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

 

165,116 thoughts on “Railway Industry in France”

  2. Doonpetshop is one of the Best Pet shop in Noida A exact puppy keep in Noida is the only that gives one forestall method to all of the puppy care needs. From puppy meals to toys and from fitness dietary supplements to cage and leash the selection is huge. So select what your puppy likes and be a accountable puppy parent.

  4. I’ve been surfing online more than 5 hours today, yet I never found any interesting article like yours without a doubt. It’s pretty worth enough for me. Thanks… 출장안마

  5. 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! seo companies

  7. Initial You got a awesome blog .I determination be involved in plus uniform minutes. i view you got truly very functional matters , i determination be always checking your blog blesss. what is lolli

  9. Wow! Such an amazing and helpful post this is. I really really love it. It’s so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also.
    computer

  12. I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. Buy 4 aco dmt

  15. Very useful post. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. Really its great article. Keep it up. Buy meth online

  16. การแทง พนันบอล บอลสเต็ป บอลเดี่ยว
    จ่ายจริง จ่ายไม่ยั้ง ที่มีชื่อเสียงว่าเป็นเว็บไซต์ที่ตีราคาให้บอลเหมาะสมที่สุด ชี้ให้เห็นถึงความยั่งยืนของเว็บไซต์ในด้านของการกำหนดแนวทางสำหรับในการออก ราคาบอลเพียงแต่ 4 ตังค์
    ซึ่งถือได้ว่าข้อตกลงของการตั้งราคาบอลที่ตีราคาให้ดีเยี่ยมที่สุด มีข้อเสนอแนะของการออกราคาบอลที่ 8 – 10 ตังค์ขึ้นไป พวกเราจะมองเห็นได้ว่าส่วนต่างที่เกิดขึ้นนี้ เมื่อเอามาคำนวณเป็นค่าน้ำประปา
    จะมีมูลค่าออกจะสูง โดยเฉพาะถ้าเกิดพวกเราเลือกวางเดิมพันกับการ แทงบอลออนไลน์ ที่จะจำต้องเอาค่าน้ำประปาไปคูณกับจำนวนคู่ ที่เลือกวางเดิมพันลงไปก็จะยิ่ง ทำให้มองเห็นถึงรูปร่างของกำไรที่เกิดขึ้นอย่างแจ่มแจ้ง

  24. I really thank you for the valuable info on this great subject and look forward to more great posts. Thanks a lot for enjoying this beauty article with me. I am appreciating it very much! Looking forward to another great article. Good luck to the author! All the best! เล่นพนันบอลUFABET

  29. I’ve been surfing online more than 5 hours today, yet I never found any interesting article like yours without a doubt. It’s pretty worth enough for me. Thanks… newjet aacom

  30. Many Japanese Internet posts and data claim that they were eliminated due to anti-Japanese sentiment in Korea, and some Korean high-speed rail development participants testified, but they were officially wrong.회기동출장안마

  32. 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. newjet aacom

  34. Thank you for another great article. Where else could anyone get that kind of information in such a perfect way of writing? I have a presentation next week, and I am on the look for such information. HIGHWAY W-BEAM GUARDRAIL

  35. I will visit again for more quality✅ contents and also I recommend this site to all who are looking for a massage specialist, and we directly go to the customer’s place for a massage 대구출장안마

  38. Nice post ✅. I was checking constantly this blog and I am impressed! Extremely helpful information specially the last part We are a massage specialist, and we directly go to the customer’s place for a massage 성남출장안마

  41. I was seeking this particular information for a very long time. ✅ I also have some information related to We are a massage specialist, and we directly go to the customer’s place for a massage on my website 창원출장안마

  43. 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 are a massage specialist, and we directly go to the customer’s place for a massage 구미출장안마

  45. I found useful information on this topic✅. Thank you posting relative information and its currently becoming easier for a massage specialist, and we directly go to the customer’s place for a massage 대구출장안마

  46. Definitely a fantastic publish✅. The information you have provided regarding We are a massage specialist, and we directly go to the customer’s place for a massage is actually very worthwhile. 시흥출장안마

  47. 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. newjet aacom

  48. It’s really a fantastic website ✅ thanks for sharing. There’s no doubt I would fully rate it after i read what the idea about this article is We are a massage specialist, and we directly go to the customer’s place for a massage 창원출장안마

  49. This article was written by a real thinking writer✅. I agree many of the with the solid points made by the writer of We are a massage specialist, and we directly go to the customer’s place for a massage 구미출장안마

Leave a Reply

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