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

 

163,964 thoughts on “Railway Industry in France”

  2. So lot to occur over your amazing blog. Your blog procures me a fantastic transaction of enjoyable.. Salubrious lot beside the scene. jokerbet

  4. An impressive share, I just given this onto a colleague who was doing a little analysis on this. And he in fact bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading more on this topic. If possible, as you become expertise, would you mind updating your blog with more details? It is highly helpful for me. Big thumb up for this blog post! Luxury Car Rental Dubai

  8. Thanks for the blog filled with so many information. Stopping by your blog helped me to get what I was looking for. Now my task has become as easy as ABC. recarga jogo

  9. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don’t forget, keep sharing useful info:
    bandar togel terpercaya

  11. When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get several e-mails with the same comment. Is there any way you can remove me from that service? Cheers! ข่าวกีฬา

  12. Hey There. I found your blog using msn. This is an extremely well written article. I’ll be sure to bookmark it and return to read more of your useful info. Thanks for the post. I’ll definitely comeback. ข่าวกีฬา

  13. I am really inspired with your writing talent well with the layout to your weblog. Is this a paid topic or did you modify it your self? Anyway stay up the excellent high quality writing, it’s rare to peer a great blog like this one nowadays. เว็บข่าวกีฬา

  15. Good website! I truly love how it is easy on my eyes it is. I am wondering how I might be notified whenever a new post has been made. I have subscribed to your RSS which may do the trick? Have a great day! rna extractor

  16. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. rent a car beograd

  17. Exceptional post but I was wondering if you could write a litte more on this subject? I’d be very grateful if you could elaborate a little bit more. Thank you! agen138

  18. I am someone who works on the web. Sometimes I like to visit overseas sites 온라인카지노 when I have time. Among them, I like the site related to , but your site seems to be optimized for too!! Very goodttt

  19. Probably the most comprehensive and very nicely considered write-up I have found about this topic online. Keep on writing, I will maintain upon browsing to see your new content material. This is my personal fifth period visiting your internet website . agen138

  20. آب شیرین کن

    از طریق پیشرفت‌های فناوری، سیستم‌های اسمز معکوس قادر به فیلتر کردن آب تغذیه دیگ بخار، آب آرایشی برج
    خنک‌کننده و پردازش آب تقریباً در هر جریان مورد نیاز شده‌اند. برای اینکه یک سیستم RO صنعتی با حداکثر راندمان کار کند، چندین فاکتور باید در طول فرآیند طراحی در نظر گرفته شود

    منبع آب تغذیه برای اسمز معکوس صنعتی یکی از بزرگترین تأثیرات را بر طراحی کلی واحد از جمله تعداد مراحل تصفیه مورد نیاز برای پیش تصفیه دارد. آب تغذیه معمولاً باید پیش تصفیه شود تا آلاینده هایی که در یک سیستم اسمز معکوس باعث ایجاد پوسته شدن یا کثیف شدن غشاها می شوند، حذف شوند. فناوری‌های پیشرفته غشایی، همراه با پیشرفت‌های شیمی ضد اسکالانت، هزینه سرمایه پیش تصفیه را در دهه گذشته بسیار کاهش داده است. آب از منبعی که از نظر ترکیب و دما پایدار است، مانند منبع آب زیرزمینی، معمولاً به فرآیند پیش تصفیه ساده‌تری نسبت به آب منبع آبی فصلی یا پیچیده‌تر، مانند آب‌های سطحی یا فاضلاب نیاز دارد

  25. The processor or CPU is the brains of the personal computer – it does most of the calculations your video game titles need to have to run (with the movie card undertaking most of the graphics function). With it getting such an critical part, you would instinctually go for the fastest – and most pricey – processor you could find, but there is a improved alternate to blowing hard cash on one thing that will be obsolete in a year: receiving a processor that will play tomorrow’s video game titles at a low cost is the sweet spot for any gaming computer. prosoftstore.com

  26. I would like to express some appreciation to this writer just for rescuing me from such a challenge. As a result of looking out through the internet and getting techniques that were not helpful, I was thinking my entire life was over. Being alive without the approaches to the difficulties you’ve sorted out through this posting is a serious case, as well as the kind that would have badly damaged my career if I had not encountered your website. Your know-how and kindness in taking care of a lot of things was excellent. I am not sure what I would’ve done if I hadn’t come upon such a step like this. I am able to at this time look ahead to my future. Thanks for your time so much for this skilled and effective help. I will not hesitate to endorse your web sites to any individual who should get care on this problem. isla mujeres

  27. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. keto complete reviews

  28. Very interesting blog. Alot of blogs I see these days don’t really provide anything that I’m interested in, but I’m most definately interested in this one. Just thought that I would post and let you know. garotos de programa sp

  31. When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four e-mails with the same comment. Is there any way you can remove people from that service? Many thanks! 마사지

  32. Great – I should certainly pronounce, impressed with your site. I had no trouble navigating through all the tabs and related info ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your customer to communicate. Nice task. 스웨디시

  33. There is so much in this article that I would never have thought of on my own. Your content gives readers things to think about in an interesting way. Thank you for your clear information. sa gaming

  34. Belli bir yaştaki genç kitle zamanın büyük bir bölümünü oyun oynamakla geçiriyor. Bu süreçte ise oyun oynamanın keyifli olmasını sağlayan bazı önemli hususlar var. Örneğin oyun oynadığınız bilgisayarınızı iyi seçmeniz gerekiyor. Çünkü her oyun her bilgisayar tarafından oynanamadığı için oynayacağınız oyun konusu sahip olduğunuz bilgisayarınıza göre değişiyor. Oyunlar genel olarak online olarak oynanıyor ve bu sayede artık bir oyunu indirmeniz, yüklemeniz gerekmiyor. Online sistemler üzerinden istediğiniz herhangi bir oyunu kendiniz ya da arkadaşlarınızla birlikte oynayabiliyorsunuz. Sonteklif sitemiz ise oynamak istediğiniz oyunları satın almanız açısından size destek olabiliyor.

    Site : https://www.son-teklif.com/

  38. Its a great pleasure reading your post.Its full of information I am looking for and I love to post a comment that “The content of your post is awesome” Great work. US ENTRY VISA

  41. Thanks , I have recently been searching for info about this subject for ages and yours is the best I have came upon till now. However, what concerning the bottom line? Are you positive concerning the supply? fivem

  43. Acknowledges for paper such a beneficial composition, I stumbled beside your blog besides decipher a limited announce. I want your technique of inscription… Bus Trip

  47. Hey There. I found your blog using msn. This is an extremely well written article. I’ll be sure to bookmark it and return to read more of your useful info. Thanks for the post. I’ll definitely comeback. ข่าวกีฬา

  48. I am really inspired with your writing talent well with the layout to your weblog. Is this a paid topic or did you modify it your self? Anyway stay up the excellent high quality writing, it’s rare to peer a great blog like this one nowadays. เว็บข่าวกีฬา

Leave a Reply

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