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

 

212,860 thoughts on “Railway Industry in France”

  1. Shop custom cycling apparel at Cool Dude Cycling. Explore jerseys, bib shorts, and kits in long and short sleeve options. Find unique designs from college-themed to job-related jerseys. Ride in style, comfort, and performance. cool cycling jerseys

  2. I recently today wish to describe i has been refreshing to be able to website as well as without doubt desired your website website. Probably I’m concerning to look for your internet site. Folks undoubtedly contain exceptional activities. Finest desires designed for offering with us your internet site. agen slot gacor panen99

  3. This is the most popular online slot dealer site that now offers easy-to-win slot games. From the many best and most trusted providers in the world of online slot games that have become booming, for further information, just visit this website https://uangnaik.com

  8. ما هي السيارات الدفع الرباعي التي يفضلها الكثير من عشاق المغامرات والسفر في الأماكن الجبلية والرملية، وذلك لقوة تحملها وسهولة سيرها
    سيارات الدفع الرباعي

  10. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. talktoihop.boats

  11. Your content is nothing short of brilliant in many ways. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers. slot gacor hari ini

  13. Turns a person on the wrong path, as many people come in contact with the prostitute wandering in the streets or else, they start looking for sex partners in the red-light area and the search for the person puts him and his reputation at stake. It is because a prostitute of two pennies does not care about your respect and no one wants to have sex with a bad woman and especially one that had to be given to all the saints. A gentleman would never want his sex partner to abuse or abuse him. Escort Service in Mussoorie

  15. Bonanza138 merupakan salah satu situs terbaik di indonesia server thailand tidak perlu banyak basa basi silahkan dicoba kalau tidak jepe uang dikembalikan 100 % pasti . Bonanza138

  17. Maxwin138 merupakan salah satu situs terbaik di indonesia server thailand tidak perlu banyak basa basi silahkan dicoba kalau tidak jepe uang dikembalikan 100 % pasti . Maxwin138

  18. Surga138 merupakan salah satu situs terbaik di indonesia server thailand tidak perlu banyak basa basi silahkan dicoba kalau tidak jepe uang dikembalikan 100 % pasti . Surga138

  19. Panen77 merupakan salah satu situs terbaik di indonesia server thailand tidak perlu banyak basa basi silahkan dicoba kalau tidak jepe uang dikembalikan 100 % pasti . Panen77

  22. What i do not understood is in reality how you’re not actually a lot more neatly-appreciated than you might be now. You are so intelligent. You realize therefore significantly in relation to this matter, produced me individually imagine it from so many numerous angles. Its like men and women are not involved until it is something to accomplish with Lady gaga! Your own stuffs outstanding. All the time care for it up! أنواع حديد التسليح

  23. Anyone else here recently buy a Land Rover Discovery 3 for sale? I’d love to hear about your buying experience and if you faced any major challenges.

  25. Watch Online Today Mishri 19th July 2024 Episode 17 by desi serial Star Plus. Mishri Drama Serial Complete Episodes in HD. watch Mishri Episode 17 in high quailty.https:chandjalnelaga.org

  26. Watch Bigg Boss Ott 3 19th july 2024 Video Vkprime Episode 29 Online Bigg Boss Ott 3 by, hotstar Hindi Drama Seril Bigg Boss Ott 3 Latest Complete Show In High-Quality Watch This On Star Plus serial Apne Tv Bigg Boss Ott 3 19th july 2024 Desi Tv Download in HD Indian Reality Watch Star Plus All Episodes on kahiintohoga.net https:kahiintohoga.net

  28. Bonus138 merupakan salah satu situs terbaik di indonesia server thailand tidak perlu banyak basa basi silahkan dicoba kalau tidak jepe uang dikembalikan 100 % pasti . Bonus138

  29. Panen138 merupakan salah satu situs terbaik di indonesia server thailand tidak perlu banyak basa basi silahkan dicoba kalau tidak jepe uang dikembalikan 100 % pasti . Panen138

  30. Pleasant write-up, it is an incredibly trendy blog site that you’ve got in this article, sustain the favorable do the job, will likely be returning. FITSPRESSO

  32. Great job for publishing such a beneficial web site. Your web log isn’t only useful but it is additionally really creative too. There tend to be not many people who can certainly write not so simple posts that artistically. Continue the nice writing tellnoodles.boats

  34. The lottery which has been played a lot throughout the world is certainly one of the best in the world, PREMANTOTO is one of the lottery bookies which has lots of the best markets in it.

    PREMANTOTO

  35. PREMANTOTO’s production of world lottery games has become the best in the world, a well-known market that is played the most in the world.

    PREMANTOTO

  36. Trusted online gaming site that has become the most popular online betting site in Indonesia. Players still haven’t found a trusted online site, just visit this website because this site is the best and most trusted gaming site https://uangeasy.com

  37. Thanks for taking the time to discuss this, I feel strongly that love and read more on this topic. If possible, such as gain knowledge, would you mind updating your blog with additional information? It is very useful for me. naga slot

  39. You make so many great points here that I read your article a couple of times. Your views are in accordance with my own for the most part. This is great content for your readers. Newborn gifts

  41. Importance of a Phase 1 Desk Study in Land Development
    A phase 1 desk study is crucial in land development projects. It involves a detailed review of historical and current site data to identify potential environmental risks. This study helps developers make informed decisions and avoid costly surprises during construction.

  45. When it comes to finding the best waterproof work boots, it’s essential to look for a combination of durability, comfort, and protection. Top brands like Timberland, Carhartt, and Wolverine offer high-quality options that are designed to keep your feet dry in wet conditions.

  48. Thank you for some other informative website. The place else may just I get that kind of information written in such a perfect method? I have a venture that I am simply now running on, and I’ve been at the glance out for such info. Australian Online Casino

  49. A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. slot 777

Leave a Reply

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