Car, bus and railway: Mobility has its price

^{Destatis, 19 February 2010}

Walking to the bank? Taking the bus to go to work? Going shopping by car? And taking the train to visit friends? Consumers in Germany spend a considerable part of their expenditure budget on being mobile. In 2005, the base year of consumer price statistics, consumption expenditure on car, bus and railway accounted for some 13% of total consumption expenditure of households. The prices of purchasing a car, petrol, bus tickets, railway tickets and many other items of "transport" in 2009 were an average 8.3% higher than in 2005. The whole consumer price index, covering the total consumption expenditure of households in Germany, rose by just 7.0% in the same period.

Price increase recently larger for public transport than for cars

Price trend for motor vehicles

The prices of passenger transport by rail rose as much as 17% over the last five years. Here a stepwise price development is observed. Generally, rail fares are adjusted every year in December (in 2006, however, the prices were not adjusted until January 2007, when the VAT increase took place). Ticket prices of transport associations rose sharply, too, and were by 19% higher in 2009 compared with 2005. While parallel trends were observed until mid-2008 for cars, railways and transport associations, the trend of prices around the car has become detached from the general trend since that time. Within just a few months, the prices of using a car dropped markedly. That was due to the sharp fall in motor fuel prices, which account for a considerable share. Since that time, rising prices have been observed.

Prices around the car

Prices at petrol stations fluctuate strongly. In 2008 petrol and lubricant prices were by 17% higher than in 2005, while in the subsequent year of 2009 the prices were just 4.4% above the levels of 2005. However, it was not only petrol but the whole issue of using a car which has become more expensive: The price index for the purchase and operation of motor vehicles, compiled by the Federal Statistical Office, also includes car maintenance and other goods and services connected with the operation of private vehicles. In 2009, that index was by 7.6% higher than in 2005.

Table: Price index for the purchase and operation of motor vehicles

The price index for the purchase and operation of motor vehicles shows how prices around the car have developed. Assuming that the consumed quantities of the various items (e. g. petrol consumption, frequency of repairs, scope of insurance) do not change, it can be interpreted as an indicator of the costs of using a passenger car. Cost savings, which may be achieved by using lower-consumption cars, are however not taken account of in the index.

Prices of using buses and railways

In Germany, the average expenditure on one’s car is almost ten times the expenditure of households on using buses and railways. Consumers in Germany spent just 1.4% of their consumption expenditure on that area in 2005.

Table: Rail transport and combined passenger transport services

Rail transport

Expenditure on rail transport accounts for just 0.6% of consumption expenditure of households. This includes short-distance and long-distance transport, with the number of passengers carried in short-distance rail transport being much higher than in long-distance rail transport. The average rail journey in the short-distance area however covers just 21 kilometres, while in the long-distance area an average 287 kilometres are travelled. Therefore, when put in terms of person-kilometres, short-distance rail transport has just a slightly larger share than long-distance rail transport.

Price increases in long-distance and short-distance rail transport

In long-distance travels by rail, prices in 2009 were by 17% higher than in 2005. To measure prices in long-distance rail transport, the most important routes within Germany are selected. Although the market was opened to private providers in 1994, long-distance rail transport is mainly covered by Deutsche Bahn AG; other providers are developing very slowly in that market and their share is still under 1%. Therefore, price collection is limited to products of Deutsche Bahn AG, e. g. 1st or 2nd class return tickets, group travels, various BahnCards, seat reservation, monthly tickets, regular customer subscriptions, night trains, Plan&Spar and other budget prices.

In short-distance rail transport, it has been possible for the Länder since 1996 to make open invitations to tender for transport contracts. As most railway companies have a ticket co-operation with Deutsche Bahn AG, most products included in price measurement are those of Deutsche Bahn AG, such as return tickets for different distances, regional tickets, Happy Weekend Ticket. Here, prices in 2009 were by 17% higher than in 2005.

More expensive tickets in transport associations

For public means of transport, the so-called combined transport services play a major role. Those are standard prices to be paid when using different means of transport within a region. To measure prices of combined passenger transport services, transport associations are asked for their prices. Selected distances are examined and various products are included, e. g. return tickets, monthly tickets, group tickets. The prices of single tickets at normal conditions in 2009 were by 22% above 2005 prices. Prices for pupils in 2009 were by 16% higher than five years earlier and the prices of monthly tickets for adults in 2009 were by 16% above 2005 levels, too.

Author:
Nadya Konrad - Federal Statistical Office

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