The liberalization of the long-distance bus market in Germany and Europe has undergone a significant transformation in recent years. From the opening of the market to the emergence of a dominant player like Flixbus and the challenges that have arisen in countries like Austria and Switzerland, we take a detailed look at developments in the industry.
For a long time, long-distance bus transport in western EU countries had a niche existence. The buses only played a significant role in traffic with Eastern European countries and the Balkan region. A special case was Berlin before the fall of the Wall, because Berlin Linienbus connected West Berlin with numerous cities in the Federal Republic, as this was in many cases easier than by rail.
Long-distance bus transport once played a very important role in domestic transport, because the Deutsche Bundespost's Kraftpost, which no longer exists, used to serve many routes that were often routed via the Autobahn and there were even stops in Autobahn parking lots. With the increasing expansion of the railway lines, these Kraftpost routes increasingly disappeared. Later, the postal bus operations, which were mainly active in regional transport, were handed over to the Deutsche Bundesbahn and at least partially privatized later. Apart from the special situation regarding West Berlin, long-distance bus transport then played almost no role at all for many years. But that changed abruptly later.
The liberalization of long-distance bus transport in Germany began in 2013 when the Passenger Transport Act was amended to allow private long-distance bus companies to enter the market. This law ended Deutsche Bahn's decades-long monopoly and opened up competition that resulted in lower prices and greater choice for consumers.
From startup to quasi-monopolist: Flixbus
Flixbus, founded in 2011, has been a pioneer in the German long-distance bus industry from the very beginning. The company made clever use of the changed legislation and built up a network that quickly spread across Germany and Europe. The key to their success was the cooperation with small and medium-sized bus companies to create a comprehensive route network. These collaborations enabled Flixbus to expand rapidly and offer a wide range of connections.
The Flixbus brand has become a staple in public transport and its green buses are ubiquitous in many European countries. Through clever marketing strategies and a focus on customer satisfaction, Flixbus was able to build a strong market position and control a large part of the long-distance bus market in Germany and Europe.
Challenges in Austria and Switzerland
In Austria and Switzerland, the liberalization of the long-distance bus market is proving much more difficult than in Germany. Domestic permits are very difficult to obtain here, which has resulted in the long-distance bus market in these countries being heavily regulated to this day.
There are many reasons for these strict regulations. On the one hand, the well-developed rail networks in these countries have resulted in long-distance rail travel being preferred. In addition, the countries are geographically smaller than Germany, which reduces the need for long-distance bus connections.
Another important factor is the interests of the existing transport providers. In Austria and Switzerland there are already well-established train and bus companies that exert a high level of influence on politics. These companies have a vested interest in limiting competition from long-distance buses to protect their own businesses.
Excluded from the climate ticket in Austria
The liberalization of the long-distance bus market in Germany has resulted in increased mobility, lower prices and more choice for consumers. Flixbus' track record as a dominant player in this market demonstrates the opportunities this sector offers.
However, high hurdles for long-distance bus companies remain in Austria and Switzerland, resulting in limited competition and higher prices. Developments in these countries are being closely monitored as they could potentially impact the future development of the long-distance bus market across Europe. Permits for international routes are much easier to obtain, but then no domestic passengers may be transported within the respective country.
In addition, the policy of Transport Minister Leonore Gewessler (Greens), which is worth questioning, is proving to be an additional "stumbling block" in Austria. Since the focus was almost exclusively on rail transport, with a focus on night trains, long-distance buses were not included in the climate ticket. This is done, for example, by Dr. Richard, the operator of the Flixbus lines between Graz and Vienna, sharply criticized. So far, no solution has been found or, according to the "Ministry of Climate Protection", there is still no interest in including domestic long-distance bus routes in the climate ticket. The so-called Intercity bus of the Austrian Postbus AG, which operates between Klagenfurt and Graz, is included in the network map.