Trains, especially TGV has “TGV bar”, which provides a wide selection of meals and sweet snacks available for purchase. The price is same for different seating options in a class.
The seating options and services are different for each class. Normally, a train has two classes: Economy (2 nd Class) and Comfort (1 st Class). Railway industry defines space implicitly. – Less difficult to deal with overbooking: passengers are often allowed to stand during train journeys hence increasing capacity beyond the number of seats – 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) However, there are some differences that make the revenue management of railway industry is little bit different than that of airline industry. – Heterogeneous customers with different segments, varying by age, purpose of travel, independent or group, etc. – Low marginal cost and high production cost – Perishable inventory: the unoccupied seat cannot be inventoried, and the revenue of that seat is missed – Variable and uncertain demand: the demand is different depending on the time of day, day of week, origin-destination pairs, and purpose of travel – Inflexible capacity: the number of seats on a train is fixed This industry also has the appropriate characteristics to apply revenue management strategies. Thus, railway industry can be placed in Quadrant 2, where its service has variable prices for a predictable duration. The price depends on journey, class, and date of booking. Railway industry is quite similar to airline industry, as it sells seats for a transport from an origin to a destination. SNCF is France’s national railway, providing high speed, overnight and local services in France and beyond into Spain, Switzerland and Italy. In France, one of the most popular transport modes is train.
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