Dynamic Pricing on the Czech Railway Passenger Transport Market From a Marketing Perspective: an Interpretative Case Study

Abstract

The Czech Republic has the densest railway network in Europe and its importance on the transport market corresponds to this fact. Historically, railway transport in the Czech Republic was operated by the only monopoly carrier – the Czech national carrier, former incumbent Czech Railways Company. Subsequently, the market was liberalized. RegioJet entered the market in 2011 and Leo Express in 2012, followed by other carriers. Railway passenger carriers have had to adjust their marketing practices and strategies to reflect the new highly competitive market situation. The most interesting situation arose on the Prague – Ostrava region route, which is currently operated exclusively at commercial risk. This article is focused on the dynamic pricing of Leo Express railway passenger carrier on the Prague – Ostrava region route. The article is based on the results of a primary research on the price evolution of Leo Express in four different fare classes and on four different connections in 2022. The aim of the article is to analyse the basic principles of dynamic pricing of Leo Express on the route Prague – Ostrava region from a marketing perspective. The article is based on the use of the scientific method of literature review, primary research, and interpretive case study. The analysis shows that Leo Express sets the default ticket prices according to the fare class and departure time of the connection (connections at peak times are more expensive than connections at off-peak times). Another important factor that affects the price is the number of tickets remaining. This factor has a major impact on the final ticket price and can affect the price of a ticket by tens of percent.