photo: PKP Intercity/PKP Intercity Updates Ticket Prices
PKP Intercity is adjusting ticket prices to the current market situation – rising operating costs, mainly due to higher electricity prices and the competition's price offer. The revised price list will take effect from 11 January 2023.
One of the most significant factors influencing the increase in PKP Intercity's total cost of providing services in 2023 is the significant change in the price of electricity, which is the company's largest cost.
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Compared to January 2022, the price of electricity on the Polish Power Exchange increased by 62.18%. It will translate directly into a significant increase in the projected 2023 charges for active energy, which is part of the traction electricity charges, and, consequently, an increase in the cost of services provided by PKP Intercity.
Attention should also be drawn to the highest level of inflation in many years, which for November this year was 17.5%, as well as the continued rise in interest rates.
It is worth recalling that the current update is only the second systemic change to PKP Intercity's ticket prices since 2013-2014. The company's latest forecasts indicate that the operating cost per passenger may exceed 40 per cent. It is crucial to highlight the sharp increase in the traction energy cost due to the observed market situation, which may exceed 100 per cent annually, consequently modifying the company's cost structure and increasing the weight of traction energy costs.
Importantly, the change in ticket prices will not compensate for the effects of the significant increase in PKP Intercity's operating costs but will only partially mitigate them.
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Based on the detailed analyses carried out, PKP Intercity is raising the base prices of single tickets in the various train categories by an average of:
- 17.8% for the EIP category;
- 17.4% for the EIC category;
- 11.8% for the TLK/IC category.
The price of travel can be reduced by taking advantage of the numerous promotional offers available from the carrier.
Stub tickets, Intercity Cards, Multipass offer – changes
Following the update of single ticket price lists, sectional ticket prices are also being updated. These are being changed by an average of 10%, leaving them competitive with the offer from other rail carriers.
For the first time since 2016, the prices of Intercity Cards, which entitle passengers to unlimited travel on PKP Intercity trains on any route, are changing.
At the same time, to increase the attractiveness of the Multipass and Multipass Max offers, PKP Intercity is extending the offer period by a few hours, i.e. until midnight on Thursday. Until now, it has been in force from midnight on Tuesday until 3 pm on Thursday. Invariably, it will allow any number of journeys on PKP Intercity trains during the validity period. At the same time, it should be noted that the price of both offers remains unchanged.
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PKP Intercity's price competitiveness
In 2022, a record nearly 59 million people used PKP Intercity's services, according to the first data. Particularly at a time of rising inflation and rising fuel prices, PKP Intercity met the needs of millions of Poles wishing to travel across the country and introduced the Cheap with Friends offer, which made travelling by train in a few people very cost-competitive compared to travelling by car. In turn, the introduction of a dynamic price management system and the extension of the Promo offer to all train categories in May last year meant that tickets went on sale at prices much lower than the base price. Autumn, on the other hand, was the time of a huge promotion encouraging rail travel in Poland. PKP Intercity made a pool of 1.2 million tickets available at promotional prices as part of the Promo offer.
Further increase in travel comfort
The attractiveness of PKP Intercity's offer will continue to grow steadily with successive stages of investment in modern rolling stock. PKP Intercity's development and investment strategy, with a view to 2030, envisages investments in rolling stock and environmentally friendly stopping points at PLN 27 billion, thanks to which the carrier will offer passengers a high and repeatable standard of travel. Currently, the company has contracted contracts worth PLN 7 billion gross, which shows how much investment in modern rolling stock will still be made.
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Source: ÖBB Press Releases