by Wildwell » Wed 04 Jan 2006, 12:46:04
$this->bbcode_second_pass_quote('Starvid', '')$this->bbcode_second_pass_quote('aahala', '[')b]cube, I think you're on to something. Steroids will definately
be needed, for the passengers.
When's the last time you have taken a greyhound bus for more than
two hours? The discomfort level is allegedly an exponetial function
compounded 4% for each additional ten minutes.
In Europe many youths travel by bus for days, for example Stockholm to Rome. It pretty inconvenient, but people do it as it is simpler and much cheaper than train.
Well, nowadays even youths fly as air travel has become so very cheap. Stockholm-Rome for €50 by air beats Stockholm-Rome for €100 by bus.
Yes, a couple of other myths out to put to rest, one concerns so-called cheap airlines. In actual fact, that works through a clever system called yield management.
For a full description see
http://en.wikipedia.org/wiki/Yield_management
How it works with regards to airlines (and other things such as hotels etc) is the initial seats are given away at a very low price, or even free, which are sold at a loss. The price gets progressively higher as the plane loads up. Thus, the idea is to get a high ‘seat load factor’. If you can exceed your basic unit costs then you are in profit, but it is erroneous to suggest that flying is cheap in terms of unit costs than bus or even train travel, it just so happens they are different markets.
On the British Airways site between London and Manchester over the next few days the situation reflects this.
Notice the prices reflect demand, this tickets on the 16th and 17th are being given away at a loss on the 16th and 17th at £30. If you click on that said day, you will be given a list of options, the flights least booked up are the cheapest. Thus, the whole idea is to raise the seat load factor and increase profits.
Train and bus companies do the same.
The situation with London-Manchester train tickets next Monday notice the £12.50 advance singles haven’t been taken, as they get taken only the £18, £23 pound tickets or just ‘walk on’ (IE Ticket bought on the day) prices will become available, the latter being £56. In the peak (say a Friday evening) when travel demand is high, only the highest price will be available, thus the going market rate in order to maximise revenues.
The same applies to bus.
However on very short bus and rail trips, especially those that service rural or late night destinations there isn’t the option of doing this. Thus, when motoring is cheap, it is more difficult to build a high load factor and return a profit. Obviously when oil becomes more expensive, the price dynamics will change and substitution in some sectors will be easier than others.
It has to be noted however people are prepared to pay very high prices (often without realising it) with personal transport.
The cost of motoring is:
The fuel cost+vehicle cost+taxes+insurance+maintenance+loan interest (if applicable). This for a typical UK car, it comes out at 40-60p a mile. You can check auto magazine on this price, very often they give the cost of running per mile.
Therefore your present cost of running a car, with a single person in it is nearer £100 for London-Manchester. Obviously a group brings the cost down per person, but for a single person the trip generally already hugely in excess of flying, train or bus.
Obviously in the case of peak oil, I think physical shortages are going to be the problem and on that particular trip only rail is non-oil powered.