Interview: Radim Jančura

These days, it’s almost impossible to avoid the business empire of Radim Jančura, one of the Czech Republic’s most high-profile entrepreneurs. The yellow buses of his Student Agency company are a familiar sight on local roads, and now his fleet of equally brightly coloured RegioJet trains are competing with state-funded rail operator České dráhy. Jančura started off by founding an au pair agency in the early 1990s, and then established Student Agency in 1996. As well as road and rail interests, he is a player in the air sector through his Orbix firm, which sells air tickets to corporate clients. In this interview, he talks among others about RegioJet, and doing business and the current economic climate.

Student Agency is one of the most successful companies in the Czech Republic. What do you attribute the success to?
Our business has always involved identifying gaps in the market, and as a result we managed to introduce quality services. Whether it was our fleet of yellow buses, the RegioJet trains, or the sale of air tickets or trips, what we did was a breakthrough. We have introduced many new features over the years that our customers never thought possible. Until the arrival of the yellow buses, it did not occur to anyone that you could have stewardesses aboard buses, and the same applies to our trains. Our level of service has often inspired other transport companies. Yet another factor leading to our success are our company policies, which are customer-focused, and lead to smiles and positive emotions. These are all reasons why our customers choose us.

How hard (easy) is it to do business in the Czech Republic? How did the local business environment benefit or harm your businesses?
For me as a businessman, the important thing is not whether I have to overcome barriers such as bureaucracy, official procedures, or administrative complications. The real obstacle is the lack of a level playing field and equal conditions for individual businesses. Due to corruption, one business can be favored over another and thus enjoy better conditions. It is very hard to deal with that.

The lack of crude oil is a global problem, and one of the key media themes concerning the travel industry. How do you deal with this uncertainty?
The price of crude oil and its development surely has an impact on the costs of the products that we offer. This includes the air tickets, bus transport – this is where the price of fuel shows itself. Unfortunately, there is very little we can do there – we have to take these costs as a fact. Of course, we aim at ensuring the least impact possible for our clients, but we are on the same ship as other travel and transport companies.

Economic forecasts are rather negative. Some analysts predict further dips. How do you view this issue and how do you think it will affect your business?
We believe that even negative predictions can be translated into new opportunities. People will want to buy quality services at more affordable prices, and that is precisely our strong point. Over the first three months of this year we have noted positive developments in our business – for example, the number of excursions and vacations has increased by 60%, and we are doing equally well in other aspects, too. I therefore believe that even this year will be a good one for us.

How is the situation developing between your business and České dráhy?
The situation is no longer as fraught as it was at first, when ČD reacted with a series of confusing and hysterical steps, which were in many cases unnecessary. Even they are getting used to the fact that they are not the only player on the market, and that competition is on the rise. What we are concerned about most is ČD’s unfair monopoly pratices, such as when it abused its position to dump prices in an attempt to squeeze us out of the market. This is currently being investigated by the Úřad pro ochranu hospodářské soutěže (Office for the Protection of Economic Competition), and I am confident that ČD will be punished for trying, at the beginning, to harm its first competitor. We also intend to take over all connections that ČD chooses to abandon because they cannot afford the costs. Because we can afford the costs.

Are you planning on attracting further clients with new services?
We are constantly trying to offer innovations and new services to our clients. For example, in our trains, you will see internet cafes showing up. These will show up first on the Prague–Havířov connection, as well as other heavy-traffic connections. Our customers will be able to study or work at normal tables with enough space around them. We are also preparing further moves, which we will gradually announce throughout the year.