Low-Fare Buses Doing Big Business

Low-fare bus companies are springing up across the country, seizing an opportunity created by rising air fares, airport protection hassles and mounting gas prices that have society shunning airlines, leaving their cars in the driveway and leaving the driving to others.

Low-buck lines like BoltBus, DC2NY and Megabus increasingly are siphoning passengers from airlines seemingly intent on making flying as depressing as possible. “It’s not just high fuel prices—it’s
the hassle factor at the airports
that has left many fliers disenchanted,” says Joseph P. Schwieterman, a
professor of transportation at DePaul University. “Travelers who
wouldn’t have given a thought to bus travel are now stepping on board.”

As airlines continue cutting routes and raising fares, the upstart bus companies see a big chance to not only win riders, but assemble them loyal customers by offering rock-bottom fares and loads of perks like free wi-fi.

Yes, they’ve gotta deal with high fuel prices like everyone else, but
they’re thriving considering they’re fanatical about keeping costs down.
BoltBus, for example, picks up passengers
at the curb
– no fees for gate space at the terminal — and only sells tickets online, eliminating the need for ticket agents. Taking a page from the airlines, BoltBus additionally is launching a
frequent rider program to build loyalty.

BoltBus is a joint venture within Greyhound and Peter Pan, which raises an interesting question: Will a bus-line-within-a-bus-line trade model actually work? Scores of airlines have tried budget carriers of their own — Metrojet, Song, Ted and Continental Lite all come to intellect - but scrapped the notion when they found the upstarts poached customers from their parent operations. Greyhound isn’t saying what

affect BoltBus is having on mainline operations but claims the six-month-old subsidiary has ferried
225,000 passengers along high traffic routes in the Northeast Corridor—about
10 percent more than originally forecast.

BoltBus isn’t the only game in town.
DC2NYhas been around for about a year now and bills itself as “the upscale bus.” It makes the run amidst those two cities for the bargain-basement price of $25, which includes free wi-fi and beverages. British-owned
Megabuswill ferry you to several major cities in the midwest for as little as $1.50 whether you book far ample in advance. You don’t get a lot of frills for that kind of coin, but
those who have ridden Megabussay the buses are clean and the service decent.

It’s amazing how much money you can save, too. I’m headed to Washington DC soon, so I’m looking for some cheap transport. It’s a quick flight
from Boston, and while I knew that airfares were up, I had no concept how
high they’d gone. A round trip flight is $397. The train isn’t much better - a ride on Amtrak’s Acela at $410, and even the slower, less sexy Northeast Regional is $211. Compare that to $163 on Greyhound, or better yet $50 on low-fare line
GotoBus, and it’s a no-brainer.

Am I too proud to ride the bus? In that economy, no way.

Photo by
Flickr user Steve Deger. Post updated 2:30 p.m. PST.

Original post by Dave Demerjian