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:
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:
Comfort Class:
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.
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
Price at 2 weeks before departure
Price at 3 weeks before departure
Price at 4 weeks before departure
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:
The non-physical rate fences are age, season ticket, and loyalty
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
Thanks for your valuable post, Really nice and very informative. Pastel Aesthetic.
เกม dd open for service online slot games online baccarat from all popular camps
The next time I learn a weblog, I hope that it doesnt disappoint me as a lot as this one. I imply, I know it was my option to learn, however I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you may fix for those who werent too busy in search of attention. smm reseller panel
Generate additional income with unlimited nominal depending on the tree you get every week:
situs slot online Bonanza138
Thanks for your valuable post, Really nice and very informative. Mor Shapiro.
ทางเข้า เว็บ 123 The number one website in the universe.
This is a site that provides the best information, don’t forget to also visit our official website which provides various types of interesting information: bet88
Really wonderful information can be found on web blog. bola naga 88
Thanks for your valuable post, Really nice and very informative. Abigail Shapiro.
Worth it to read short article. “I have spread my dreams under your feet” by William Butler Yeats.. smm providers
เกม 123 Easy to make money, try it
Looking Any Position from your Tax Repayment On the web. instagram panel
Thanks for your valuable post, Really nice and very informative. Leeya Eliana Shapiro.
It’s too bad to check your article late. I wonder what it would be if we met a little faster. I want to exchange a little more, but please visit my site totosite and leave a message!!
Hello, this is a very nice website. I also run a website. Mobile and PC versions are also operated as the best solution. Golden-evolution is very proud of you.
카지노사이트
wearing contact lenses is sometimes hard and you always need to clean it for hygiene’ smm providers
madu untuk bayi
Amankah memberikan madu untuk bayi? Manfaat bayi mengonsumsi madu misalnya dapat menjaga daya tubuh sehingga membantunya terhindari dari berbagai macam penyakit.
I was looking for another article by chance and found your article baccaratcommunity I am writing on this topic, so I think it will help a lot. I leave my blog address below. Please visit once.
From some point on, I am preparing to build my site while browsing various sites. It is now somewhat completed. If you are interested, please come to play with baccarat online !!
Incredible Article it its truly instructive and inventive update us as often as possible with new upgrades. its was truly important. much obliged. accessories
madu untuk ibu hamil
Madu murni selalu terasa manis, sehat, dan bergizi bagi siapa saja. Setiap orang, baik tua atau muda, bisa mendapatkan manfaat madu dengan berbagai cara. Ini Manfaat Madu untuk Ibu Hamil yang Perlu Diketahui!
I wanted to leave a little comment to support you and wish you a good continuation. Wishing you the best of luck for all your blogging efforts. gravel bikes under 3000
I find this blog very informative, keep up the good work. Commercial Spaces for Rent .
i frequent hair salons because i always want to keep my hair in top shape.. GAY FRIENDLY
Yes, I am entirely agreed with this article, and I just want say that this article is very helpful and enlightening. I also have some precious piece of concerned info !!!!!!Thanks. filipino virtual assistant
I simply want to tell you that I am new to weblog and definitely liked this blog site. Very likely I’m going to bookmark your blog . You absolutely have wonderful stories. Cheers for sharing with us your blog. بهترین سایت بت ایرانی
Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. Satta chart
i never know the use of adobe shadow until i saw this post. thank you for this! this is very helpful. Satta chart
I’m impressed, I must say. Genuinely rarely must i encounter a weblog that’s both educative and entertaining, and let me tell you, you’ve hit the nail around the head. Your notion is outstanding; ab muscles something that insufficient consumers are speaking intelligently about. We are happy that we came across this in my look for something with this. 5 hour courses
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. เว็บคาสิโนออนไลน์
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. แทงบอล-10-บาท
Thank you for some different informative blog. Wherein else may want to I am getting that kind of facts written in such an ideal approach? I have a challenge that I’m simply now operating on, and i have been on the appearance out for such records. name for a startup
Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking. แทงบอล-10-บาท
Nice post. I was checking constantly this blog and I am impressed! Very useful info specially the last part I care for such information a lot. I was looking for this particular info for a very long time. Thank you and best of luck. 5 hours course
This particular is usually apparently essential and moreover outstanding truth along with for sure fair-minded and moreover admittedly useful My business is looking to find in advance designed for this specific useful stuffs…
Wow, marvelous blog layout! How long have you been running a blog for? you make blogging look easy. The full look of your website is excellent, as smartly the content! 5 hour courses
เว็บพนัน 168easy to play, get real money
I also wrote an article on a similar subject will find it at write what you think. Anime Streaming Sites
This Blog is superb and informative thanks for sharing this lovely post here.
Powertrac Tractor
This article gives the light in which we can observe the reality. This is very nice one and gives indepth information. Thanks for this nice article. https://24hourhtmlcafe.com/เว็บคาสิโนออนไลน์/
live draw hk
Madurasa murni
Madurasa Murni: 3 Manfaat Madu Murni di Dalam 1 Kemasan, Mungkin bagi sebagian Honeymom’s sudah paham betul apa saja manfaat madu murni. Tetapi, beberapa Honeymom’s lainnya masih ada beberapa yang belum memahaminya.
I think Mia, since I guess she is running Red Bedroom Records now, needs to take Alex on as a padawon and teach her music. That way Alex (Jana) can showcase her musical talent and it will give Alex another arc for her story line. Landing page
Naxiens is the branch of commercialization of high quality CBD products in all the countries of South America. It is backed by Natphar, a company specializing in the production of pharmaceutical grade cannabis oils and concentrates with a global reach.
cannabis y dolor
Thanks for picking out the time to discuss this, I feel great about it and love studying more on this topic. It is extremely helpful for me. Thanks for such a valuable help again. marketing strategies
Thanks for this great post, i find it very interesting and very well thought out and put together. I look forward to reading your work in the future. sapphire crystal
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. Type of slot machines
fgd
A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. How to pick the right slot machine
I was exactly searching for. Thanks for such post and please keep it up. Great work Type of slot machines
Can I recently say that of a relief to seek out someone that truly knows what theyre preaching about on the internet. You actually discover how to bring a concern to light making it essential. More and more people must look at this and understand why side in the story. I cant think youre not more popular since you also absolutely provide the gift. 5 hour pre licensing course online