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

 

194,250 thoughts on “Railway Industry in France”

  2. 그것은 완전히 흥미로운 블로그 게시입니다. 저는 종종 Diwali Bumper Lottery에 대한 내 프로젝트의 도움을 위해 귀하의 게시물을 방문하고 귀하의 슈퍼 쓰기 기능은 진정으로 나를 깜짝 놀라게했습니다. 토토사이트

  3. ” ‘훌륭한 유용한 리소스를 무료로 제공하는 가격을 알 수있는 웹 사이트를 보는 것이 좋습니다. 귀하의 게시물을 읽는 것이 정말 마음에 들었습니다. 감사합니다! 훌륭한 읽기, 긍정적 인 사이트,이 게시물에 대한 정보를 어디서 얻었습니까? 지금 귀하의 웹 사이트에서 몇 가지 기사를 읽었으며 귀하의 스타일이 정말 마음에 듭니다. 백만명에게 감사하고 효과적인 작업을 계속하십시오. 토토사이트

  6. Math’s is a topic that students either completely like or completely hate. Due to the fact that this topic necessitates dexterity and the ability to solve problems, a great number of pupils, particularly those who have difficulty with their mental capacity for logic and reasoning, find it to be extremely difficult. One of the key reasons why students feel hatred towards this topic is because of the algebraic structure of the material. Algebra is a subfield of mathematics that deals with a collection of symbols that represent quantities that do not have set values. These quantities are more commonly referred to as variables. This can put a student’s relationship with mathematics in trouble, which is why some students are considering choices such as “take my online algebra class for me” in order to deal with the challenge of algebra.

  7. 완전히 흥미로운 블로그 게시입니다. 저는 종종 Diwali Bumper Lottery에 대한 내 프로젝트의 도움을 위해 귀하의 게시물을 방문하고 귀하의 슈퍼 쓰기 기능은 진정으로 당황스러워했습니다.이 게시에 대해 많이 감사합니다. 토토커뮤니티

  9. France’s train network, especially with SNCF, is an impressive and highly efficient mode of transport, not only domestically but across Europe as well. It’s amazing how the TGV and other services connect major cities in France to neighboring countries like Spain, Switzerland, and Italy. Efficient transport systems like this are crucial not just for tourism, but also for businesses and essential services such as migration services. With seamless travel options, it becomes easier for individuals and families to move across borders and access the support they need.

  10. Slot gacor pasti cuan is a hot topic among online slot players today. Known for providing higher winning opportunities, this game attracts the attention of many users looking for a profitable gaming experience. With attractive features and jackpots, slot gacor is ready to provide the opportunity to win big prizes with relatively small bets. If you want to know more information, you can visit our website https://6betvnd.com

  11. France’s train network, especially with SNCF, is an impressive and highly efficient mode of transport, not only domestically but across Europe as well. It’s amazing how the TGV and other services connect major cities in France to neighboring countries like Spain, Switzerland, and Italy. Efficient transport systems like this are crucial not just for tourism, but also for businesses and essential services such as migration services. With seamless travel options, it becomes easier for individuals and families to move across borders and access the support they need.

  13. 전 세계적으로 매우 어려운시기가 될 것이기 때문에 저는이 정보를 절대적으로 좋아합니다. 좋은 일이 확실히오고있다 먹튀검증

  14. May possibly fairly recently up and running an important web log, the data one offer you on this web site contains given a hand to all of us substantially. Bless you designed for your current precious time & get the job done. face lifting treatment

  16. Advantageously, typically the submit is really the very best about this laudable theme. To be sure with all your a conclusion and will thirstily await the following revisions. Really stating cheers won’t only end up being suitable, to your good readability within your creating. I may at once seize a person’s rss to sleep in abreast of virtually any upgrades. Fine job and much success within your organization business! وال مش چیست

  17. Good website! I truly love how it is simple on my eyes and the data are well written. I am wondering how I could be notified whenever a new post has been made. I’ve subscribed to your RSS which must do the trick! Have a nice day! RATUVEGAS

  22. This is a fascinating analysis of how revenue management principles are applied in the railway industry in France. The insights into pricing strategies and customer segmentation highlight the complexities of managing demand effectively. For those looking for assistance with writing or research on topics related to revenue management or other academic subjects, consider utilizing a Custom writing service for tailored support.

