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

 

207,809 thoughts on “Railway Industry in France

  1. i read a number of stuff and i found that the manner of writing to clearifing that exactly want to mention became very good so i am inspired and ilike to return once more in destiny..

  2. And Im running from a standard users account with strict limitations, which I think may be the limiting factor, but Im running the cmd as the system I am currently working on. Mindtech

  3. Looking for a convenient vape shop near me Our vape shop offers a wide selection of high-quality vaping products, including the latest e-cigarettes, vape pens, e-liquids, and accessories. Whether you’re a beginner or a seasoned vaper, our friendly and knowledgeable staff are here to help you find the perfect products to suit your needs. Visit us today for a personalized shopping experience and discover the best in vaping.

  4. i read a number of stuff and i found that the manner of writing to clearifing that exactly want to mention became very good so i am inspired and ilike to return once more in destiny.. mandetur

  5. Looking for a convenient vape shop near me Our vape shop offers a wide selection of high-quality vaping products, including the latest e-cigarettes, vape pens, e-liquids, and accessories. Whether you’re a beginner or a seasoned vaper, our friendly and knowledgeable staff are here to help you find the perfect products to suit your needs. Visit us today for a personalized shopping experience and discover the best in vaping.

  6. Tugboat Ultra 6000 Puffs stands out as a leading choice for both beginners and experienced vapers. This article delves into the features, benefits, and overall experience of using the Tugboat Ultra 6000 Puffs, highlighting why it has become a favorite among vaping enthusiasts.

  7. Ultimately, a problem that I’m passionate about. I have looked for data of this caliber for the previous various hours. Your site is greatly appreciated. whitelabled

  8. Howdy! I simply would like to give a huge thumbs up for the good data you have here on this post. I will probably be coming again to your weblog for more soon. Normaly

  9. Thanks for your post. Another element is that to be a photographer entails not only problems in capturing award-winning photographs but also hardships in acquiring the best camera suited to your requirements and most especially issues in maintaining the standard of your camera. It is very genuine and clear for those photographers that are in to capturing the particular nature’s fascinating scenes : the mountains, the actual forests, the wild or maybe the seas. Visiting these exciting places unquestionably requires a digicam that can live up to the wild’s unpleasant surroundings. tuning auto elettriche

  10. WSLOT888 adalah platform game slot online terpercaya yang menawarkan pengalaman bermain yang luar biasa bagi para penggemar judi online. Dengan beragam pilihan game slot yang menarik dan menghibur, WSLOT888 memastikan tiap bettor merasakan sensasi bermain yang seru dan menguntungkan.

  11. There is numerous separate years Los angeles Weight reduction eating plan with each a person is a necessity. The pioneer part can be your original getting rid of belonging to the extra pounds. la weight loss Mindtech Team

  12. I am just commenting to let you know of the perfect experience my wife’s princess encountered studying your web site. She picked up numerous details, most notably what it’s like to have an ideal helping character to have many more very easily gain knowledge of selected advanced subject matter. You undoubtedly exceeded our own expectations. Thanks for offering such effective, healthy, explanatory and in addition fun thoughts on this topic to Gloria. Free 30 days trial

  13. impresses players with a wide selection of games, great bonuses and top-notch security, ensuring a great and safe online gaming experience. For more information, please visit the website https://milk-asp.xyz

  14. Your article is truly informative. More than that, it??s engaging, compelling and well-written. I would desire to see even more of these types of great writing. Whitelabled

  15. Nice post. I was checking constantly this blog and I am impressed! Extremely helpful information specially the last part I care for such info a lot. I was seeking this particular information for a very long time. Thank you and good luck. cannabis lean

  16. You have done a great job on this article. It’s very readable and highly intelligent. You have even managed to make it understandable and easy to read. You have some real writing talent. Thank you. Boostaro

  17. You can certainly see your expertise within the work you write. The sector hopes for even more passionate writers such as you who aren’t afraid to mention how they believe. At all times go after your heart. poker88

  18. A while the remarks are approved at promptly and sometime the comment predicted as comment spam or moderate it for approval. Do comply with blogs are very really hard to uncover and won’t be able to manage to reduce that our responses turn into spam and unapproved. There are several points. tuning auto elettriche

  19. Vape Dubai King offers a premier selection of vaping products in Dubai, catering to both beginners and experienced vapers. They provide a wide range of e-liquids, devices, and accessories from top brands, ensuring high quality and satisfaction.

  20. Splendid post. I discover new things upon different weblogs daily. Couple of stimulating to see content using their company authors and turn out to be acquainted with a small something their particular. I’d think to use some inside the information on my blog need to do not thoughts. Obviously I’ll provides a link back up in internet site. Thank you sharing. tuning auto elettriche

  21. TheElf Bar 10000 is a high-capacity disposable vape device designed for convenience and long-lasting performance. With an impressive 10,000 puff capacity, it offers a hassle-free vaping experience without the need for refills or recharges.

  22. TheElf Bar 10000 is a high-capacity disposable vape device designed for convenience and long-lasting performance. With an impressive 10,000 puff capacity, it offers a hassle-free vaping experience without the need for refills or recharges.

  23. 스포츠 TV는 다양한 스포츠 이벤트의 생중계와 상세한 분석을 제공하며, 팬들에게 흥미진진한 순간을 전달합니다. 좋아하는 스포츠의 점수, 하이라이트, 전문가의 해설을 실시간으로 확인할 수 있는 채널입니다.스포츠중계

  24. Once i received onto your website even though getting consideration basically somewhat tad submits. Pleasurable strategy for upcoming, I am bookmarking at the same time acquire kinds end rises upwards. Oil Filteration

  25. I love someone’s submitting. The great to see you truly describe inside terms with all the heart and soul additionally decision with this important make a difference is frequently successfully looked at. Oil Filteration

  26. A debt of gratitude is in order for this extraordinary post, i discover it exceptionally fascinating and extremely well thoroughly considered and set up together. I anticipate perusing your work later on. escort in dubai

  27. Theelfbar 10000 is a high-capacity disposable vape device designed for convenience and long-lasting performance. With an impressive 10,000 puff capacity, it offers a hassle-free vaping experience without the need for refills or recharges.

  28. Wood flooring in NYC offers a timeless and elegant solution for urban homes and businesses. With its durability and classic appeal, wood flooring enhances property value and aesthetic charm. Whether Wood flooring nyc or building new, NYC residents appreciate the variety of styles and finishes available to suit any interior design preference.

  29. aYou have done a great job on this article. It’s very readable and highly intelligent. You have even managed to make it understandable and easy to read. You have some real writing talent. Thank you. Boostaro

  30. 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. 토토사이트

  31. I was surfing net and fortunately came across this site and found very interesting stuff here. Its really fun to read. I enjoyed a lot. Thanks for sharing this wonderful information.

  32. 스포츠 중계는 실시간으로 스포츠 경기를 방송하여 팬들에게 생생한 경기 상황을 전달합니다. 경기의 주요 장면과 해설을 통해 시청자들에게 몰입감 있는 관람 경험을 제공합니다.스포츠중계

  33. 스포츠 중계는 실시간으로 스포츠 경기를 방송하여 팬들에게 생생한 경기 상황을 전달합니다. 경기의 주요 장면과 해설을 통해 시청자들에게 몰입감 있는 관람 경험을 제공합니다.스포츠중계

Leave a Reply

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