Deregulation of long distance coach services in France

Yves Crozet () and Laurent Guihéry ()
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Yves Crozet: LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique, IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon
Laurent Guihéry: MRTE - Laboratoire Mobilités, Réseaux, Territoires, Environnements - UCP - Université de Cergy Pontoise - Université Paris-Seine

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Abstract: Long distance passenger mobility is experiencing in France a huge innovation boost. Based on Internet technology and customer-oriented services some new entrants are diversifying the options for the travelers. For instance, High Speed Rail (HSR or "TGV" in French) services are challenged by low cost airlines but also by BlaBlaCar, the world leader in ride-sharing, and since 2015 by the deregulated long distance coach services. At the end of the first quarter of 2017, 8 million passengers have already experienced long distance coaches in France. But is it enough? The aim of our paper is to analyze the development of coach services in France as a case study and their lack of profitability. Until now, coach operators are suffering huge losses. Is it transitory or can we consider that the high degree of competition between HSR, ride-sharing and coach services will structurally limit the development of the latter? How will the structure of this market evolve if the demand remains at a rather low level, in comparison with United Kingdom for instance? To conclude, it is a dynamic market as far as passengers are concerned but it can be a lose-lose game for operators such as coach operators or ride-sharing platforms.

Keywords: Coach services; Long distance passenger transport; Competition; France (search for similar items in EconPapers)
Date: 2018-08
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Citations: View citations in EconPapers (7)

Published in Research in Transportation Economics, 2018, 69, pp.284-289. ⟨10.1016/j.retrec.2018.07.021⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01856648

DOI: 10.1016/j.retrec.2018.07.021

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