User:Johnragla/InterCity monopoly

Entrada Travel Group
ParentNelson Coachlines (7.4%)
Ritchies Transport (46.3%)
Tranzit Group (46.3%)
Founded1991
HeadquartersAuckland, New Zealand
LocaleNew Zealand
Service areaNew Zealand
Service typeIntercity bus service
Destinations600
Chief executiveJohn Thorburn
Websitewww.intercity.co.nz
InterCity double decker coach

InterCity is a passenger transport and tourism company in New Zealand. Parent company Entrada Travel Group operates the country's only long distance bus network, and ferries and cruises in the Bay of Islands. Its brands are:

  • InterCity[1]
  • Gray Line, New Zealand license holder of premium sightseeing tours within New Zealand[1]
  • GreatSights New Zealand, premium sightseeing coach services[1] transferred to InterCity in 2007 and 2008[2]
  • Northland Ferries running in Bay of Islands and at Rawene[1][3]
  • awesomeNZ[1] (formerly Kings Dolphin Cruises and Eco Tours),[4] sightseeing tours and boat cruises[5]
  • Auckland Whale and Dolphin Safari on a catamaran[1]
  • Auckland Explorer Bus, hop-on hop-off sightseeing tour bus company in Auckland[1]

Around Cairns and Great Barrier Reef, Entrada also owns Spirit of Cairns catamaran, Tusa Reef Tours, Spirit of Freedom, Divers Den, Frankland Islands Reef Cruises, Daintree Ferry and Cairns Tourist Information Centre.[1]

Ownership

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InterCity has been the only New Zealand-owned long distance bus service, since competitor Nakedbus was acquired by ManaBus,[6] who ceased operating in 2018[7] and sold their buses to InterCity. In November 2018, InterCity started a new express bus service, SKIP.[8][9]

InterCity and Entrada Travel Group are controlled by Ritchies Transport, owned by KKR,[10] and Tranzit Group, each owning 46%.[11][12][13]

History

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InterCity is the direct successor to New Zealand Railways Road Services long-distance routes. New Zealand Railways' rail and road services were combined in 1985 as the Passenger Business Group of the New Zealand Railways Corporation. InterCity began in 1987 as the brand for long-distance rail and road services.[14]

In 1991 the rail-based assets were transferred to New Zealand Rail and the long distance buses and InterCity name were bought by InterCity Management Limited, a group of seven of the country's largest private coach companies - Whangarei Bus Services, Bayline Group, Ritchies Transport, Tranzit Group, Guthreys Coachlines, Nelson SBL and Pacific Tourways Route Services - as a franchise-based operation. Each of the franchisees was responsible for operating set routes, usually close to their home base. Of the original 7 franchisees, 2 remain after Ritchies and Tranzit bought the others out in 1996 and 1997.[15]

Over the years the company name has changed from InterCity Coachlines Ltd to Coachnet NZ Ltd, followed by InterCity Group Ltd and InterCity Holdings Ltd.[citation needed]

In 2019, the group name changed from InterCity Group to Entrada Travel Group.

Fullers GreatSights, sightseeing cruises and day tours in the Bay of Islands was bought in 2007[14] and sold to Explore Group in 2021.[16]

Trademark protection

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In 2014 InterCity Group won a landmark Google Adwords case against competitor Nakedbus in the Auckland High Court for breach of trade mark. Justice Raynor Asher ruled that Nakedbus deliberately infringed InterCity Group Limited’s trade mark ‘INTERCITY’, engaged in misleading and deceptive conduct that confused consumers, and illegitimately attempted to pass its business off as InterCity’s. They ran advertisements on Google which would respond to searches for InterCity Group’s trade mark, INTERCITY, and which promoted their buses as "inter city" in both the advertisements and on the corresponding website. The Court has confirmed that this was part of a misleading strategy, using InterCity’s trade mark to confuse the customers into thinking that Nakedbus was an affiliate. Nakedbus argued that the words "inter" and "city" were just descriptors for domestic bus services. This argument was rejected by the Court. It recognised that ‘InterCity’ is a distinctive and well known New Zealand brand which is entitled to the usual statutory protections.[17][18]

Expansion

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Auckland Whale & Dolphin Safari's Dolphin Explorer in Viaduct Basin

In 2006 Entrada Travel Group purchased Kings Dolphin Cruises, a Paihia based operator of sightseeing cruises and day tours. This purchase was the group's first foray beyond road passenger transport services. It also increased InterCity's exposure to the tourism market.[citation needed]

