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

 

165,116 thoughts on “Railway Industry in France”

  3. 보증업체 If Valieva finishes in the top three of the women’s single event, which starts at about 6 p.m. Tuesday (local time) with the short program and ends with the free skate Thursday, the medal ceremony will not be held during the Winter Games.

  6. 토토사이트 Russian figure skater Kamila Valieva has stated that her positive drug test was caused by a mix-up with her grandfather’s heart medication, an Olympic official said Tuesday.

  8. 안전놀이터 The 15-year-old’s defense was revealed as Beijing braced for an unprecedented Olympic moment ― the world’s top figure skaters will compete in the evening’s single competition with the likelihood they will not receive medals at the Winter Games.

  9. Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! 먹튀검증사이트

  10. I’m impressed, I must say. Actually rarely can i encounter a blog that’s both educative and entertaining, and without a doubt, you could have hit the nail about the head. Your idea is outstanding; the thing is something that too few individuals are speaking intelligently about. We are delighted that we came across this around my try to find some thing with this.메이저사이트

  21. I wanted to thank you a lot more for that amazing web page you have created here. It can be full of ideas for those who are truly interested in that subject, in particular this very post. You’re really all absolutely sweet along with thoughtful of others and reading your site posts is a superb delight to me. And such a generous surprise! Mary and I usually have enjoyment making use of your points in what we must do next week. Our record is a distance long which means that your tips are going to be put to beneficial use. http://www.batesexterminating.com

  22. it’s really nice and meanful. it’s really cool blog. Linking is very useful thing.you have really helped lots of people who visit blog and provide them usefull information. 389sports

  27. Artık insanın gündemi takip edebilmesi, merak ettiği herhangi bir bilgiye ulaşabilmesi çok kolaydır. Eskiden uzun uğraşlar neticesinde alınan bir bilgiyi günümüzde tek bir tuşa tıklayarak bulabiliyorsunuz. Hatta bulmakla kalmayarak var olan bilgileri değerlendirebiliyor, kıyaslayabiliyorsunuz. Bilgiye erişim kolay olurken doğru bilgi ya da yanlış bilgi arasındaki farkı da iyi bilmeniz gerekiyor. Çünkü doğru olduğunu düşünerek kullandığınız bir bilginin doğru olmaması sizi hayal kırıklığına uğratmakla kalmaz aynı zamanda birçok şeyinde aksamasına neden olabilir.

    Kaynak : https://oyversus.com/

  28. I just couldn’t leave your website before telling you that I truly enjoyed the top quality info you present to your visitors? Will be back again frequently to check up on new posts. 카지노사이트

  30. 토토사이트✅️먹튀검증✅️을 진행하는 토토스토리는 정확한 검증을 거쳐 방문해 주시는 회원님들께 안전놀이터를 제공하고 있으며 보다 프리미엄 서비스를 무료로 제공해 드리고 있습니다 사설 스포츠토토에 대한 모든 것을 관리합니다. 토토사이트

  32. Pourquoi ne pas dire de l’objet qui fixe le principalement à coeur a majorité fermer liseurs? Le fait majeur protégé des récents mois à l’idée de la diffusion des actualités dragon ball jacket

  35. This article gives the light in which we can observe the reality. This is very nice one and gives indepth information. Thanks for this nice article. Burn Boost

  36. betflix
    มาดู รีวิวเกมสล็อต เว็บตรงแตกง่าย มาเตรียมพบ กับ บทความรีวิวเกม สล็อต ที่มีผู้เล่น มากที่สุดแห่งปี พบกับเกมสล็อตมาใหม่ อีกมากมาย อีกทั้งยัง มาพร้อมกับฟีเจอร์ รางวัลอีกมากมาย กับ เว็บสล็อตเว็บตรงเว็บนี้เลย betflix แอดบอกไว้เลยว่า ใครที่หลงเข้ามา หรือ ตั้งใจเข้ามาเยี่ยมชมที่นี่ หรือ ว่าเข้าร่วมเป็นสมาชิก กันเว็บของทางเราแล้ว ท่านจะได้พบเจอ

  37. Get in touch with the best and most affordable Melbourne Office Cleaning at JAPS Cleaning Services. With our 9 years of existence in the cleaning industry, we take pride in removing all kinds of stains. We use the latest equipment and techniques to provide guaranteed and satisfactory results. Our team of experts is providing a range of cleaning services throughout Melbourne and nearby areas. We use products that are toxic-free and create a safe workplace. To get details about Commercial cleaning services call on 0430 410 909.

  40. Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. 토토사이트

  42. There are some intriguing points on time here but I do not know if I see they all center to heart. There is some validity but I most certainly will take hold opinion until I check into it further. Excellent post , thanks and that we want far more! Added to FeedBurner in addition dragon ball z jacket

  43. This is what piece appears to have a wide selection of targeted customers. Would you market it? It all offers a decent special distort for aspects. Maybe enjoying one bona fide or even higher to supply information on is the most essential subject. black wool dress

  47. This may be the right blog for wants to learn about this topic. You understand a great deal of its nearly not easy to argue along with you (not that I personally would want…HaHa). You actually put the latest spin using a topic thats been revealed for years. Wonderful stuff, just great! goku jacket

  50. Genç bir nesle hitap etmek, sizi onların akran gruplarına ve sosyal çevrelerine bağlayabilir. Bu nedenle, kampanyalarınızı doğrudan onlara hedeflemiyor olsanız da, markanızı büyütmek için yardımcı olabilecek sosyal medya uygulamaları vardır. Bu uygulamalardan bir tanesi olan Tiktok, son yıllarda özellikle Z kuşağının popüleritesini kazanmayı başarmıştır. Kullanıcılar TikTok takipçi hilesi yaparak uygulamanın avantajlarından yararlanmaya çalışırlar. TikTok takipçi hilesi 2022 yapmanın en büyük avantajı ise bilinir ve tanınır olmaktır. Bunu marka bazında düşündüğünüzde ürün satışınızın daha fazlası olması anlamına gelecektir.

    Site : https://tiktoktakip.com/

Leave a Reply

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