FINE RIDE: For a fraction of the price of an air ticket, luxury coach operators offer creature comforts such as a roomier travel experience (above) and an air-conditioned lounge. -- ST PHOTO: DESMOND WEE

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These coach operators are gearing up for some serious competition, especially in the luxury fare market.

Come February, budget air carriers will get to fly between Singapore and KL and, eventually, to other cities in Malaysia.

With low-cost carriers Tiger Airways and Jetstar Asia expected to offer rock-bottom fares to lure travellers, coach operators agree that they will be hit. The question is: How hard?

Mr Sebastian Yap from the Express Bus Agencies Association said that the industry expects business to go down by up to 30 per cent in the first few months.

The association has 22 members, including big guns such as Five Star Tours, Transtar Travel, Sri Maju Tours & Travel and Luxury Tours & Travel, which account for about 60 per cent of the Singapore-Malaysia express bus traffic.

Mr Yap, who is the chairman of the sub-committee that oversees events promotion and terminal operations, is confident that the industry will be able to hold its own in the face of the coming competition.

He said: 'It's early days yet but we expect that once things settle down, we are looking at a 10 to 15 per cent drop in business.

'Let's not forget that this is a market that grows by about 15 per cent every year. We believe there will be more than enough business to go around.'

He expects this to be the case, too, when the integrated resorts open.

Coach companies, especially those that operate top-of-the-range luxury buses with as few as 16 seats, have enjoyed brisk business the last few years.

Currently, with Singapore-KL return airfares at more than $400 with all taxes and surcharges in, many travellers choose luxury buses and pay about $100 to $120 for a pampered two-way ride.

They get an air-conditioned waiting lounge, a hot meal served by a steward on the coach and personalised entertainment with different movie and audio options.

And, depending on the operator, there are also different pick-up and drop-off points.

In Singapore, the buses leave from convenient locations such as Golden Mile Complex, Lavender Street, Queen Street, Newton and Boon Lay, as well as hotels such as the Grand Copthorne Waterfront in Havelock Road and the Copthorne Orchid in Dunearn Road.

Drop-off points in KL include the railway station, hotels in the city and popular suburbs such as Damansara and Bangsar.

When Tiger and Jetstar start operations between Singapore and KL, travellers can expect all-inclusive return fares to start at about $150, though many will end up paying more because such rock-bottom fares will be limited to a number of seats only.

Also, coach companies do not expect economy travellers, who now pay under $25 for a one-way ticket, to defect.

The battle, really, is likely to be for the luxury bus commuters.

One regular luxury coach user, Ms Kaw May Wan, 27, a business consultant, will head for the airport 'if the price is right'. That would be about $200 for a round-trip ticket with all taxes and surcharges included, she said.

Budget airlines may find 'converted' coach rider Chan Chin Boon, 41, a Malaysian information technology manager, harder to woo.

Mr Chan, who was at Golden Mile to catch an express coach back home, used to fly but now prefers the road trip.

He said: 'The new coaches are more spacious and they have more gadgets, so it's just like flying business class.'

Many travellers also like the point-to-point convenience of the coaches.

Mr Melvin Teo, 33, an assistant manager in the retail industry, said: 'The flight to KL may take just 45 minutes.

'But if you factor in the check-in at Changi and the travelling time from the airport in KL to the city, it comes to about five hours, which is the same time it takes to get to your destination by bus.'

And while budget carriers are cheaper than full-service airlines, the taxes and surcharges alone would probably come to about $150, housewife Preeti Kumar, 43, said.

'You still have to pay for the taxi or train ride from the airport in KL to the city.

'I would rather go by bus instead of sitting in a cramped aircraft with 180 other passengers,' she added.

For now, it is still a guessing game. Neither side is relaxing. Express Bus Agencies Association's Mr Yap said there are plans for service improvements, including a structured training programme for coach drivers and stewards.

Mr Dominic Soh, Luxury Tours' business development manager, said: 'If we provide a good service and give customers good value for money, we are confident they will stay with us.'

Jetstar chief executive officer Chong Phit Lian said: 'This is not a zero-sum game. It is about growing the market and giving the consumer more options.

'Yes, we will take away some business from full-service airlines such as SIA and from coach operators as well, but our experience in other markets such as Bangkok, Hong Kong and Jakarta tells us that the entry of low-cost carriers will stimulate and grow the market so there will be more than enough for everyone.'

karam@sph.com.sg

ADDITIONAL REPORTING BY TIFFANY ONG