Intercity Curbside Buses:
An Industry Perspective
Curbside Intercity Bus Industry
Transportation Policy Forum
University of Delaware
June 2012
An Overview of Private
Motorcoach Services
(by percentage of companies)
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Contract Commuter – 7%
Scheduled Service – 19%
Airport Shuttle – 21%
Sightseeing – 29%
Tours – 59%
Charters – 96%
Other Industry Statistics
3,200 companies
35,000 coaches
723 million passenger trips
Employs about 128,000 people
$ 112.7 billion in total economic activity
A Closer Look at Scheduled Service
• Intercity Scheduled Service
– Network
• Nationwide shared ticketing
(interlining)
• Terminals
• Curbsides
– Express (Point-to-Point)
• Focused in Northeast, Midwest,
Southwest, FL/GA/NC/TN/VA (I-95)
• Terminals
• Curbsides
• Commuter Service
– Suburbs to City Centers
– AM/PM Peak Service
• Casino Service
Curbside Intercity Services
• Positives
– Responsive to consumer travel patterns.
• Southwest Airlines model
– Low cost with limited overhead.
• No terminal rental or departure fees
– Affordable fares.
– Guaranteed seating.
– Updated passenger amenities.
• Wi-fi, satelite radio, videos, restrooms, etc.
– Close stop proximity to intermodal connections.
– Viral marketing streams.
– Advanced capacity management, ticketing systems.
Curbside Intercity Services
• Negatives
– Difficult to differentiate carriers.
– Quality of services.
• Shortcuts: safety, maintenance, speeding.
• Resulting in horror stories
– Limited exposure to rest of industry.
• More independent operators, out of the mainstream
• Don’t often belong to associations (ABA, NBTA, etc.)
• Of 26 companies shutdown on May 31, no ABA members.
– Limited coordination and integration into
local/regional transportation planning.
Industry Challenges
• Access to intermodal (government subsidized)
facilities.
• Lack of bus parking.
• Inconsistent local regulations.
• Illegal/unscrupulous operators giving the
industry a black eye …resulting in media and
congressional inquiry.
• Lack of consistent enforcement from
federal/state authorities.
– Insufficient federal funding (MCSAP)
– Limited inspection activities (47.5:1, truck vs. bus FY10)
Industry Opportunities
• Potential driver of economic development
– Intercity bus passengers spend 4-5 days in a location.
75% buy round-trip tickets.
– Intercity travelers spend $92/day
– Union Station (DC) receives $33 million/year in retail
spending from intercity/tour bus passengers.
• Shift in public perception.
• Environmental solution. Sustainable
transportation opportunity.
• Traffic/congestion mitigation.
Profile of a Curbside Passenger
• Curbside intercity bus riders tend to be younger,
73% under 35 years old.
– 18 to 25 year olds make up about 48% of the
passengers
– 26 to 35 year olds make up about 25% of the
passengers
• Tech Savvy
– Online ticketing only options
• Traveling for leisure.
• Most curbside operations originate in college
towns and connect to urban centers.
Growth of Intercity Bus Services
• 6% overall growth in 2010.
• Ethnic niches and community-to-community
connections.
• Emergence of
curbside operations.
– 32% growth in
departures, 2011
• Departure points
have consolidated
(1980-2006), and
resurged recently.
• Ridership has seen
consistent growth.
More Growth Coming from Industry Leaders
Commitment to Passenger Safety
• Motorcoaches are the safest form of surface travel.
• All interstate bus operations are regulated by the U.S. DOT.
– Federal Motor Carrier Safety Administration (FMCSA) is the
agency tasked with safety and enforcement.
• FMCSA makes safety information available to the public.
– SaferBus smartphone application
– www.safersys.org
– National Complaint Database
• Consumers should make informed
decision on transportation options.
– Not based solely on price
– Safety is not an amenity
ABA’s Support of Safer Bus Operations
• ABA staff checks on company safety records
quarterly.
• Companies with Conditional ratings have 6
months to change.
• Companies with Unsatisfactory ratings are asked
to leave ABA.
• Look beyond satisfactory/unsatisfactory rating.
• Convenes the Bus Industry Safety Council.
• The BISC is comprised of
security, mechanical, safety, operational
and maintenance professionals as well as
consultants from all segments of the industry.
• Government agencies represented.
-DHS, TSA, FTA, FMCSA, NHTSA.
• The group meets regularly to discuss
issues, best practices and innovations
in the areas of safety, regulatory compliance,
maintenance, technology and security.
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5 committees.
Summer and Marketplace Meetings.
Member-driven, with 180 current members.
Chair, Charlie Corder - Coach USA.
Recent Rulemakings Affecting the Industry
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Seatbelts
Roof Crush
Stability Control
Driver Hours of Service
Electronic On-Board Recorders
Minimum Knowledge Requirements for New
Operators
• Enhanced Oversight for Operators Evading Sanctions
(Chameleon Carriers) – Double Happiness
• CDL/Driver Training Rules
Contact me anytime!
Peter Pantuso, CTIS
President & CEO
American Bus Association
111 K Street, NE, 9th Floor
Washington, DC 20002
Phone: (202) 218-7229
Email: ppantuso@buses.org
Web Site: www.buses.org
Reach us toll-free, 24/7 at (800) 283-2877