nakedbus.com

Wednesday, 20 December 2006, 10:00 am
Press Release: Nakedbus.com^® 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.

Hundreds of city to city commuters will now benefit from cheaper bus fares, some as low as $1, thanks to a new bus service nakedbus.com

Nakedbus.com which launched today will service more than 50 North Island centres with its no frills approach to low cost domestic travel.

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) and eliminating the need for ticketing agents.

The innovative service will also offer electronic ticketing through text messages sent to customers? mobile phones.

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

Nakedbus.com’s Managing Director Hamish Nuttall says he saw a gap in the market for this kind of service and seized the opportunity.

“With rising petrol prices and bus fares it makes sense to offer commuters an alternative to private cars and existing bus services.

“Each bus trip will have seats as low as $1 available and the remaining seats will still be much cheaper than what is currently offered by existing bus services; the service is designed so that the earlier you book the less you pay,” he says.

In addition to the super low fares, Nakedbus.com has created bus routes with commuters in mind. Previously, bus commuters from Hamilton could not arrive in Auckland before 9am - with Nakedbus.com, that will change.

Nuttall says: “Nakedbus.com brings a much needed boost to city to city public transport and tourism infrastructure in New Zealand. Our public transport system needs to be more attractive to commuters by providing low cost, convenient and reliable alternatives ” Nakedbus.com will do this.

Greens Leader and Transport Spokesperson Jeanette Fitzsimons concurs: “We would support any improvement in public transport”

Nuttall also wants to support the Overlander train service.

Nuttall says by selling all unsold seats on each train trip at Nakedbus.com he can dramatically increase the viability of the service.

“The new business model we are bringing to the market can be extended to increase the ticket sales for the Overlander, we believe this iconic train service can be helped through innovations in online ticketing”

The opportunity to assist the Overlander by selling tickets online also has the support of Jeannette Fitzsimons who says “it’s a great idea, one of the problems has always been its so hard to get tickets”

Nakedbus.com plans to expand into the South Island and add additional services such as using GPS locators in the buses to text passengers if the bus is running late before the end of the year.

Nakedbus.com will also offer a loyalty scheme which means each time consumers travel they are awarded credits towards future trips nakedbus.com also intends to reward travellers for referring customers in the same way.

-Ends-

Written on behalf of Nakedbus.com by Impact PR.

www.nakedbus.com