Generic railway strategies TOCs
train operator strategies
a research-oriented knowledge base for train operating companies (TOCs)
a research-oriented knowledge base for train operating companies (TOCs)
3.5 Challenger IV: RegioJet, Czech Republic
RegioJet is offering high quality services for lower prices than the incumbent CD via fixed fares in a closed system (Barrow, 2012, p. 25). Each coach is equipped with a stewardess providing drinks and newspapers. Free WiFi internet and power sockets are available at every seat (Barrow, 2012, p. 25).
By December 2011 RegioJet has increased its connectivity to five trains per day on the route Prague-Ostrava-Havirov (initially only three services until Ostrava). Moreover, the company started operating a second route between Prague and Brno. According to internal information average train load factors range between 80 and 97 percent (Barrow, 2012, pp. 24-27).
RegioJet is a young operator from the Czech Republic. It was the first private company to enter the European passenger long-distance market on an important route after liberalization. RegioJet is challenging the Czech incumbent CD since September 2011.
Originally RegioJet was preparing for operations of regional services in the Czech Republic. After the Czech government withdrew the tendering plans for regional train services, RegioJet was quickly able to re-steer its strategic focus entering the Czech long-distance network by buying old ÖBB wagons and refurbishing them. RegioJet is held by Student Agency, Czech Republic’s leading bus operator with extensive experiences in the passenger transportation business (Railway Gazette, 2011i, p. 1).
Originally RegioJet was preparing for operations of regional services in the Czech Republic. After the Czech government withdrew the tendering plans for regional train services, RegioJet was quickly able to re-steer its strategic focus entering the Czech long-distance network by buying old ÖBB wagons and refurbishing them. RegioJet is held by Student Agency, Czech Republic’s leading bus operator with extensive experiences in the passenger transportation business (Railway Gazette, 2011i, p. 1).
RegioJet is offering high quality services for lower prices than the incumbent CD via fixed fares in a closed system (Barrow, 2012, p. 25). Each coach is equipped with a stewardess providing drinks and newspapers. Free WiFi internet and power sockets are available at every seat (Barrow, 2012, p. 25).
By December 2011 RegioJet has increased its connectivity to five trains per day on the route Prague-Ostrava-Havirov (initially only three services until Ostrava). Moreover, the company started operating a second route between Prague and Brno. According to internal information average train load factors range between 80 and 97 percent (Barrow, 2012, pp. 24-27).
As reaction to competition the Czech incumbent CD considers adjusting prices on competitive lines. Moreover, the company has upgraded selected trains with the offering of newspapers and drinks (Railway Gazette, 2011b, p. 1). Additionally, CD signed a 200 million EUR quick order contract with ÖBB and Siemens to acquire 16 newly-produced 230 km/h Railjet trains, originally ordered and in production but not necessarily required by the Austrian incumbent. The delivery of trains will take place between 2012 and 2014 and aims to strengthen the CD’s market position (Railway Gazette, 2011b, p. 1).