Regulators ask for alternatives to Maritime Bus dynamic pricing plan
Regulators ask for alternatives to Maritime Bus dynamic pricing plan
Maritime Bus is reconsidering details of a proposal to bring dynamic pricing to bus travel in the Maritimes. The company says it wants to incentivize early sales to increase ridership, but the Energy and Utilities Board is concerned the premiums Maritime Bus is proposing for last minute ticket purchases are too 'open-ended'.
Bus company wants ability to charge up to 35 per cent premium on last minute ticket purchases
Erica Butler · CBC News · Posted: Jun 19, 2026 5:00 AM EDT | Last Updated: 9 hours ago
Regulators have asked Maritime Bus to come back with alternatives that narrow down its proposal for price premiums on bus tickets purchased at the last minute.(Tony Davis/CBC)
Maritime Bus wants their customers to book their rides earlier, and its seeking regulatory approval to be able to charge a premium to those who don’t.
But the regulatory boards are concerned the details around how much those premiums could be are too "open-ended" and want the company to come up with some alternative options.
Maritime Bus, which has been operating inter-city bus services in the Maritimes for the past 14 years, runs 20 routes that link communities across New Brunswick, Nova Scotia and P.E.I.
Owner Mike Cassidy and sons Matthew and Ryan appeared before Nova Scotia and New Brunswick regulatory boards on Thursday to make a case for dynamic pricing in the bus business.
Matthew Cassidy explained that currently, about 50 per cent of Maritime Bus customers buy their tickets within 36 hours of their trip, partly because the company guarantees they'll have a seat.
“People don't have any risk or fear of not being able to travel when they want to travel,” said Matthew Cassidy.
“They can walk in on a Monday morning on Thanksgiving weekend, one of our busiest days of the year, and they can buy that ticket,” he said.
“And they're going to pay the same price as if they bought it 30 days previous.”
Cassidy said the company wants to incentivize people to change their behaviour, and not see the bus system as a “last resort.”
The proposal asks for the ability to charge premiums up to 35 per cent on tickets based on certain conditions, such as the time of purchase.
But in Thursday’s hearing, Matthew Cassidy said the company’s plan was to start small, with a 10 per cent premium on tickets purchased within 24, 36, or 48 hours of a trip, and track how customers respond.
“Do we start to see a shift in buying patterns?” he asked.
“If we don't, maybe we go up to 15 per cent right?”
He said the ultimate goal was to grow ridership, by incentivizing potential riders to choose Maritime Bus earlier in their trip planning.
Impact on low income riders?
New Brunswick board member Michael Pickup asked about the impact of the premium charge on people with lower incomes, who might not be able to book a trip in advance.
Mike Cassidy said at the Charlottetown terminal he's observed that people of all ages and income demographics tend to treat the bus as a last minute decision.
“It's nonchalant. You come up to the bus when you want to travel,” he said.
That expectation was “bred into the system for years,” said Mike Cassidy, noting that sometimes riders would have to wait for an additional bus to be brought in if too many last minute tickets sales were made.
“It was absurd, the fiscal management and the operational management of how things were done,” he said.
Discounts could ‘erode’ base fares
Matthew Cassidy said the company has experimented with discounts in the past to influence customer choices, but was concerned about eroding its base fare revenue.
Base fares for Maritime Bus have not changed since 2012, when the company first took on the license to operate intercity bus service in the Maritimes.
Since then, the company has introduced a transaction fee of $4.95, and the company also collects a fuel surcharge, which is set quarterly by regulatory agencies. But the regulated base fare remains the same.
Mike Cassidy, the owner of Maritime Bus, says he's observed people of all ages and income demographics treating the bus as a last minute travel decision, something he'd like to see change.(Steve Bruce/CBC)
“I've always maintained,” said Mike Cassidy, “and the boys get a little bit cross at me – 6 per cent in ridership is as good as 6 per cent base price across the board.”
“Don't change the base price. I'm so firm on that.”
Matthew Cassidy told the board the company wanted to avoid the “death spiral” situation of facing ridership decline, and then responding with base fare increases to help stay afloat.
Company to come up with alternatives
New Brunswick board chair Christopher Stewart expressed concerns with the broad range of the potential price increase in the Maritime Bus proposal.
“You're asking, in essence, for unfettered discretion to increase rates between zero and 35 per cent based on certain time frames,” said Stewart.
“Even if I thought dynamic pricing was good in principle,” said Stewart, “I'm struggling with the fact that it's so open-ended.”
Other members echoed those concerns, and the Cassidys agreed to come up with some alternatives for the board to consider.
Both boards agreed to adjourn the joint hearing until the company files additions to its application, by July 3.
