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Why online bus tickets are cheaper?

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  • 13-02-2019 12:38am
    #1
    Meritor
    Registered Users Posts: 39 ✭


    Hi,

    I am just wondering why online bus tickets are cheaper?
    I would have thought setting up online adds on cost to bus operator.
    The added cost shall be, initial online booking software integrated to their website, transaction charge, maintenance of online booking system, managing returns, customer support etc.
    Any information on how does this actually works? and how could bus operator offer discount if tickets are bought online?
    Tagged:


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    #2
    gipi
    Registered Users Posts: 2,983 ✭✭✭gipi


    Main benefit for the bus company is not having to handle cash, I suppose. That's worth offering a discount for online purchases.


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    #3
    tricky D
    Closed Accounts Posts: 9,700 ✭✭✭tricky D


    Paper, printing, personnel, property, and loads of other overheads, are all way more expensive to run in the physical than the 'virtual'.

    Banks and other institutions are doing the same type of personal service cost reductions.


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    #4
    Meritor
    Registered Users Posts: 39 ✭Meritor


    Ahh okay.. I was just considering in bus tickets Vs online. But tickets are also sold from office.
    Now let me think one by one
    1) cash handling: so when bus journey finishes, the driver will handover cash to the office. Here, someone will get the money and tally it with number of passengers travelled. Then make entry/entries to their book keeping system. And last deposit the cash in the back.
    2) paper/printing: tickets printed if purchased from office
    3) personal: ticket counter person - no applicable for on bus tickets
    4) property: office/ticket counter
    5) other overhead? - like cash handling, electricity, insurance etc?

    Please pardon my ignorance here.
    Is this what ye meant?


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    #5
    tricky D
    Closed Accounts Posts: 9,700 ✭✭✭tricky D


    Kind of, though if you went more granular, there are many more costs than the ones you have listed but personnel and their wages are the elephant.

    You could also look at more macro type stuff like marketing which has much better value in the digital than traditional.


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    #6
    Meritor
    Registered Users Posts: 39 ✭Meritor


    Ahh grand.. make sense..
    Thanks a million.


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    #7
    antoinolachtnai
    Registered Users Posts: 9,793 ✭✭✭antoinolachtnai


    It costs 50c to 1.50c a minute or more to keep a bus on the road. It costs the same order of money to keep a desk in a retail office open. Anything that reduces the processing that needs to be done by the driver on a bus or by a clerk in an office will probably save money.

    Capital cost of a website? Actually pretty small compared to the cost of buying a couple of buses.

    The main thing about online transport ticket sales is that it forces the punter to commit to your service in advance. If an alternative bus comes first, you won't get on it.


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