To face the health crisis and the consequent reduction in passenger numbers, SNCF is forced to rethink its TGV offer.

Nicolas Barré takes stock of a current economic issue.

The Covid crisis is not only costing SNCF billions of euros and consequently the taxpayer, it is also forcing the railway company to rethink its model from top to bottom.

As in air transport, we do not know when the return to normalcy will take place, or even if it will ever happen.

Because of teleworking, part of the business clientele has evaporated.

Will she ever come back?

When?

No one is able to tell.

But without this business clientele, the whole very fragile financial structure of SNCF is compromised.

Why ?

Because it is this business clientele that makes the TGV revenue.

And that without TGV revenues, the SNCF cannot finance its network, which is aging, or the lines on which it is losing money.

The boss of the SNCF therefore wants to rethink the TGV.

What does that mean concretely?

This means first of all that we will have to put some order, some clarity, in the prices.

What is the average price of a TGV ticket?

45 euros.

However, customers have the impression that it is much more expensive.

Why ?

Because the current pricing system with prices that change all the time, like in the air, depending on the date and times, annoys.

A lot of passengers feel like they're being tricked.

So as long as the demand for TGV tickets exceeded the supply, SNCF did not have too much to worry about.

But today, with the crisis, it is the opposite: there is more supply than demand.

That is why the management of the company wants to implement a new pricing policy.

With a watchword: make it simpler and more readable.

The TGV offer will also evolve.

Yes, new trains are coming.

Not immediately, it's for 2023, but it will change the situation with much better connected and above all flexible trains: the SNCF will be able to put more or less wagons per train, which is not possible with the current TGV trains. .

The fittings on board will also be reviewed.

These are the virtues of competition.

Competition from other railway companies which will be able to operate main lines.

The Italian SNCF, Trenitalia, will serve Paris, Lyon and Milan.

The Spaniards are also lining up.

Competition is shaking up the SNCF and changing the TGV: so much the better!