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Agenda
Development of long distance
Coach market
in case of Germany
APC- 10 year‘s anniversary meeting, Riga, 05. Septemer 2013
Situation
• Change of regulations in the beginning of year 2013
• Up to then, utmost protection of competition for railway by laws
• Only from and to Berlin significant services by coach
• Market share approx. 0.1 % of the total transport market
• 3 companies operated a network within Germany, some SME‘s operated airport transfers
• Since January, very dynamic development
Situation
The liberalization of the German long-distance coach services attracts a number of new stakeholders and companies
Active
Interested
• Market – including single lines operated by over 50 different coach suppliers
• There are various international companies, prepare the market entry or already have implemented
• After hesitation, the Deutsche Bahn AG as the current market leader interested at a further expansion in the Coach market
Situation
Against the background of liberalization, the line network in the long-distancecoach traffic has greatly increased (2012: 40 routes, 08/2013: 160 routes),and will expand further
Structure National lines
Planned opening international lines Planned opening lines from 04/2013
Numbers of lines 03/2013
No Exact number
No Exact number
1) In cooperation with existing operators
Forecast
The forecasts for the market share of long-distance bus in Germany vary widely, a turnover of up to € 1 billion per annum possible
FORECASTING MARKET SHARE long-distance bus (BASE PKM)
Coach Coach
Plane Plane
Rail
Rail
Car
Car
Turnover Coach:
In addition to the fluctuating forecasted modal split shares isthe question of absolute market size
Forecast
OFFER, PRODUCT& PRICE
SALES & CUSTOMER SERVICE
PRODUCTION / OPERATIONS
Coach
TERMINALS
For Germany can be expected from a rapidly growing coach market, but also has the need for development.
Challanges for market development
Forecast
The growing distance coach traffic represents many challenges to market participants - but it also offers opportunities (1)
NETWORK PLANNING, MANAGEMENT AND PRODUCT PRICING
Opportunities
• Many large cities directly connected by highways• High Price level & capacity constraints at DB long-distance traffic• cooperation between operators - with common brand - with franchise models• cooperation rates, for example with airlines or transport associations• perfected yield management method
Challanges
• “tracking" attractive routes with connections other cities• differentiation from other coach operators• product positioning (low cost?, Standard? Premium?)• Optimal price level?• price reactions DB long-distance + DB Regio• entry of new competitors train
Forecast
The growing distance coach traffic represents many challenges to market participants - but it also offers opportunities (2)
SALES & CUSTOMER SERVICE
Opportunities
• High acceptance of Internet sales• Special search and booking platform• booking and yield management tools available on the market• sales cooperation, for example between coach operators, with Retail and with local public transport providers (including CityTicket connection)• Mobile sales and additional services
Challanges
• sales competition between coach operators (and also to Sales service)• Customer Information• conflict Customer vs. Low-cost structure• on-site customer support in case of failure• passenger rights
Forecast
The growing distance coach traffic represents many challenges to market participants - but it also offers opportunities (3)
PRODUCTION / OPERATIONS
Opportunities
• New Business Models for Service Providers• Central Coordinators as an interface between different operators and CCT• handling agents• Full range of coach companies• Nationwide manufacturer workshop network• collaborations with public transport providers, for example for workshop use or on-site operating personnel
Challanges
• Connections <> overall stability (high susceptibility to interference in cities and highway)• "major combat days" (start of the holidays, before Christmas, etc.)• decentrally parking of vehicles
• Accommodation staff• personnel scheduling: optimum between buffer and efficiency?• infrastructure availability and quality (see also next page)
Forecast
The growing distance coach traffic represents many challenges to market participants - but it also offers opportunities (4)
Terminals
Opportunities
• State of the art terminals, when municipalities implement new• PPPs or exclusively private investment: CCT as "shopping and service center with coaches “• Coach connection can promote accessibility and tourism• Cooperation between providers and local authorities (e.g. Marketing support)
Challanges
• Few real coach terminals are available in Germany• Financial needs of municipalities / responsibility open• Optimal location and affordable access for coach connection• Customer information (especially at unstaffed bus stations/terminals)• overload risk: Concentration of departures at certain times and days of the week• Limited Knowledge about conditions and needs for infrastructure in long-distance coach transport
Summary
The long-distance coach has shown in a short time many innovative approaches, yet still tackle some challenges.
OFFER, PRODUCT& PRICE
SALES & CUSTOMER SERVICE
PRODUCTION / OPERATIONS
Coach
TERMINALS
Active and flexible product management
Yield Management
Development of forms of distribution
Target group oriented marketing
Reliability even at peak times
Efficient (remote) control of the operation
Creation and funding of the necessary infrastructure
Marketing coaches towards cities
Link with other transport modes
Common marketing
coach and city
Summary
We expected in the medium time a significant growth. After that, it will give a phase of consolidation at the supplier, but also an adjustment of the value concepts
POTENTIAL MARKET STRUCTURE
Supply / network planning
Productmanagement & Pricing
Sales & Costumer services
Production & operation
Vihicles
Terminals / CCT / virtual stations
Main operators
Medium to long term:
4-6 companies
Specialists
Contact
14
Stefan Christian – PresidentRüdigerstr. 4610365 Berlin - GermanyEmail: [email protected]. +49 (0) 151 27665212