Entrada Travel Group's footprint in the tourism market increased again in December 2007 when it added the Tourism Holdings Limited Ltd businesses of Great Sights and Fullers Bay of Islands by way of a joint venture.[19] In December 2008 Tourism Holdings sold its 49% stake in InterCity Holdings Limited to InterCity Group for $9.5m.[20]

In August 2016, the company was awarded the license to operate sightseeing services in New Zealand as Gray Line, the world's largest sightseeing brand.[21]

In 2019, Entrada Travel Group acquired Auckland Whale & Dolphin Safari, which hosts thousands of guests every year aboard the 20-metre catamaran Dolphin Explorer on daily 4.5-hour cruises from Auckland's Viaduct Harbour.[citation needed]

Gray Line

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In 2016 Entrada Travel Group was awarded the license to operate Gray Line sightseeing tours in New Zealand.[21]

GreatSights New Zealand

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Older GreatSights New Zealand logo

GreatSights New Zealand is InterCity Group's daily sightseeing subsidiary operating day tours and sightseeing from Auckland, Rotorua, Christchurch and Queenstown to the Bay of Islands, the Waitomo Caves, Hobbiton, Rotorua, Aoraki, Te Anau and Milford Sound.[citation needed]

GreatSights was formed in October 1987 following acquisition of the coach assets of Fourways Coachlines by various Newmans Group companies and was subsequently taken over by Corporate Investments Limited (CIL), then in 1993 by The Helicopter Line (later renamed Tourism Holdings Ltd, THL).[citation needed]

Glass-roofed double-decker Volvo B12 coaches were introduced onto the Milford Sound route in 1996.[citation needed]

In 1998 THL purchased a number of assets from Mount Cook Group including the Gray Line New Zealand franchise, which GreatSights operated until 2006.[citation needed]

In 2000 GreatSights opened a visitor information centre at 180 Quay Street, Auckland. This became the departure point for all GreatSights day tours from Auckland. The centre was closed following InterCity's acquisition of GreatSights, as InterCity already operated a similar visitor information centre on Hobson Street. Also as a result of the acquisition, in April 2008 the Newmans Coach Lines brand gradually began to be removed from routes that were operated by GreatSights.[citation needed]

In recent years GreatSights has enjoyed strong growth in line with rising visitor arrivals into New Zealand. A number of new routes and tour options have been added to the network including a new Waitomo & Rotorua tour in 2009.[citation needed]

Coinciding the complete fleet upgrade in 2016 the brand was refreshed and saw the introduction of diamond device to symbolize the relationship between the company's operations on land and sea.[citation needed]

Fullers GreatSights

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Fullers GreatSights is a sub brand of GreatSights, operating cruise, ferry and land sightseeing tours from the Bay of Islands. The head office is based in the visitor centre in the Maritime Building on Paihia's waterfront, with a visitor centre in Russell and a workshop in Opua.[22]

The Fullers business was founded in 1886 when Albert Ernest Fuller started a business delivering coal and other essential supplies to islands in the Bay of Islands in his vessel the Undine. Fuller branched out into tourism in 1927 when he started the Cream Trip service transporting cream from the islands to the mainland. Tourists would pay to ride on the Cream Trip and over time the focus of the service changed from deliveries and transport to one of sightseeing and tourism.[23]

The business has expanded substantially over the years and today its primary focus is tourism, although it does also operate passenger and vehicle ferries. The Fullers GreatSights product range includes:[24]

In 2009 Fullers Bay of Islands was rebranded Fullers GreatSights Bay of Islands, providing connection to InterCity's sightseeing tours in the rest of New Zealand, and a new awesomeNZ brand was introduced. The Kings Dolphin Cruises, Northern Exposure and Awesome Adventures brands were removed. AwesomeNZ branded excursions include Ninety Mile Beach day tours and Milford Sound day tours.[citation needed]

In 2016 the rebrand of the main GreatSights brand saw the name shortened to Fullers GreatSights.[citation needed]

Newmans Coach Lines

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Newman Bros. Nelson-Reefton mail coach crossing the Buller River on the Nine Mile Punt circa 1910 displaying Cobb & Co brand
 
Ansair Flxible Clipper as operated by Newman from 1955

Newmans Coach Lines began in Nelson in 1879 with brothers Tom and Harry Newman offering a horse-drawn coach service delivering mail around the Nelson region. The business grew rapidly and expanded to include passenger services, at first throughout the South Island and later into the North Island. In 1911 the first motor vehicle - a four-cylinder Cadillac - was introduced and in 1918 the last horse-drawn carriage was retired from service.[25]

