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

 

207,613 thoughts on “Railway Industry in France”

  2. The concept of a Bounty Game
    can refer to various interpretations depending on context, but in this historical analysis, the term will be explored in relation to the period of the 17th century, particularly in the aftermath of the infamous mutiny aboard the British Royal Navy ship *HMS Bounty* in 1789. However, the broader themes of bounty hunting, the spirit of exploration, and naval missions will also tie in closely to the socio-political landscape of the 1660s. Through this lens, we will examine the

  3. Face 3 Face is a top-tier street wear shop known for its edgy, urban fashion. Catering to trendsetters, the store offers a curated selection of the latest streetwear brands, from iconic sneakers to bold graphic tees and hoodies. With a focus on quality and style, Face 3 Face ensures that each piece reflects the vibrant street culture. Whether you’re looking for exclusive drops or classic streetwear staples, this shop is a must-visit for fashion enthusiasts. Located in a prime urban spot, it’s the go-to destination for anyone wanting to elevate their streetwear game with unique, standout pieces.
    Face 3 Face

  4. Przygotuj Się Do Jazdy: Test Na Prawo Jazdy AM! Test Na Prawo Jazdy AM: Co Wszystko
    Wiesz Na Temat Egzaminu Teoretycznego I Praktycznego?
    prawo jazdy kat b cena – Lukas,

  7. Typhu88 is your gateway to a world of thrilling games and exciting rewards. Join today and experience the best of online gaming!Discover an incredible selection of games and prizes on Typhu88. Play now and start your winning journey! typhu88

  12. I havent any word to value this post…..Really i am inspired from this post….the individual who make this post it was an extraordinary human..thanks for imparted this to us. Elementor Pro

  13. 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. slot gacor hari ini

  14. Thanks for sharing this information. I really like your blog post very much. You have really shared a informative and interesting blog post with people.. Milan69

  15. When i ordered on your web page on the other hand setting concentration simply somewhat minor submits. Rewarding technique for near future, We are book-marking whenever get men and women down comes up available. 토토 보증업체

  16. 한국야동- 야동스토어는 실시간으로 업데이트되는 한국야동 외에도 한국야동, 일본야동, 미공개야동, 국산야동 등 다양한 고퀄리티 야동의 다운로드를 제공합니다 한국야동

  17. Attractive, post. I just stumbled upon your weblog and wanted to say that I have liked browsing your blog posts. After all, I will surely subscribe to your feed, and I hope you will write again soon! slot gacor hari ini

  21. I just found this blog and have high hopes for it to continue. Keep up the great work, its hard to find good ones. I have added to my favorites. Thank You. Milan69

  22. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. togelin

  24. You delivered such an impressive piece to read, giving every subject enlightenment for us to gain information. Thanks for sharing such information with us due to which my several concepts have been cleared. spaceman slot

  25. I’ve been surfing online more than 3 hours today, yet I never found any interesting article like yours.
    It’s pretty worth enough for me. In my opinion, if all website owners and
    bloggers made good content as you did, the internet will be a lot more useful than ever before.

    My blog ide777

  28. Wow, excellent post. I’d like to draft like this too – taking time and real hard work to make a great article. This post has encouraged me to write some posts that I am going to write soon. spaceman slot

  32. I can relate to this on many levels! Your honesty is refreshing. It’s great to see someone share their true feelings.6. “This topic is so relevant right now! Thank you for addressing it. Your voice adds much-needed clarity to the conversation.” สล็อต

  33. I really got into this article. I found it to be interesting and loaded with unique points of interest. I like to read material that makes me think. Thank you for writing this great content. alexistogel

  35. Thanks for taking the time to discuss this, I feel strongly that love and read more on this topic. If possible, such as gain knowledge, would you mind updating your blog with additional information? It is very useful for me. Milan69 Login

  36. I visit your blog regularly and recommend it to all of those who wanted to enhance their knowledge with ease. The style of writing is excellent and also the content is top-notch. Thanks for that shrewdness you provide the readers! slot spaceman

  41. Flowerdale Valley offers a range of skincare products, known for their pleasant fragrances and natural ingredients. Customers appreciate their cleansing balm, which effectively removes makeup without leaving skin feeling dry. Flowerdale Valley products avoid harsh chemicals, providing a gentle, nourishing experience ideal for sensitive skin. Additionally, they include mini samples with orders, allowing customers to explore other skincare options.

  43. Thanks a lot for ones put up not to mention amazing tips and hints.. perhaps even I just even consider that chores might be the most significant part of buying victory. sbobet88

  44. I have been meaning to read this and just never obtained a chance. It’s an issue that I’m really interested in, I just started reading and I’m glad I did. You’re a fantastic blogger, one of the best that I’ve seen. This weblog undoubtedly has some facts on topic that I just wasn’t aware of. Thanks for bringing this stuff to light. חשפניות בתל אביב

  45. Excellent! Amazing! I’ll bookmark your blog and take the feeds also. I’m happy to find so many useful info here in the post, we need work out more techniques in this regard, thanks for sharing.parivrai

  47. Wow, What a Excellent post. I really found this to much informatics. It is what i was searching for.I would like to suggest you that please keep sharing such type of info.Thanks spaceman pragmatic

  48. I was surfing the Internet for information and came across your blog. I am impressed by the information you have on this blog. It shows how well you understand this subject. GB WhatsApp

  50. Our streetwear collections pull from the archives to put a modern spin on classics like the Firebird tracksuit and the Tiro pant. Luxe materials, sophisticated …
    adidas

Leave a Reply

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