Mcdougald From , joined Dec 1969, posts, RR: Posted (12 years 11 months 3 days 6 hours ago) and read 868 times:
I've noticed that intercity bus lines like Greyhound tend to base their fares by number of miles traveled. For example, a trip to a city 100 miles away will cost about twice as much to a city 50 miles away. One could save by buying an advance-purchase ticket, but the off-peak times seem to be priced the same as during peak periods.
Fair enough if it works for them. But would they be more competitive with the car and low-cost airlines if they adopted some form of yield management? For instance, prices would better reflect supply and demand if tweaked according to the percentage of available seat miles available between any two places. It could also improve yields on city-pairs that sell out and increase traffic on streches of highway or at times of day when buses are empty.
Given that the buses were providing low-cost, no-frills transportation long before the discount airlines came along, why haven't they taken up more of the airlines' pricing strategies?
Mls515 From United States of America, joined Jun 2000, 3077 posts, RR: 8
Reply 2, posted (12 years 11 months 3 days 3 hours ago) and read 850 times:
The intercity bus lines do have a lot to learn from the airline industry. Although in most of the US, the only bus lines are members of the trailways group and Greyhound. And many of the destinations are served by no other scheduled carrier.
I don't know if yield management would work quite the same way for the bus lines either, because if the last minute fares were too high the potential customer would just drive their own car to the destination. Airlines can get away with it because their mode of transportation isn't as comparable to an automobile.
Delta-flyer From United States of America, joined Jul 2001, 2676 posts, RR: 6
Reply 3, posted (12 years 11 months 1 day 21 hours ago) and read 836 times:
The intercity bus market caters primarily to people who have no other travel options, and not much money. The way yield management works is if the market is segmented, and you can differentiate between different types of clients. I don't think that is the case with bus passengers.