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

 

215,631 thoughts on “Railway Industry in France”

  6. This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. khatrimaza.blog

  7. i take care of such records much. I used to be in search of this precise information for a long time. Thank you and true good fortune. I am virtually loving the topic/design of your weblog. Do you ever run into any net browser compatibility problems? A small range of my blog traffic have complained about my weblog not working efficaciously in explorer but seems first-rate in chrome. Do you’ve got any recommendations to assist restoration this problem? I am in reality playing analyzing your nicely written articles. It looks like you spend quite a few time and effort in your blog. I have bookmarked it and i’m looking ahead to analyzing new articles. Maintain up the coolest work. I might also motivate just about anybody to save this internet web page for any preferred help to help posted the advent. 가입머니주는사이트

  8. จีคลับ Portugal forward Cristiano Ronaldo has hinted that he may decide on his future at international duty after his World Cup play-off final against North Macedonia. on this tuesday

  11. superslot The media reports that Manchester United are targeting Harry Kane to join the army this summer. But they must dare to spend the £100 million Spurs want, otherwise they will not release the captain. “Golden Spikes Chicken” to wear the “Red Ghost” uniform

  14. 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. Thanks for sharing this amazing and interesting content. You have shared something which I never have seen anywhere. I learn too much from your content. Keep sharing like that I loved it. Again thanks a lot. Very awesome!!! When I seek for this I found this website at the top of all blogs in search engine. Thanks for sharing such a nice thinking, post is good, thats why i have read it completely 플러스카지노 가입코드

  15. Your blogs further more each else volume is so entertaining further serviceable It appoints me to befall retreat encore. I will instantly grab your RSS feed to stay informed of any updates. Private label CBD

  16. I’ve been searching for hours on this topic and finally found your post. 슬롯사이트 , I have read your post and I am very impressed. We prefer your opinion and will visit this site frequently to refer to your opinion. When would you like to visit my site?

  18. Awesome article! I want people to know just how good this information is in your article. It’s interesting, compelling content. Your views are much like my own concerning this subject. sex toys

  19. I will be capable of offers you the mark In this post comprehend the ultimate way to training that the correct way. Comprehend as well as create anything at all helpful. Shopplaza24

  22. I have completely enjoyed reading your points and have come to the conclusion that you are right about many of them. I have bookmark your site for future updates. Thank you for the post. 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! I discovered your web site through Google while looking for a related topic, your site turned up, it looks fantastic. I have bookmarked it in my google bookmarks. 먹튀검증커뮤니티

  23. วันนี้เว็บคาสิโน BETFLIX จะมาบอกต่อ ให้นักเสี่ยงโชคได้เข้าใจ ทุกวันนี้ ค่ายคาสิโนออนไลน์ ได้เป็นที่นินมกันมาก ขึ้น ภายในไทย เนื่องจากยุคนี้เป็นยุคที่การเข้าถึง คาสิโนออนไลน์เว็บตรง อินเตอร์เน็ตได้อย่างง่ายดาย ไม่ว่าใครก็ตาม ก็สามารถเข้าถึงได้ และอีก เว็บคาสิโน เชื่อถือได้ อย่างปัจจุบันก็ได้มี เว็บคาสิโนออนไลน์อันดับ1 เว็บพนันออนไลน์ ต่าง ๆ มากมาย ที่เปิดบริการให้บริการ เว็บคาสิโน ไม่ผ่านเอเย่นต์ ที่สามารถเดิมพันออนไลน์ ผ่าน มือถือ หรือคอมพิวเตอร์ได้ เรียกได้ว่าสะดวกสบายสุด ๆคาสิโนออนไลน์ MEGA GAME ไปเลยสำหรับการ เข้าถึงการเดิมพัน ในยุคสมัยนี้ด้วยเหตุที่ คาสิโนออนไลน์ สล็อต เว็บคาสิโน หรือ คาสิโนออนไลน์ จึงกลายเป็นที่นิยม

  25. Thank you for taking the time to discuss this; I have strong feelings about it and would like to learn more about it. Would you mind updating your blog with additional information as you gain experience? It is extremely beneficial to me.
    Car Rental Market Size

  27. Admiring the time and effort you put into your website and in depth information you present. It’s good to come across a blog every once in a while that isn’t the same old rehashed information. Wonderful read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account. 솔레어카지노

