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

 

205,975 thoughts on “Railway Industry in France”

  5. Want to purchase verified Cash App Accounts? We offer verified and secure accounts that are suitable for both personal and business use. You can enjoy hassle-free, secure transactions and enhanced privacy. Cash App is the perfect solution to your financial needs.

    Our Cashapp Account Service…
    => Guaranteed 100% Satisfaction and Recovery
    => Email Login Access
    => Enable 100% BTC withdrawal
    => Card + Bank added
    => Provide Full SSN
    => Copy of Driving Licence
    => Provide Date of Birth
    => First delivery
    => Support for 24/7 customers

    24/7 Contact
    Email: usasellservice@gmail.com
    Skype: USASELLSERVICE
    Telegram: @usasellservice
    Whatsapp: +1 (520)344-4079

  7. Dua to make someone love you
    Are you searching the most powerful and right way to make your partner fall in love with you then here is the best way Dua to make someone love you . This dua will help you to make your partner you love fall in love with you deeply and madly . This dua will help you to make your partner fall in love and marry you

  8. AdBlue Removal for Construction Machines

    Optimize your construction equipment’s performance with our AdBlue removal service. By eliminating the need for AdBlue, you can reduce maintenance costs and prevent system failures. Our solution is ideal for construction machines operating in extreme conditions where AdBlue can become a hassle. Experience smoother operations, fewer breakdowns, and improved efficiency.
    Adblue Removal

  10. Science education refers to the process of equipping students with fundamental scientific skills, fostering curiosity and positive attitudes towards science … science education

  12. Dafa Sports online betting: cricket, IPL, login, registration, app download, and bonuses. Bet on Dafabet, your top sports betting site in India

  20. I am aware of your column. Once i realize Folks suit some type of many believe it is tough to be able to positioned in which record. Once i are jealous of kinds training. Online Betting

  23. I’ve been surfing online more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the web will be a lot more useful than ever before. 먹튀검증

  25. Dafa Sports online betting: cricket, IPL, login, registration, app download, and bonuses. Bet on Dafabet, your top sports betting site in India Dafa Sports

  26. This article was written by a real thinking writer without a doubt. I agree many of the with the solid points made by the writer. I’ll be back day in and day for further new updates. 스포츠무료중계

  29. Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. fence company near me

  30. This amazing is very much unquestionably great. All these smaller fact is manufactured working with number with credentials know-how. I actually enjoy the reasoning the best value. song25.com

  31. سایت پیش‌بینی فوتبال فضایی آنلاین برای شرط‌بندی روی نتایج مسابقات فوتبال است که اطلاعات و تحلیل‌های به‌روز و دقیق ارائه می‌دهد. این سایت‌ها معمولاً ابزارها و گزینه‌های متنوعی برای پیش‌بینی و شرط‌بندی فراهم می‌کنند تا کاربران تجربه‌ای هیجان‌انگیز و جذاب داشته باشند.
    معرفی سایت ورزش 3

  34. MU finished eighth in the 2023/2024 Premier League. The FA Cup was the only title won by Erik ten Hag’s troops. The improvements began in the summer of this year. MU brought in Leny Yoro, but he had to be absent for three months due to injury in pre-season. For more information, visit our website https://sportsetdecouverte.com/

  37. I added this article to my favorites and plan to return to digest more soon. It’s easy to read and understand as well as intelligent. I truly enjoyed my first read through of this article. sule slot gacor

  39. This article contains great original thinking. The informational content here proves that things aren’t so black and white. I feel smarter from just reading this. suleslot

  40. I’ve been using Tigerexch247 Login for a few months now, and it’s one of the best online betting platforms out there. The user interface is smooth, and placing bets is quick and easy. What I like most is the wide range of sports and casino games available. The live betting feature is a game-changer, allowing me to make real-time decisions. Customer support is also top-notch, always ready to assist with any issues. Highly recommend it!

  41. Football is one of the most popular sports in the world, with around 250 million active players in more than 200 countries and territories. FIFA is the international governing body of football, governing the game at the international level. Under FIFA, there are six continental confederations that govern football in their respective regions, AFC, CAF, CONCACAF, CONMEBOL, OFC and UEFA. Of these confederations, CONMEBOL is the oldest, founded in 1916. For more https://sportsnation360.com/

  42. Fly High Abroad is a leading Immigration Consultant Dubai, offering expert services for those looking to move to Canada or other destinations. Whether you’re interested in Canada immigration from Dubai or exploring global opportunities, Fly High Abroad provides personalized guidance to make your journey smooth and successful. With a reputation for excellence, Fly High Dubai is your trusted partner for achieving your immigration dreams.

  47. I thought it was going to be some boring old publish, but it really compensated for my time. I will publish a link to this page on my blog. I am confident my visitors will discover that quite useful bondan69.com

  48. Someone Sometimes with visits your blog regularly and recommended it in my experience to read as well. The way of writing is excellent and also the content is top-notch. Thanks for that insight you provide the readers! 스포츠중계

  49. An interesting dialogue is price comment. I feel that it is best to write more on this matter, it may not be a taboo topic however usually individuals are not enough to talk on such topics. To the next. Cheers. 스포츠중계

  50. Really fighter messages are supposed to amuse offer praise into the groom and bride. First time audio system watching over the top places should also remember you see, the senior guideline of the speaking, which is your particular person. best man speeches brother login bondan69

Leave a Reply

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