The Intercity Bus Industry
Bill Brannan
Northwestern Trailways
National Bus Traffic Assn.
Decline of Communities Served by National Intercity Bus Service
• Began after creation of Federal Highway
System in 1956
• More personal vehicles
• Increased airline travel
• Service reduction by Greyhound/Trailways
25,000
Number of Communities
Connected by Intercity Bus
Service
(1956-2005)
20,000
15,000
10,000
5,000
0
1956 1965 1968 1972 1977 1982 1986 1991 2000 2002 2004 2005
Decline in Washington State
Intercity Bus Service
In Washington . . . 1982
In Washington . . . Today
What’s in the future
Intermodalism
Internationalism
Canada - United States – Mexico
Intercity Connectivity
• Our Nation’s transportation infrastructure
relies on intercity connections to facilitate
access to nationwide travel.
• Motorcoaches can help complete intermodal
trips, long distance moves or provide daily
commuter between cities.
What is Intercity Transportation?
(As defined by FTA 5311(f) guidelines)
•
•
Operates regionally on a regular fixed route schedule
Connects rural communities to larger urban centers
through the statewide network
•
Is capable of carrying passenger baggage and freight
•
Has meaningful connections with national intercity
carriers and other transportation providers
What Intercity is not:
• Intercity is not a local commuter service
• Intercity is not demand responsive
These services can act as connectors for
the Intercity Network, but are funded
from sources other than FTA 5311(f)
Characterizing Private Intercity
Fixed Route Carriers
• How many scheduled service companies exist?
– 100-200 carriers2
– Approximately 70 carriers nationwide are listed in the Russell’s
Guide and 59 carriers belong to the National Bus Traffic
Association.
• How many scheduled service stops are served by private
carriers?
– Nearly 3,200 bus stations1, serving over 4,200 destination points
• How many rural intercity passengers are served by private
carriers ?
– Able to reach 72.9 million passengers, serving over 31 million in
2001 (as reported by 12 of the 203 identified carriers in 2001)1
Identifying Private Intercity Scheduled
Service Carriers
• Intercity carriers serving rural communities
can be identified through several sources.
–
–
–
–
Russell’s Official National Motor Coach Guide
The Greyhound System Timetable
State regulatory agency listings
Trade associations
• American Bus Association
• National Bus Traffic Association
Examples of Intercity Bus Service
• Private for-profit firms regulated by FMCSA
– Greyhound and Northwestern Trailways
• Private firms, non-profits, or transits that receive
5311(f) grants to provide service between rural
centers or from rural areas to urban areas
• Public transit systems that connect to traditional
IC carriers outside their service areas
Other Examples of Intercity Bus
Service
• Airporters that offer regular route services
between fixed points
• Bus services operated in conjunction with
Amtrak
What is NBTA?
•
•
•
•
The National Bus Traffic Association is:
A non-profit association headquartered in
Washington, DC
Founded in 1933
Home of the Interline Revenue Clearing House
and the Tariff Publisher for the Intercity Bus
Industry
A collection of 59 intercity scheduled service
carriers located throughout the United States and
Canada
Map of US NBTA Members
Interlining tickets with other
companies
One ticket for entire trip
• 50% of passengers use more than one
carrier
• Each carrier is independent
• Each carrier markets locally to their
customers
• Share the revenue from ticket based
on miles
Interline Revenue Clearing
House
• An interline ticket (also known as a thru ticket) allows a
passenger to buy a single ticket to travel to a final
destination that may require transportation from two or
more bus service providers.
• Tickets can be distributed through an Automated Ticketing
System
– Greyhound’s TRIPS/MAX system’s
– Gateway/Galaxy system is
used by several carriers
• The process used to derive billing carrier’s proportionate
share of ticket revenue is a function of miles transported to
thru trip miles (mileage prorate).
An Interline Ticket
Payment Through the Interline
Revenue Clearing House
• The Association operates the interline revenue clearing
house which provides for the monthly settlement of credit
and debit accounts electronically.
• Each month the carriers submit billing invoices to reclaim
their portions of the thru ticket revenue, in addition to other
categories of charges aligned with bus operations, such as:
facilities rents, fuel, maintenance, etc.
