METRO Magazine Logo
MenuMENU
SearchSEARCH

How motorcoach operators can survive in a post-Sept. 11 world

Already hurting, the North American motorcoach business received a staggering body blow on Sept. 11.

by Frank Di Giacomo, publisher
August 1, 2001
3 min to read


Already hurting, the North American motorcoach business received a staggering body blow on Sept. 11. In the span of a few hours, four airliners dropped from the sky in one of the most audacious and bloodcurdling terrorist attacks in history. Now, more than two months after the attacks, the tourism, hospitality and travel industries are still feeling the impact. And the worst may not be over. Yes, the motorcoach industry, especially linehaul carriers such as Greyhound, enjoyed a burst of business activity in the days after the attack as stranded air travelers desperately sought transportation alternatives, but that spillover has effectively dried up. In its wake is an American public still afraid to stray too far from home, despite encouragement from President Bush to take up their normal routines. In addition to spurring widespread cancellations of tours and charters, the Sept. 11 attacks have forced insurance carriers to hike their premiums as much as 100%. That’s a sharp blow to many motorcoach operators and creates another hurdle for recovery. How to meet the challenge How motorcoach operators respond to these challenges over the next several months could determine the health of the industry for several years. Rather than sit back and bemoan these newest setbacks and the impact they’re having on the fall season, motorcoach companies should be busy devising strategies to survive the winter. Here’s what I think needs to be done: Motorcoach companies and their respective associations need to continue to lobby for federal assistance. After all, the airline industry is receiving billions of dollars in bailout funds because of the huge dropoff in air travel. Many motorcoach companies rely on air travel, both for airport shuttle services and for delivery of customers, and have suffered along with the airlines. The expansion of the U.S. Small Business Administration’s Economic Injury Disaster Loan program to enterprises outside the designated disaster zones should provide some relief for cancelled or otherwise lost business. But more needs to be done to keep the motorcoach industry from further distress. Industry lobbyists are pushing for other relief measures: stronger economic disaster relief through Congress, federal funding for enhancement of vehicle and terminal security, a temporary exemption of the federal diesel fuel tax and tax credits for the purchase of new and used buses. Support the initiatives of your motorcoach associations. Letter-writing campaigns to Congress can be quite effective if the message is strong and the volume is high. Take the time to express your support of federal relief measures to your congressional delegates. How to survive the winter Of immediate importance, however, is cash flow. The cancellation of tours across the country has caused many companies, especially the smaller operators, to dig deep into their reserves to service their debt. Because it is in the interest of their lenders for them to stay in business, motorcoach companies should be asking for help. A few months of interest-only payments on rolling stock could be the difference between survival and bankruptcy. Or how about asking for three months of suspended payments, with the principal and interest tacked on to the end of the loan agreement? You might find that your creditors are more than willing to help you stay afloat, especially if you can offer evidence that you have a strategy to overcome the current travel malaise. As Dale Bunce indicates in his article, “Capitalize on New Opportunities, Says Motorcoach Marketing Expert,” tour and charter companies can no longer embrace “business as usual.” Identifying new opportunities and understanding the importance of delivering new services are keys to survival. As Dale mentions in his article, you will also need to reform your rate structure. Now is the time to expand your market and introduce more reasonable rates. You really can’t afford not to, can you?

Topics:Management
Subscribe to Our Newsletter

More Management

Passengers in crowded SEPTA station
Managementby StaffJune 29, 2026

SEPTA Board Approves FY2027 Budget Amid Funding Challenges

The spending plan represents an increase of just 1.9% over the current year and includes investments in new buses, additional full-length fare gates, and other customer enhancements.

Read More →
Charlotte Area Transit System's light rail pulling in to a station.
Managementby News/Media ReleaseJune 29, 2026

North Carolina CATS Approves Fare Modernization, Fare Ambassadors Programs

The initiatives will introduce new payment options, fare capping, and rider education as the Charlotte transit agency looks to simplify fares and improve the customer experience.

Read More →
California Expands Public Transit Strategy
Technologyby StaffJune 29, 2026

Executive Order Aims to Improve Transit Access Across California

The order directs state agencies to streamline transit project delivery, improve coordination, and expand access to bus and passenger rail services across California.

Read More →
Ad Loading...
A black and white image of an industrial area in Wilson, North Carolina, with blue text reading "Microtransit Fare Hikes May Hurt."
Managementby Elora HaynesJune 29, 2026

Microtransit Fare Hikes May Hurt More Than Help, Study Finds

New research suggests raising microtransit fares may drive away the riders agencies need most.

Read More →
An MCI J4500 for Rustad Tours
Motorcoachby StaffJune 26, 2026

Minnesota's Rustad Tours Takes Delivery of New MCI Motorcoach

The latest addition represents Rustad Tours’ 17th new MCI coach, marking more than four decades of partnership between the two companies.

Read More →
Managementby StaffJune 26, 2026

Seattle's Sound Transit Refunds Debt, Saving Approximately $23 Million

As part of the debt refunding process, Sound Transit requested that the credit rating agencies rate the new debt issuance along with the current outstanding debt.

Read More →
Ad Loading...
An preserved white and green older CATS transit bus.
Managementby News/Media ReleaseJune 25, 2026

North Carolina’s CATS Celebrates 50 Years of Public Transit

The milestone event honored generations of transit workers and showcased how public transportation has evolved into a multimodal system serving one of the nation's fastest-growing regions.

Read More →
Endera electric buses for California’s Mendocino Transit Authority
Technologyby StaffJune 25, 2026

Biz Briefs: Endera Delivers to California, Safety Vision Teams with San Antonio's VIA, and More

From manufacturers and suppliers to transit agencies and motorcoach operators, these updates offer a snapshot of the projects, partnerships and business moves driving the industry forward.

Read More →
Investing in Long-Term Transportation Reliability
ManagementJune 24, 2026

Smarter Maintenance Starts with Risk, Not Routine

As infrastructure ages and funding pressures mount, effective asset management is becoming critical to maintaining safe, reliable transportation networks.

Read More →
Ad Loading...
Seniors exiting an OCTA van.
Managementby News/Media ReleaseJune 24, 2026

OCTA Extends Senior Mobility Program Agreements Through 2031

The Measure M-funded program has provided nearly 3.5 million trips and will continue helping thousands of older adults maintain independence and access essential services.

Read More →