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Even as carriers grapple with the latest COVID-19 variant, which has chilled demand, the fundamentals of the industry’s consumer market still appear strong.
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Cash shortfalls will make the next four or five months a tumultuous time, particularly for scheduled bus lines with asset-intensive business models.
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A new study on the intercity bus industry includes a stern warning: that a major carrier (or perhaps some combination of smaller carriers), could dramatically downsize service, or even shut down entirely this coming year if demand doesn’t rebound more rapidly than now anticipated.
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With FlixBus continuing to grow, competition amongst the big three continues to increase, while operations are partnering to solve the first-, last-mile issues by leveraging technology.
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Greyhound, Megabus, and FlixBus made notable strategic moves last year, with the latter launching service in 22 states.
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Industry analysts can only speculate what strategic moves come next. Will the new owners push to expand their market share, even if this means more aggressive fare discounting?
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With new brands like Flixbus entering the market, the industry is moving toward launching premium services that feature dynamic scheduling.
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Recently reality TV persona Snooki partnered with Megabus.com to highlight the safety features onboard Megabus vehicles, which keep riders safe.
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The most recent expansion of services has been more nuanced, generally spurred by a desire to fill gaps in the system, improve connectivity with Amtrak, and strengthen existing routes with new intermediate stops.
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With business down in Fiscal Year 2016, which ended in June,ridership also dipped in some markets, but not the Northeast where both services and competition are increasing. While admittedly in its infancy, crowdsourcing motorcoach services is also slightly on the rise.
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