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5 3% 3% National Transit Database (accessible at www.ntdprogram. 8% com). However, these transit statistics are not readily com- 7% 50+ parable with NHTSA data, possibly because of differences in reporting requirements, such as how crashes and injuries are 25-49 defined. National Transit Database statistics are reported in 10-24 51% a high level of detail and may require further analysis of 6-9 the source GES data files in order to reconcile them with 2-5 29% NHTSA's estimates. 1 Because vehicle-miles traveled (VMT) for motorcoaches was not available for every year, the fatality, injury, and crash rates over time could not be calculated. For a general estimate Note: Total of 8,568 firms. This chart excludes 82 firms with of VMT, the American Bus Association 2000 Motorcoach equal-sized school bus and motorcoach operations, 595 firms with Census reports that in 1999, motorcoaches traveled approxi- equal-sized school bus and trucking operations, and 2,157 bus firms that did not specify the type of vehicles operated. mately 2.6 billion vehicle-miles total. This figure is based on Source: FMCSA MCMIS, 2000. responses to a one-time survey and is not annually updated. Table 5 and Figures 7, 8, and 9 show the motorcoach indus- Figure 3. Percentage of motorcoach firms by try safety statistics, where available. fleet size owned/operated, 2000. ECONOMY AND FINANCES state motor carriers, the statistics from NHTSA's Fatality Analysis Reporting System (FARS) are regarded as true pop- This section provides economic and financial information ulation totals. Statistics from the National Automotive Sam- on the motorcoach industry, including sources of revenues, pling System's General Estimates System (GES), which factors affecting profitability, driver compensation, full-time reports crashes, are estimated for the entire vehicle popula- utilization, operating cost per mile, trends in motorcoach sales, tion from a representative national sample. trends in passenger-miles, and distribution of passengers and NHTSA reports injuries and crashes in GES for the aggre- mileage within the industry. gate category of buses, which includes motorcoaches, school buses, and transit buses. Subtracting NHTSA's estimates of Revenues and Expenses injuries and crashes involving school buses yields combined transit bus and motorcoach injuries and crashes. Transit safety Table 6 shows the top 12 motorcoach companies by oper- statistics are reported to the Federal Transit Administration's ating revenue in 2001, based on data from the Bureau of TABLE 2 Comparison of motor carrier management information system data and American Bus Association data for motorcoaches by fleet size, 2000 Fleet Size ABA Firms MCMIS Firms ABA Vehicles MCMIS Vehicles 100+ 50 91 11,200 31,492 50-99 120 131 7,500 8,808 25-49 200 283 6,400 9,641 10-24 600 647 9,100 9,747 <10 3,030 7,416 10,000 15,907 Total 4,000 8,568 44,200 75,595 Source: R.L. Banks & Associates, Inc., American Bus Association, 2000 Motorcoach Census; FMCSA MCMIS, 2000. TABLE 3 Motorcoach firms by geographic region, 2000 Number of Motorcoach Firms Region All For Hire West 1,641 987 Midwest 1,522 1,121 South 3,189 2,035 Northeast 1,874 1,392 Canada 318 277 Mexico 22 15 Other 2 0 Note: This table excludes 82 firms with equal-sized school bus and motorcoach operations, 595 firms with equal-sized school bus and trucking operations, and 2,157 bus firms that did not specify the type of vehicles they operated. Source: FMCSA MCMIS, 2000.

