Buses marry – Le Parisien

BAD NEWS for lovers of travel by coach. The consolidation of this market will rhyme with rising ticket prices. Wednesday German FlixBus, heavy weight European industry, has announced the acquisition of a competitor, the Scottish Megabus – only its continental lines. A concentration that follows a first marriage in the sector. Mid-June, Ouibus, a subsidiary of SNCF, and Starshipper, a group of 32 French coach, had already celebrated their union. Consequences, ten months after the liberalization of the bus transport, the five players who started the adventure, it remains only three: two French, and Ouibus Isilines – subsidiary of Transdev – and FlixBus.

A concentration that will affect the portfolio of travelers. “In the medium term, we must expect a price increase of 8% to 15%,” predicts Pierre Gourdain, CEO of FlixBus France. Not really a surprise. Since the opening of this market in the summer of 2015 as part of the Macron law, bus operators are fighting a real price war. Travel hundreds of kilometers and are sometimes sold for 1 EUR! A battle with no thank you, with the stroke of business case, as more comfortable seating than the competitor, access to wi-fi in vehicles … The objective is twofold: to attract and retain travelers to this mode of transport long distance relatively new for the French.

A costly strategy, several hundred million euros, which explains that today none of the three bus companies are now profitable. FlixBus in France, it recognizes that only 15% of the lines are at equilibrium. “We hope to achieve profitability by the middle of next year,” Pierre Gourdain table.

At Ouibus, ambition is more modest, the balance is not envisaged before the 2018-2019 horizon. The concentration aims to grow faster, to quickly stifle competition and to increase the prices as soon as possible. “But coach transport will always be accessible to the greatest number, tempers Pierre Gourdain. We are able to propose paths at the right price. “And the boss FlixBus France to take the example from Paris to Angers, along about 300 km. “With a fill rate of 75% and a ticket to 9 EUR, it’s profitable,” he said.