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:
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:
Comfort Class:
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.
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
Price at 2 weeks before departure
Price at 3 weeks before departure
Price at 4 weeks before departure
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:
The non-physical rate fences are age, season ticket, and loyalty
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
We stumbled upon this site, it’s great, we believe it’s for you.ข่าวกีฬา
I can’t really help but admire your blog. your blog is so adorable and nice “ สมัคร ufabet
The electronic cigarette makes use of a battery and a small heating aspect the vaporize the e-liquid. This vapor can then be inhaled and exhaled 9janews
Great article with excellent idea!Thank you for such a valuable article. I really appreciate for this great information.. India-medisch-visum
Aw, this has been an exceptionally good post. In concept I would like to place in writing similar to this moreover – spending time and actual effort to have a really good article… but what can I say… I procrastinate alot and by no means seem to get something completed. video capture card for streaming
Excellent read, Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. online casino
Your content is nothing short of bright in many forms. I think this is friendly and eye-opening material. I have gotten so many ideas from your blog. Thank you so much. best online casino
Whenever I have some free time, I visit blogs to get some useful info. Today, I found your blog with the help of Google. Believe me; I found it one of the most informative blog. best online casino
You have a real talent for writing unique content. I like how you think and the way you express your views in this article. I am impressed by your writing style a lot. Thanks for making my experience more beautiful. best online casino
It is very informative crystal clear and crisp. I believe that all the information has been explained in a way that is organized so that the reader can be able to get the most info and learn various things. I want you to read anout OTHM Qualification
dgfdgdsfgdsag
Really impressive post. I read it whole and going to share it with my s
kbh games
i operate a small computer shop at home and most customers enjoy playing online games;; ทางเข้าufabet
The majority of you’ll then perspective it is important, the applying presents for you to webpage a superb sizeable webpage: Buy Handguns Ammo Online
including reasonable comments here… 9ja news
After study many of the blog posts on your own internet site now, and i genuinely much like your means of blogging. I bookmarked it to my bookmark internet site list and are checking back soon. Pls check out my website as well and let me know what you think.
isaimini
https://isaimininews.com/
Great post I would like to thank you for the efforts you have made in writing this interesting and knowledgeable article. 9janews
I am hoping the same best effort from you in the future as well. In fact your creative writing skills has inspired me. 9ja news
Thank you for very usefull information.. TOS885 deskop
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.. 9janews
A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. 9janews
Nice Informative Blog having nice sharing.. North American Bancard Agent Program
Excellent read, Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. online poker
Great! It sounds good. Thanks for sharing.. North American Bancard ISO
Great post I would like to thank you for the efforts you have made in writing this interesting and knowledgeable article. North American Bancard Agent Program
I have read your article, it is very informative and helpful for me.I admire the valuable information you offer in your articles. Thanks for posting it.. North American Bancard Sales Partner
This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. Onye-njem-nleta-India-Visa
I’ve just decided to create a blog, which I have been wanting to do for a while. Thanks for this post, it’s really useful! North American Bancard Agent Program
you have a wonderful blog here! do you want to make some invite posts in this little weblog? https://firstgrademiners.com/
This blog is so nice to me. I will keep on coming here again and again. Visit my link as well.. Merchant Services Sales Representative
I’m a little afraid to say an opinion that’s against the norm, I don’t want to get bashed. https://firstgrademiners.com/
Great article with excellent idea!Thank you for such a valuable article. I really appreciate for this great information.. best online casino
very interesting post.this is my first time visit here.i found so mmany interesting stuff in your blog especially its discussion..thanks for the post! Merchant Services Sales Salary
You know your projects stand out of the herd. There is something special about them. It seems to me all of them are really brilliant! Merchant Services Sales Representative
I have been exploring for a little bit for any high quality articles or blog posts in this sort of space . Exploring in Yahoo I eventually stumbled upon this web site. Studying this info So i am happy to express that I’ve an incredibly just right uncanny feeling I found out just what I needed. I such a lot for sure will make sure to do not fail to remember this site and provides it a look a relentless basis. wiza turystyczna do Kanady
Your website is really cool and this is a great inspiring article. Merchant Services Representative
A very excellent blog post. I am thankful for your blog post. I have found a lot of approaches after visiting your post. click this link
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.. Merchant Services Sales Representative
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. TOS 885
I admit, I have not been on this web page in a long time… however it was another joy to see It is such an important topic and ignored by so many, even professionals. I thank you to help making people more aware of possible issues. evolution gaming
I enjoy the comments on this web site, it really gives it that community experience! cctvokami.com
No doubt this is an excellent post I got a lot of knowledge after reading good luck. Theme of blog is excellent there is almost everything to read, Brilliant post. go to page
It’s difficult to find knowledgeable people on this topic, nevertheless, you sound like you know what you’re preaching about! Thanks ms office 2019 crack
Thanks for sharing nice information with us. i like your post and all you share with us is uptodate and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job. evolution gaming
You know your projects stand out of the herd. There is something special about them. It seems to me all of them are really brilliant! evolution gaming
I love the way you write and share your niche! Very interesting and different! Keep it coming! evolution gaming
카지노 알공급 I’m studying Powerball. I will provide you with a better game.
sdfsdfsadf
Please share more like that. evolution gaming
Your blog has chock-a-block of useful information. I liked your blog’s content as well as its look. In my opinion, this is a perfect blog in all aspects. situs slot online