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

 

213,803 thoughts on “Railway Industry in France”

  1. The up and down melody of the Karasuma Line is completely different, so it is said that they play separately. It is said that the four composers of the approach guide melody and entry melody of the up-and-down line are all different people, so the feeling is different.신당역출장안마

  3. I found your this post while searching for information about blog-related research … It’s a good post .. keep posting and updating information. GAMING

  8. that is a genuinely properly website online post. No longer too many people might genuinely, the way you simply did. I’m absolutely inspired that there’s so much statistics approximately this problem that have been exposed and you’ve accomplished your exceptional, with a lot magnificence. If desired to understand extra about inexperienced smoke evaluations, than through all manner are available in and check our stuff. great put up. I used to be checking continuously this blog and i’m impressed! Extraordinarily useful data specifically the closing part i care for such facts lots. I was looking for this sure info for a long term. Thanks and right luck. This post turned into composed via a actual reasoning author without an uncertainty. I decide a lot of them with the strong points made by way of the writer. I will be returned day in and day for in addition logo-new updates. What i don’t understood is if reality be informed how you’re not surely a lot more neatly-favored than you is probably proper now. You are so sensible. You recognize hence significantly with reference to this count number, made me in my opinion remember it from so many various angles. Its like men and women do not seem to be interested besides it’s miles one factor to perform with female gaga! Your man or woman stuffs first-class. At all times preserve it up! Exciting publish. I’ve been wondering approximately this problem, so thanks for posting. Quite cool publish. It ‘s simply very first-rate and useful post. Thank you . Truly inspired! The whole lot is very open as well as extremely clean information of concerns. It contains genuine truths. Your net website is extremely useful. Many thank you for sharing. I haven’t any word to appreciate this put up….. Clearly i am inspired from this put up…. The person who create this put up it become a excellent human.. Thanks for shared this with us. This is this sort of super aid that you are imparting and also you deliver it away free of charge. I really like seeing weblog that recognize the price. Im glad to have found this post as its such an interesting one! I am continually in search of exceptional posts and articles so i assume im fortunate to have observed this! I hope you will be adding greater inside the destiny.. Thank you for posting this info. I just want to allow you to recognise that i just check out your website online and that i locate it very thrilling and informative. I can’t wait to study plenty of your posts. Wow! Such an awesome and beneficial submit this is. I virtually really adore it. It is so accurate and so excellent. I am simply surprised. I hope that you preserve to do your work like this in the destiny additionally . Beautifully written article, if only all bloggers provided the equal content as you, the net might be a far higher vicinity.. Outstanding .. Notable .. I’ll bookmark your weblog and take the feeds also…i’m satisfied to locate such a lot of beneficial information right here within the put up, we need work out greater strategies in this regard, thank you for sharing. You are very cool! I dont suppose i’ve read some thing much like this before. So nice to seek out any person with authentic applying for grants this situation. I sincerely admire starting this up. Your internet site is one location that is wished on the internet. Absolutely a helpful venture for bringing new things for the internet! I’m so overjoyed i placed your weblog, i in reality positioned you by using mistake, even as i was looking on google for something else, anyways i’m right here now and will similar to to mention thank for a exceptional publish and a all spherical interesting internet site. Please do maintain up the top notch paintings. You have got a actual capacity for writing unique content. I like how you observed and the way you constitute your perspectives in this text. I agree with your manner of wondering. Thank you for sharing. 토토

  10. Perhaps it was unfair that there were no characters belonging to the railway Musume, and since some time ago, the Moemoe project of the Kyoto Municipal Subway has been underway.충무로역출장안마

  11. 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 more information? It is extremely helpful for me. mykfcexperience.com

  12. Excellent .. Amazing .. I’ll bookmark your blog and take the feeds also…I’m happy to find so many useful info here in the post, we need work out more techniques in this regard, thanks for sharing. mykfcexperience

  15. Nice information, valuable and excellent design, as share good stuff with good ideas and concepts, lots of great information and inspiration, both of which I need, thanks to offering such helpful information here. bank vault door for sale

