NYC Bus Tour Giants Caught in Collusion Scheme, Settle for $2.5M

Two major players in New York City’s tourism industry have agreed to pay more than $2.5 million after a state investigation uncovered a series of unlawful agreements that stifled competition in the popular hop-on/hop-off bus tour market.

According to a statement from the Office of the New York Attorney General (OAG), Big Bus Tours Limited (Big Bus) and Twin America, LLC (Twin America) orchestrated deals that unfairly restricted market competition. These arrangements allowed both companies to profit while reducing service options and potentially raising prices for tourists.

Beginning in 2020, the companies engaged in collusive behavior in which Twin America agreed to halt its own hop-on/hop-off operations. In return, it received preferential treatment as a ticket reseller for Big Bus, earning some of the highest commissions in the industry. Additionally, Big Bus operated several of Twin America’s buses under its own brand to maintain the illusion of a competitive market, per the statement from the Attorney General’s Office.

“These agreements undermined the competitive landscape that ensures quality and affordability for consumers,” the OAG said in a statement. The settlements require the companies to permanently end all such agreements and prohibit them from engaging in similar conduct in the future.

As part of the resolution, Big Bus will pay $2 million in penalties, while Twin America will pay $500,000, with a potential for up to $900,000 more tied to future asset sales. The companies must also inform the OAG of any future attempts to acquire hop-on/hop-off operators in the city.

The action is part of a broader campaign by New York Attorney General Letitia James to crack down on anticompetitive behavior across industries. The OAG emphasized that this case builds on earlier victories against entities ranging from ski resort operators to national organizations like the NCAA. In one such recent case, the Attorney General joined a multistate lawsuit targeting Live Nation and Ticketmaster for monopolistic practices in the live entertainment industry.

This latest enforcement underscores the state’s continued commitment to preserving competition in markets that affect millions of consumers each year — including the millions of tourists who visit New York City and rely on transportation services to experience its landmarks.

Source: AGNY