
Zero-Down Home Financing: How it Really Works
Section: Business
The Germany Ticket, which was initially hailed as a success, has experienced a notable drop in its subscriber base following a price increase earlier this year. A recent market study conducted by the Association of German Transport Companies (VDV) and Deutsche Bahn reveals that the ticket's price rise to EUR58 has led to a loss of approximately one million users.
After its launch in May 2023, the Germany Ticket saw a steady increase in subscribers, peaking at 14.5 million by December 2024. However, the hike in price in January 2025 resulted in a decrease to 13.4 million subscribers. While seasonal fluctuations in public transport usage are typical, this decline raises concerns about a potential long-term trend shift. In the first quarter of 2025, the number of subscribers dropped further to 13.5 million, with more than half of this decline--around 430,000 users--attributed directly to the recent price increase.
Interestingly, the market researchers had anticipated a more severe loss of subscribers, predicting a nine percent drop. Instead, the actual decline was recorded at six percent.
The effects of the price rise are particularly pronounced among job ticket holders, whose numbers have dwindled by approximately 16 percent, bringing the total to 2.2 million. Initially, the transportation sector had hoped for a more substantial increase in corporate subscriptions, as many businesses partially subsidize these costs for their employees. Additionally, the subscriber base among young people aged 14 to 29 has plummeted by over 36 percent.
To prevent further declines, industry experts are calling for a more gradual approach to price adjustments, advocating for transparent and manageable increases. There are also demands for sustained financial backing from federal and state governments, as the current funding arrangements only extend through the end of 2025 due to ongoing budget negotiations.
Currently, the federal and state governments compensate for the revenue shortfall caused by the Germany Ticket with an annual allocation of EUR3 billion. Despite this support, the VDV estimates an additional EUR400 million is required to maintain service levels. Alexander Möller, the VDV's public transport director, emphasized that to secure the long-term success of the Germany Ticket, it is essential to ensure consistent funding, comprehensive planning, and a nationwide promotional strategy.
While the coalition agreement between the Union and SPD outlines the continuation of the Germany Ticket beyond 2025 and maintains the current price until 2026, it also stipulates that any future price increases will be phased in gradually from 2029, with a focus on equitable user financing.
Section: Business
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