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. I appreciate the way you laid out the pros and cons. It helped me see both sides of the argument clearly. I’d love to see a follow-up post diving deeper into some of these points. Great job!crypto pur

  5. I love the way you explained the different types of twists for men. The comparison between two-strand and Senegalese twists was really helpful for me. Which one do you think works better for shorter hair?9xflix com

  10. I am constantly surprised by the amount of information accessible on this subject. What you presented was well researched and well written to get your stand on this over to all your readers. Thanks a lot my dear 스포츠중계

  14. These productivity tips are absolute game-changers! I never thought about using time-blocking to organize my week, but I’m excited to give it a try. Your approach to balancing work and rest is exactly what I needed to hear today. Thank you for the inspiration! 9xflix com

  15. Your travel photos are stunning! It feels like I’m experiencing the adventure right along with you. Thanks for sharing such detailed tips on the local cuisine and hidden spots to visit. I’ve just added this destination to my bucket list! fii dii data

  16. A debt of gratitude is in order for the pleasant site. It was extremely helpful for me. I’m cheerful I discovered this online journal. Much obliged to you for offering to us,I too dependably gain some new useful knowledge from your post. dewatogel

  19. Very interesting and informative article! I really enjoyed what you have presented here. If anyone is interested in online lottery games, I recommend visiting our site at waktogel for a safe and enjoyable gaming experience. Thanks for the information!

  22. Thanks for sharing this article as it is very informative and for more information visit our website. Are you looking for Delhi Russian Escorts for a long time then stop now because you have clicked on the right website, here you will find Russian call girls as well as local call girls who are available 24*7 for the clients, if you want to see the game of these escorts then you have to book them now and then you can see their romantic game on the bed

  25. The railway industry in France is a vital part of its economy and culture, much like the iconic hugh hefner playboy bunny costume symbolizes American pop culture. Just as the costume represents a blend of glamour and nostalgia, France’s railways connect its rich history with modern innovation, fostering travel and tourism.

  26. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don’t forget, keep sharing useful info: ai undressing

  30. Gone are the days when plus size fashion meant oversized, unflattering garments. The modern world of plus size party dresses for women features a variety of trendy styles, cuts, and designs. From flowing maxi dresses to form-fitting cocktail dresses, there’s something for every personal taste and body shape. plus size party dresses for women

  34. This is a smart blog. I mean it. You have so much knowledge about this issue, and so much passion. You also know how to make people rally behind it, obviously from the responses. slots 777

  35. One of the main attractions of gacor slots is the higher chance of winning. Many players share their positive experiences when playing gacor slots, with some even claiming that they managed to hit the jackpot or big win in just a few spins. Therefore, if you want to know more information, please visit our website waktogel This creates hope and enthusiasm among players, especially for those who crave a gaming experience that is not only entertaining but also profitable.

  38. I found your this post while searching for information about blog-related research … It’s a good post .. keep posting and updating information. qna

  39. I’m any regarding a lot of the content, My partner and i totally savored, I might actually favor a lot more info relating to this kind of, considering that it really is great., Congrats designed for submitting. slot gacor indonesia

  41. Many fashion retailers and online stores now offer a wide variety of plus size party dresses for women. Popular brands like ASOS Curve, Torrid, and Eloquii have embraced size inclusivity, offering everything from classic black cocktail dresses to more daring, fashion-forward options. plus size party dresses for women

  44. Hey, you used to write fantastic, but the last several posts have been kinda boring… I miss your tremendous writings. Past few posts are just a little out of track! come on! thirdweb

  48. I simply wanted to thank you a lot more for your amazing website you have developed here. It can be full of useful tips for those who are actually interested in this specific subject, primarily this very post. Your all so sweet in addition to thoughtful of others and reading the blog posts is a great delight in my opinion. And thats a generous present! Dan and I usually have enjoyment making use of your recommendations in what we need to do in the near future. Our checklist is a distance long and tips will certainly be put to excellent use. daftar seltoto

Comments are closed.