GREEDY BUS OPERATORS

terenc

I use private coach operators on a regular basis and over the years when oil prices were increased these operators were quite fast to increase fares but now that oil prices are down and well down and forecasts are long term. I asked one operator would fare prices be coming down as that would be major cost in the operation but no answer has any operator brought down their fares? I am sure they are many passengers using these operators asking the same question.
No doubt they will have some other reason for not passing it on.

end of the road

i don't know any transport company who passes the reduction in the price of oil on to the customer.

terenc

end of the road wrote: »

i don't know any transport company who passes the reduction in the price of oil on to the customer.

But I know transport companies will hike up charges on the pretext of higher fuel costs so why not the reverse when the fuel is cheaper or is it an Irish thing to just accept it.

devnull

terenc wrote: »

But I know transport companies will hike up charges on the pretext of higher fuel costs so why not the reverse when the fuel is cheaper or is it an Irish thing to just accept it.

If transport companies were changing prices every time the oil price changed, they'd change multiple times per year in both directions which is not feasible to change that often for numerous reasons and any accountant would have a heart attack.

Most companies will assess it on a year by year basis unless some emergency situation breaks out or an incident or sudden change in finances deems it to have to happen more often.

magentis

So which operator is this?And where did they publish the fact that fares were going up due to fuel costs?

Also op have you seen the rise in insurance over the last 12 months?Was that passed on too?

JackieChan

magentis wrote: »

Also op have you seen the rise in insurance over the last 12 months?Was that passed on too?

I just started shopping for a renewal quote and it's a joke the increase in premiums

terenc

I get it pretty hard to accept that explanation has I have been on the the receiving end of these price increases and not on a yearly basis (less) and yearly means one thing to the operator and another to the customer! (which as you say never happens)
So which operator is this?And where did they publish the fact that fares were going up due to fuel costs?
Why would I say which operator!! Are you an operator. Would you bully your passengers because they are operators out there who would and please don't tell me to go to the Guards.

magentis

No I am not 'an operator' sadly these companies tend to come in on routes and offer fares well below existing service providers.When they have a market share they then tend to increase prices to a higher level,often after other operators withdraw their service.

Miaireland

I am guessing that Insurance increases will delete any saving on oil. Maybe thw price may stay static rather than reflecting the Insurance increase.

end of the road

terenc wrote: »

I get it pretty hard to accept that explanation has I have been on the the receiving end of these price increases and not on a yearly basis (less) and yearly means one thing to the operator and another to the customer! (which as you say never happens)
So which operator is this?And where did they publish the fact that fares were going up due to fuel costs?
Why would I say which operator!! Are you an operator. Would you bully your passengers because they are operators out there who would and please don't tell me to go to the Guards.

why would you be told to go to the gards? who is bullying who.

Cookie_Monster

about 70% cost of fuel is a fixed tax amount anyway so only 30% will be affect by oil changes. Fuel cost is also highly dependant on the Euro v USD fx rate, not oil cost along.

L1011

terenc wrote: »

Would you bully your passengers because they are operators out there who would and please don't tell me to go to the Guards.

What do you think the Guards could do about a bus firm raising their prices, exactly?

schemingbohemia

Interestingly the OP hasn't bothered putting any meat on the bones of the allegation by telling us who increased costs due to rising fuel prices.

eeguy

It's my opinion (and most likely wrong) that when a private company starts up they win customers by having lower fares than the competition.

As the years go by, operational costs inevitably increase. Staff want incremental wage increases, some routes can be seasonal (students etc), people expect more mod cons (toilets, wifi) and so on.

Based on your location I think I know the one you're on about.

LXFlyer

To be fair, this is a private company - they can charge what they like as the services are operated on a commercial basis. They don't receive a subsidy.

I'm not really sure why the OP expects them to reduce fares?

The reality is that they're in business to make a profit.

Gerry T

I think OP is simply pointing out that fuel costs have reduced by approx 25% and fares have not dropped. Whichyou would expect a part of this would be passed on. My guess is if fuel had gone up by 25% then operators would have had to increase costs.

LXFlyer

Gerry T wrote: »

I think OP is simply pointing out that fuel costs have reduced by approx 25% and fares have not dropped. Whichyou would expect a part of this would be passed on. My guess is if fuel had gone up by 25% then operators would have had to increase costs.

Not necessarily - they're private companies and as such can charge whatever price they like. They're under no obligation to reduce prices at all if they don't want to.

No one is forcing the OP or anyone to use their services.

But as others have pointed out, most of the price of fuel is tax/fuel duty in any case.

Gerry T

The price at the pump fell by over 25%. Where these are public transport contracts they should be competitive as it's not like normal services. But competition will sort it out, if anyone is make super profits then someone will come in and undercut them.

LXFlyer

Gerry T wrote: »

The price at the pump fell by over 25%. Where these are public transport contracts they should be competitive as it's not like normal services. But competition will sort it out, if anyone is make super profits then someone will come in and undercut them.

But they are not public transport contracts. This seems to be a misapprehension here.

They are commercially operated services that have been designed by the individual operators, albeit licenced and overseen by the NTA to avoid unfair competition between operators where multiple operators serve a particular route.

The public transport contracts receive PSO subsidy and are operated by CIE Group, LUAS and two routes operated by M & A Coaches and Whartons Coaches. They are the only contracted services.

Banjoxed

It's still a bus.