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

 

208,872 thoughts on “Railway Industry in France”

  1. The matter you we highlighted above is surely value able for anyone to workout. the concept of your article is very true and It will result in a positive way. website

  2. This is a truly good site post. Not too many people would actually, the way you just did. I am really impressed that there is so much information about this subject that have been uncovered and you’ve done your best, with so much class. If wanted to know more about green smoke reviews, than by all means come in and check our stuff. Solicitud de visa de Canadá en línea

  3. This is a truly good site post. Not too many people would actually, the way you just did. I am really impressed that there is so much information about this subject that have been uncovered and you’ve done your best, with so much class. If wanted to know more about green smoke reviews, than by all means come in and check our stuff. Solicitud de visa de Canadá en línea

  4. You have done a great job on this article. It’s very readable and highly intelligent. You have even managed to make it understandable and easy to read. You have some real writing talent. Thank you. best online casino

  9. i read a lot of stuff and i found that the way of writing to clearifing that exactly want to say was very good so i am impressed and ilike to come again in future.. 비아센터

  12. โปรโมชั่นสล็อต ยอดนิยม ทำเงินง่าย ที่นี่ ultraslot1688 รวมโปรโมชั่นสล็อต ใช้ทำเงินได้ทุกค่าย ได้เงินชัวร์แน่นอน และไม่มีที่ไหนไม่มีที่ไหนได้เงินชัวร์ๆ เท่าเว็บเราอีกแล้ว หากท่านอยากพบเจอเกมสล็อตแท้ ก็ลองเข้าเดิมพันกับเราได้เลยในตอนนี้ คลิกเข้ารับโปรโมชั่นทำเงิน

  15. When I originally commented I clicked the -Notify me when new surveys are added- checkbox and from now on whenever a comment is added I purchase four emails sticking with the same comment. Perhaps there is by any means you may get rid of me from that service? Thanks! bonusy kasynowe

  21. I have learned newer and more effective things by means of your blog. One other thing I’d like to say is that newer personal computer operating systems are inclined to allow extra memory to get used, but they likewise demand more memory simply to function. If a person’s computer can’t handle extra memory and also the newest computer software requires that memory increase, it could be the time to buy a new Laptop. Thanks http://www.ufabet168.bet/%e0%b9%81%e0%b8%97%e0%b8%87%e0%b8%9a%e0%b8%ad%e0%b8%a5/

  29. Spot lets start on this write-up, I truly think this fabulous website needs much more consideration. I’ll oftimes be once more to see considerably more, appreciate your that information. 9ja news, 9janews

  30. เว็บ betflix
    เล่นเกมสล็อตออนไลน์ กับภารกิจช่วยลูกนกเพนกวิน และชีวิตเพื่อน ๆ ของเขาจากน้ำแข็งในสล็อต The Great Icescapes พีจีสล็อต เกมสล็อตนี้ผู้เล่น จะต้องหมุนสปิน เพื่อค้นหาชุดค่าผสมที่ตรงกัน เพื่อทุบทำลายบล็อกน้ำแข็ง และรับโบนัสในเกม Bonus Respins ที่ยอดเยี่ยม มีรางวัลตัวคูณ ที่ประทับใจ และโอกาสในการชนะ รางวัลสุดพิเศษสล็อตThe Great Icescape สูตรสล็อตทำกำไร เล่นเกมสร้างรายได้ กับ เว็บสล็อตแตกเยอะ ที่ Betflix เว็บตรงไม่ผ่านเอเย่นต์ พร้อม สูตรสล็อตทำกำไร

  34. Really impressive post. I read it whole and going to share it with my social circules. I enjoyed your article and planning to rewrite it on my own blog.
    kbh games

  35. When I originally commented I clicked the -Notify me when new comments are added- checkbox and already when a comment is added I receive four emails with similar comment. Perhaps there is in whatever way it is possible to get rid of me from that service? Thanks! 9janews

  38. I would like to thank you for the efforts you have put in writing this site. I am hoping the same high-grade web site post from you in the upcoming also. In fact your creative writing skills has inspired me to get my own website now. Actually the blogging is spreading its wings rapidly. Your write up is a good example of it. 에볼루션

  39. Your writing taste has been amazed me. I know one blog about Download Roblox Player exe. If by any means, you’re facing the Roblox error code 268, give this text a read. The article has been updated with new info Roblox exe. In Roblox, the framerate is restricted to 60 by default, however, it is often improved using specific tools.

  43. Very nice blog and articles. I am realy very happy to visit your blog. Now I am found which I actually want. I check your blog everyday and try to learn something from your blog. Thank you and waiting for your new post. chandigarh escort service

  45. I’d should seek advice from you here. Which isn’t something It’s my job to do! I love to reading an article that will get people to think. Also, appreciate your permitting me to comment! บาคาร่า

  46. Our mission is to empower individuals while enhancing their personal healing experience. We hope to achieve this goal by educating consumers on a variety of plants that can nurture their bodies inside and out, utilizing both skincare, and health consulting.
    Holistic Health

  47. As I am looking at your writing, I regret being unable to do outdoor activities due to Corona 19, and I miss my old daily life. If you also miss the daily life of those days, would you please visit my site once? My site is a site where I post about photos and daily life when I was free.keo nha cai

Leave a Reply

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