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Heavily regulated, but promising prospects: Entry in the German Express Coach Market

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Listed author(s):
  • Walter, Matthias
  • Haunerland, Fabian
  • Moll, Robert

Abstract

Domestic express coach services in Germany have long been heavily restricted by regulation, although offerings comparable to countries like, for example, Great Britain or Sweden bear substantial opportunities for competition, the environment, and mobility. In this paper, we motivate market entry in the German express coach market for local public and integrated transport companies by high profitability rates in other countries and the availability of bus facilities and skills. This is followed by the evaluation of supply and demand. Supply is represented by an analysis of external and internal costs showing that express coaches have significant cost advantages that are intensified by the possible internalization of external costs. Demand is represented by a survey of customers that is evaluated with a conjoint analysis. Our results suggest a market share for express coach services in Germany of at least 5.3%.

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File URL: http://www.sciencedirect.com/science/article/pii/S0967-070X(10)00137-X
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Article provided by Elsevier in its journal Transport Policy.

Volume (Year): 18 (2011)
Issue (Month): 2 (March)
Pages: 373-381

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Handle: RePEc:eee:trapol:v:18:y:2011:i:2:p:373-381
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Keywords: Express coach Market entry Demand Public transport Regulation Conjoint analysis;

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  1. Dag Dalen & Andres Gómez-Lobo, 2003. "Yardsticks on the road: Regulatory contracts and cost efficiency in the Norwegian bus industry," Transportation, Springer, vol. 30(4), pages 371-386, November.
  2. Fujii, Satoshi & Gärling, Tommy, 2003. "Application of attitude theory for improved predictive accuracy of stated preference methods in travel demand analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(4), pages 389-402, May.
  3. Yu, Ming-Miin & Fan, Chih-Ku, 2008. "The effects of privatization on return to the dollar: A case study on technical efficiency, and price distortions of Taiwan's intercity bus services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(6), pages 935-950, July.
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Cited by:

  1. Aarhaug, Jørgen & Fearnley, Nils, 2016. "Deregulation of the Norwegian long distance express coach market," Transport Policy, Elsevier, vol. 46(C), pages 1-6.
  2. Beck, Arne, 2010. "Commercial public bus transport services in Germany: How a market in motion struggles with its regulatory framework," Research in Transportation Economics, Elsevier, vol. 29(1), pages 183-194.
  3. Abrate, Graziano & Erbetta, Fabrizio & Fraquelli, Giovanni & Vannoni, Davide, 2016. "Bet big on doubles, bet smaller on triples. Exploring scope economies in multi-service passenger transport companies," Transport Policy, Elsevier, vol. 52(C), pages 81-88.
  4. Matthias Walter, 2011. "Some Determinants of Cost Efficiency in German Public Transport," Journal of Transport Economics and Policy, University of Bath, vol. 45(1), pages 1-20, January.

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