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

 

210,730 thoughts on “Railway Industry in France”

  3. hi I conceive you have noted some very interesting details , appreciate it for the post.

  10. 95VN là một trong những nền tảng hàng đầu về cá cược trực tuyến tại thị trường Việt Nam. Được biết đến với các dịch vụ cá cược chất lượng và đáng tin cậy, 95VN thường xuyên tổ chức các chương trình ưu đãi và khuyến mãi hấp dẫn, bao gồm các sự kiện đặc biệt diễn ra hàng ngày, hàng tháng và hàng năm. Điều này giúp người chơi có nhiều cơ hội nhận được phần thưởng và lợi ích khi tham gia trải nghiệm cá cược tại 95VN.
    Website: https://95vn.info/

  11. This article is very relevant in the current educational context. By analyzing kodok4d, writers provide insights and solutions to challenges in the educational system. I am particularly interested in this article since it offers a fresh perspective on how we can raise the standard of education in the future. We extend our gratitude to the authors for their comprehensive and informative study.

  12. It’s a good, trustworthy, and easily comprehensible product. Greetings from the kodok4d platform, which offers trustworthy games in Indonesia.

  15. Thinking about selling your home in Lake Havasu? An experience agent with The Gedalje Group is here to you to a seamless and hassle-free selling experience

  17. thanks for provide this content. Novel Web Creation is the Best eCommerce Photography In Jaipur. It is known for high-quality product catalog photos, jewellery photography by best photographer that will enhance your small or big online businesses.

  23. Thank you for your insightful post! Your experience and advice are incredibly valuable. For those interested in setting up a non-profit in India, considering a Section 8 Company could be a great option. Registering a Section 8 Company in India provides a structured approach to running a charitable organization with legal safeguards. I appreciate your transparency and the practical tips you’ve shared!

  26. “789bet đã khẳng định mình là một trong những nền tảng cá cược trực tuyến đáng tin cậy và được yêu thích nhất. Nhờ vào sự phát triển không ngừng, nhà cái này mang đến cho người dùng những trải nghiệm phong phú và thú vị với nhiều dịch vụ đa dạng. Bài viết dưới đây sẽ đưa ra cái nhìn tổng quan về 789bet, bao gồm hướng dẫn đăng ký, danh sách trò chơi phong phú, các chương trình khuyến mãi hấp dẫn và phương thức thanh toán tiện lợi.

    Website: [https://789bethv.life/](https://789bethv.life/)”

  28. is home to some of the strangest and most mysterious creatures on Earth.
    ฉลามบุก
    ‘Himalayan royal bee’ด้วยชื่อนี้คงเดาได้ไม่ยากว่าสิ่งมีชีวิตชนิดนี้คงพบเจอที่อื่นใดเป็นไม่ได้ หากไม่ใช่ตามแนวเทือกเขาเทือกเขาหิมาลัย
    During an expedition off the coast of Chile Scientists have discovered more than 100 new species of animals living on underwater mountains. The discovery of this incredible discovery occurred along the ridge. ‘Salas y Gómez, an underwater mountain range that stretches 2,900 kilometers between Chile and Easter Island. The discovery reveals the biodiversity hidden in the ocean at depths of up to 3,530 meters above sea level.

    An international team of researchers supported by the Schmidt Ocean Institute has been exploring the deep sea using underwater robots. in an area that has never been surveyed before, covering an area of 52,777 square kilometers. through data collection Map the ocean floor and underwater mountain ranges Until finally, they found a deep-sea ecosystem that has biodiversity in extreme conditions that humans cannot reach.

  29. Poker: “Poker is a game of skill, strategy, and excitement. Each hand is a new challenge, and the strategic elements keep the game fascinating. Winning with a well-planned strategy or a lucky bluff adds to the thrill of the game.”
    먹튀검찰

  30. First class subject material, similar text messaging tend to be After i are ill-informed of so long as they are definitely aggressive together with your work obtainable. Parax Pharmacy

  35. Fundraising for mosques in the USA can be a complex and ongoing challenge, but MOHID provides an effective solution tailored to meet these needs. MOHID’s fundraising tools are specifically designed to help mosques streamline their donation processes, engage with their communities, and maximize their fundraising potential.

  36. A great content material as well as great layout. Your website deserves all of the positive feedback it’s been getting. I will be back soon for further quality contents. talktokfcconz.cfd

  38. Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your site? My blog is in the exact same area of interest as yours and my visitors would truly benefit from some of the information you provide here. Please let me know if this ok with you. Thanks! okulista warszawa

  39. thanks for provide this content. Novel web solution provides full service web development that offers and extensive range of the IT services to small to large scale business.

  41. Experience top-notch {cleaning service in New York|NY} with our professional and reliable team. We specialize in residential and commercial cleaning, offering tailored solutions to meet your specific needs. Whether it’s a one-time deep clean or regular maintenance, our skilled staff ensures your space is spotless and sanitized. Trust us for exceptional service and a pristine environment every time.

  45. Computer Care have been providing IT Support Services to businesses across Surrey and London for over 20 years. Experts in cybersecurity, automation and hybrid working, we can help businesses be more productive whilst saving money.
    it support company surrey

  46. I havent any word to appreciate this post…..Really i am impressed from this post….the person who create this post it was a great human..thanks for shared this with us. สล็อต888

  47. Heya i am for the primary time here. I found this board and I in finding It truly useful & it helped me out a lot. I am hoping to give something back and help others such as you helped me. RCA88

  48. Thank you for sharing this information. Muslim Vashikaran mantra is famous around the whole world just because of resolving issues and conflict in a few times as well as provides a favorable and fruitful result to the people.
    Islamic Astrology Online

Leave a Reply

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