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

 

208,849 thoughts on “Railway Industry in France

  1. 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 gb

  2. طراحی مبدل های حرارتی و یا مبدل های گرمایی
    در زمینه ساخت انواع مختلف مبدل های حرارتی صنایع زیادی فعال هستند و همچنین در مورد طراحی مبدل های حرارتی در دانشکده ها و یا دانشگاه ها با عناوین مختلف دروس هایی ارایه میشود.
    معمولا برای طراحی مبدل های حرارتی از نرم افزار های Aspen B-jac و HTFS استفاده میکنند. معمولا محاسباتی که به مبدل حرارتی مربوط میشود بسیار طولانی و یا خسته کننده میباشد.
    اجزاء مختلف مبدل ‌ها
    مبدل‌های حرارتی موجود در صنایع و کارخانجات به خصوص صنعت پتروشیمی، معمولا از نوع پوسته و لوله می‌باشند. از مزایای این مبدل‌ها می‌توان به سطح تماس زیاد در حجم کم، طرح مکانیکی خوب و توزیع یکنواخت فشار و راحتی تمیز کردن آن‌ها اشاره کرد. می‌توان گفت که ساختمان مبدل‌ها شامل تعدادی لوله است که در داخل یک استوانه قرار می‌گیرند، و دو سیال مورد نطر که یکی سرد و دیگری گرم است، بدون اینکه بطور مستقیم با یکدیگربرخورد کنند از طریق دیواره فلزی لوله‌ها با یکدیگر تبادل حرارت خواهند کرد. به عبارت دیگر یکی از این دو سیال در لوله‌ها و دیگری در اطراف لوله‌ها، درون پوسته جریان خواهد داشت.
    چگالی گاز طبیعی
    چگالی گاز متان ۵۵ صدم است، ولی با توجه به ترکیبات سنگینتر همراه گاز طبیعی، چگالی آن می‌تواند به حدود ۶۵صدم نیز برسد؛ بنابراین گاز طبیعی از هوا سبکتر بوده و در صورت نشت از خطوط لوله یا سایر اجزاء شبکه گاز یا لوله‌کشی وسائل گاز سوز در منازل به سمت بالا حرکت می‌کند و در مکان‌های مسقف قسمت زیادی از گاز نشت شده در زیر سقف تجمع می‌کند.
    اما سبکتر بودن گاز طبیعی با عث نمی ‌شود که همه گاز نشت یافته از یک محل به سمت بالا برود بلکه بخشی از گاز نیز، به ویژه در صورتی که عناصر تشکیل دهنده هوا با آن اختلاط کامل پیدا کنند، به همراه هوا به اطراف نیز پراکنده می‌شود؛ و چون غلظتهای پائین گاز در هوا خطرناکتر است قابلیت انفجار در اطراف محل نشت نیز وجود دارد.
    گاز طبیعی بعد از هیدروژن پاک‌ترین نوع سوخت فسیلی برای طبیعت است. زیرا عمدتاً دی‌اکسیدکربن و بخار آب تولید می‌کند. علاوه بر این متان یکی از مواد خام اصلی برای ساخت حلال‌ها و دیگر مواد شیمیایی ارگانیک است. پروپان و بوتان نیز از گاز طبیعی استخراج می‌شوند. گاز نفتی مایع شده (Liquefied Petroleum Gas) یا (LPG) اصولاً همان پروپان است و اغلب به جای گاز طبیعی در مناطق فاقد خطوط لوله مورد استفاده قرار می‌گیرد.
    گاز طبیعی غالباً ناخالصی‌هایی چون دی‌اکسیدکربن (گاز اسیدی)، سولفید هیدروژن (گاز ترش) و آب و همچنین نیتروژن، هلیوم و سایر گازهای نادر را به همراه دارد. دی‌اکسید را به حوزه‌های نفتی قدیمی تخلیه شده تزریق می‌کنند تا تولید آن‌ها افزایش یابد. نیتروژن نیز گازی است قابل تزریق به حوزه‌های نفتی و هلیوم در صنایع الکترونیک تارتل موارد استفاده ارزشمند و فراوان دارد.
    سولفید هیدروژن (H2S) بسیار سمی است و مقادیر بسیار ناچیز آن نیز می‌تواند کشنده و مهلک باشد. سولفید هیدروژن بسیار خورنده و فرساینده است و می‌تواند به لوله‌ها، اتصالات و شیرهای چاه آسیب و خسارت وارد کند؛ بنابراین قبل از انتقال گاز طبیعی به خطوط لوله، سولفید هیدروژن جداسازی شده و دی‌اکسید کربن و آب آن نیز از طریق آب‌زدایی یا نمک‌گیری گرفته می‌شود.

  3. I can see that you are an expert at your field! I am launching a website soon, and your information will be very useful for me.. Thanks for all your help and wishing you all the success in your business. สล็อต Wallet

  4. Thanks for picking out the time to discuss this, I feel great about it and love studying more on this topic.
    Visit Travel for boat tours trip and make your holidays fantastic.

  5. I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. psd letter

  6. This is a great article thanks for sharing this informative information. I will visit your blog regularly for some latest post. I will visit your blog regularly for Some latest post.
    슬롯머신게임

  7. Universitas Muhammadiyah Prof. DR. HAMKA (selanjutnya disebut UHAMKA) adalah universitas yang memiliki Visi sebagai berikut : “Kampus Profetik yang menghasilkan lulusan unggul dalam kecerdasan spiritual, intelektual, emosional, dan sosial”. profetik kampus

  8. I am impressed. I don’t think Ive met anyone who knows as much about this subject as you do. You are truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog you have got hereOzempic Semaglutide for sale online

  9. สล็อตxo
    It is my first visit to your blog, and I am very impressed with the articles that you serve. Give adequate knowledge for me. Thank you for sharing useful material. I will be back for the more great post.

  10. Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include. hot dildos

  11. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. สล็อต Wallet

  12. I found useful information on this topic✅. Thank you posting relative information and its currently becoming easier to complete this project movies 123

Leave a Reply

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