Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Competitors’ price rises disappointing

19 December 2006


Nakedbus.com brands competitors’ price rises disappointing

A popular new city to city bus service has branded its competitors’ price rises as disappointing.

Nakedbus.com services more than 60 North Island centres with its no frills approach to domestic travel boasting bus fares as low as $1.70.

Managing Director Hamish Nuttall says the Auckland Regional Transport Authority’s price hike could prove counter-productive.

He agrees with Auckland Regional Council chairman Mike Lee’s criticisms that the price rises come at a bad time for workers and students.

“The increased fares for buses and trains seem to indicate a lack of competitive pressure. There seems to be little competition for passengers which means that operators aren’t forced to be price competitive. We recognise that we are competing against the private car and even airlines as well as high cost bus services so we have to be extremely sharp with our pricing,” says Nuttall.

Nuttall says competitors’ claims that fuel and operating costs has forced them to push up their prices are questionable.

”Some costs are increasing though not as much as other bus company prices are. The biggest cost is however carrying empty seats. Nakedbus.com’s business model is to fill those empty seats which make our low fares viable.”

Based on hugely successful British transport models like Easyjet, Nakedbus.com cuts the overhead costs from the ticketing process by providing ‘internet only’ ticketing (www.nakedbus.com) instead of expensive salespeople.

While consumers use the online ticketing option resulting savings are passed onto the travellers allowing each bus trip to offer dramatically reduced fares.

Nuttall is also concerned about the effect negative publicity surrounding the price rises will have on the industry as a whole.

”It would be a real shame to see this have the consumer turn off public transport when it has such potential to reduce reliance on imported fossil fuels, reduce pollution and increase accessibility. Some people will revert to car use and those that have no alternative will be forced to pay the higher cost.”

Nuttall says not only will the consumers suffer but the region as a whole will now find it difficult to promote public transport to a cynical public.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: