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) • • • • • • • • • • • 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. – – – – 5 committees. Summer and Marketplace Meetings. Member-driven, with 180 current members. Chair, Charlie Corder - Coach USA. Recent Rulemakings Affecting the Industry • • • • • • 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