The rise and fall of Interregio. Extensive open-access passenger rail competition in Poland

Król, Marcin; Taczanowski, Jakub; Kołoś, Arkadiusz

doi:10.1016/j.retrec.2018.06.008

Cited by 18 publications

(9 citation statements)

References 24 publications

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“…During the period of competition, the effects on passenger figures were clear and the newcomer in competing markets reached a significant market share (33%). The experience ended not only because of the incumbent’s pressures (Król, 2017) but also because of PR industrial and network choices (Król et al, 2018). Król et al (2019), instead, discuss the post-PR phase, when a number of small and mostly public companies, try to find some place on market niches providing low-performance and low-cost (25–40% cheaper) services.…”

Section: Open-access Competition In Europe and Focus On Pricesmentioning

confidence: 99%

A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail

Beria

Tolentino

Shtele

et al. 2022

Competition and Regulation in Network Industries

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The effect of competition on prices in the passenger transport sector can be difficult to estimate because of many influencing factors such as state regulation, demand, seasonality, and reactions of indirect competitors. A case of great interest in the rail sector is Italy, where on-track competition in the high-speed segment has been in place for nearly ten years. The paper aims at answering the question whether—and how much—incumbent’s prices are affected when competition starts on a route previously in monopoly. The case is the start of operations on the Turin–Milan–Venice route, where Italo entered in May 2018. Adopting a difference-in-difference approach, we check if Trenitalia changed the price strategy on the route before and after the entry, with respect to two control groups. The addition of placebo tests allows us to understand the ranges of significance of the results and to estimate the noise level of the estimates. Our findings suggest that the start of competition led to lower prices in the short-medium period. In the specific case, the Milano–Venezia route saw Trenitalia’s prices reduced by 21–26% (±2–5%) in a time span of 84–140 days after Italo’s entry and for advanced bookings from 2 to 10 days. Last-day prices remain unchanged, while early bookings are reduced by just 9%. This price reduction does not remain stable in the longer term, when other effects add up and blur the effect of the entry. Nevertheless, we keep observing a smaller, ∼15%, but still negative prices change.

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Section: Open-access Competition In Europe and Focus On Pricesmentioning

confidence: 99%

A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail

Beria

Tolentino

Shtele

et al. 2022

Competition and Regulation in Network Industries

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“…The proposed excessive geographic expansion is detrimental to the region's revenues and operating costs. This process leads to a loss of financial sustainability [8]. In the service dimension, safety and security are two key elements.…”

Section: Micmac Analysismentioning

confidence: 99%

“…Data were collected from preliminary studies, related to regulations, consultancies with supervisors, discussions, and experts in the following fields: The variables of Objectives identified in preliminary studies Król et al [8]; Zhang et al [9]; Krmac and Djordjević [20]; Coppola and Silvestri [27]; Ojha [28], Sugiarto et al [26]; Errampalli et al [23]; Ghate and Qamar [25]; Gallo and Marinelli [32]; Song et al [30]; Li and Yu [22] related to the study were grouped into the following 4 dimensions:…”

Section: Mactor Analysismentioning

confidence: 99%

“…For instance, Yagi and Shiraishi [7] explained a wide variety of variables that contributed significantly to the model, such as essential travel (cost, time, and distance), household (income, house type, car ownership), and individual characteristics. Król et al [8] stated no evidence of responsive price cuts in regular rates. The incumbent's strategic behavior did contribute to the withdrawal of challengers from the market in 2015.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Development of Sustainable Urban Railway Service Model Using Micmac-Mactor: A Case Study in Jabodetabek Mega-Region Indonesia

Wijayanto¹,

Fauzi²,

Rustiadi³

et al. 2022

IJSDP

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Electric trains (KRL) provide services to residents living in Jabodetabek, one of the world's most significant regions. Although KRL is used daily by about 973,366 residents to carry out their activities, some factors influence its usage. Therefore, this study aims to identify the critical elements that affect train services and the patterns of relationships amongst actors to construct a model for long-term sustainability. This study was carried out using the Micmac and Mactor methods. Micmac is a causal structural matrix that can investigate the relationship between parameters in a system. The Mactor technique, on the other hand, is applied to a variety of tactics involving many actors and a set of related interests and goals. The results showed five critical variables for sustainable urban rail service, namely Safety, Capital, Eco monitoring and evaluation, Eco plan, and COVID control are needed. Meanwhile, The General Administration of Railways, Ministry of Transport, and Indonesian commuter train company are two institutions or actors that are very influential in mobilizing the safety of KRL users amid a pandemic to ensure the continuity of train services. This study also finds that critical variables, key actors, and rail destinations strongly influence the sustainability of social, economic, and environmental aspects of urban rail transportation services. In conclusion, this study provides new insight into developing a sustainable urban rail service model in Jabodetabek KRL.

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“…In Poland, Interregio, a challenger of the state-owned PKP Intercity developed a large-scale supply of services and managed to capture a substantial fraction of the market (approximately one third) before it had to exit in 2015. Exit was caused by an alteration in the challenger's business strategy combined with an unfavorable change in the market environment and the incumbent's use of political action to put its competitor at a disadvantage (Król et al, 2018). It should be noted that Interregio was not financed by private investors but by regional public authorities.…”

Section: B Country Experiences In Opening European Railway Marketsmentioning

confidence: 99%

Which access to which assets for an effective liberalization of the railway sector?

Bougette

Gautier

Marty

2021

Competition and Regulation in Network Industries

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In the European rail industry, to enable competition in the market, entrants should be granted access to a large set of complementary services, beyond access to the tracks. For an efficient and effective entry, temporary access to quasi-essential complementary assets like rolling stock, mechanical maintenance workshops, data, schedules, etc. is required. In the liberalized rail sector, several observed anticompetitive practices involve distorted access to these quasiessential facilities. Therefore, competition agencies must deal with litigation between the incumbent and new entrants. Most cases have been settled, resulting in commitments from the incumbent. We argue that such transitory and case-by-case remedies fail to produce favorable conditions for a secure and efficient entry. Thus, we propose to systematize such remedies through asymmetric and enduring ex-ante regulation.

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The rise and fall of Interregio. Extensive open-access passenger rail competition in Poland

Cited by 18 publications

References 24 publications

A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail

A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail

Development of Sustainable Urban Railway Service Model Using Micmac-Mactor: A Case Study in Jabodetabek Mega-Region Indonesia

Which access to which assets for an effective liberalization of the railway sector?

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