Two major NYC tour bus operators allegedly colluded to keep their prices high and competition low, the state attorney general’s office said Wednesday.
Big Bus Tours Limited, one of the largest operators of “hop-on/hop-off” bus tours in the city, and its former top competitor, Twin America, LLC, were busted for swindling customers by limiting competition and service for tour customers—many of whom come from outside of the NYC area.
State Attorney General Letitia James’ office conducted an investigation that found Big Bus and Twin America – companies that run fleets of double-decker buses that ride around Times Square and the city showing visitors the sights – entered into a series of unlawful agreements that benefited both companies while hurting customers.
According to James’ office, the anti-trust collusion started when Twin America agreed to stop operating its own buses in exchange for “some of the highest commissions paid” for reselling tickets for Big Bus.
James explained that the agreements, which put a dent in competition and divided up the market, are illegal because “they can result in lower quality, less innovation and higher prices” for customers.
Both companies will pay $2.5 million in damages.
Colluding ‘behind the scenes’
The AG said the companies will be “held accountable” and were forced to end their illegal agreements.
“Healthy competition among bus tour companies helps ensure that the millions of people who visit New York City every year get a high-quality experience,” James said. “Twin America and Big Bus colluded behind the scenes to stop competing and split the commissions from ticket sales, cutting services for customers looking for bus tours.”
Meanwhile, Big Bus staff said they “categorically reject” the attorney general’s findings, calling them “demonstrably false” in a statement sent to amNew York, adding that they will look into legal options going forward.
“We are disappointed by the AG’s reckless press release, which appears more focused on manufacturing the public perception of a political victory rather than achieving tangible consumer benefits,” the statement read. “Big Bus will pursue all legal options available to correct the record. Big Bus maintains its status as an ethical corporate citizen whose highest priority is those very customers. It will never stop striving to find new and innovative ways to showcase global attractions in a safe, entertaining, and consumer-friendly environment.”
The scheme began in 2020, according to the attorney general. The investigation revealed that after Twin America ended its hop-on/hop-off service, it agreed to resell Big Bus tickets and receive higher commission rates than other companies selling Big Bus tickets.
While the illicit activity ensued, Big Bus operated several Twin America buses to “give the appearance of competition” and allow Twin America to keep its bus top permits in the city, according to James’ office.
As part of the settlements, Big Bus will pay $2 million in penalties and Twin America will fork over $500,000, along with 30% of the proceeds of any sale of its stock or assets up to $900,000.
Neither company is permitted to enter any anticompetitive agreements going forward, and both must notify the attorney general’s office of any future acquisition of any hop-on/hop-off bus tour operator in NYC.
amNew York contacted Twin America for comment, but did not receive a response.
