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The SNCF can offer around fifteen different prices for the same journey, on the same day. It uses a precise algorithm to fill its trains.
Although the TGV is popular, its prices can vary depending on the customer. Thus, for a Paris-Lyon, for the same class, on the same day, one paid 29 euros with the Avantage card and the least prudent 104 euros at the last minute. Price differences that surprise passengers. The algorithm uses Yield management, a price and sales optimization technique. In the La Défense district, a unit sets prices.
Prices are soaring
To fill the trains as much as possible, 70 analysts dissect curves and graphs with millions of pieces of data. The more the train fills up, the more expensive the seats will be, especially during peak hours. According to the SNCF, this system also makes it possible to offer low prices. Yield management was imported into France by the SNCF which began to vary prices in 1993. “As there is very strong demand, for insufficient demand, the prices of train tickets are soaring”, explains Gilles Donsart, rail specialist, director of Mobilettre. With this system, the SNCF is making historic profits.