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

 

206,008 thoughts on “Railway Industry in France”

  4. I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I will share it with my other friends as the information is really very useful. HR Edge

  5. Very well written article. It was an awesome article to read. Complete rich content and fully informative. The content of this blog and the positive intent you have. HR Edge Software

  6. Thanks for publishing such best knowledge with us. You are doing such a great job. This info is very helpful for everyone. Your article isn’t only useful but it is additionally really informative. Thanks HR Management Software

  8. Very much relevant and informative content. You’ve provided excellent information, and I’m delighted to have come across this post, as it contains a wealth of useful insights. Thank you for sharing this informative story. Top HR Software

  10. I will share it with my other friends as the information is really very useful. It is truly a well-researched content and excellent wording. I got so engaged in this material that I couldn’t wait to read. I am impressed with your work and skill. Thanks. HR Software in india

  15. 블로그 검색에서 관련 정보를 검색하는 동안이 게시물을 찾았습니다. 좋은 게시물입니다. 계속 게시하고 정보를 업데이트하세요. 슬롯사이트

  17. As technology evolves, augmented reality and virtual reality are reshaping how we approach education. These immersive tools are not just futuristic fantasies but are becoming integral to modern learning

  19. An edible bouquet offers a delightful blend of beauty and flavor, making it a memorable gift or centerpiece for any occasion. Whether you choose to buy one or create your own, this innovative idea is sure to impress and satisfy.

  21. You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this. 오피뷰

  23. Asheville Glass Company is a premier provider of high-quality glass products and services in Asheville, NC. Specializing in custom glass solutions for residential and commercial needs, the company offers expert installation, repair, and design services, including shower doors, mirrors, and storefront glass. With a commitment to craftsmanship and customer satisfaction, Asheville Glass Company delivers tailored solutions that enhance both functionality and aesthetics.
    Asheville Glass Company

  31. We are also noticing that traditional medical doctors are also recognizing the increased interest in holistic healing and are finally starting to incorporate these healing methods into their practice to keep up with the current trends. There are many ways to obtain a construction job interview, but some are more effective than others. Chirag Bhandari

  36. nhà cái jbo là một trong những nhà cái được anh em bet thủ dành sự tin tưởng và lựa chọn, sân chơi cung cấp nhiều thể loại cá cược hấp dẫn: Sảnh cược thể thao, xổ số,.. Đăng ký JBO để nhận những khoản tiền cược hậu hĩnh!

  37. ” ‘훌륭한 유용한 리소스를 무료로 제공하는 가격을 알 수있는 웹 사이트를 보는 것이 좋습니다. 귀하의 게시물을 읽는 것이 정말 마음에 들었습니다. 감사합니다! 바카라사이트

  38. I found that site very usefull and this survey is very cirious, I ‘ ve never seen a blog that demand a survey for this actions, very curious… kios 77

  39. GO99 là địa chỉ không thể bỏ qua khi nói về các cộng đồng cá cược online xanh chín. Trang quy tụ đa dạng các sản phẩm và kèo cược cạnh tranh cao.

  41. Gestunbet is the best and most trusted official online lottery site. provides many types of online games with the biggest prizes on prediksi togel online

    Don’t forget to stop by
    gestunbet

  45. The finch is a small, colorful bird that has captured the attention and imagination of people for centuries. Known for its cheerful song and lively nature, the finch is admired for its beauty and holds significant symbolic and spiritual meaning. The finch is seen as a messenger of joy, optimism, and creativity in various cultures and spiritual practices. This article delves into the rich symbolism and spiritual meaning of the finch, exploring how this vibrant bird can inspire and guide us in our daily lives.

  46. This approach can be how it looks genuinely the most appropriate. Every one involving minute best parts are generally planned with many customs knowledge. I propose it rather a lot. NEXASLIM ERFARINGER

  48. Améliorez votre garde robe avec la collection Carhartt, comprenant bonnet, sweat une veste Profitez notre offre spéciale Carhartt outlet OFF

  49. If you’re searching for a transformative experience with a life coach in Dubai Impact Life Coach stands out for their exceptional approach. As a leading life coach in Dubai, they specialize in guiding clients through personal and professional growth, helping them achieve their goals with clarity and confidence. Whether you’re looking to overcome obstacles or unlock your full potential, Impact Life Coach offers tailored strategies and support that make a real difference

  50. If you’re searching for a transformative experience with a life coach in Dubai Impact Life Coach stands out for their exceptional approach. As a leading life coach in Dubai, they specialize in guiding clients through personal and professional growth, helping them achieve their goals with clarity and confidence. Whether you’re looking to overcome obstacles or unlock your full potential, Impact Life Coach offers tailored strategies and support that make a real difference

Leave a Reply

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