We mentioned yesterday that American scheduled express services were ever focusing at the cheaper end of the market. It’s actually the same in the UK.
National Bus Company’s "National" brand introduced in 1972 was originally based on the US Greyhound concept. In spite of the Rapide sub-brand from 1981-2001, and the new up-market brand image from 2003, express coaches retain a semblance towards low cost travel. Some would say it’s almost a stigma.
Witness the advertising campaigns over the years. They’ve concentrated on fares (e.g. “Boomerangs come back free”) or appealed to younger people (“Beeper”). Even now, NatEx majors on “Be an Early Bird”, “Free Range Students” and routesixty fares. Megabus.com takes the focus on fares to a new level, with fares from £1 plus booking fee though here, Megabus has also tried to refocus on the environmental benefits of coach travel.
And it’s not just in the UK. Emulating Megabus, New Zealand’s recently launched and stripped-down Nakedbus.com introduces the no-frill coach in the antipodes. It started in North Island in September 2006 and from February 2007 spread nationwide. Fares start at NZ$1 (about 36p!) plus 70c booking fee. As a comparison, petrol per litre in NZ is about 70p. New Zealand’s established InterCity Coach Lines is retaliating with cheaper fares and a loyalty scheme. Growth on Nakedbus is nevertheless said to be five per cent per *week*.
There have been and continue to be exceptions to the low-end image. Both the Oxford Espress and wi-fi enabled Oxford Tube, while continuing to attract plentiful students, also garner a fair share of commuters who prefer the coach to the train. These and others like them tend to be exceptions.
It was something of a surprise that in England, National Express is looking towards aiming at the business market.
The Times on Monday reported that National Express is to consider some repositioning, emulating the work of its Spanish Alsa subsidiary. Coaches could have leather seats, 2+1 passenger seating to a maximum of 40, internet, choice of meals, and videos per seat. Apparently, it would be better than air business class and would be the first time a British provider has contemplated such luxury on such wide a scale.
There’s a downside, though. To be competitive, journey times would need improvement. This means tackling congestion. The possible introduction of road pricing outside London alongside the coach as quality alternative might help. Sharing bus and improving coach priorities would be essential. This shifts the focus a little from buses to coaches in the argument about allocating scarce urban roadspace, and puts the coach back on the map.
As the Downing Street e-petition has shown, road pricing will not be easy. There’s already a reaction against the view that motor-born CO2 is causing climate change (tonight, C4).
Neither will the industry easily attract business users. But perceptions *can* change. WA Shearings’ goes for the high spender. Highly paid footballers and rock musicians are happy to use luxury team coaches...
Thursday, 8 March 2007
Quality is Everything?
Posted
Thursday, March 08, 2007
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1 comments:
Hi there.
I am the ceo of nakedbus.com. You are right we did copy some of Maegabus's ideas, but we also have many of our own - payment by internet banking for instance (debit cards are not common here). But what we have in common with the low cost airlines etc. is our determination to keep bus fares as low as possible.
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