TGV Activity UIC Training Seminar B. GUILLON - S N C F High-speed systems training 05-0.07.04
The SNCF organisation on the travel market Satisfying the different travel needs and operating conditions: The answer PUBLIC TRANSPORT (TP sector): TRANSILIEN Ile de France TER - Regional TIR (coming soon) Inter-regional The answer FRANCE-EUROPE TRAVEL (VFE sector) Domestic TGV European TGV (Eurostar, Thalys, Artesia, Lyria ) TEOZ and CORAIL (day and night) Standard trains 2 2
Examples of TGV business Key figures A fleet of 352 domestic TGVs in May 2004 + two-tier train per month; more than 500 seats per train Modules ranging from 350 to 000 seats 989 994 996 993 994 and 996 983 High-speed network,540 km of high-speed lines Number of stations served: 80 Number of town-to-town links:,200 Daily: 200,000 reservations 665 TGV (600 on weekdays, 750 on weekend peaks) 990 200 98 992 994 200 3 3
Best running times au départ de PARIS à l'été 2002 (Temps arrondis aux 5 minutes) Summer 2002 4h5 Amsterdam Roscoff Landerneau Brest 4h0 4h5 Quimper Morlaix Rosporden Lannion Quiberon Paimpol St-Malo Guingamp Lamballe 2h55 Carhaix St Brieuc Quimperlé Lorient Loudéac Vannes Auray 3h05 St-Nazaire Dinan St-Gilles -Croix-de-Vie Irun Redon Biarritz Carentan Coutances Dol Savenay Valognes Lison St-Lo Vire Avranches Pontorson Rennes Le Croisic 2h55 2h00 La BaulePornic Nantes Clisson Les Sables -d'olonne Cherbourg Rochefort Royan Pointe de Grave Arcachon Bayonne Vitré Ancenis La Roche/Yon Morcenx St Dié Sélestat h25 Bar/Aube Épinal Colmar Le Mans Courtalain Sens Chaumont Orléans Remiremont Mulhouse 0h55 Montargis Châteaudun 0h55 ( Les Aubrais) Laroche- Belfort Langres Lure 4h20 Vendôme Migennes Culmont- -TGV Gien Auxerre Montbard Chalindrey 3h50 Château Vesoul Montbéliard -du-loir Blois Dijon Bâle Salbris Cosne/Loire Besançon h00 Tours St-Pierre Vierzon Bourges h40 2h30 Nevers Bern -des-corps Beaune Chinon Loches Valençay h50 Dole Mouchard Autun Frasne Futuroscope h55 4h40 Chagny Pontarlier Châtellerault h20 Chalon/Saône h25 Châteauroux Montchanin Lausanne Moulins/Allier Le Creusot Lons-le-Saunier h30 Argenton/Creuse TGV 3h50 Évian-les-Bains Montmorillon Parayle-Monial Mâcon Genève St-Amour Montluçon Poitiers St-Germain Mâcon Thonon-les-Bains -des-fossés TGV Guéret 3h25 St-Jean- Pied-de-Port Oloron Laval Châteaubriant La Rochelle 2h50 Hendaye Ligne à grande vitesse Ligne TRN Ligne classique empruntée par les TGV 5h5 Desserte TGV 5h5 Desserte TRN Granville 2h05 3h30 5h5 2h45 3h00 Cholet Orthez Bayeux Flers Angers h30 Trouville Briouze Saumur Bressuire Saintes Cognac Dives Alençon Thouars St-Maixent Niort Surgères Bordeaux 3h00 Dax 4h0 2h50 London Sablé Libourne Mont-de-Marsan Buzy Le Havre h45 Caen Lourdes Fécamp h55 Mézidon Lisieux Argentan Surdon Auch Pau Tarbes 5h00 5h50 Luchon Dieppe Évreux Bernay Castelsarrasin Lannemezan 2h0 Dunkerque Antwerpen Calais h25 h35 Lille Europe h25 Boulogne Calais-Frethun St-Omer Hazebrouck h00 Bruxelles Étaples- Le Touquet Béthune Lille F. Valenciennes Douai Lens 0h50 h40 Maubeuge Abbeville Aulnoye Le Tréport Arras Cambrai Yvetot Barentin Dreux Eu Rouen Serqueux h05 Gournay Chartres Gisors Longueau Chars Vernon Pontoise Mantes Versailles Figeac Montauban Foix La Tour-de-Carol