In Chicago, Megabus chief operating officer Dale Moser said bus travel has been a big hit as the demographics have changed. Once, it was for those who couldn’t afford airfare. But now, “We’re getting affluent travelers who are leaving their $45,000 SUV at home,” he said.

The article, Rediscovering the bus, is about increasing intercity bus travel, especially on the Boston-New York run. People take the bus because the alternatives are inconvenient or expensive (higher gas prices and tolls, expensive parking in the downtowns served by these routes, and, since 9/11, more delays boarding air planes). They also take it because competition has produced variety including ultra low-price, and frequent service (Fung Wah) and moderate price service (Greyhound and Peter Pan). Although not mentioned in the article, Limoliner offers “luxury” bus service on the same route at a higher price (including meeting space, flowers in the washroom, leather seats, wi-fi — and still cheaper than Amtrak). Megabus, which I had not previously heard of, is using the trick of the European cheap airlines of offering teaser fares of as little as $1 (they don’t yet serve Boston, though).

Are there lessons here for city transit bus service? Bus service can be competitive with alternatives in some markets. A competitive market can offer multiple options for consumers. Will we ever see greater competition in urban transit service?