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

 

177,164 thoughts on “Railway Industry in France”

  2. Handal training merupakan training TPM yang diharapkan para peserta dapat menyerap komprehensif pelajaran- belajar tentang TPM, dan menerapkan konsep TPM dan pengetahuan dalam lingkungan kerja mereka untuk meningkatkan manajemen pemeliharaan dan produktivitas.

  3. This is really interesting, You’re a very skilled blogger. I have joined your feed and look forward to seeking more of your excellent post. Also, I have shared your site in my social networks! bitcoin recovery

  4. So a lot to occur over your amazing blog. Your blog procures me a fantastic transaction of enjoyment. Salubrious lot beside the scene. pos4d

  9. K-Beauty Pharm provide various dermal fillers and medical device,cosmetics that are popular from worldwide with an economical price to the entire world.
    All products are directly supplied from Korea and we guarantee 100% honest goods.
    Also, the price bubbles were removed through direct business with the manufactures of medicines and cosmetics from Korea,
    And continuously introduce the new products of the newest trend.
    We hope that we become the best choice to the customer who desires the excellent products of Korea.
    Also, when purchasing our products, we have provided various payment method
    to decrease the inconveniency of the customer.
    We will do our very best to become a company you can trust and have business with.
    eptq wholesale

  10. This is really interesting, You’re a very skilled blogger. I have joined your feed and look forward to seeking more of your excellent post. Also, I have shared your site in my social networks! اجاره اتوبوس

  12. Please keep on posting such quality articles as this is a rare thing to find these days. I am always searching online for posts that can help me. watching forward to another great blog. Good luck to the author! all the best! 스포츠토토사이트
    xbc

  15. I wish to show some appreciation to you just for bailing me out of this challenge. Right after browsing through the internet and finding principles which were not beneficial, I believed my life was over. Existing minus the strategies to the difficulties you have fixed through your posting is a crucial case, and the ones that would have badly affected my career if I hadn’t discovered your website. Your know-how and kindness in taking care of the whole lot was helpful. I’m not sure what I would’ve done if I hadn’t encountered such a stuff like this. I can at this moment look ahead to my future. Thank you so much for the skilled and amazing guide. I won’t hesitate to endorse your blog post to anyone who would need recommendations about this matter. reformas

  16. Easily Search and Download Any Games and Premium APK without wasting Time. Find Any APK Related Any Category Simple Click There Search Icon and Search Your Queries. And if you want to enjoy all categories of APK So Scroll Down…

    Drawing Studio

  17. I discovered your blog website on google and check several of your early posts. Continue to keep the top notch operate. I additional increase your Feed to my MSN News Reader. Seeking toward reading a lot more of your stuff at a later time!… Lennox ac parts

  19. Good day! I could have sworn I’ve been to this site before but after reading through some of the post I realized it’s new to me. Anyways, I’m definitely happy I found it and I’ll be book-marking and checking back frequently! Lennox parts plus

  20. I’m impressed, I must say. Actually not often do I encounter a blog that’s both educative and entertaining, and let me inform you, you’ve hit the nail on the head. Your idea is excellent; the issue is something that not enough people are talking intelligently about. I’m very completely satisfied that I stumbled across this in my search for one thing relating to this. Hvac supplies near me

  21. K-Beauty Pharm provide various dermal fillers and medical device,cosmetics that are popular from worldwide with an economical price to the entire world.
    All products are directly supplied from Korea and we guarantee 100% honest goods.
    Also, the price bubbles were removed through direct business with the manufactures of medicines and cosmetics from Korea,
    And continuously introduce the new products of the newest trend.
    We hope that we become the best choice to the customer who desires the excellent products of Korea.
    Also, when purchasing our products, we have provided various payment method
    to decrease the inconveniency of the customer.
    We will do our very best to become a company you can trust and have business with.
    eptq wholesale

  22. Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for. poker88

  23. It’s appropriate time to make some plans for the future and it’s time to be happy. I have read this post and if I could I wish to suggest you some interesting things or tips. Maybe you could write next articles referring to this article. I wish to read more things about it! sunless tanning bronzer

  24. Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with extra information? It is extremely helpful for me. poker88

  31. I am glad to discover this page. I have to thank you for the time I spent on this especially great reading !! I really liked each part and also bookmarked you for new information on your site. https://www.casinosite.zone/

  35. You’ve got some interesting points in this article. I would have never considered any of these if I didn’t come across this. Thanks!. login pos4d

  37. Aw, this was a really nice post. In idea I wish to put in writing like this additionally – taking time and precise effort to make a very good article… but what can I say… I procrastinate alot and on no account appear to get something done. meriah slot88

  38. I admit, I have not been on this web page in a long time… however it was another joy to see It is such an important topic and ignored by so many, even professionals. I thank you to help making people more aware of possible issues. poker88 asia

  44. There may be jacksonville florida health insurance a means in making cash not having doing work yourself tired in addition to without having restricting your moment. You need to use the ability on the Online to earn more income and now have any time to truly enjoy it. No matter the way tiny you realize about the Net as well as how much internet business encounter you will have, you possibly can take advantage of the countless incredible opportunities to generate income right on your computer. GTX Graphic Cards for PC

  45. Daget77 adalah salah satu penyedia situs slot online terpercaya dan agen judi slot gacor terbaru 2022 dengan pelayanan deposit bank, pulsa serta e-wallet tercepat.

  49. I was surfing net and fortunately came across this site and found very interesting stuff here. Its really fun to read. I enjoyed a lot. Thanks for sharing this wonderful information. Vacuum Cleaning System

  50. I was surfing net and fortunately came across this site and found very interesting stuff here. Its really fun to read. I enjoyed a lot. Thanks for sharing this wonderful information. pos4d

Leave a Reply

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