This has almost always been the case in the United States and that in my mind is a damn shame. The USA has one of the most extensive rail systems in the world but almost none of it is used to transport humans. The few times I have bothered with Amtrak was just because I thought it would be a laugh. Outside of metro areas such as the train I took from NYC to DC the trains in the USA are damn-near-useless. They take longer than driving and cost more than flying. The only reason why I could ever justify taking one of these trains is because they are considerably more comfortable than the tiny as can be seats on a plane.
Train travel overseas in Asia and South America is where I have the most experience and sadly, there just isn't much reason to do them anymore.
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Imagine being in a much larger than you would get on any airplane seat that is quite comfortable and having enough legroom in front of you to fully stretch out and then also having the option of getting up any time you feel like it and going to the dining car or bar car? That is truly majestic and especially if you are not in a hurry, a wonderful way to spend your time in transit. Trains also don't have the sort of over-the-top security that is omnipresent in airports, so you aren't treated like a criminal just because you want to visit another city.
I love train travel, but unfortunately outside of very specific routes, it is no longer a financially viable alternative.
In my past few trips, one which went to Malaysia and another time last year in Mexico I have found that Mexico has almost completely eliminated their passenger routes and the only ones that remain are scenic tourist journeys that are as you would expect, a complete ripoff. Malaysia has actually dramatically improved their long-distance train travel to some degree but this is mostly around Kuala Lumpur. Once you get too far away from the big city the tracks themselves deteriorate and as such, the speed of the train slows to a crawl.
This is all fine and dandy because neither one of these trains were actually luxury nor do they appear as though they were ever meant to be.
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I was kind of disappointed to see that they have dulled down the interior on both and changed the lighting so that it almost seems like you are on a metro for a really long period of time. The unique feeling of riding a train and looking out the window at the passing scenery as you read a book or nap is kind of behind us I am afraid. Still though, it is far more comfortable than any plane ticket that I or most people can afford.
This is where the really tragic information starts to come in.
It could be due to the increased competition from budget airlines or it could be due to the energy costs associated with rather antiquated train engines... or what is more likely, just pure greed. The fact of the matter is that the last few times I have inquired about train travel in many different countries the cost was going to be about the same or even more expensive than a flight. When you consider that the flight is going to be 90 minutes - or rather, 4 hours after you deal with all the BS that comes with going to an airport - there wasn't really any reason to even consider the 18-hour train ride.
It's not just trains though, long haul bus trips are also right around the same cost as a plane ticket as well and this makes very little sense to me.
Here is a situation that is a rare one in that the United States is one of the only places I am aware of in the world where getting a bus ticket is actually a really good idea if you are trying to save money and traveling from one city to the next. But I'll focus on that in another post because this one is already dangerously long.
Busses, (is it spelled busses or buses?) used to be the sure-fire cheapest way to travel and there were enough bus companies that they would compete with one another on price and the VIP buses that cost 20% more were "night and day" as far as seat size and comfort was concerned.
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Hell, one of the buses I was last on south of the border - I don't recall what country it was in - actually had the small screens with loads of movies that you can stream just like on an international flight.
Over the years I have seen the price of these bus trips climb and climb while the non-international flights continued to get cheaper and cheaper. I have no idea how or why this would be but it has gotten to the point where the amount of bus companies in existence is dropping. I don't know about you, but if I can be on an uncomfortable flight for 2 hours or on a comfy bus for 15 hours for the same price, it is an easy decision to make.
This is sad for backpackers to see because in the past the mass transit, especially with the communal areas such as dining cars and bar cars on trains was a wonderful place to meet other travelers. The last train that I was on in South East Asia had the bar and dining cars eliminated from the train entirely.
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I guess this is just another pastime that is going to the wayside and the new generation of travelers will never get to experience what it was like in what I consider to be the golden-years of travel. It was still something I would have been willing and actually desiring to do had the price not become so similar to flying.
I hope that something can change so that this form of backpacking can become viable again because some of my best memories of travel as well as some of the best friends I have ever met, took place on these long-haul trains. Unfortunately, I don't think it is going to turn around and the fact that poorer countries are simply eliminating their passenger trains and bus companies are drying up is indicative that the powers that be want us all to be in airports. It's a shame because in the past, for me at least, the travel to the destinations on trains was actually just as good or even better than the destination itself.
Buses I won't do, but like you I do like an overnight train trip and it is a experience on it's own. Utter madness really with the costs these days making it not a viable option vs air travel. If I had the money and was not worried about the length of the trip I would choose rail every time.