• Carriers can submit their invoices requesting payment from
other carriers online through the Association’s website
www.bustraffic.org, as well as view the amounts that they
owe.
• Net payments are deposited and credited to the appropriate
accounts through an electronic funds transfer.
Sponsorship Advantages for
Transit Agencies and Non-Profits
• Nationwide visibility and quotation of the services offered
by sponsored transit agencies
• Increased ridership
• Convenience of through ticketing for customers
• Expanded access for rural residents to the national
transportation network
• A more seamless and coordinated national ground
transportation system
• Access to additional funding sources
– Ticket Sales Commissions
– 5311
– 5311 (f)3
• Decreased paperwork
Sponsored Transit Agencies and
Non-Profits
• May enter into a sponsorship arrangement with an NBTA
member carrier, who will secure a membership application.
• Pay a nominal annual membership fee to the Association.
• Sell tickets to intercity destinations on the sponsoring
carrier’s ticket stock from destinations originating on the
sponsored carrier’s operating lines.
• Honor tickets of NBTA member carriers from intercity
points of origin terminating on the sponsored carrier’s
operating lines.
• Sponsoring NBTA member carrier will secure all
applicable reclaims.
Annual dues payment of $100.00
Greyhound Rural Feeder Service
Program
Feeder service must be meaningful:
•
•
Prefer scheduled service over Demand Response service
Proper operating authority & insurance
•
Interline relationship with the Greyhound: NBTA “sponsored transit
agency” membership
•
Operated at least 5 days per week
•
Not duplicating existing or other subsidized service
•
Proper ticketing & package express service
• Information
August
21, 2007
available to nationwide ICB network
Greyhound Rural Feeder Service
Program
Meaningful Connections
•
Weather, accidents or a change of plans can all impede a customer’s
ability to properly schedule a return ICB trip with a DR feeder service
•
If we can’t guarantee a customer’s connection return trip, we can’t issue a
ticket or include the DR feeder service in our fare & schedule database
•
And if customers, ICB companies & ticketing agencies can’t see local
feeder service in our database, they can’t sell or market that local feeder
service
•
But substantial increases in 5311(f) funding make scheduled feeder
services much more feasible
August 21, 2007
Greyhound Rural Feeder Service
Program
Benefits for Feeder Services
• A rural feeder service can be operated with new & increased
5311(f) funding
• A rural feeder service may be able to secure local match for the
project through the FTA local in-kind match pilot program
• A rural feeder service can sometimes also become an agent and
also receive a commission on each ticket sold or package shipped
(which can then be used as local match)
August 21, 2007
Greyhound Rural Feeder Service
Program
FTA Local In-kind Match Pilot Project
• FTA initiated a 2-year pilot for using the unsubsidized capital costs
of ICB service as in-kind match for the operating costs of 5311funded feeder services
• Project definition must include both the feeder service and the
connecting intercity bus segment, and the project budget must
include both the direct costs and the in-kind contributions
• WSDOT supported this measure and is using the local match
option in the Walla Walla service expected to begin in the near
future
August 21, 2007
Greyhound Rural Feeder Service
Program
How Local In-kind Match Pilot Project works:
5311(f) Formula
$100,000
$100,000
- 50,000
50,000
- 25,000
$ 25,000
Local Match Option
Actual Operating Cost
$100,000
Project Cost
less Fares
Deficit
50% 5311(f)
50% local match
$150,000
- 50,000
100,000
- 50,000
$ 50,000*
* At about $2.00 per mile (50% of Greyhound’s total operating cost), the project would need
25,000 annual Greyhound miles to match the project.
August 21, 2007
* Greyhound will agree in writing to make this in-kind donation to the project.