Enveitg Amiens Beauvais Melun Étampes Capdenac Albi Toulouse 5h0 St-Quentin TGV Haute-Picardie Tergnier Laon CompiègneSoissons Creil Aéroport Charles-de-Gaulle TGV Le Monastier Rodez Mazamet Gannat Cerbère Port-Bou Épernay La Ferté-Gaucher Provins Longueville Vichy Séverac -le-château Castelnaudary Béziers Sète Carcassonne Agde Narbonne Perpignan 4h45 Reims Hirson Marne-la-Vallée - Chessy Rethel Charleville-Mézières Sedan Châlons -en-champagne Vitryle-François Troyes Roanne Alès Millau Nîmes Montpellier 2h55 3h5 Longuyon Verdun St-Dizier Ruffec Limoges Clermont Riom Pont-de-Dore Lyon Volvic 2h50 -Ferrand Lyon Part Dieu 3h5 Lyon Perrache h55 2h05 Ussel Givors Angoulême Le Mont-Dore 2h45 Brive Arvant Périgueux Tulle St-Étienne Neussargues 3h50 Le Puyen-Velay 2h0 Souillac Valence Aurillac Valence TGV Livron Marmande Cahors La Bastide Montélimar Longwy Conflans -Jarny Bar-le-Duc Toul Orange Avignon Tarascon Arles Miramas Bourg-en-B. Bellegarde Ambérieu Culoz Lyon Saint Exupéry TGV Moirans Metz 2h45 Aspres Thionville Hagondange Rémilly Nancy Sarrebourg Lunéville Annemasse Cluses Sarreguemines Forbach Molsheim 3h35 Annecy Aix-les -Bains Chambéry 2h50 St-Gervais-les-Bains Albertville Bourg-St-Maurice Moutiers-Salins Montmélian St-Avre-la-Chambre St-Jean-de-Maurienne St-Michel Modane -de-valloire 2h55 Grenoble Briançon Gap Embrun Veynes-Dévoluy Strasbourg 2h40 Avignon TGV Perthuis Aix-en-Provence Les Arcs- Aix-en-P. TGVDraguignan 2h55 Agen 4h50 4h0 Massy TGV h25 4h35 Köln 2h40 Düsseldorf 4h05 3h40 3h00 3h50 Marseille Hyères Toulon Sarrebrücken Cannes 3h55 Nice 5h35 St-Raphaël Torino 5h25 Antibes Menton Monaco Zürich 6h00 Milano 6h55 4 4
Examples of TGV business Passengers transported TGV traffic in passenger-km Km of new lines in service Key figures 24.8 37.2 72.5 million in 2003.5 4.9 20.5 9.0 8.9,250 km,080 km,280 km,530 km billion TGV passengers reached in /03 2 billion in fewer than 0 years 60 293 km 98 0.6 5.3 40 km 983 690 km 730 km 590 km 989 990 992 993 994 996 2000 200 50 48 Turnover 2.9 G 40 30 20 0 06 6 22 33 4 00 996 997 998 999 2000 200 2002 GL TER Transilien 5 5
Increased inter-modal competition vis-à-vis the train For journeys of over 00 km in France and Western Europe in 2002 (*) Train 4.8% increase Coach 3.5 % Air 2.7% decrease The railway market share continues its increase 4.8% compared to 4.5% in 200 and 2.8% in 999) and remains highly segmented on the to/from Paris lines, TGV market share at 54% compared to 37% for the car and 9% for the aeroplane. province-province lines, TGV market share at 37% compared to 63% for the car. on the Mediterranean line, to/from Paris and province-province, TGV market share at 4% compared to 39% for the car (these market shares were 28 and 45% respectively in 200). Automobile 77.3% increase * source: trunk line panel 2002 6 6
Very different market shares depending on the segments 20 % 8 % 6 % 9 % Per reason for travel 8 % Per group size Per passenger age 4 % 3 % 2 % 0 % 8 % 6 % 4 % 7 % 5 % 4 % 6 % 4 % 7 % 9 % 8 % 7 % 5 % 2 % 2 % 0 % Professional Leisure Oscillating 2 people Single passenger 3 people 4 or 5 people 6 people or more 5-24 60 and over 25-39 40-49 50-59 7 7
