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

 

222,866 thoughts on “Railway Industry in France”

  2. Your blog is very interesting and well-written! I really enjoyed reading it. You might also consider writing on the topic of heli tickets for Vaishno Devi—it’s something that could be valuable for your readers. If you’re interested, you can find more details on this from our website! If you’re planning a trip, I highly recommend looking into helicopter booking services to save time and enjoy the breathtaking views on the way up!

    Visit Us At:- https://dharmicdarshan.com/vaishno-devi-helicopter-online-booking-price.php

  3. To buy online investment plann in India, follow these steps:

    Research: Start by researching various investment plans available online, such as mutual funds, stocks, or fixed deposits.
    Choose a Platform (okbima): Select a reliable online platform or financial advisor that offers investment plans.
    Register: Sign up and complete the KYC (Know Your Customer) process.
    Select Plan: Browse and choose an investment plan that suits your financial goals.
    Invest: Enter the investment amount and complete the transaction through secure payment methods.
    Monitor: Regularly check your investment’s performance online.
    This process helps you buy online investment plan in India efficiently.

  4. Experience unparalleled luxury with our Moissanite Watches . Adorned with stunning Moissanite stones and high-quality diamonds, these timepieces are crafted from premium materials for lasting beauty and precision. Elevate your style with the timeless elegance of Millennium Jewelers.

  9. Aircon Maintenance: Ninja Cool excels in providing meticulous Aircon Maintenance services to prolong your unit’s lifespan. Their skilled team offers regular check-ups and tune-ups, ensuring efficiency and reliability. Trust Ninja Cool for proactive maintenance that prevents costly repairs. Reach out to them today at 6244 3233 for hassle-free aircon maintenance.

  10. You really make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I will try to get the hang of it! Halloween contact lenses

  11. I completely agree that finding the right support for home care is essential for maintaining a loved one’s well-being. Home care UK offers an excellent range of services designed to meet individual needs with professionalism and compassion. It’s reassuring to know that such reliable options are available for families seeking quality care at home.
    https://gracecare247.com/

  12. The Philippines lags behind many of its neighbors in infrastructure development. Traffic congestion in Metro Manila continues to be a major problem. 웹툰

  15. La Nonna is a beloved independent Italian restaurant situated in the heart of Brixton’s vibrant Market Row. Renowned for its artisan-crafted fresh pasta, La Nonna captures the authentic essence of Italian cuisine using the finest specialty and seasonal ingredients sourced from both Italy and the UK. This Brixton restaurant is dedicated to simplicity, offering humble and honest dishes prepared in a cozy open kitchen environment where diners can witness the passion behind the cooking.

    La Nonna’s menu features a perfect balance of traditional Italian dishes and innovative, daily-changing specials. Enjoy a mix of thoughtfully refreshed Roman family recipes alongside creative new plates that reflect the best seasonal offerings. To complement your meal, choose from a curated selection of organic wines, Italian-inspired cocktails, and craft beers. Whether you’re a local or a visitor, La Nonna provides an intimate dining experience that truly celebrates the art of Italian cooking in London.
    https://lanonna.foodhutz.co.uk/

  16. Welcome to Mera Gaon Mera Desh, our charming farmhouse blog where rustic beauty meets modern comfort. Nestled in the heart of the countryside, our farmhouse offers a serene escape from city life. Experience the joy of fresh air, organic farming, and traditional rural living. We share stories of our daily adventures, sustainable farming practices, and the vibrant local culture. Whether you’re a nature enthusiast, a foodie, or someone seeking tranquility, our blog offers a glimpse into the idyllic life at Mera Gaon Mera Desh. Join us in celebrating the simple yet profound pleasures of rural living.
    Read more :-

  17. Whether you’re a business owner, party planner, or a chocolate enthusiast, purchasing a full Polkadot Box of Chocolate bars offers an array of delicious options tailored to your needs. Buying in bulk ensures you always have a supply of our delectable treats on hand and allows you to enjoy substantial savings. Buy a full Polkadot box of chocolate bars

  22. The benefits of playing online games are very large, many people are interested in this game because with very little capital you can get abundant profits. Therefore, if you like it, you can visit the site https://thecryptoxp.com/

  24. Experience the ultimate in luxury and active living at our premier Country Club in Bonita Springs, FL. With exclusive amenities like Private Croquet and Pickleball Courts, Tennis Club Memberships, and a Private Salon & Spa, we cater to your every need. Enjoy an engaging social scene with our Private Social Club Membership, all while indulging in the refined atmosphere of Southwest Florida’s finest country clubs. country club bonita springs fl

  25. My California Weight Loss diet invariably is an cost effective and versatile staying on your diet tv show made for people who find themselves planning to drop extra pounds and furthermore ultimately keep a much healthier habits. la weight loss 토토사이트

  29. fantastic page. I will finally accept it because I have not seen this kind of blog in a long time, which is why I enjoy it so much.
    corteiz

  30. Betflik168 สล็อตเครดิตฟรีล่าสุด ของเรานั้นมีให้เลือกเล่นมากมายหลายรูปแบบ ทั้งสล็อตคลาสสิค สล็อตวิดีโอ หรือสล็อตโปรเกรสซีฟแจ็คพอต ซึ่งมีธีมหลากหลายตามความชอบของผู้เล่น ไม่ว่าจะเป็น ผลไม้ สัตว์ ธรรมชาติ ผจญภัย หรือตามเทศกาลต่างๆ อีกทั้งยังมีฟีเจอร์พิเศษ ฟรีสปิน Betflik168.store

  31. It was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing. bandar togel

  33. Lotus365 is a Cricket betting platform for anyone interested in online betting, offering a comprehensive range of sports betting options, including cricket, football, and more. The website is well-organized, with a user-friendly interface that makes it easy for both beginners and experienced bettors to navigate.

  41. برای دانلود برنامه ۱xbet فارسی ، دانلود برنامه 1xbet می توانید از طریق همین صفحه اقدام کرده و از تمامی امکانات سایت وان ایکس بت دانلود برنامه ۱xbet

  42. Wow! Such an amazing and helpful post this is. I really really love it. It’s so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also bandar toto macau

Comments are closed.