New Intercity Funding
Approach
• Separate Intercity FTA 5311(f) funds from the
WSDOT Consolidated Grant Process
• Draft a Request for Proposals for specific routes
within the identified intercity network
• Select best operator for each project
• Competition between providers, not projects
RFP Process
No Grant Applications
• RFP’s Issued on
Corridor Basis
• Gives More Control
• Sets Expectations in
Advance
• Makes Sure we Tie
in with Greyhound
Schedule
RFP Process
 WSDOT works with area stakeholders to identify intercity
transportation needs and levels of service required for a
regional route
 WSDOT drafts an RFP for specific service levels along a route,
which reflects those identified regional needs
 Providers respond to the RFP with their proposals for meeting
specified service criteria
 A diverse panel of regional stakeholders reviews each of the
proposals to select the one which meets the service criteria,
and reflects the best overall public interest value
RFP Criteria
•
Meaningful connections with interstate, regional and local
providers
•
A sound and sustainable business plan which includes revenue
recovery from fares, freight handling and contracts
•
ADA compliant service vehicles
•
Interline agreements with Greyhound and Amtrak
•
FMCSA authority to connect with interstate carriers
•
Federal certifications and assurances regarding insurance and
drug/alcohol compliance
Travel Washington - Grape Line
Walla Walla Feeder Service Project
• With the Greyhound Rural Feeder Service program and FTA local
in-kind match pilot in place: WSDOT established a process for
creating feeder service to/from Walla Walla
• The project was designed to meet all FTA requirements for the
5311(f) program, including meaningful connections with
Greyhound
• WSDOT & Greyhound staff cooperated on the development of
service schedules
• WSDOT held numerous local and regional public meetings to
obtain input
August 21, 2007
Walla Walla Feeder Service Project
Project Status:
• WSDOT has completed the RFP process and selected a
service provider
• The provider is in the process of completing all the
steps for service start up
• We expect service to be initiated in the near future
August 21, 2007
Walla Walla Feeder Service Project
• WSDOT conducted a competitive RFP process that
clearly presented service requirements, including:
–
–
–
–
–
Prescribed routing & scheduling
Service name: The GrapeLine
Days of service: 7 days per week, 365 days per year
Obtain NBTA membership for revenue sharing
Secure FMCSA and Washington Utilities & Transportation
Commission (WUTC) authority
– Ensure Greyhound ticketing capability for service
– Aggressively market the service
August 21, 2007
Walla Walla Feeder Service Project
Customer ticketing:
• GrapeLine customers will be able to buy a one-way or round trip
ticket in several ways:
– Greyhound’s toll-free telephone information center
– Online through www.greyhound.com
– By phone (or in person) through GrapeLine, using Greyhoundsupplied software and ticket printer
• Customers will be able to buy tickets in advance or on the day of
travel
• Tickets, issued in multiple parts, will include travel on GrapeLine
and Greyhound (to their final destination)
August 21, 2007
Walla Walla Feeder Service Project
Reconciling ticket revenues:
• GrapeLine & Greyhound will both sell tickets
• If GrapeLine sells the ticket, they will collect the fare for all
segments of the trip including Greyhound segments
• If Greyhound sells the ticket, we will collect the fare for all
segments of the trip including GrapeLine segments
• At the end of each month, GrapeLine and Greyhound will
reconcile the ticket revenue collected by both and reimburse the
other for any ticket revenue owed
August 21, 2007
Walla Walla Feeder Service Project
• Project funded with FTA 5311(f) funding and matched by
Greyhound’s unsubsidized capital costs
• Definition includes the feeder service segment from Walla Walla to
Pasco and a Greyhound service segment from Pasco
• Feeder service will make 3 scheduled round trips daily between
Walla Walla-Pasco, including stops in Touchet, Wallula and
Burbank, the Pasco Intermodal (making the Greyhound
connections), the Pasco Airport and the Pasco Transit Center
• The service schedules will help meet regional travel needs in
addition to making the Greyhound connections
August 21, 2007
Manual tickets
MAX
Manual Agent
x
E termination
» Developed by Greyhound
» Provides on-line ticketing at
agencies
» Automatic reporting and statistics
If you would like to see a live
demonstration of MAX on-line,
see me after workshop.
Northwestern Trailways
Number of Passengers Continue to
Grow
71000
70000
Passengers
69000
68000
67000
66000
65000
64000
63000
62000
2003
2004
2005
2006
The End Result
• Consistent and sustainable high quality
service
• Increased community awareness of services
• More regional interconnectivity
• Increased coordination amongst interstate
and regional providers
Computerized MAX ticket