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

 

206,231 thoughts on “Railway Industry in France

  1. trapstar is a brand that understands the pulse of street wear culture. Every piece tells a story, and I love how they mix classic and contemporary elements.

  2. I really happy found this website eventually. Really informative and inoperative, Thanks for the post and effort! Please keep sharing more such blog.
    Also feel free to visit may web page.
    Looking for Skincare Near Me? The shop features an impressive range of herbs, teas, skincare products, and more! The owner is exceptionally knowledgeable and provided excellent recommendations.

  3. Shilajit, a prized natural substance known for its health benefits, is increasingly sought after in Pakistan. The price of Shilajit in Pakistan can vary widely depending on its purity, quality, and source. On average, you might find Shilajit ranging from PKR 2,000 to PKR 6,000 per gram. Authentic and high-quality Shilajit typically commands higher prices. It’s essential to purchase from reputable vendors to ensure you’re getting a genuine product. Always check for certification and reviews before making a purchase to avoid counterfeit or adulterated versions. Stay informed about market trends to get the best value for your investment.

    Wisit now….https://www.ajyalfoods.com/collections/shilajit

  4. Welcome to https://indibetapps.com/live-casino/
    Explore an exciting world of sports and casino betting with us. Enjoy a seamless experience with live odds, in-depth analysis, and secure transactions. Whether you’re a fan of football, cricket, or thrilling casino games, we offer the best odds and a wide range of markets. Join now for unbeatable promotions and a user-friendly platform that caters to both beginners and seasoned bettors. Bet responsibly and let the fun begin!

  5. Fabrizio Romano points out that Espanyol are on the way to closing their sixth signing of the season; in this regard, ‘La Grada Online’ can confirm the club’s interest in this player. We would be talking about a loan from AS Roma .la grada online,

  6. I have been involved in the metaphysical world for over twenty years. My journey began with a deep, insatiable curiosity and a longing for deeper understanding. Growing up in an agnostic family left me with many questions about life and spirituality. “What if?” constantly played in my mind. What if I went to church? What if there really was a God? What if angels were hiding in the clouds in the sky? These questions stayed with me long after I entered adulthood. In recent years, I’ve realized that my spiritual journey is uniquely mine and if someone asks are you true to yourself? I would say yes. It’s not meant to mirror anyone else’s path. A phrase that often came to mind during my studies was “To thyself be true.” I ignored it for many years, but now I fully embrace it. I’ve learned that there’s no single way to connect with your Higher Self rather than being true to yourself (one’s own self). For me, it’s through God the Father and Jesus Christ. Others may refer to their Higher Self as the Universe, Father/Mother God, or simply as Source. Whatever your choice, I honour and respect it.

  7. The Vozol Star 20000 Puffs Disposable Vape—a smooth, stylish device made for anyone who loves a great vaping experience. Whether you’re just starting out or have been vaping for a while, the Vozol Star is designed to deliver long-lasting enjoyment with up to 20,000 puffs.
    Vozol Star 20000 Puffs

  8. Cổng game Banca30 là một trong những cổng game được yêu thích và tin dùng nhất hiện nay tại Việt Nam. Với hơn 10 năm hoạt động, nhà cái này đã trở thành địa chỉ tin cậy của hàng triệu game thủ trên khắp cả nước.

  9. bancah5 là cổng game bắn cá trực tuyến đỉnh cao, mang đến cho người chơi trải nghiệm thú vị và hấp dẫn. Với đồ họa sắc nét, âm thanh sống động, và lối chơi mượt mà, Banca h5 giúp bạn đắm chìm vào thế giới đại dương đầy màu sắc và bí ẩn. Hệ thống game phong phú với nhiều cấp độ thử thách khác nhau, từ dễ đến khó, phù hợp cho cả người mới bắt đầu và những tay chơi kỳ cựu.

  10. nohu666 là một nền tảng giải trí trực tuyến nổi bật, chuyên cung cấp các trò chơi như slot, bắn cá, và các trò chơi bài. Với giao diện thân thiện và hệ thống bảo mật cao, Nohu mang đến trải nghiệm chơi game an toàn và hấp dẫn. Ngoài ra, nền tảng này còn có các chương trình khuyến mãi hấp dẫn, giúp người chơi dễ dàng nhận thưởng và gia tăng cơ hội chiến thắng. Đặc biệt, Nohu66 hỗ trợ nhiều phương thức nạp và rút tiền linh hoạt, tạo sự thuận tiện tối đa cho người dùng.

  11. Ennovelas Entretenimiento en tus manos. En novelas es el mejor portal web para Ver Novelas y Telemundo, Telenovelas, Tusmundo Serie gratis Online. Ennovelas

  12. Your writing always stands out to me. I gained a lot from this post and feel more confident moving forward.

Leave a Reply

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