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

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  • 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%.

Suggested Citation

  • Walter, Matthias & Haunerland, Fabian & Moll, Robert, 2011. "Heavily regulated, but promising prospects: Entry in the German Express Coach Market," Transport Policy, Elsevier, vol. 18(2), pages 373-381, March.
    • Handle: RePEc:eee:trapol:v:18:y:2011:i:2:p:373-381
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    Cited by:

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    2. Aarhaug, Jørgen & Fearnley, Nils, 2016. "Deregulation of the Norwegian long distance express coach market," Transport Policy, Elsevier, vol. 46(C), pages 1-6.
    3. Reynolds, Tim & White, Peter, 2022. "Forty years’ experience of deregulated express coach services in Britain," Research in Transportation Economics, Elsevier, vol. 94(C).
    4. Fearnley, Nils & Currie, Graham & Flügel, Stefan & Gregersen, Fredrik A. & Killi, Marit & Toner, Jeremy & Wardman, Mark, 2018. "Competition and substitution between public transport modes," Research in Transportation Economics, Elsevier, vol. 69(C), pages 51-58.
    5. 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.
    6. 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.
    7. Dürr, Niklas S. & Hüschelrath, Kai, 2017. "Patterns of entry and exit in the deregulated German interurban bus industry," Transport Policy, Elsevier, vol. 59(C), pages 196-208.
    8. Fageda, Xavier & Sansano, Sergi, 2018. "Factors influencing prices and frequencies in the interurban bus market: Evidence from Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 266-276.
    9. Joseph P. Schwieterman & Nicholas J. Klein & Alexander Levin, 2019. "Direct to your destination: the size, scope and competitive status of express coach carriers in the United States," Transportation, Springer, vol. 46(4), pages 1487-1504, August.
    10. Ali Solak, 2016. "Regulations in Scheduled Intercity Coach Transport Sector in Turkey," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(8), pages 1-33, August.
    11. 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.
    12. Beria, Paolo & Nistri, Dario & Laurino, Antonio, 2018. "Intercity coach liberalisation in Italy: Fares determinants in an evolving market," Research in Transportation Economics, Elsevier, vol. 69(C), pages 260-269.

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