  18. Thanks for taking the time to discuss that, I feel strongly about this and so really like getting to know more on this kind of field. Do you mind updating your blog post with additional insight? It should be really useful for all of us. mod menu android games

  19. Thanks for taking the time to discuss that, I feel strongly about this and so really like getting to know more on this kind of field. Do you mind updating your blog post with additional insight? It should be really useful for all of us. tonlabilgi

  20. It is actually an efficient web page publish devoid of are unsuccessful. Not A lot also Many people would truly, how you simply did. I’m impressed that there’s a excellent deal particulars of the make any difference that has been uncovered and you simply’ve defeated your self this time, with lots of higher-top quality. Wonderful Will function!สล็อตแตกง่าย

  21. This individual is normally seemingly crucial and In addition remarkable fact along with for sure honest-minded and In addition admittedly helpful My business is seeking to come across beforehand suitable for this specific handy stuffs…สล็อตแตกง่าย

  26. Posters of related characters are posted on the municipal subway station, and the names of the characters are Ono Misa, Matsugasaki, and Uzumasa Moe, respectively, from the left, and are believed to be taken from Ono, Matsugasaki, and Uzumasaten Jinkawa stations in Kyoto.회현역출장안마

  28. Uzumasamo emphasizes the short (10 minutes) dispatch time even from 9 p.m. to 10 p.m., Matsusaki explains the unlimited daily pass described above, and Ono Masa emphasizes the environment and human-friendly smart move campaign.중랑출장마사지

  31. It is an urban railway in Buenos Aires, Argentina. The number of passengers per day is 1.38 million, which is considerable, but it is not enough to meet the transportation demand of the entire Buenos Aires city area. Since modern history itself is a valley, there is a reason why the expansion plan was not implemented properly. However, it is planning to start construction of F, G, and I lines after completion of H line.망우출장마사지

  32. Since modern history itself is a valley, there is a reason why the expansion plan was not implemented properly. However, it is planning to start construction of F, G, and I lines after completion of H line.면목출장마사지

  34. I think this is a really good article.You make this information interesting and engaging.You give readers a lot to think about and I appreciate that kind of writing.
    Acne treatment

  38. Great info! 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.
    Acne treatment

  39. You make so many great points here that I read your article a couple of times. Your views are in accordance with my own for the most part. This is great content for your readers. voyance

  41. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here keep up the good work https://www.unitedluxuryshop.net/

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

  46. I’ve been surfing online more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the web will be a lot more useful than ever before. 안전놀이터

  47. India requires a greater number of utilizations than most nations, (for example, Chinese Visas) to get a visa, so keep our rundown helpful while applying for your Indian visa application. 10 year india visa

  49. Situs joker123 login adalah salah satu sarana atau tempat bermain joker gaming dimana akses login semakin luas bisa dilakukan dimana saja dan kapan saja. Kami sebagai agen joker123 login resmi 389Sports sangat merekomendasikan para member baru bisa melakukan pendaftaran akun di situs kami. Tidak hanya itu saja semua member baru yang mendaftarkan diri akan mendapatkan bonus new member dan cashback hingga 100% pada saat mendaftarkan diri di situs joker123 login terpercaya 389Sports.

  50. Situs judi bola sbobet adalah salah satu sarana atau tempat bermain taruhan bola online yang sangat terkenal di Asia dimana para mmeber dapat melakukan sebuah taruhan bola secara online besar besaran di situs agen judi bola sbobet resmi terpercaya 389Sports. Ini merupakan peluang yang sangat besar untuk para member yang ingin mendapatkan keuntungan yang sangat berlimpah uang jutaan hingga ratusan juta dengan bermain judi bola sbobet bersama para bettor lainnya di situs kami 389Sports. Lakukan proses pendaftaran akun judi bola sbobet sekarang juga dan dapatkan keuntungan bonus new member 50% saldo bonus bisa dipergunakan untuk modal bermain. judi bola sbobet

Leave a Reply

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