Pricing
Pricing
Sorry for the double post, but something came to me last night and thought it worth sticking on here.
GNE (and other bus companies too) need to make a certain amount of money per mile from their passengers. That probably explains why it costs more on the X1 from Wrekenton to Gateshead/Newcastle than it does on say the 56 or 58 - the X1 can't generate additional revenue from passengers between the points, other than the QE with it being limited stop.
The point I'm making is that on certain routes at certain times of the day, more profit will be generated than others, creating a surplus, which will cover costs when it is quiet.
However, due to the cuts they have made on certain services by axing, reducing or stopping it running in the evening or Sunday, the amount of money they generate will possibly be diminished.
Without having all of their figures to analyse, it becomes difficult - but say I buy a 2 zone ticket at £6.10. The initial bus I get on records that ticket and that service has generated £6.10 towards its income.
If I head to the Metrocentre, changing at the Galleries and Gateshead, immediately, the price GNE are making per mile is diminshed. Because of the cuts made to the daytime services, when I head home, I need to use four buses - opposed to the outgoing journey of 3. Meaning that the revenue generated by my initial £6.10 purchase is minimal. Using a conservative estimate of a 35mile round trip (it is probably nearer 40 miles due to the additional bus on my way home), the pence per mile generated by GNE from my journey is 18p.
That journey isn't beyond normal and is one myself and others make on a regular basis.
The price per mile would actually be more expensive had they not cut/reduced services to save money/generate more day ticket sales.
A few weeks back, I had a red and purple ticket - travelled from home to the Galleries to sort some bills out, back home for a bit, I headed out to Newcastle, popped to Birtley to see family and then had to get a bus to the Galleries so I could get a connecting bus home. The pence per mile generated on that ticket would be minimal.
I know this has been touched on in the past, but compare that to me going on a short journey of 3 miles and being charged £1.45 for a single and the price per mile from that fare is 48p.
Or a 15 mile journey costing £3.15 and the price per mile of 21p.
