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Forecasts for intercity bus travel are markedly better than those generally made for public transit, but somewhat less optimistic than that for Amtrak predicted by McKinsey & Co.
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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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