More freedom for SNCF to set fares
Fares will be more flexible to respond to demand, with the end of fixed 'peak' and 'normal' rates
THE SNCF has been given more freedom to set its own fares, as the French government prepares to open the rail network to competition.
A decree has appeared in the Journal Officiel that scraps the distinction between "peak" and "normal" fares - allowing the operator to decide on its own pricing strategy based on demand.
Until now, the SNCF has had to decide a year in advance which departures would be the busiest (périodes de pointe) and which would be "normal".
It was impossible for the rail operator to increase fares on "normal" departures that were nearing capacity - or to cut fares on "peak" trains that were having difficulty filling space.
According to the Nouvel Observateur, the "unprecedented" change means the SNCF can better tailor its fares to demand and fill its trains using the principle of yield management applied by budget airlines. At the moment 10% of peak trains are less than half full.
Prices will range from the Prem's rate - the discount price for the earliest bookers - to the full rate second-class peak fare charged at present.
It is not yet clear what impact the move will have on customers. The SNCF will consult with passengers' union Fnaut after the summer break and the decree is expected to come into force in the autumn.
