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

 

165,483 thoughts on “Railway Industry in France”

  5. You should look at the level of customer service offered by the website. You need to do thorough research about the online casino before signing up with them. Ensure that you acquire the right information about the website. Check at how the site communicates with the gamblers. The right site should offer live chats, telephone, and emails support. Also, they are supposed to provide the best support to the players. For instance, they should have a customer care representative that you can call at any time for any concern you may be having. They should respond to your queries right. It is best that you choose the website that offers free telephonic support or the live chats. This makes it easier for you to communicate with the company. With the email support, they may take longer to respond. For more useful reference, have a peek here http://www.betfliktime.com

  8. 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. Huat Singapore

  11. I am continually amazed by the amount of information available on this subject. What you presented was well researched and well worded in order to get your stand on this across to all your readers. Go Now

  12. I really appreciate the kind of topics you post here. Thanks for sharing us a great information that is actually helpful. Good day! pg

  14. เว็บ 285 This is often this sort of an awesome resource that you are offering and you simply give it away without cost. I love looking at weblog that fully grasp the worth of supplying an excellent resource free of charge.

  15. เว็บ 285 Beneficial site, in which did u come up with the information on this submitting? I am happy I identified it however, unwell be examining again soon to learn what additional posts you incorporate.

  16. เว็บ 285 Its an excellent enjoyment looking through your article.Its full of information I am in search of And that i like to article a remark that “The content of your post is amazing” Excellent perform.

  26. Great write-up, I am a big believer in commenting on blogs to inform the blog writers know that they’ve added something worthwhile to the world wide web!.. 性玩具

  27. Great write-up, I am a big believer in commenting on blogs to inform the blog writers know that they’ve added something worthwhile to the world wide web!.. 性玩具

  28. I enjoy you because of each of your labor on this web site. My niece takes pleasure in getting into research and it is simple to grasp why. My partner and i know all of the dynamic tactic you render simple tricks via your blog and in addition recommend response from other people on that topic while our favorite princess is certainly learning a lot of things. Enjoy the remaining portion of the new year. You’re the one carrying out a superb job. homevestors

  29. I’m curious to find out what blog system you have been working with? I’m having some minor security problems with my latest website and I would like to find something more safe. Do you have any suggestions? homevestors

  30. I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article. exipure

  38. Pleasant write-up, it is an incredibly trendy blog site that you’ve got in this article, sustain the favorable do the job, will likely be returning. ziverdo kit

  40. We notion it really is a good idea to publish could anyone was initially having issues searching for however , My organization is a bit of dubious just have always been allowed to insert leaders together with contact regarding at this point. 비아센터

  43. Want to get millions of money in a fast time? You can play on the credit deposit slot site which is an IDN Slot | Trusted Online Slot Gambling Site And Credit Deposit Slots. Bet Slots online with real money and fantastic bonuses that you can get on every game. What we provide here is not half-hearted because the Texas88 Slot deposit pulsa is very complete and guaranteed. You will get a deposit bonus as well as a losing cashback every week. Very profitable isn’t it? What are you waiting for? Register yourself right now with our Texas88 credit deposit slot site.

  44. Bermain taruhan bola online di agen sbobet online terpercaya di Indonesia 389Sports. Setiap para bettor bisa memulai sebuah taruhan bola online secara mudah hanya dengan melalui Smartphone kalian di agen sbobet online baik menggunakan Android maupun IOS. Sudah banyak yang bergabung dan bermain di agen sbobet resmi 389Sports karena cukup memuaskan untuk nilai Win Strake sangat besar di agen sbobet online ini. Segera daftarkan akun bola online kalian secara resmi di agen sbobet terbaik 389Sports.

  45. Bermain taruhan bola online di agen sbobet online terpercaya di Indonesia 389Sports. Setiap para bettor bisa memulai sebuah taruhan bola online secara mudah hanya dengan melalui Smartphone kalian di agen sbobet online baik menggunakan Android maupun IOS. Sudah banyak yang bergabung dan bermain di agen sbobet resmi 389Sports karena cukup memuaskan untuk nilai Win Strake sangat besar di agen sbobet online ini. Segera daftarkan akun bola online kalian secara resmi di agen sbobet terbaik 389Sports.

  48. The best YouTube to mp3 converter downloader for PC and Mobile Convert YouTube videos to mp3 and download them in the highest available quality with OnlyMP3
    info

  49. Hello just wanted to give you a quick heads up. The words in your post seem to be running off the screen in Safari. I’m not sure if this is a formatting issue or something to do with internet browser compatibility but I thought I’d post to let you know. The layout look great though! Hope you get the problem resolved soon. Cheers.
    Here

Leave a Reply

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