The industry, to be sure, has a long way to go. Recent reports suggest that passenger boardings are on some carriers are around 45 - 50% of pre-pandemic levels. But they remain even less in some regions, including California. Fares on major routes remain low, as our analysis shows, putting a squeeze on operators. Even so, a sense of normalcy is finally returning.

I witnessed the recovery first-hand on a bus trip two weeks ago between Philadelphia and New York’s Port Authority Bus Terminal. Never before was I pleased with the prospect of having to wait in line to board a bus! The Peter Pan coach departed—on time—with 28 aboard. This is an impressive number considering that Greyhound had a departure for Manhattan at the exact same time only steps away. Our driver was professional and courteous. The only “hitch” was heavy traffic at the Lincoln Tunnel, setting us back a half-hour, something for which no bus company can be blamed. On arrival, the Lower Level waiting area at the PABT was abuzz.

Despite this, it must be noted that many of our fears about the pandemic’s effects have not yet been allayed. Bus schedules on many routes will remain thin for the foreseeable future. On the Chicago - Cincinnati route I semi-regularly use to visit family, for example, Greyhound curtailed express service before the pandemic and, now, Megabus is completely absent. Barons Bus soldiers on, focusing primarily on local service, making stops at many locations with no other options. But with the express schedules gone, the shortest trip is now about eight hours, several more than before. Amtrak offers just three trains a week. Needless to say, many more travelers will be stuck behind the wheel

The implications of such cuts for mobility are serious. The New York Times has reported on the difficulties coming in the wake of the shutdown of Greyhound Canada. As a rough estimate, this iconic brand is operating about 60 -70% of its normal U.S. schedule in some parts of the country and Megabus even less. Adding to this, car rental prices have gone “through the roof” and the cost of flying has risen sharply. Gas prices have surged.

The new route follows Interstate 15 and has several intermediate stops, including Barstow, CA. This move builds on two of Salt Lake Express’s previous expansions: i) a new route from Salt Lake City to Elko, NV, which includes stops in Wendover, Wells and Jackpot, NV, and ii) a new Las Vegas - Reno, NV run, which is also made possible by an arrangement with Flixbus. The latter route serves both Reno airport and the city’s Silver Legacy Casino.  As noted in our 2021 Outlook report, Salt Lake Express recently made its entry into Las Vegas through consolidation with St. George Express.

We have been emphatic in expressing our view that the intercity bus industry was undervalued in recent federal policy, particularly as massive stimulus funds flowed to other modes of travel. Then, an apparent logjam lasting for several months slowed the distribution of the limited amount of funds set aside in the Coronavirus Economic Relief for Transportation Services Act.  Fortunately, CERTS funding is now being distributed. Among the routes reportedly reinstated due to CERTS funding is the Michigan Flyer “AirRide” service between East Lansing, Brighton, Ann Arbor, and Detroit Metro Airport. That service resumed on Monday, April 26. A new schedule encompasses 12 roundtrips each day, seven days a week.

Multimodal ground operator Landline, in partnership with United Airlines, launched service in March from Denver International Airport to the regional airports in Fort Collins and Breckenridge. With four daily buses operating to Fort Collins and one to Breckenridge, this service is meant to replace uneconomical regional-jet service. A notable aspect of this service is that it is designed to have similarities to a flight, with through ticketing and baggage available and waiting areas in airports similar to those used for flights. Moreover, buses depart Denver International at an “airside” location (i.e. behind TSA) security while arriving at the airport on the ground side, with bags seamlessly transferred. We have previously reported on Landline’s service between Minneapolis- St. Paul International Airport and Duluth and Mankato, MN. The carrier’s Minnesota operation now includes trips to and from St. Cloud. The carrier's fleet includes vans and motor coaches

Flixbus Experiments with Premium LA – Las Vegas Service

Germany-based Flixbus, which made its entry into the U.S. market in 2018, took the expected step of launching an experimental premium service over the Las Vegas-to-Los Angeles route around the busy Memorial Day weekend.  Running between May 27 and June 7, 2021, luxury Prevost coaches offered patrons expanded leg and elbow room and complimentary snack and beverage service served up by an onboard attendant. In Las Vegas, stops were made at the Tropicana and Fashion Show mall, while in Los Angeles, passengers could choose between a stop in downtown one block from Union Station, or in Hollywood. Tickets started at $59.99.

Flixbus has also returned to many cities to which it had launched service immediately prior to the pandemic, including Scranton PA and Buffalo, NY, Raleigh, NC (on a Washington, DC to Atlanta route), and Columbus, OH. The carrier has also added a few brand new cities, including Monterey, CA, and Portland ME. Several weeks ago, Flixbus received significant equity and debt financing to support its rail and bus expansion. The country now has three major carriers – Greyhound, Megabus, and Flixbus—having sizeable operations on both the East and West Coasts. 

The U.K. transport firm and owner of Greyhound Lines FirstGroup Plc agreed to a $4.6 billion deal in April to sell First Student, its school bus division, which serves 1,000 school districts, and First Transit, its transit division, which operates in more than 300 locations. Greyhound, the company’s last major U.S. operating unit, remains for sale.

The Chaddick Institute is pleased to co-sponsor this important conference by Reservamos SAAS, which will feature innovation in booking technology, service offerings, and other timely topics. Best of all, registration to “Future of Bus is Digital” is free.  Joe Schwieterman will be interviewed on Thursday, June 24, 2021, from noon - 12:40 p.m. EDT, focusing on recent North American developments. To register, click here

OurBus has launched an intercity bus service from New York City to Atlantic City, bringing together many of the existing, independently owned and operated bus lines into a cohesive network. The first of its new intercity routes offers daily departures four times per day connecting NYC with Galloway, NJ, and three casinos in Atlantic City: Resorts, Caesars, & Tropicana.

Greyhound Lines announced in early June it will be hiring around 200 drivers immediately and as many as 600 hires over the next year. These hires are in addition to those called back after being furloughed. Looming labor shortages, however, appear to be making filling open positions difficult.

RTAP to host Peer Roundtable about State Intercity Bus Programs  

The National Rural Technical Assistance Program and AASHTO’s Multi-State Transit Technical Assistance Program are co-hosting a peer exchange for state departments of transportation and to learn about implementing successful intercity bus programs. After a brief “Intercity Bus Program 101” presentation from an industry expert, a panel of state DOTs will discuss their approaches to implementing programs. There will be an opportunity for Q&A and discussion among participants. Wednesday, June 23, 2 p.m. EDT. To register, click here

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