One of the justifications offered for U.S. taxpayers to subsidize Amtrak is the idea that lower-income people (students, immigrants, the retired, etc.) need an affordable alternative to using the airlines for inter-city travel. That's always rung hollow with me, since we've had nationwide Greyhound bus service since long before Amtrak. But Greyhound has been losing money for a number of years, and its annual passenger count has been declining since 2000—in part due to the growth of low-cost airlines.

But this decade has also witnessed a proliferation of new inter-city bus companies. So far, none is of national scope, but their niche markets are growing. And they seem to be following in the footsteps of low-cost air carriers, by thinking outside the box to cut costs dramatically.

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In the northeast, several companies offer bus service between Chinatowns in various cities. The largest of these seems to be Chinatown Bus (Chinatown-bus.com), connecting Boston, New York, Philadelphia, Baltimore, and Washington. Fares vary, with "typical" one-way fares ranging from $12 New York-Philadelphia to $20 New York-DC. Another bus company, Vamoose, offers express service between Manhattan and two DC suburbs—Bethesda, MD and Arlington, VA for $25.

Private companies are even moving into urban markets. Spanish Transportation Corporation of Paterson, NJ now runs 130 commuter buses into Manhattan each day, on three different routes. The company has grown from a van service with 14 vans in 1993 to a sizeable enterprise today. The buses are branded Express Service. And Las Vegas now boasts a new door-to-door service among hotels and casinos on the Strip—at just $2.50 per ride. Called Arrow, it is offered by Vegas.com, a travel and booking company. Also offered is a $10 daily pass offering unlimited use of Arrow and the private Las Vegas monorail. Arrow competes with the regional transportation authority's double-decker Deuce buses.