  30. BETFLIX อรุณสวัสผู้เล่นทุกท่าน เข้าสู่เว็บไซต์ BETFLIX เว็บ เกมสล็อตมาใหม่ 2022 เกมสล็อตมาแรง ที่เป็นอันดับหนึ่ง ด้านเว็บสล็อตออนไลน์ในปัจจุบัน โดยเป็นเว็บตรง เว็บหลัก ที่ไม่ผ่านเอเย่นต์ จึงมั่นใจได้เลย ว่าการเล่นเกมสล็อตออนไลน์ บนเว็บไซต์เรานั้น มั่นคง ปลอดภัย เชื่อถือได้อย่างแน่นอน ซึ่งไม่ว่าคุณจะเดิมพัน ได้กำไรมากมายมหาศาล

  33. Türkiye gündem açısından sürekli aktif olan bir coğrafyaya sahiptir. Yani sadece ülkemizle ya da belli bir yerel bölgeyle yetinmiyorsunuz. Dünyada olup biten her şey bizi yakından ilgilendiriyor. Bu hem ekonomik anlamda hem de psikolojik anlamda göz önünde bulundurulmaya değer oluyor. Gönen Haber sitelerinin tek avantajı doğru habere erişim değil aynı zamanda spor ve magazin gündemini de sunuyor olmasıdır. Herkesin haber konusundaki merakı birbirinin aynısı değil. Dolayısıyla burada tek bir haber gündeminden bahsetmek doğru olmayacaktır. Toparlayacak olursak habersiz bir toplumun gelişmesi mümkün değildir. Toplum ne kadar bilinçli hareket ederse gelecekle ilgili kaygılarda endişelerde o kadar hızlı ortadan kalkmış olacaktır. Gönen hakkında detaylı bilgilere yer vermek istiyorsanız bölgenin anlık takibini yapan haber sitemizi tercih etmeniz gerekiyor.

    Site : https://gonen.net/

  34. Zamanı hızlı yaşıyoruz, çünkü çok hızlı değişiyor ve geliyoruz. Bizim hız ve değişimdeki en büyük avantajımız internet ve teknoloji. Yani oturduğunuz yerden artık her şeyin kontrolünü yapabildiğiniz gibi aynı zamanda bilgisini de alabiliyorsunuz.

    Site : https://gonen.net/

  35. Haber her insanın en doğal haklarından bir tanesidir. Bunun için mutlaka doğru gündemi doğru kanallar üzerinden takip etmek gerekir. Eskiden haber denildiğinde yalnızca televizyon ve gazete gibi kanallar akla geliyorken günümüzde haberin en hızlı ve en aktif kaynağı haber siteleri olmuştur.

    Site : https://gonen.net/

  38. Escorts are available in Karachi. Are you looking to experience the sweetness of the experience? Do you think it’s safe to claim that you’re seeking a partner who will create a loving person? In addition, when you combine the help of our Russian or traditional evening escorts IN Karachi, you’ll enjoy an exciting night.
    https://futureescorts.com/call-girls-in-karachi/

  39. So, from then on, the Satta King phrase caught the tongue of the regular bettors. Now, they started calling Satta games nothing but Satta King. However, when in reality, Satta King should be the person who actually has won a Satta King game on any of the days or weeks. I like your writing style. It’s inspiring and I am truly grateful for the writing style. Visit my site. Satta king 786

  40. Those varieties of leisure video games were no longer that sensible when the actual idea become first getting used. Much like other types of technological innovation, video games way too have needed to grow by using many ages. This itself is testimony closer to the fast boom and development of video video games . I am happy to be a visitor of this arrant site ! , appreciate it for this rare info ! There’s a lot in this text that i would never have thought of by myself. Your content material gives readers things to consider in an interesting way. Such web sites are important due to the fact they provide a massive dose of beneficial data . Thank you with regard to publishing this kind of high-quality submit! I found your web page best for my personal necessities. It has incredible in addition to beneficial articles. Keep the tremendous function! I am usually to blogging and i also in reality respect your website content continuously. Your content has in reality peaks my hobby. 메이저토토

  41. I want your approach of inscription… It’s miles superb, however look at the information at this deal with happy to visit your blog, i am by all debts ahead to extra dependable articles and that i suppose we as an entire want to thank such an expansion of properly articles, blog to impart to us. Superior put up, keep up with this super work. It’s exceptional to understand that this subject matter is being additionally protected on this web web site so cheers for taking the time to speak about this! Thanks over and over! Notable, an amazing article that i virtually enjoyed. Furthermore kurt russell christmas coat, i cannot help thinking about why i did not peruse it earlier. I remain tuned and aware of the subsequent. 먹튀검증

  46. I work for a company that is wanting to e-mail some of our media contacts from our Press Release blog posts. The main problem I am running into is finding a service that doesn’t require opt-in. Does anybody have any suggestions?. agen bola online terbesar

  49. 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

Leave a Reply

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