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:
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:
Comfort Class:
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.
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
Price at 2 weeks before departure
Price at 3 weeks before departure
Price at 4 weeks before departure
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:
The non-physical rate fences are age, season ticket, and loyalty
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
Myvepower is a top portable power solution that keeps your devices charged, whether you’re on the go or working remotely. With innovative technology, a user-friendly interface, and cost efficiency, it’s designed to meet your energy needs. Learn more about its features and benefits https://diversifyblog.com/myvepower-revolutionizing-power-solutions-2/.
Matahari88 memberikan situs judi slot resmi gampang menang bonus scatter jejer 3 terbesar, langsung login dan daftar segera.
https://www.iliamusic.com
Boss Mudjacking is a family-owned and operated business with a legacy spanning over four decades in Overland Park and the Kansas City metro area. We specialize in comprehensive mud jacking services, driveway repairs, and concrete leveling, delivered with unmatched professionalism and quality. Our commitment to every Boss customer is demonstrated through our team's rigorous work ethic, ensuring each job is done right, the first time. To provide our clients with added peace of mind, we back every project with a 5-year transferable warranty. We also understand the financial constraints of repair projects, which is why we proudly offer flexible financing options to accommodate various budgets. 8101 College Blvd # 100, Overland Park, KS 66210
Sports Betting: SV66 features comprehensive sports betting options, covering major sports like football, basketball, tennis, and more, with real-time odds for live betting. sv66
If you’re looking for a reliable and professional Electrician East London , you can’t go wrong. The local electricians here offer quick response times and great service.
Thank you for challenging me to think critically and explore new ideas.
หวย ขูด เกาหลี
Looking forward to more of your great content! The Amazon Legacy
It really adds depth to the ongoing discussion. azkasyah
I’d love to hear more of your thoughts on this in future posts! A free images
I particularly liked how you delved. Lourenties
Keep up the fantastic work with doLink.
It would be fascinating to see how this will impact doIT.
Briansclub, also known as bclub, briansclub, bclub.st, bclub st – prominent platform – Best quality cards
bclub.st
Excellent read! I found your discussion Esfarayennews very engaging/
I’m eager to see how this will shape Paket Solusi going forward.
Keep the great insights coming Slot Gacor!
which really added value Infini88 to the conversation/
Keep up the great work Lcmswgh.
Rasina Sport looking forward to reading more of your thoughts on this topic.
Keep up the excellent work Zastavinsoliter!
I found your point on Clasicadealmeria particularly interesting.
t’s exciting to think about how this could impact Progdome in the future.
Yapnetworker Looking forward to more of your insightful content!
Excellent post! I really appreciate how you approached Zotfish.
It really got me thinking about Irkut topic.
Sheshares love to hear more about your thoughts on this in future articles.
Keep up the fantastic Astura work!
I thoroughly enjoyed your perspective on Doha Press.
Your explanation of Celebrities Profile was especially eye-opening.
It would be great to see how this might evolve in Dowinebetter.
Keep sharing such valuable Mixstore insights!
The way you highlighted Ebnath really brought a new perspective to the discussion.
I’m excited to see how this will shape Chloroquinemil moving forward.
Keep up the excellent giochisupereroi.com work!
“Wonderful post! Your take on Zohocom was both comprehensive and engaging
I especially liked how you covered Radautan.
Iransecular looking forward to more of your insights on this subject.
Keep up the great Millaw work!
Insightful article! I really enjoyed how you broke down Arsenis.
Your point about Feteira was particularly thought-provoking
I’d love to see more discussions on how this could impact Fameozagent in the future.
Keep sharing such valuable content! doguperincek.info
I especially appreciated your thoughts on jakabpeter.info, as it provided a fresh perspective.
I’m eager to see how this will influence tegelonline.info moving forward. Keep up the great work!
Your deep dive into furatinc.com was both informative and engaging.
The way you explained Slot Thailand really stood out to me.
It would be interesting to see how this develops in Domail. Looking forward to more of your insightful posts!
Great article! I truly appreciate how you tackled putra-togel.com with such clarity.
Your perspective on putra-togel.co was particularly eye-opening.
It’s exciting to think about the potential impact on putratogel.id.