Transportation Policy and Innovation as Determinants of Bus Service Market Design: A Case Study of the German Market

Piotr Niedzielski, Tomasz Kwarcinski, Agnieszka Kwarcinska, Karol Leszczynski
European Research Studies Journal, Volume XXVIΙ, Issue 4, 609-620, 2024
DOI: 10.35808/ersj/3538

Abstract:

Purpose: The purpose of this article is to present the impact of regulations in the area of transport policy and innovations introduced on the operation of the German bus service market with a particular focus on the operations of Flix SE. Design/Methodology/Approach: The temporal analysis covers the period from 2012 to 2023. During the period under study, the liberalization process of the bus market in Germany began. During this period, a dynamic development of the offer of bus companies can be observed, which was correlated with their number. In subsequent years, the tendency to reduce the number of players and the consolidation of the market position by Flix SE can be clearly seen. In this context, the article attempts to identify the main factors that may have influenced the success of this company. Findings: The article is theoretical and empirical in nature. The theoretical layer presents an overview of the scientific body of work on the role of transportation policy as a tool that influences the functioning of the market. The practical part presents the effects of the changes that occurred after the liberalization of the bus transport market in Germany. Much attention in the article is given to Flix SE in the context of the innovations introduced, which have become a source of competitive advantage for the company. Practical implications: The process of liberalization of the bus transportation market initiated in Germany has led to a large dynamic of changes in this segment of transportation. In the initial phase, a number of operators emerged. However, in a fairly short period of time there was consolidation in the market, and later practically its monopolization. In this context, it has become valuable to learn about the mechanism that caused this state, and consequently to learn and present the essence of the successful business model that Flix SE has developed. Originality: The results contribute to the discussion of the impact of transport policy, the tools used, on market development. The case study was the long-distance transport market in Germany. It is also important to present innovative solutions as a source of competitive advantage.


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