Newmans remained a family-owned business until 1972 when it merged with Transport (Nelson) Ltd, a trucking and mining company. There followed a period of expansion where the Newmans brand encompassed tours, rental cars and campervans and a short-lived airline brand Newmans Air which evolved into Ansett New Zealand.[citation needed]

In 1988 Corporate Investments Limited took over the business and several routes were withdrawn. In 1991 an agreement was reached where competitor Mount Cook Group ceased operating in the North Island and Newmans ceased operating in the South Island. This step was not enough and in 1992 TTRB Ltd, a consortium of four coach operators (Tranzit Group, Taranaki Coachlines, Ritchies Transport and Bayline Group), took over Newmans Coach Lines. By 1994 two of the consortium members had withdrawn and the remaining two shareholders Tranzit and Ritchies operated it as a separate business until the Auckland power crisis in 1998 when Newmans was integrated into the InterCity Group business.[citation needed]

From 1995 to 2007 the Newmans brand was used on both sightseeing day tours and passenger route services. From 2008 the Newmans brand was withdrawn from sightseeing day tours in favour of GreatSights, but Newmans coach services still run between Christchurch, Queenstown, Wanaka and the West Coast glaciers.[citation needed]

From 1987 until 1993, operations were operated in the Australian cities of Cairns and Sydney as Newmans Coach Lines.[citation needed]

Hauraki Blue Cruises

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In 2009 Fullers GreatSights launched the cruise catamaran Ipipiri, a 44.5m (146 foot) vessel with four levels including sundeck, restaurant and bar, and 30 ocean view cabins offering accommodation for up to 60. Ipipiri operated in the Bay of Islands for five seasons as an overnight cruise ship and was available for conferences, events and weddings.[citation needed]

In 2014 Ipipiri was relocated to Auckland.[26] Trading as Hauraki Blue Cruises under the GreatSights brand, it offered overnight cruises, lunch cruises, and a charter venue for weddings, conferences and events in the Hauraki Gulf. Hauraki Blue Cruises ceased operating in July 2017.[citation needed]

Skip Bus

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Skip Bus was a low cost, express bus company launched by InterCity in November 2018. It offered bus travel between many North Island destinations, including Whangarei, Auckland, Hamilton, Rotorua, Taupo, Tauranga and Wellington.[27] Skip buses were suspended from 25 March 2020.[28]

Monopoly

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When the Commerce Commission considered the takeover by Ritchies and Tranzit in 1996 and 1997, it concluded that rail competition on the Tauranga route and competition from Mount Cook Group on other routes was sufficient.[15] Tauranga lost its rail passenger service in 2001[29] and Mount Cook Coachlines no longer operate. From 2006 to 2018 there was competition from Naked and Mana.[30] As noted above, Skip was closed by InterCity in 2020. InterCity also offered $1 fares,[31] but even short journeys now cost over $10.[32] Another promotion, InterCity Rewards ended in August 2023.[33]

Environmental projects

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Entrada Travel Group has embarked on a number of sustainability projects since 1998.[34]

In May 2007 InterCity joined Landcare Research's CarboNZero programme[35] but withdrew when the New Zealand Government introduced an Emissions Trading Scheme.[citation needed]

In 2010 Entrada Travel Group's Bay of Islands operations were awarded an Enviro Gold rating by Qualmark. Fullers GreatSights and InterCity Group's coaching division both currently hold Qualmark Gold ratings.[36]

