Letter Prices in Europe
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Letter prices in Europe Up-to-date international letter price survey 2021 20th edition 1 Summary This is the twentieth time Deutsche Post has As in previous studies, the nominal prices in the published a study comparing current letter different countries were compared for the prices in Europe. The study reviews prices for current year, i.e. 2021. The price of a domestic standard letters in all 27 member states of the standard letter has increased in 14 of the European Union, in the United Kingdom as well surveyed countries since the last study was as in the European Free Trade Area (EFTA) conducted. The average European nominal countries of Iceland, Norway, and Switzerland. price is currently €1.16. The postage rate for letters sent within Europe increased in 16 countries, bringing the average cost for this type of letter to €1.73. A purely nominal approach, however, does not allow for an objective assessment of the letter prices charged in the surveyed countries. Other macro-economic criteria need to be taken into account such as inflation, cost of labor and purchasing power as well as the amount of time required to earn the postage price of a letter. BERLIN W ER RO S A T P A S U A S K G T A G B Ä E L H 0 C 1 S . 0 E 3 U L . 2 B 0 P 2 E 1 E D 10117 Letter prices in Europe 3 In Germany, the postage rate for a domestic standard letter has remained stable at €0.80 since 2019. The consolidated comparison of Inhalt postage rates presented here, which incorpo- Summary 2 rates differences in labor costs and purchasing 1 Comments on methodology 4 power, once again demonstrates that Deutsche 2 Review of nominal prices Post charges a very affordable price for a 3 Domestic letter mail 6 standard letter, one that is significantly below 3.1 Price developments since 2016 8 the average rates charged in all other countries 3.2 Letter mail within Europe 10 in this study. More affordable letter mail postage 3.3 Adjustment for inflation since 2011 12 rates can be found in only four, generally much 4 smaller countries, whereas more expensive 5 Work in minutes per letter price 14 prices for letter mail are paid by customers in 6 Adjustment for labor costs 16 25 nations. 7 Adjustment for purchasing power differences 18 8 Consolidated results 20 The highest consolidated postage rates can be found in Denmark and Finland. The country charging the lowest letter price is Malta. Published by Deutsche Post AG Headquarters Corporate Public Affairs Adjusted for inflation, postage rates for letters 53250 Bonn in Germany have gone up by just under 30% www.dpdhl.com since 2011. In that same time period in Europe, Editors Regine Stöldt, however, the average inflation-adjusted price Alexander Rometsch rose by nearly 80%. Design +C Kommunikationsdesign Caroline Gärtner Even when the number of working minutes Photography Deutsche Post DHL Group, Stefan Abtmeyer (letters), Bundesamt needed to cover the price of a domestic letter in für Energie BFE, ITU / R. Farrell, La Poste the countries surveyed is taken into considera- / Yseult YZ Digan / Elsa Catelin / Marion tion, German letter prices still remain extraordi- Le Bec, Poste Italiane, Posti, Post NL, narily competitive. Only in Malta and Switzerland Post Nord, Posten Norge AS, Östrreichische Post AG / Christian Stem- are fewer working minutes needed to earn the per / Werner Streitfelder, postage rate of a standard letter. wiki commons April 2021 4 Letter prices in Europe 2 Comments on methodology This study begins by comparing prices for domes - In countries where value-added tax (VAT) is tic standard letters and international letter mail levied on the letter services considered for this within Europe in the 27 member states of the comparison, the study uses the gross price, i.e., European Union, in the United Kingdom and in the letter price including VAT. Gross prices are the EFTA countries of Iceland, Norway, and significant because the most relevant factor in Switzerland. For domestic letters, it considers such a comparison are the actual prices con- the fastest letter mail product in all countries sumers have to pay for a letter. This study under review, which according to current considers standard letters only, as this product product specifications generally carries a next- represents the lion’s share of all letters sent by day delivery target (D+1). The primary concern private customers and therefore best reflects here is comparability, i.e., services with quality actual consumer behavior on the letter market. criteria allowing for real comparison, in particular with regard to transit times. Nominal letter prices