Industry Insights

Intercity Bus Services Research 2020 by DePaul University

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The 2020 Intercity Bus Services research by DePaul University examines the sector’s economic performance and trends shaping its future.

Executive Summary

About the Research/White Paper

Part I of this report explores intercity bus industry trends, while Part II reviews notable service additions and reductions by region in 2019. Part III looks to the future.

Key Highlights

  • Four trends herald the major changes underway in scheduled intercity bus travel:
    • FirstGroup’s plan to sell Greyhound Lines, announced in May, comes at a time of considerable demand variability. Revenues rose last spring and summer due to a surge in immigrant riders but subsided during autumn.
    • Flixbus, the Germany-based juggernaut now dominant in Western Europe and rapidly expanding in other parts of the world, is building a U.S. network of considerable size and scope. Recent expansion has brought it to the Northeast, Southeast, Pacific Northwest, and Texas. The carrier’s business model and network strategies, however, differ from its competitors.
    • California-based Variant Equity formally acquired Stagecoach’s Megabus unit and the rest of the Scotland-based company’s U.S. operations. In June, the carrier rolled out a Partners Program that lays the groundwork for more contracting with other bus lines on the megabus.com platform.
    • Intercity bus lines and booking platforms are using “first and last mile” strategies to help customers access services more easily. Some strategies involve simple discounts but others fully integrate “on-demand” taxi and rideshare services into booking platforms.
  • Significant increases in seat capacity on the U.S. intercity bus system reflects not only growth by Flixbus and OurBus but also expansion by conventional and specialty lines. The growth has been more appreciably on routes between major cities separated by 100 to 400 miles. Meanwhile, new business models are being refined, including premium services aimed at travelers weary of the airports and “branded” state-supported networks.

Citation

How to Cite This Report: DePaul University, Chaddick Institute for Metropolitan Development. (2020). Making Connections: 2020 Outlook for the Intercity Bus Industry in the United States. Retrieved from https://www.buses.org/aba-foundation-research-summary/intercity-bus-services-by-depaul-university-2020.

Report Author: Joseph P. Schwieterman, Ph.D., Brian Antolin.

Contact information: For inquiries, email research@buses.org or call (202) 218-7227.

Methodology

The information in this report was compiled using public data sources and an analysis of industry news.

Additional Resources