|Mode||Price (one way)||Time|
|LimoLiner (luxury bus)||$69||4 hours|
|Acela (Amtrak train)||$99||3 hours|
|Greyhound bus||$30||4 hours|
|Air Shuttle||$128||1 hour (plus check-in)|
Source: K. Gordon (2004) “Boston to New York: Four Ways to Make the Trip”, New York Times, January 20.
New York and Boston are about 200 miles apart, a distance that permits several modes to compete in this important inter-city passenger transport market. Outside using a private car, three modes are competing but over customers that are not necessarily similar. The air shuttle is obviously the fastest mode, but the most expensive. However, its short travel time does not take into account the amount of time spent getting in and out of an airport, checking in, and waiting to board the plane, which often takes at least one hour in congested New York or Boston (this could total about 4 hours). Acela is a medium speed train service (150 mph) that runs between Boston and Washington, mainly used by business travelers. To complement the conventional Greyhound bus service, which business travelers do not use, a new luxury bus service was inaugurated in 2003. It includes large seats, onboard movies, and internet access.