and the nominal price development in Europe over the last five years This method is also applied to countries such as will be presented first, followed by the develop- Denmark, Finland and Italy where a substitution- ment of letter prices from 2011 to 2020, related decline in demand has led them to raise adjusted for inflation. Next, the average number prices for letters with a transit time of D+1 of minutes industrial workers have to work in dramatically compared to products with lower the individual countries to earn the price of a transit times or, in some instances, to those with standard letter is examined. Finally, a comparison special services such as basic item tracking. will be made of letter prices in each country, LetterLetterBriefpreise prices prices in in Europea EuropeEuropa 5 adjusted for factors such as labor costs and consideration (i.e., postal, courier, and express differences in purchasing power. Here the services). In order to calculate the “work in relevant values for Germany and the other minutes per letter”, the study used data identi- countries are compared as required by the re s- fied by the Cologne-based German Economic pective factors to be adjusted for. The calculated Institute (IW), namely the hourly wages of a ratios are multiplied by the nominal letter prices worker in the manufacturing industry. of the relevant countries, which results in the adjusted letter prices. In some cases, the exchange rate had an impact on letter prices shown here. For example, the This study takes into account all applicable post- price of a domestic letter in Croatia fell after its age rates or bindingly announced price changes conversion into euros even though there was no in those countries as of April 1, 2021. The data de facto price decrease in that nation. on the individual countries was taken from both Eurostat and postal companies in the nations surveyed. To adjust the letter prices so that they reflect labor costs, statistical data was used that most closely corresponds to the sector under 6 Letter prices in Europe 3 Review of nominal prices 3.1 Domestic letter mail The average price of a domestic standard letter annual increase that has been recorded in this in Europe is currently €1.16, which is four cents study. A considerable price increase of €0.25 higher than in the previous year’s study. Denmark was registered in Finland. The price hike in still leads the list of domestic nominal prices, with Estonia was even more substantial, rising 130% a postage rate that converts to €3.88. Germany from €0.65 to €1.50. ranks even further below the average than in 2020 thanks to Deutsche Post’s domestic Fluctuations in exchange rates sometimes standard letter price of €0.80 and, as a result, result in the nominal price, which is converted still shares last year’s position of 18th with into euros, deviating from the figure for the Luxembourg and Slovakia. previous year, even though the price in the re spective national currency has remained stable. Since the 2020 study, the price of a domestic In Switzerland, for example, the converted price standard letter has increased in 14 countries. in euros for a standard letter is two cents higher Slight increases of just a few euro cents were despite no change in the nominal Swiss franc found in the Netherlands, Spain, Austria and price. The converted letter price in Croatia, in Portugal. A moderate price increase of €0.12 contrast, fell by three euro cents even though was made, for example, in France. The French the price in the local currency remained the price hike marked the eleventh consecutive same. Letter prices in Europe 7 Nominal price for a domestic standard letter in Euro Denmark 3.88 Finland 3.35 Italy 2.80 Greece 1.90 Belgium 1.60 Estonia 1.50 Norway 1.46 Iceland 1.35 France 1.28 Sweden 1.08 Ireland 1.00 Latvia 1.00 Netherlands 0.96 Czech Republic 0.93 Switzerland 0.92 UK 0.91 Poland 0.89 Croatia 0.85 Austria 0.85 Luxembourg 0.80 Germany 0.80 Slovakia 0.80 Spain 0.70 Portugal 0.70 Romania 0.64 Bulgaria 0.56 Lithuania 0.55 Slovenia 0.55 Hungary 0.54 Cyprus 0.41 Malta 0.30 Average € 1.16 Following list-topper Denmark, Finland is in A domestic standard letter still second place with a nominal price of €3.35. costs less than €0.50 in only Italy has improved its position by one with two countries: Cyprus (€0.41) “Posta1”, the standard letter used in this com- and Malta (€0.30). Malta Post parison, which includes the option of simplified has occupied last place without shipment tracking and has a stable cost of interruption since 2008, €2.80. offering the lowest nominal domestic letter price Only a couple of significant changes can be recorded in this study.