Increased competition from air travel Despite a low market share (2.7%), the air travel market remains promising in 200, inhabitant in 20 regularly used air travel, compared to in 4 in the United States. A market marked by the emergence of low-cost European firms on the continent appeared in the United Kingdom 0 years ago a drastic reduction in costs (operating, distribution, etc.) Ryanair, EasyJet, Virgin Express......but for which the market share is still small The positioning of the price of railways remains good*, but air travel, thanks to the low-cost airlines, is perceived as being less expensive than in 200. A "customer perception" comparison* between the TGV, Air France and EasyJet demonstrates that the TGV and Air France have an excellent and rich image (on-board service, station / airport service, punctuality, pleasant nature of the journey, etc.), whereas EasyJet is only satisfactory in its economic aspect. 2002 *source: trunk line panel 8 8
The field of relevance of the high-speed train Railway traffic market share compared to air traffic (abscissa: running time in hours; ordinate: rail traffic market share in %) 998, national and international traffic, for direct railway services 00 % 90 % 80 % Confidence interval of the average rail traffic market for a set of routes with a given duration of journey. Confidence interval of the average rail traffic market for one route with a given duration of journey. 70 % 60 % 50 % Potential field of attack for "low cost" companies 40 % 30 % 20 % 0 % 0 % h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 0 h h 2 h 3 h Marseilles Toulouse Nice 9 9
Timeframe 200 / 205: Paris more or less 3 hours from provincial France Minimum running time (diurnal route) Timeframe of the new high-speed lines (depending on phasing) 2003 2007 200 205 Brest 4h0 3h3 3h09 * via Eastern high-speed line (phase ) ** via Rhine-Rhone high-speed line (phase ) *** preliminary study in progress Quimper 4h3 3h43 3h2 Reims h25 0h45 PARIS Metz/Nancy 2h45/2h40 h30 hour 2 hours3 hours4 hours5 hours6 hours Nantes 2h0 h53 Zones of pertinence Bordeaux < 3h00 2h57 2h25 2h09 Chambéry 2h40 2h0 Strasbourg 3h50 2h20 2h00 Mulhouse 4h3 3h0* 2h30** Évian 4h35 4h05 Toulouse 5h07 4h42 4h0 to 3h00 Montpellier 3h5 3h00 Marseilles 3h00 Nice*** 5h30 4h35 to 3h25 00
Major residual air traffic markets London 2706 Bordeaux 535 Madrid 763 Toulouse 2865 Nice 3006 Marseilles 2485
Evolution of TGV traffic from Roissy-CDG London Lille Europe 6 2 < hour 5 Douai Arras 5 < < 4 r 8 TGV Haute Picardie Quimper Lorient Vannes ROISSY-CDG RennesLaval Marne la Vallée - Chessy Massy Le Mans 4 5 4 Orléans Les Aubrais St-Nazaire St-Pierre-des-Corps 4 Montbard Le Croisic 6 Dijon Besançon 4 Angers Futuroscope Blois Dole La Baule Nantes 2 Futuroscope Le Creusot TGV Geneva 5 Poitiers Niort La Rochelle Lyon Part-Dieu 4 0 Bourg St-Maurice Angoulême (number of passengers using the TGV station) 2,000,800,600,400,200 Dax Bayonne B i a r r i t z St-Jean-de-Luz Hendaye 5 Libourne Bordeaux Toulouse Agen Montauban 2 Béziers Lyon Perrache Agde Montpellier Sète.5.5 Valence 4.5 Nimes TGV7.5 4,5 Avignon TGV 5 Grenoble 3 Aix-en-Provence 6 Marseilles Chambéry 3 Toulon St-Raphaël 2 Antibes 2 Cannes 2 2 Les Arcs-Draguignan Nice,000 800 600 400 Carcassonne 2.5 2.5Narbonne 200.5Perpignan 5 0 996 997 998 999 2000 2 0 0 2002 22