References

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  1. ^ a b c d e f g h "Our Brands". Entrada Travel Group. Retrieved 2 August 2023.
  2. ^ "History". Entrada Travel Group. Retrieved 2 August 2023.
  3. ^ "Bay of Islands & Hokianga Vehicle & Passenger Ferries". Northland Ferries. Retrieved 2 August 2023.
  4. ^ Reporter, Staff (24 July 2019). "Tranzit sets sail into tourism expansion". Wairarapa Times-Age. Retrieved 2 August 2023.
  5. ^ "awesomeNZ Day Tours | Milford Sound, Bay of Islands, Hobbiton, Mt Cook". Awezome NZ. Retrieved 2 August 2023.
  6. ^ "NakedBus.com". InMotion Group. Archived from the original on 28 December 2016. Retrieved 27 December 2016.
  7. ^ Venuto, Damien (24 June 2018). "Fifty jobs on the line as ManaBus and Nakedbus end services". NZ Herald. ISSN 1170-0777. Archived from the original on 11 July 2018. Retrieved 6 July 2018.
  8. ^ New Zealand’s newest bus company set to hit the road Archived 15 January 2019 at the Wayback Machine. Scoop.
  9. ^ "New budget coach service, Skip, hits North Island roads". The New Zealand Herald. 21 November 2018. Archived from the original on 8 January 2019. Retrieved 15 January 2019.
  10. ^ NZ bus icon Ritchies to be sold to investment firm KKR Archived 20 March 2023 at the Wayback Machine Australasian Bus & Coach 27 August 2021
  11. ^ "InterCity Group (NZ) Ltd (506732) Registered". Companies Office. Retrieved 1 April 2016.
  12. ^ "Tranzit remains a family business". Stuff. 20 April 2015. Archived from the original on 8 April 2018. Retrieved 27 December 2016.
  13. ^ Tolerton, Jane. "Coaches and long distance buses - Coaches after deregulation". Te Ara - the Encyclopedia of New Zealand. Archived from the original on 27 December 2016. Retrieved 27 December 2016.
  14. ^ a b "History". Entrada Travel Group. Retrieved 2 August 2023.
  15. ^ a b "Tranzrich Travel Ltd and Guthreys Intercity Coach Services Ltd" (PDF). Commerce Commission. 11 April 1997.
  16. ^ "Explore Group Purchases Fullers Great Sights Bay Of Islands". www.scoop.co.nz. 1 July 2021. Retrieved 2 August 2023.
  17. ^ "Nakedbus' advertising tactics deemed 'misleading'". www.scoop.co.nz. 17 February 2014. Retrieved 2 August 2023.
  18. ^ High Court Judgement CIV-2012-404-007532 Archived 22 February 2014 at the Wayback Machine from www.nzherald.co.nz, retrieved 18 February 2014
  19. ^ Financial & Investor Information Archived 12 December 2007 at the Wayback Machine from www.thlnz.co.nz, retrieved 21 December 2007
  20. ^ "Tourism Holdings sells InterCity stake". Stuff.co.nz. 17 December 2008. Archived from the original on 12 October 2012. Retrieved 4 October 2011.
  21. ^ a b "InterCity buys Kiwi franchise of Gray Line". 25 August 2016. Archived from the original on 24 October 2016. Retrieved 30 August 2016.
  22. ^ "Fullers Contact Details". Archived from the original on 2 June 2010. Retrieved 17 December 2010.
  23. ^ "History of Fullers". Archived from the original on 2 June 2010. Retrieved 17 December 2010.
  24. ^ "Fullers GreatSights website home page". Archived from the original on 5 June 2010. Retrieved 6 July 2008.
  25. ^ "PIONEER IN TRANSPORT. NELSON EVENING MAIL". paperspast.natlib.govt.nz. 10 March 1944. Archived from the original on 8 January 2023. Retrieved 8 January 2023.
  26. ^ "New cruise ship coming to Auckland". NZ Herald. Archived from the original on 22 July 2014. Retrieved 22 July 2014.
  27. ^ "New Budget Coach Service, Skip, Hits North Island Roads". New Zealand Herald. Archived from the original on 26 January 2019. Retrieved 19 February 2019.
  28. ^ "COVID-19 Updates". Entrada Travel Group. Archived from the original on 29 April 2021. Retrieved 29 April 2021.
  29. ^ Kitchin, Phil (19 May 2011). "All aboard from Wellington for a grand journey". Stuff. Retrieved 2 August 2023.
  30. ^ McAllen, Jess (21 July 2018). "The last ride: ManaBus closed its doors to travellers on Sunday". Stuff. Retrieved 2 August 2023.
  31. ^ "InterCity Bus | Official Queenstown Website". www.queenstownnz.co.nz. Retrieved 2 August 2023.
  32. ^ "Book Bus Tickets Online | InterCity". www.intercity.co.nz. Retrieved 2 August 2023.
  33. ^ "InterCity® Rewards | Earn free Bus Travel". www.intercity.co.nz. Retrieved 2 August 2023.
  34. ^ "Responsible Tourism". Archived from the original on 17 July 2019. Retrieved 17 July 2019.
  35. ^ InterCity Group Aims For Carbon Neutrality Archived 30 September 2007 at the Wayback Machine. scoop.co.nz
  36. ^ "Qualmark Endorsements". Archived from the original on 21 March 2014. Retrieved 8 May 2014.
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