Bus fares between Reykjavík and the Keflavík airport could increase by as much as 25% in the coming months, Vísir reports. The outlet reports that increased fees paid to the airport, driven up by competitive bidding on soon-to-be-vacant bus parking spaces, are expected to lead to a hike in ticket prices for travelers in the coming months.
Currently, the bus companies Reykjavík Excursions and Gray Line offer shuttle services between the capital and the airport, and hold the rights to six parking spaces for busses in front of the arrivals lounge. Gray Line’s contract is ending on March 1, however, prompting Isavia to begin taking bids for the coveted parking spaces. Reykjavík Excursions and Hópbílar, another transportation company, made the highest bids, ultimately agreeing to pay Isavia a combined ISK 285 million [USD 2,775,900] for the spaces in the coming year. This represents enough of an increase in the annual rent paid by bus companies that tourism-related publications such as turisti.is have concluded that an increase in ticket prices of as much as 25% may not be far off.
“This revealed that the market is clearly favorable, as the offers were very good,” said Hlynur Sigurðsson, Terminal Director at Keflavík airport. Hlynur noted that as part of their rental agreement, the companies will pay their airport a portion of their annual turnover.
He went on to say that Isavia is obligated to offer out the parking spots by taking bids in this way, and that there simply isn’t room for more bus spaces in the parking lot at this time. Hlynur also emphasized that busses are still the most cost-effective way for travelers to get to and from the airport, and that it’s ultimately up to the companies to determine ticket prices: “Whether these entities, which are in competition with one another, need to raise [prices] or not is, in all reality, up to them.”