Ferry tickets: Ministry of Shipping speaks for first time about sharp increase in prices

Ferry ticket prices have skyrocketed, making vacations a luxury for the average wage earner. Inside By looking for causes and shedding light on its social dimension, the Ministry of Shipping is finally acknowledging the problem and trying to provide answers.

For the first time, he clearly talks about the “sharp increase in prices” through sources, while it was earlier to contact the Competition Commission to examine a case of possible misconduct by a shipping company.

In particular, ministry sources admit that there is a “sharp increase in prices” on three lines in the Sporades (apparently from Volos) on the Lavrio-Lemnos and Rafina-Andros line. OT highlighted in a report. For these cases, non-compliance with the rules of healthy competition, but also general compliance with the law, is investigated with the help of the Competition Commission.

However, in the case of the Lavrio-Lemnos line, coastal shipping industry sources express their question as to how the “sharp increase in prices” can be recorded at a time when state tariffs are in force.

Cost of ferry tickets on fast ferries is a problem

The competent ministry identifies that the biggest problem with high cost of coastal ferry tickets is on high-speed ferry travel and mainly on inter-island connections. For example, on the Piraeus – Mykonos route, the average ticket price on the regular ferry is reduced by 5.25%, while the average ticket price on the high-speed ferry is increased by 11.76%.

Also, on the Naxos-Paros route, the average ticket price was reduced by 3.63% on the regular ferry, while it increased by 32.80% on the high-speed ferry.

Elsewhere, the Shipping Ministry says the shipping market’s response to the ministry’s efforts to curb prices this season has been positive, pointing out that prices have remained stable even for regular ships.

He notes that in addition to standard fares, there are even more perks and discounts, and in addition to economy class, some companies have added an “extra economy class.”

Price watch on ferry tickets

The Ministry of Shipping also mentions measures taken to control prices, specifically the creation of a Price Observatory which, it says, “verifies (almost) all issued tickets for coastal shipping in (almost) real-time. Historical record”.

The observatory is currently in pilot mode and is expected to issue weekly, monthly and annual reports for regular and high-speed vessels very soon.

Competition Commission and Restrictions on Ferry Ticketing

Another move by Minister Christos Stylianidis is the letter he sent to the head of the Competition Commission requesting closer cooperation so that there is a faster and more effective response to incidents of market misconduct by coastal shipping companies. Already, one (1) related case has been referred to the Commission for investigation.

At the same time, the Department of Coastal Shipping conducted inspections on passenger and passenger ferries from 07/06/2024 to 16/06/2024 and confirmed seven (7) violations for failure to notify the competent authority of changes in tickets. Prices (Article 44 of Law 13 of Law 4948/2022). At the same time, the process of imposing administrative sanctions and fixed fines began. He underlines that intensive checks will continue throughout the summer, while stressing that checks for compliance or non-compliance with state tariffs are carried out where necessary.

Free purchase and obligation to notify 3 days in advance

The Ministry also maintains that prices are freely determined in accordance with the general principles of competition and healthy functioning of the market. In this case, just like the airline market, ticket prices can fluctuate even during the day according to supply and demand.

However, it should be noted that every company has an obligation to inform the Ministry of Shipping and Island Policy about this change within 3 days. If a company does not notify the competent ministry, it is subject to administrative sanctions and fines.

Search engines

According to the Ministry, publications indicating different prices for ferry tickets are a snapshot of the moment of various search engines and support how they have a true picture of the tickets offered, their prices, their seats (economy, premium). , etc.), their lucky discounts and more

What about price comparisons?

The Ministry of Shipping says it is unfair to compare a cruise ticket with the price or tickets of ground transport (bus, taxi, train or bus) or air transport as the services differ and are difficult to quantify. Ratio of kilometers to nautical miles, in relation to consumption and type of fuel used by each mode of transport.

Additionally, as he says, it is inappropriate to compare Greece’s coastal ferry links with other European countries. This is because Greece has a dense inland coastal shipping network that no other European or Mediterranean country has. Only the Scandinavian countries with an inland coastal shipping network are Malta (which has 3 habitable islands), Sicily and Sardinia due to Italy and a few small boats. Therefore, studies comparing ferry ticket prices between European or Mediterranean countries do not reflect reality, the ministry says.

Barren lines

Special mention is made of coastal ferry tickets and barren lanes, with the ministry pointing out that rents have increased from 90 million euros in 2019 to 154 million euros this year, and that the movement of permanent residents on small islands is free. .

He also says that government charter obliges ferry companies to charge lowest prices for all passengers, vehicles and goods, e.g. €3, €5, €10 euros in barren lines.

He accepts the coasters’ arguments

The Ministry responds using arguments from the ferry industry regarding the cost of a ticket and what factors affect it. Specifically, in addition to the competition and the type of ship, it mentions its size (economy), departure time or desired time of arrival of the ship at the preferred port, speed of the ship and facilities. , affected by fuel prices.

Due to the war in Ukraine (February 2022), fuel prices have gone up several times without an increase in tickets for ships, he says, adding that fuel prices are the most important element in shaping ticket prices. (Note that the increase is about 15%).

It is worth noting that in addition to fuel, ticket structure costs mainly include:

• Wages cost (salaries and fringe benefits), which has increased by about 24% from 2021 to today.
• Between 2021 and 2023, repair costs (spare parts, maintenance, refueling, etc.), increased by 14%.

The price reduction is only 1.61%

Finally, it says that in the first half of 2023 last year, around 3.4 million cruise passengers paid an average of 29.13 euros for their ticket net (i.e. without discounts and concessions), while 3.8 million passengers paid an average of 28.66 euros for their ticket in the same period this year. That is -1.61% of ferry tickets (net fares without discounts) in the first half of this year compared to last year. .