  23. Tharwani Stella
    is an upcoming residential project located in Shilphata, Thane, Mumbai, offering well-designed 1 and 2 BHK apartments. With sizes ranging from 370 to 530 sq.ft., this project is ideal for modern living. Priced at 40 Lakhs, it promises great value. RERA numbers are P51700054439 and P51700055028.

  24. “Thank you for reading my article about [topic]. I hope you found it informative and engaging. Your feedback is valuable to me as I continue to create content. Please feel free to share your thoughts in the comments below.””
    Visit my website: cwin/“

  27. EasyJet operates from Copenhagen Terminal 2, offering travelers a convenient and efficient experience. The terminal features a variety of shops and dining options, ensuring a comfortable wait. With clear signage and streamlined processes, EasyJet Copenhagen Terminal makes boarding and navigation straightforward for both leisure and business travelers alike.
    Easyjet Copenhagen Terminal

  29. market shifts. By exploring Futures Thinking, we provide tools to identify emerging opportunities and navigate challenges. Whether you’re a business owner or innovator, our resources guide you in making forward-thinking decisions to thrive in an uncertain future futures thinking

  30. This form of message constantly inspiring and that i prefer to read quality content material, so happy to discover accurate area to many here inside the publish, the writing is just first rate, thanks for the publish. Sugar defender review

  31. I haven’t any phrase to realize this publish…..truly i am inspired from this put up….the person that create this publish it was a terrific human..thank you for shared this with us. Nagano tonic

  34. Gacor123 offers an impressive array of slot games that cater to all types of players. From classic three-reel slots to modern video slots, there’s something for everyone.
    slot dana

  36. Every spin transports you into this celestial realm. The detailed animations enhance the gaming experience, making every moment feel like an epic adventure.
    slot olympus

  37. With technology’s rise in recent decades, Mahjong has also transitioned online. Digital platforms now offer innovative variations like Mahjong slot games that attract new players. These reinventions keep the spirit alive while introducing fresh excitement for both seasoned fans and newcomers alike.
    .
    mahjong ways 2

  39. After research a couple of of the weblog posts in your website now, and I really like your method of blogging. I bookmarked it to my bookmark website record and will probably be checking back soon. Pls check out my site as effectively and let me know what you think. Computers & Accessories 스포츠중계

  40. Your article is extremely helpful exceptionally fascinating subject i am looking that sort of post thank for imparting to us keep it up. The Cambridge English Academy has other courses, such as Foreign Languages, Spoken English, Interview Skills, and Personality Development. Visit our website:- Best English Speaking Course In Laxmi Nagar

  42. Yes, I am entirely agreed with this article, and I just want say that this article is very helpful and enlightening. I also have some precious piece of concerned info !!!!!!Thanks.

  44. Starzbet Güncel Giriş: Starzbet’in güncel giriş adresi sayesinde siteye erişim çok hızlı ve kolay! Sürekli güncellenen giriş adresi ile kesintisiz oyun keyfi yaşarken, site her zaman güvenli bir ortam sunuyor. Hem masaüstünde hem mobilde kullanıcı dostu bir arayüz var.

    Starzbet

  45. Deneme Bonusu: Yeni üyeler için sunulan deneme bonusu, Starzbet’in cömert tekliflerinden sadece biri. Bu bonusla risk almadan kazanç fırsatlarını değerlendirmek çok keyifli. Özellikle deneme bonusları, platformu keşfetmek için harika bir başlangıç noktası sunuyor.

    Starzbet Deneme Bonusu

  46. I haven’t any phrase to realize this publish…..truly i am inspired from this put up….the person that create this publish it was a terrific human..thank you for shared this with us. alphabites

  49. Arryadia is revolutionizing how we consume entertainment! With its captivating shows and talented hosts, it’s becoming a favorite for many. The commitment to quality and cultural representation makes it stand out. Excited to see how they evolve in the future! Keep shining!

  50. When planning an event, many things need to be considered. One important chair hire aspect is seating. If you need extra chairs for a party, meeting, or wedding, chair hire services in London can help. This article explains what chair hire services are, why you might need them, and how to choose the right service for your event.

Leave a Reply

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