not only spot on but also incredibly enlightening. Your expertise shines through and makes a real impact. I can’t wait to see more of your outstanding content!
    enjoy thrilling games, earn daily up to 100K and enjoy fast a hassle free withdrawals. Join us be lucky!
    check out this link:
    Fortune88-Random Free Bonus ₱888 awaits Register now!

  44. someone Sometimes with visits your blog regularly and recommended it in my experience to read as well. The way of writing is excellent and also the content is top-notch. Thanks for that insight you provide the readers! 신용카드 현금화

  48. 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! 카지노

Comments are closed.