Since the 2013 liberalization of a law preventing most long-distance bus service in Germany, the market for Greyhound-style travel around the country has been booming. Steep competition between new carriers has led to low fares on some routes starting at just €1 as well as a rapid expansion of service to both nationwide and international destinations. Much like the low-cost carrier boom a decade earlier, the uncertainty of the fresh bus market meant lots of cheap travel opportunities and exciting experimentation as these young companies attempted to maximize their profitability and market share.

At the beginning of 2015, the merger of FliXBus and MeinFernbus was announced. Together, these two companies carry 75% of Germany’s long-distance bus passengers. Their merger won’t be complete until August, but it offers both benefits and potential costs to travelers. Let’s have a closer look at what this merger could mean for this travel market.

Same service, more regular scheduling

While the two companies are still in the process of sorting out their overlapping schedules and destination maps, one of their top priorities is to eliminate simultaneous or close departures to the same destination. They have stated publicly that their intention in such cases is not to decrease the number of services to these destinations, but rather to spread them out to offer more regular service on the same routes.

Using a hypothetical example, if there were once FliXBus services between Berlin and Hamburg leaving at 9 and 10 am and MeinFernBus departures leaving at 9:15 am and 11 am, the new company would attempt to offer half-hourly service with the same buses at, say, 9, 9:30, 10, and 10:30 am. This gives the consumer more choice, reliability, and flexibility when it comes to selecting travel times.

More stable (read: higher) prices

At the same time, however, we can also predict that decreased competition between these two companies will result in fewer low-price seats, especially at popular times. Where once (like in the above example) there were two bus companies within 15 minutes of each other vying for passengers with cheap tickets, there will now only be one bus for the merged company to fill.

Price-sensitive passengers may be able to adjust their travel to less-popular times in order to score lower-cost seats, but those who are unable to pick a different departure time will more often find themselves paying a rate close to the “full price” of the ticket – often double or three times the advertised discount price. This upward price pressure will compound if the remaining 25% of the bus market has difficulty holding their share in the face of one behemoth competitor.

Tighter network, more international destinations

Having quickly captured the overwhelming majority of the domestic bus market, these merged companies have the potential to do two things that will be great for bus riders. The first is the opportunity to differentiate their overlapped regular services slightly in order to reach an even greater number of destinations across the country. If we consider again the route Berlin-Hamburg, perhaps every four hours the bus detours from the direct route to also pick up and drop off passengers in Schwerin. Similar tweaks could fill out the map across the rest of Germany, bringing even more travelers into the bus fold and deepening the existing network substantially.

Second, the increased economy of merger means that resources will be freed up to expand its routes further outward, offering additional overnight and international bus routes, thereby expanding low-cost travel opportunities and improving competition (even with train companies) in bordering countries as well.

We’ll keep you posted on the further effects on low-cost bus travel as FliXBus and MeinFernBus finalize the details of their merger over the coming months. In the meantime, grab those cheap €1 euro fares while you can and let us know your thoughts!

The post Bus company mergers in Germany: What does it mean for budget travelers? appeared first on EuroCheapo's Budget Travel Blog.

The Oldies

Berlin Linien Bus

Due to Berlin’s unique status as an enclave of the West, long-distance bus service from the city had been grandfathered into the aforementioned law, making bus travel to or from Berlin on Berlin Linien Bus the only available such option in the country. With ties to Deutsche Bahn and a well-established network, BLB is sure to survive, despite plummeting market share. It regularly offers restricted €9 fares on its routes to Hamburg or Dresden. Every few months, BLB offers a Berlin Groupon deal at the same low price, valid on virtually any bus on any day.

Eurolines

Having ended their relationship with German booker Gullivers, the transcontinental Eurolines bus service now sells tickets for international destinations from Paris to Riga directly. While this is definitely the place to look if you’re ultimately traveling outside of Germany, don’t overlook their extensive domestic offerings as well, especially if you’re traveling in the western part of the country. While new competitors have focused solely on building inner-German networks, you can expect growth and therefore more competitive pricing in the international bus market—especially in areas bordering France, Denmark, Poland, Austria, Switzerland and the Czech Republic—in the coming years.

The Newbies

FlixBus

With a network spanning the entire country, Munich-based FlixBus is the most popular new competitor. Sale prices from Berlin start at €5 for Rostock, Leipzig and Dresden, and €15 for Braunschweig, Osnabrück, Münster, Würzburg, Amberg, Nuremberg or Munich. Also note the international lines connecting airports in Bremen, Memmingen and Munich to the Netherlands, Switzerland, Austria and the Czech Republic.

MeinFernBus

With main north-south arteries running from Berlin to Munich or Frankfurt and beyond, MeinFernBus offers lots of unique travel options across the country at a low price. Berlin to Dresden or Rostock starts at €6, to Leipzig €8, to Hamburg €14 or to Munich €16. International connections are currently available to Zurich, Innsbruck and Luxembourg.

ADAC Postbus

These yellow buses are best for plying the well-worn western corridor between Dortmund and Frankfurt. New routes launching February 2014 will better connect the eastern and central regions of the country with the existing network. Tickets start at €8 between Berlin and Leipzig, €15 for Berlin-Hamburg. Purchase online or at any post office or Postbank counter in Germany.

City2City

With its limited network, consider City2City only if you’re traveling in the former West Germany.

DeinBus

This company offers routes in four distinct areas of Germany without connections between them (at present). It’s well worth a look, especially for regional travel in the southwest. They also offer international links to Prague and Maastricht.

ALDI/Univers

The German discount grocery chain has partnered with bus company Univers to offer fixed-price bus tickets for the most popular connections around the country. Book online with the ALDI Reisen website.

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