The liberalisation process of the long-distance coach sector has generated significant changes in the long-distance passenger transport market. In Italy, albeit at a slower pace than European countries, the entry of newcomers has spurred the process of reorganisation of the industry. This paper analyses the sector next to the liberalisation process, placing attention to the pricing strategies carried out by coach companies. Using daily price information on coach services provided over the period 2016-2018, the empirical analysis is focused on routes never analysed before (South to North of Italy). Results show that the introduction of dynamic pricing strategies by new entrants, Flixbus, favoured the spread of yield management techniques in the sector. Coach companies are found to implement innovative pricing strategies that account for the travel day, the time, the distance of the journey, and the booking day before departure. Finally, the presence of intermodal competition from rail services and flights on the observed routes exert a downward pressure of coach services’ price.
Pricing strategies in the Italian long-distance coach market
INTINI, MARIO
2020-01-01
Abstract
The liberalisation process of the long-distance coach sector has generated significant changes in the long-distance passenger transport market. In Italy, albeit at a slower pace than European countries, the entry of newcomers has spurred the process of reorganisation of the industry. This paper analyses the sector next to the liberalisation process, placing attention to the pricing strategies carried out by coach companies. Using daily price information on coach services provided over the period 2016-2018, the empirical analysis is focused on routes never analysed before (South to North of Italy). Results show that the introduction of dynamic pricing strategies by new entrants, Flixbus, favoured the spread of yield management techniques in the sector. Coach companies are found to implement innovative pricing strategies that account for the travel day, the time, the distance of the journey, and the booking day before departure. Finally, the presence of intermodal competition from rail services and flights on the observed routes exert a downward pressure of coach services’ price.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
