Success factors of distribution channel management in a passenger rail transport market in Austria

Abstract

The public transport sector and railway companies in particular have been experiencing major changes in recent years. An increasing number of customers are choosing rail-ways as a preferred mode of transport but also new mobility providers are entering the market producing a more competitive environment. In combination with trends such as digitalisation and increasing customer- expectations, railway companies are challenged in aligning their distribution channel management according to changing needs and disruptive developments. However, research on distribution channel management in the public transport sector is rare. This thesis aims at identifying factors that contribute to the implementation of successful distribution channel strategies with a focus on mul-ti-channel management. The thesis is based on a literature review as well as qualitative research. Expert interviews with managers from the railway, airline and telecommuni-cation industry were carried out. Six major industry factors influencing distribution man-agement have been found namely society, politics, economy, transport, competition and digitalisation. These categories comprise sub factors which are discussed in detail. Furthermore four major success factors have been identified. These are on the one side factors from the company perspective namely organisation and IT/technology. An organisational framework that corresponds to a company´s strategy is crucial for suc-cessfully implementing distribution channel management. In a time where distribution channels have to manage multifaceted processes and data streams, they have to be reliable and fast to adopt despite an increasing complexity. The other two success fac-tors represent the customer perspective. Customer-centricity and hence generating a best possible customer experience, offering convenience and personalised service independently of channel, is crucial. In addition simplicity and a user-friendly and trans-parent access to distribution channels were identified as a success factor. Companies need to take internal as well as external factors into consideration in order to implement a successful distribution strategy that meets future demand and customers´ needs in a changing environment.