Czech Post Announces Fourth Price Hike in a Year Due to Decline in Demand

Czech Post, the state-owned postal service provider, has announced another price increase set to take effect from November 1, 2023. This is the fourth time the company has raised its prices within the last year, and the move is expected to push up the cost of sending a regular letter from the current rate of CZK23 to CZK27. The increase has been attributed to a decline in interest in postal services and rising costs.

In addition to the price hike for ordinary letters, Czech Post has also raised prices for registered and valuable letters. From summer 2023, the cost of sending a registered letter will increase from CZK62 to CZK72, while the cost of sending a valuable letter will increase from CZK67 to CZK77. According to the company, the price increase is necessary due to long-term declining interest in the service, despite the growing costs.

However, Czech Post has also made some concessions to its customers. Those with customer cards will receive a symbolic discount of one to two Czech korunas, depending on the type of mail they send. The company says the discounts are designed to encourage customer loyalty and show appreciation to its regular clients.

This latest price hike is just one of a series of measures the postal service provider has implemented in recent months to tackle its financial difficulties. In March 2023, Czech Post announced that it would shut down 300 branches and lay off approximately 1,500 employees as part of a wider transformation plan to turn the company’s fortunes around.

Czech Post’s financial difficulties have been a longstanding issue, with the company struggling to compete in an increasingly digital marketplace. Last year, the company’s losses increased by CZK1 billion to CZK1.725 billion, highlighting the scale of the postal service provider’s challenge in remaining viable and relevant in today’s world.