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

 

177,945 thoughts on “Railway Industry in France”

  8. Decent data, profitable and phenomenal outline, as offer well done with smart thoughts and ideas, bunches of extraordinary data and motivation, both of which I require, on account of offer such an accommodating data here 토토사이트
    zzx

  9. Decent data, profitable and phenomenal outline, as offer well done with smart thoughts and ideas, bunches of extraordinary data and motivation, both of which I require, on account of offer such an accommodating data here 토토사이트
    xxx

  12. Thanks for the marvelous post! ✅ I really enjoyed reading it, you might be a great author. I will certainly bookmark your blog and definitely will come back sometime soon. I want to encourage you to continue your great writing followers instagram

  15. 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. 먹튀검증

  16. An intriguing discussion may be worth comment. I’m sure you should write much more about this topic, may well be described as a taboo subject but generally folks are too little to chat on such topics. An additional. Cheers 사설토토사이트

  17. Although many urban centers are starting to improve municipal waste composting facilities to help with the waste management, using the waste to grow mushrooms just sounds a lot more delicious since they are a good source of vitamin B, ascorbic acid, dietary fiber, and bioactive compounds. In fact, you can grow them at home. I would suggest using oyster mushrooms, since they are the easiest to grow, using your own coffee grinds and kitchen waste. 사설토토사이트

  22. Nevertheless this is besides that an incredible share that marilyn and i certainly appreciated checking. It certainly is not day to day that i maintain the prospect to decide 1. superslot

  23. Nice to be visiting your blog once more, it has been months for me. Well this article that ive been waited for therefore long. i want this article to finish my assignment within the faculty, and it has same topic together with your article. Thanks, nice share. superslot auto

  25. Succeed! It could be one of the most useful blogs we have ever come across on the subject. Excellent info! I’m also an expert in this topic so I can understand your effort very well. Thanks for the huge help. Alexander Malshakov

  28. port remote desktop | hosted vps | domain

    We are an host service provider.
    QNICKIT Host Full administrator access strong RDP with committed Smash,
    Far off the Work area. Our Strong Control boards to guarantee ideal execution.
    Modest RDP, Administrator Access, Very quick Windows RDP, SSD drives for all plans,
    99.99% Uptime Assurance, Moment Arrangement, Devoted Assets, Full Administrator Access
    with NVME/SSD Disks. Our administrations are: “G-suite, Space, CPANEL Facilitating,
    Affiliate Facilitating, Administrator RDP, VPS Facilitating, Committed SERVER, EMAIL SERVER,
    AND SMTP”. QNICKITHost gives excellent Programming To Your Promoting Computerization EMAIL Shipper Special.

    skype : live:.cid.45d79bca58860757
    ICQ : Qnic IT HOST
    WEBSITE : https://qnicithost.com/

    #admin_rdp #vps #vps_hosting #g_suit #cpanel

  31. Pretty section of content. I just stumbled upon your weblog and in accession capital to assert that I get actually enjoyed account your blog posts. Any way I will be subscribing to your augment and even I achievement you access consistently quickly. skor88

  32. Gems form the internet… […]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[…]…… skor88

  33. 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. IT support London

  34. This is really on top of that a truly decent advertisment you honestly professional exploring because of. It will be far away from regularly now we have hazard to look into something. Where To Buy Cocaine

  35. Pretty section of content. I just stumbled upon your weblog and in accession capital to assert that I get actually enjoyed account your blog posts. Any way I will be subscribing to your augment and even I achievement you access consistently quickly. slot deposit pulsa

  38. I’m sorry for the huge evaluation, however I’m actually loving the brand new Zune, as well as hope this, along with the excellent evaluations another people wrote, can help you determine if it is the proper choice for you. SEO Analyzer

  41. Pretty section of content. I just stumbled upon your weblog and in accession capital to assert that I get actually enjoyed account your blog posts. Any way I will be subscribing to your augment and even I achievement you access consistently quickly. slotid88

  42. Gems form the internet… […]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[…]…… slotid88

  45. free college scholarship search. Search from nearly 4 million college scholarships, grants, student loans and other financial aid, all totaling nearly $6 billion. Scholarship information is provided by the scholarship provider and updated daily. Find free money for college today at Scholarsplatform.com

  46. free college scholarship search. Search from nearly 4 million college scholarships, grants, student loans and other financial aid, all totaling nearly $6 billion. Scholarship information is provided by the scholarship provider and updated daily. Find free money for college today at https://www.scholarsplatform.com/

  47. MEGA GAME วันนี้เรามาแชร์ เทคนิค เล่นสล็อตไม่ขาดทุน กับ เว็บสล็อตออนไลน์ ของเราเว็บ MEGA GAME ใช้ได้จริง พร้อมให้ท่าน ตื่นเต้น ไปกับเกม สล็อตของ เราที่มากที่สุด กว่า 1,000 เกมคุณสามารถ เลือกเล่นได้ แบบจุใจโดย ไม่เสียทุนท่านสักท่าน สมัครสมาชิก กับเรารับสิทธิ พิเศษมากมาย รับโบนัส ได้เลย

  49. https://www.scholarsplatform.com/ free college scholarship search. Search from nearly 4 million college scholarships, grants, student loans and other financial aid, all totaling nearly $6 billion. Scholarship information is provided by the scholarship provider and updated daily. Find free money for college today.

Leave a Reply

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