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6 Other 0.02% were equal to 99 percent of operating revenues). Carolina Mexico 0.26% Coach, Inc., and Bonanza Bus Lines, Inc., (ranked third and Canada 4% West 19% fourth, respectively) had operating ratios of 73 percent. Com- bined, the top 12 motorcoach companies had operating rev- enues of $1.076 billion and operating expenses of $1.039 bil- Northeast 22% lion, for an operating ratio of 97 percent. Midwest 18% Sources of Revenues South 37% Figure 10 shows the average sources of operating rev- enue for the motorcoach industry, obtained from a United Motorcoach Association survey of 175 motorcoach compa- Note: Total of 8,568 firms. This chart excludes 82 firms with equal-sized school bus and motorcoach operations, 595 firms with equal-sized school nies nationwide. According to this study, charter services pro- bus and trucking operations, and 2,157 bus firms that did not specify the vide over half of industry revenue. Other sources of operat- type of vehicles they operated. ing revenue include advertising, freight revenue, and minor Source: FMCSA MCMIS, 2000. school bus contracts. Percentages do not add to 100 because Figure 4. Distribution of motorcoach firms by each source represents an average percentage of total operat- geographic region, 2000. ing revenue across the 175 motorcoach firms. Transportation Statistics. Dividing operating expenses by Factors Affecting Profitability operating revenues shows the operating ratio for each com- pany. The higher the operating ratio, expressed in percent- The American Bus Association's "2001 Industry Sur- ages, the smaller the company's profit margin from opera- vey," representing responses from 161 motorcoach firms, tions. The data show that in 2001 the motorcoach company cites five of the most "pressing concerns, issues, challenges, with the most revenue from operations, Greyhound Lines, Inc., and problems facing motorcoach companies." Listed in order had an operating ratio of 99 percent (i.e., operating expenses of most-to-least cited, they are as follows: TABLE 4 Percentage of motorcoach companies offering service, by segment and fleet size owned/operated, 2000 Service Type Sample Airport Fleet Size Size Charter Tour Sightseeing Shuttle Commuter Scheduled Other 100+ 41 84% 24% 32% 32% 36% 36% 20% 50-99 83 95% 24% 31% 20% 32% 39% 8% 25-49 137 95% 40% 28% 25% 25% 31% 8% 10-24 455 98% 39% 24% 18% 19% 15% 9% <10 1,366 88% 31% 24% 19% 18% 7% 6% Total 2,082 96% 33% 25% 19% 19% 12% 7% Source: R.L. Banks & Associates, American Bus Association, 2000 Motorcoach Census. Percent of Firms 100% 96% 80% 60% 40% 33% 25% 19% 19% 20% 12% 7% 0% Charter Tour Sightseeing Airport Commuter Scheduled Other Shuttle Source: R.L. Banks & Associates, American Bus Association, 2000 Motorcoach Census. Figure 5. Percentage of total motorcoach firms offering service, by segment, 2000.

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7 Percent of Firms 100% 80% 60% 40% 20% 0% Charter Tour Sightseeing Airport Shuttle Commuter Scheduled Other 100+ 84% 24% 32% 32% 36% 36% 20% 50-99 95% 24% 31% 20% 32% 39% 8% 25-49 95% 40% 28% 25% 25% 31% 8% 10-24 98% 39% 24% 18% 19% 15% 9% <10 88% 31% 24% 19% 18% 7% 6% Source: R.L. Banks & Associates, American Bus Association, 2000 Motorcoach Census. Figure 6. Percentage of motorcoach firms offering service, by segment and fleet size owned/operated, 2000. TABLE 5 Motorcoach fatalities, transit bus/motorcoach injuries, and transit bus/motorcoach crashes, 1991 through 2002 Motorcoach Transit Bus/ Transit Bus/ Year Fatalities Occupant Fatalities Motorcoach Injuries Motorcoach Crashes 1991 46 Further analysis required Further analysis required Further analysis required 1992 45 Further analysis required Further analysis required Further analysis required 1993 35 Further analysis required Further analysis required Further analysis required 1994 25 Further analysis required Further analysis required Further analysis required 1995 30 Further analysis required Further analysis required Further analysis required 1996 43 3 19,000 31,301 1997 46 4 9,000 25,901 1998 50 13 14,000 25,629 1999 66 32 13,000 33,244 2000 48 3 Further analysis required 27,935 2001 46 3 Further analysis required Further analysis required 2002 53 20 Further analysis required Further analysis required Source: NHTSA Traffic Safety Facts; University of Michigan Transportation Research Institute, Bus Accidents in the United States, 1995 to 1999. Fatalities 70 60 50 40 30 20 10 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Source: NHTSA, Traffic Safety Facts. Figure 7. Fatalities in motorcoach-involved crashes, 1991 to 2002.

