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”

  7. I just came up to your blog and found it very insightful. I want to compare the commercial market on behalf of commercial vehicle performance according to their pricing.
    You can also check the below link.
    new Tata 407 price

  8. Good post. I learn something totally neᴡ and challenging on blogs Ι stumbleupon օn a daily basis.
    It ѡill always Ƅe helpful t᧐ read tһrough ϲontent from other writers ɑnd use a lіttle ѕomething from other sites.

    Аlso visit my webpage :: Online Betting

  10. I wanted to thank you for this wonderful read!! I absolutely enjoyed every bit of it.
    I have got you saved as a favorite to check out new stuff you post…

    my homepage Join now

  11. With the participation of 16 countries, including strong teams that have long been influential in the world of football, this tournament will be a highlight for sports fans around the world. Therefore, if you want to know more information, please visit our website prediksi iraq vs ukraine olympiad 2024

  16. I appreciate the regular updates and events in Sprunked . The developers clearly care about the community and keep the game fresh with new content. It’s exciting to log in and see what’s new. This level of engagement is what keeps players loyal and enthusiastic!

  19. 이러한 유형의 주제를 검색하는 거의 모든 사람들에게 도움이되기를 바랍니다. 저는이 웹 사이트가 그러한 주제에 가장 적합하다고 생각합니다. 좋은 작품과 기사의 품질. 헬로밤

  20. 이러한 유형의 주제를 검색하는 거의 모든 사람들에게 도움이되기를 바랍니다. 저는이 웹 사이트가 그러한 주제에 가장 적합하다고 생각합니다. 좋은 작품과 기사의 품질. 아이러브밤

  21. arguments in favour of home purchase are all qualitative, there is also the quantitative angle to the rent or buy argument. How do the two options stack up purely based on numbers? Sora Price

  22. Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful for me. Electric Vehicle Parts

  24. Your post really resonated with me, and I found myself nodding along as I read through it. I especially appreciated your idea and the way you presented it.
    Thank you for taking the time to create such valuable content. Your blog is always a go-to resource for me, and I look forward to reading more of your work in the future.
    drug distribution lawyer fairfax

  27. 모든 댓글을 읽는 데 시간이 걸렸지 만 기사를 정말 즐겼습니다. 그것은 나에게 매우 도움이되는 것으로 판명되었고 여기의 모든 댓글 작성자에게 확신합니다! 정보를받을 수있을뿐만 아니라 즐길 수있을 때 항상 좋습니다. 바카라 커뮤니티

  28. Zeesy is one of the top destinations for Artificial Jewellery in Pakistan, offering a stunning collection of beautifully crafted pieces. Their designs are modern yet rooted in tradition, making them perfect for both casual wear and special occasions. The quality of their jewellery is excellent, and the prices are quite reasonable, ensuring you get great value. If you’re looking for elegant and stylish artificial jewellery in Pakistan, Zeesy is definitely worth checking out!

  29. Great post! I am actually getting ready to across this information, is very helpful my friend. Also great blog here with all of the valuable information you have. Keep up the good work you are doing here.
    dewatogel

  30. This type of message always inspiring and I prefer to read quality content, so happy to find good place to many here in the post, the writing is just great, thanks for the post. alexistogel

  33. Please let me know if you’re looking for a author for your weblog.
    You have some really great posts and I feel I
    would be a good asset. If you ever want to take
    some of the load off, I’d really like to write some articles for your blog in exchange for a link back to mine.
    Please send me an email if interested. Many thanks!

    Stop by my webpage :: Billionaire Brain Wave youtube

  48. Zeesy offers an amazing variety of jewellery, and their bracelet for womancollection stands out for its elegance and charm. Each piece is crafted with attention to detail, making their bracelets not only fashionable but also high-quality. Whether you’re looking for something to complement a traditional outfit or a modern look, Zeesy has the perfect bracelet for every woman. Highly recommended for anyone seeking stylish and affordable accessories!

  50. Zeesy’s collection of jewellery is truly impressive, and their calligraphy pendant for woman is a standout piece. The intricate designs and artistic touch of the calligraphy make these pendants not only unique but also meaningful. Whether you’re looking for something cultural or stylish, Zeesy’s calligraphy pendants are perfect for adding a personal touch to any outfit. It’s a must-have for women who love elegant and meaningful accessories!

Comments are closed.