DB ticket prices are exploding: tax money instead of dilapidated tracks?

DB ticket prices are exploding: tax money instead of dilapidated tracks?

Deutsche Bahn (DB) has been facing growing frustration among its passengers for years. This dissatisfaction mainly results from frequent delays and cancellations in rail transport. Long-held assumptions suggested that a lack of investment was the cause of the problems. However, a new study by the Ifo Institute contradicts this widely held view and shows that the condition of the rail network is better than is often portrayed. In particular, the rising ticket prices are the focus of criticism.

The analysis aims to shed light on the real reason for the ticket price increases. According to the study authors, the price increases in recent years do not only correlate with classic cost factors. Between 2011 and 2024, state subsidies for DB increased by an impressive 300%. In comparison, construction volume only increased by 21% during this period. This suggests a mismatch and raises questions about the use of these funds. Consumer advocates point out that there were massive price increases in 2018 in particular, when billions in funding were made available for climate protection. DB often justified these increases with the Ukraine crisis, rising energy costs and an alleged shortage of skilled workers.

Management failure or infrastructure problems?

The study suggests that the price increases are not simply due to exceptional circumstances. According to DB's internal reports, the condition of the rail network has improved overall, which calls into question the accusation of a dilapidated network. Felix Berschin, one of the study authors, emphasizes that only 60 to 70 percent of the price increases can be explained by pandemic-related or geopolitical factors. This raises suspicions that the DB Group's lobbying led to an increase in state funding.

Supported by the findings of the study, the Federal Court of Justice sees signs of a conscious strategy by the DB Group to generate more government investment at the expense of passengers and to conceal its own inefficiency. Experts are therefore calling for a change in management at DB to ensure the urgently needed efficiency in renovation work and investments.

Call for increased efficiency

The railway industry is aiming for ambitious annual investments of 20 to 25 billion euros to compensate for undesirable developments. However, study author Berschin warns that this additional expenditure could “fizzle out” due to increased construction prices. He recommends investing 8 to 10 billion euros in the existing network over several years in order not only to counteract the renewed price explosions, but also to develop the DB's full potential. Nevertheless, it is noted that, despite the increasing subsidies, there is no direct relationship between the infrastructure and the increasingly frequent delays. The existing level of infrastructure does not turn out to be dilapidated, but Berschin is nevertheless calling for substantial measures and changes to meet the standards.