Users of Stagecoach's Goldline service between Leamington and Warwick will notice a higher frequency this month, in response to higher passenger volumes.

The company stated in a report published last week that problems caused by the 'credit crunch' and the rising cost of fuel this year have encouraged more people to take the bus.

And according to research carried out by the transport operator, commuters who travel by car could save as much as £3,500 a year if they switch to the bus.

Marketing manager for Warwickshire Adam Rideout said: "We have seen growth on the bus network and we keep investing in it. More and more people are using the bus - they seem to have changed their habits."

The Goldline service, which from Monday increased its frequency from every ten minutes to every seven, has seen a 12 per cent growth in passenger volumes since it started it November last year.

Use of the X17 service between Warwick, Leamington and Coventry has gone up by 18 per cent since its introduction in April last year.

Stagecoach's managing director Phil Medlicott said: "We are buying four new Goldline buses and employing new staff to drive them because so many customers want to use them.

"Many people are now considering their carbon footprint and are conscious of rising fuel costs. We don't want to say to people 'don't use your car', but to encourage them to think about using it sensibly.

"More Goldline buses will encourage people to make these intelligent choices."

Southam resident Kathleen Spalding, 74, uses the bus twice a week. She said: "I used to have a car but now it's free for me to go by bus because of my pass. It's cheaper in the long run anyway, because as well as the high cost of petrol, you have got to pay for parking."

Russell White, 28, lives on a boat which is currently docked in Leamington and he works in Coventry. He travels by bus every day.

He said: "The bus is very hit-and-miss - if I had the choice, I would travel by car. But petrol and maintenance are ridiculously expensive. The bus is cheaper."