The following article appeared in yesterday local newspaper. I should add there are also a transcities bus serving the Hispanic community in St. Louis. But, to keep prices low, those operating that service cut corners. Still, it helped some get back South cheaper and the bus made pick-ups and drop-offs closer to where people lived.
QUOTE
Megabus offers bargain fares
By Elisa Crouch
ST. LOUIS POST-DISPATCH
04/20/2006
It was 10 minutes before scheduled departure time, and there was no bus to board. There was no marked bus stop, and no person to take tickets.
Some passengers waiting outside Union Station in downtown St. Louis this week wondered whether their dirt-cheap bus fares to Chicago were legit. Some paid as little as $2.50 for a round-trip ticket. Some paid as much as $50.
"I can't afford to be skeptical," said Sidney Cogen, in his 30s, his duffel bag at his feet. And then a big blue bus with "From $1" painted in gold on its side pulled up to the curb. The driver hopped onto the sidewalk. He asked to see confirmation numbers and then motioned people aboard.
The latest mode of intercity transportation is megabus.com, an Internet-based bus service with multiple express runs between Chicago and eight Midwestern cities: St. Louis; Minneapolis; Indianapolis; Cleveland; Columbus, Ohio; Cincinnati, Milwaukee and Detroit. Tickets really do start at $1, though no more than five seats per trip are sold for a buck. There's a 50 cent booking fee. Average fares are $10 to $12 one-way, and the highest ticket prices are about $30 one-way.
All tickets are booked online at megabus.com.
With only 13 passengers boarding, it took less than five minutes for the driver to verify each person's ticket information. There was a family of four from Cleveland, a woman from the Netherlands, an accountant and college student living in New York, a research assistant from Chicago and others listening to iPods.
It was 8:45 a.m. Time to leave.
"We'll be in Chicago at 2 o'clock," the driver announced from the center aisle. "We're going to have a good trip and have fun along the way, OK?"
Megabus is a subsidiary of Coach USA, whose parent company, Stagecoach Group, started a similar service in Scotland about three years ago. It has since expanded throughout the United Kingdom. Megabus debuted in the United States on April 10 with service to Chicago.
That day, a bus traveling from Cleveland to Chicago ran out of gas near Michigan City, Ind. The 10 passengers aboard waited an hour for a refueling service to fill up the tank. Published accounts say the company forgot to tell the driver to fill up in Cleveland and offered passengers vouchers for another trip. Megabus now requires drivers to refuel before every trip.
Company officials hope rising gasoline prices prompt travelers to get out of their cars and hop on a bus, rather than on a train or airplane. When pump prices surpassed $3 in September, ridership on many scheduled bus routes increased by double-digit percentages, said Peter Pantuso, president and chief executive of the American Bus Association. Those $3 gasoline prices threaten to return this summer.
"The timing is probably right not only for Megabus, but for everyone in the scheduled service industry," Pantuso said.
Unlike Greyhound, whose buses make up to seven stops between St. Louis and Chicago, a Megabus travels to the Windy City nonstop, except for the 30 minute break at a Bloomington truck stop.
On Monday, brothers Mitch and Jason Appleson, 24 and 20, watched Illinois cornfields whiz by from the bus window. Surrounding them were mostly empty faux-velvet seats, all of which reclined, had arm- and footrests, and reading lights. The overhead television monitors remained off. Occasionally, the bus driver would flip on the radio, switching channels when reception faded to static.
The two were visiting family in Chicago and decided to visit their grandmother in St. Louis, Mitch Appleson said. They booked at the last minute and each paid $50.50 round trip, the most of anyone on the bus but still less than they would have on Greyhound, Amtrak or Southwest Airlines. Given that only 13 of the 55 seats were filled that day, Appleson wondered whether and how the service would make it.
"Like a lot of businesses, I guess you have to start out losing money before you make money," he said.
Megabus' financial model is patterned after low-cost air carriers that sell seats starting at $39, said Dale Moser, president and chief operating officer of Coach USA. However, the most expensive seat on Megabus, even if it's the last seat left booked at the last possible minute, will cost less than driving, Moser said.
"Its going to take time for it to catch on," Moser said.
Buses appear to be far from full. The following morning at Chicago's Union Station, a Megabus from Milwaukee appeared to be about half-full. The bus returning to Milwaukee had about 15 people on it.
"There were only eight of us on the way down here," one woman said as she got on the bus. "It was great."
A few minutes later, six passengers boarded the delayed 9:15 a.m. bus to St. Louis, including Mike and Maggie Ryan, who live in the city.
They spent the return trip reading and sleeping. Their total travel costs were $18.50. Their fuel savings were significant, though not excessive, they said. The reason: They drive a hybrid.
"It's so easy," Maggie Ryan said. "I hope they make it."
Link