Horizon 200 / 205: Europe at the gates of Paris Minimum journey time (diurnal route) Timeframe of the new high-speed lines (depending on phasing) 2003 2007 200 205 London 3h00 2h40 2h20 Amsterdam 4h0 3h0 Brussels h25 h20 Frankfurt Cologne 5h35 3h45 3h25 3h56 3h36*** 3h00 Luxembourg 3h35 2h5 Stuttgart 5h55 3h50 3h30 Munich 8h20 6h00 5h40 * via Eastern high-speed line (phase ) ** via Rhine-Rhone high-speed line (phase ) *** in 2003/4 **** unless Lyon-Turin called into question Zones of pertinence < 3h00 PARIS hour 2 hours3 hours4 hours5 hours6 hours Basle 4h50 3h30* 2h49** Geneva 3h34 3h00 Turin 5h23 4h53 3h5**** Milan 6h50 5h28 4h02**** Madrid 3h00 8h5 8h00 7h25 Barcelona 8h25 5h50 5h35 5h00 sources: DGDC & TGV Est 33
Definition strategy for the TGV offer Objective of profitable g r o w t h To serve and develop the accessible and profitable markets To optimise available stock P r i o r i t y m a r k e t s : -v o l u m e m a r k e t s ( i n t e r - c i t y ) - f r e q u e n c y e f f e c t - r u n n i n g t i m e / n u m b e r o f h a l t s Distribution 5 % Others 8 % Pathways 30 % - e x i s t e n c e o f " b u s i n e s s " t r a f f i c - h i g h c o n t r i b u t i o n - s m o o t h i n g s e a s o n a l l e i s u r e e f f e c t s - z o n e o f p e r t i n e n c e f o r T G V h 2 h 3 h 4 h 5 h Z o n e o f m a x i m u m p r o f i t a b i l i t y Running and halts 22 % Set of wagons (capital and maintenance) 25 % 44
Role of yield management and pricing Profitable growth T o o p t i m i s e c a p a c i t i e s T o o p t i m i s e r t h e i n d i v i d u a l c o n t r i b u t i o n A d d i n g c a p a c i t i e s w h e n n e c e s s a r y ( m o n i t o r i n g l o a d i n g r a t e i n c r e a s e ) A d a p t a t i o n = 5 % t o 5 % o f r o o m a v a i l a b l e M a n a g e m e n t o f o v e r b o o k i n g R o l e o f y i e l d m a n a g e m e n t 0 Y M c o n s i s t s i n d e f i n i n g a n u m b e r o f s e a t s a v a i l a b l e p e r p r i c e l e v e l, T G V b y T G V = d e p t h o f r a n g e ( n u m e r o u s p r i c e l e v e l s f o r d i f f e r e n t e l a s t i c i t i e s ) 00 90 80 70 60 50 35 25 During peaks = Margin T o s e l l t h e m o s t r e q u e s t e d s e a t s t o t h e m o s t c o n t r i b u t i v e p a s s e n g e r s T o " s m o o t h " t h e p e a k s b y s p r e a d i n g t h o s e c u s t o m e r s m o s t s e n s i t i v e t o p r i c e s Availabilities Supply is greater than demand Demand Off-peak = Volumes T o t a k e a m a r k e t s h a r e s b y p r o p o s i n g v e r y l o w p r i c e s A l l o w s t h e c o e f f i c i e n t o f u t i l i s a t i o n o f c a p a c i t y t o b e i m p r o v e d o f f - p e a k B u t n e c e s s i t y t o l i m i t t h e " d i l u t i o n " o f " b u s i n e s s " clientele 55
Appendix: yield management tools M o n i t o r i n g l o a d i n g - r a t e i n c r e a s e s f r o m J 6 0 t o t h e d a y o f d e p a r t u r e A c t i o n i n r e a l t i m e o n t h e authorisation levels (number of seats a u t h o r i s e d p e r t a r i f f type) for trains in the f u t u r e... V i s u a l i s a t i o n o f t h e r e c o m m e n d e d o p t i m u m authorisation levels 66