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

 

205,763 thoughts on “Railway Industry in France”

  4. I definitely enjoying every little bit of it. It is a great website and nice share. I want to thank you. Good job! You guys do a great blog, and have some great contents. Keep up the good work. trader joe xyz

  5. Are you confused about looking for a really exciting game? Just visit this blog here, later you will find an exciting, interesting and very profitable game. For further information, please visit this website https://xjfxh.org

  12. Are you confused about looking for a really exciting game? Just visit this blog here, later you will find an exciting, interesting and very profitable game. For further information, please visit this website https://antenistas.org

  14. Manclub được thành lập từ cuối năm 2019 tại Philippines bởi Zynga – Một trong 5 tập đoàn lớn nhất về mảng giải trí cá cược. Từ khi ra đời đến nay, sân chơi này đã chinh phục lượng lớn hội viên trên khắp các châu lục khác nhau.

  15. I’ve recently looked into automotive ceramic coatings and was amazed by their comprehensive benefits. These coatings create a durable layer that protects my car’s paint from scratches, swirls, and oxidation, which is incredibly useful for maintaining its appearance. I was also impressed by how they shield leather and fabric seats from stains and aging, as well as prevent color transfer from denim. The ceramic protection for the dashboard is a standout feature, keeping it from deteriorating or greying due to UV exposure. Plus, the rain-repellent coatings have noticeably improved my visibility during wet and nighttime driving. The selection of coatings available seems exceptional, with the best quartz coatings offering years of protection rather than just months. Definitely worth considering for anyone wanting to preserve their vehicle’s condition!

  16. Adultscare is an online sexstores that offers a variety of sex toys, including male masturbation toys, sex dolls, dildos, vibrators and more toys. They provide discreet shipping and a broad selection to enhance your intimate experiences.

  17. If you want to know the leaked lottery numbers, you can see them directly on this blog, here you can also find a very complete lottery market, for further information please visit this website https://6399appxz.com

  21. Cupidbaba offers a wide range of sex toy, including vibrators, dildos, male masturbation devices, sex dolls, and more toys. Their collection caters to various preferences, ensuring high-quality products for enhancing pleasure and intimacy. Check their website for specific options and details.

  27. Discover the Best Boutique in Vancouver canada, curated by Aakarsh. Located in the heart of the city, this boutique offers an exquisite collection of fashion-forward clothing, unique accessories, and handmade jewelry. Each piece is meticulously selected to reflect contemporary trends and timeless elegance. Whether you’re looking for a statement outfit or the perfect gift, this boutique promises high-quality and style. With personalized service and a welcoming atmosphere, shopping here is a delightful experience. Embrace your individuality and elevate your wardrobe with distinctive finds from Vancouver’s premier boutique, curated by Aakarsh.

  28. Discover the Best Boutique in Vancouver canada, curated by Aakarsh. Located in the heart of the city, this boutique offers an exquisite collection of fashion-forward clothing, unique accessories, and handmade jewelry. Each piece is meticulously selected to reflect contemporary trends and timeless elegance. Whether you’re looking for a statement outfit or the perfect gift, this boutique promises high-quality and style. With personalized service and a welcoming atmosphere, shopping here is a delightful experience. Embrace your individuality and elevate your wardrobe with distinctive finds from Vancouver’s premier boutique, curated by Aakarsh.

  32. https://arena-cafe.com Marettoto merupakan situs judi togel online dan permainan toto resmi terpercaya dengan link alternatif akun togel terbaru bebas dari nawala ataupun pemblokiran internet positif. Bandar togel terbaik dengan segala jenis diskon dan bonus teresar bisa anda cari di arena-cafe.com tanpa ribet

  34. We provide the whole spectrum of specializations at Gunam Hospital so you don’t have to go between different offices and places. At Gunam Hospital, we look after your overall health.

    best trauma hospital in hosur | best multispeciality hospital in hosur | best ent doctor in hosur

  36. We provide the whole spectrum of specializations at Gunam Hospital so you don’t have to go between different offices and places. At Gunam Hospital, we look after your overall health.

    best trauma hospital in hosur | best multispeciality hospital in hosur | best ent doctor in hosur

  37. I want to take a moment to express my heartfelt gratitude to this extraordinary community. This site is a treasure trove of information and support, and it plays a pivotal role in the journeys of so many. Your insights and contributions are invaluable, especially for those just beginning their path. – ipl bookmakers

  41. “I appreciate the meticulous craftsmanship in Hellstar Sweatshirts. They are durable and fashionable.”

  42. This game is very amazing, it has very cool features, when you see it, your eyes will be fixated on the beauty of this game, for further information, please visit this website https://www-13554.com

  43. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. Ajaib88

  44. Your content is valid and informative in my personal opinion. You have really done a lot of research on this topic. Thanks for sharing it. IDM crack

  45. Clínica Dr Gunther Heller com ênfase em reabilitação oral, Implante Dentário, facetas, Laser terapia e ortodontia digital. Restaurações e cirurgias com laser LiteTouch. Melhor clínica de implante dental, lentes de porcelana e laser de Porto Alegre Faceta de porcelana

  47. Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. togel online

  50. Awesome article! I want people to know just how good this information is in your article. It’s interesting, compelling content. Your views are much like my own concerning this subject. defilama

Leave a Reply

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