Due to its growing size and popularity, the German public transport market becomes increasingly interesting for international service providers who do not have any direct relation to the transport sector. Especially against the background of an increased interconnection between different modes of transport (“multimodality”) and the associated complementary ticketing and information services, it becomes even more attractive. The market for urban mobility and related additional services is expected to grow substantially in the coming years.
Hence, an international payment provider assigned BSL Transportation Consultants to provide an analysis and survey of public transport markets in the DACH region (Germany, Austria and Switzerland). The study formed an integral part of the client’s market entry strategy.
Though the client was familiar with the mechanisms of public transport markets in the global context, he was not informed about the details of the DACH region. Against this background, the regulatory characteristics of public transport markets in Germany, Austria and Switzerland had to be recorded in the first instance. Particularly the integration into transport associations and the comprehensive policy guidelines were a special feature in the international context which have an impact on the investment confidence. These results were discussed with the client’s project team and compared to the experience the company made in the Middle East and in Asia.
In a second step, the parameters for the market size, the competitive environment and the accessibility to the respective public transport markets (agglomerations) of the DACH region were determined. Among the criteria for accessibility were the independence of transport companies and the complexity of decision making within the transport association. To this end, published statistics and data from BSL’s benchmarking database were consulted, and additionally expert interviews were conducted. The individual public transport markets were then evaluated and prioritised in terms of their market attractiveness and accessibility.
In order to provide attractive payment solutions for the transport companies, the client’s products and services were critically compared to the specific needs of transport companies in the DACH region. Based on this, approaches for further development of the products and services were devised. To define the economic framework for this market activi-ties, alternative business case scenarios were identified for the targeted public transport markets.
As a result the customer received a well-founded market overview including priority targets. Above that, comprehensive documents and presentations were prepared for the first meetings with potential customers.
19. February 2016