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8 Injuries 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1996 1997 1998 1999 Year Source: NHTSA, Traffic Safety Facts. Figure 8. Injuries in transit bus and motorcoach-involved crashes, 1996 to 1999. Injuries 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1996 1997 1998 1999 2000 Year Source: NHTSA, Traffic Safety Facts. Figure 9. Transit bus and motorcoach-involved crashes, 1996 to 2000. TABLE 6 Top 12 motorcoach companies by operating revenue, 2001 Operating Operating Operating Rank Company Revenues ($) Expenses ($) Ratio 1 Greyhound Lines, Inc. 880,253,778 870,387,200 99% 2 Peter Pan Bus Lines, Inc. 49,393,748 39,153,870 79% 3 Carolina Coach, Inc. 23,393,476 17,027,031 73% 4 Bonanza Bus Lines, Inc. 20,656,000 15,174,000 73% 5 Frank Martz Coach Co. 19,046,823 18,645,005 98% 6 Jefferson Partners LP 18,719,371 18,527,758 99% 7 Decamp Bus Lines 14,399,310 14,081,382 98% 8 Vermont Transit Co. Inc. 12,385,026 11,214,471 91% 9 Southeastern Stages, Inc. 10,367,114 8,992,545 87% 10 Carl R. Beiber, Inc. 9,716,022 9,355,596 96% 11 Concord Coach Lines, Inc. 9,100,753 8,630,452 95% 12 Capitol Bus Co. 8,169,753 8,028,694 98% Total 1,075,601,174 1,039,218,004 97% Note: Includes intercity regular route carriers, defined as carriers whose revenue from intercity regular routes exceeds revenue from all other types (local, commuter, charter) combined. Source: Bureau of Transportation Statistics, Motor Carrier Financial and Operating Statistics.

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9 1. Increasing fuel, insurance, and equipment costs versus driver salary at $10.64 per hour and the 2002 median inter- flat or declining revenue; urban bus driver salary at $15.15 per hour. 2. Finding and retaining drivers; 3. Competitors' cut-rate pricing and noncompliant practices; 4. Problems concerning government regulations; and Driver Work Schedules 5. Finding mechanics and nondriver employees. A motorcoach driver's schedule varies depending on the nature of the driving: intercity scheduled routes, scheduled Driver Qualifications for Employment destinations, and tour and charter trips. The basic qualifications for employment as a motorcoach Intercity scheduled route drivers may work up to 70 driver are as follows: hours per week, and 12 to 14 hours per day. They may drive 8 to 10 hours per day. Drivers' daily schedules are Obtain a Commercial Driver's License; usually consistent for two weeks or more, fluctuating Pass a physical examination every two years (if trans- when routes or schedules are changed through bid or porting passengers across state lines); reassignment. Unplanned work may occur based on Be 21 years of age (if transporting passengers across unexpected demand; the less seniority, the greater the state lines); likelihood a driver will be called to work unexpectedly. Submit to random drug and alcohol testing; Quality of rest is consistent, being obtained at home, in Have no criminal record involving drunk driving, drug hotels, or in terminal facilities. use, or hit-and-run driving; Scheduled destination drivers may work up to 70 hours Speak English well enough to read road signs; per week and 15 hours per day. They may drive up to Pass an FMCSA written exam; and 10 hours per day. The length of the duty-day may extend Be courteous, even-tempered, and have strong customer as much as 20 hours. Most drivers serving scheduled service skills. destinations have consistent daily scheduling. Usually, they have at least one full day per week off-duty, and many times they have two full days, although these are not Driver Compensation normally consecutive days. Unplanned work may occur based on unexpected demand; the less seniority, the According to the American Bus Association in their Desti- greater the likelihood a driver will be called to work nations magazine "2001 Industry Survey" of 161 motorcoach unexpectedly. Quality of rest is consistent, being obtained companies, motorcoach drivers are paid an average of $10.91 at home, in hotels, or in other facilities. per hour, or $0.32 per mile. Of the firms that responded to the Tour and charter drivers may work up to 70 hours per survey, 69 percent paid drivers hourly, 20 percent paid driv- week and up to 15 hours per day. They may drive 8 to ers by the mile, and 11 percent paid through other methods. 10 hours per day. Drivers' daily schedules fluctuate and The Bureau of Labor Statistics Occupational Outlook are dictated by group itinerary. During peak demand, driv- Handbook 20042005 estimates the 2002 median charter bus ers may not have a full day off for two or three weeks, but during off-peak seasons the workload is significantly lighter. Quality of rest is consistent, being obtained at Other 5% home or in hotels. Tour 11% Full-Time and Part-Time Employment Charter 56% Two studies report full-time versus part-time employment in the motorcoach industry. First, according to the American Scheduled 25% Bus Association's Destinations magazine in their "2001 Indus- try Survey," 49 percent of drivers and 72 percent of nondriver employees at motorcoach companies work full time; a total of 57 percent of all employees work full time. This survey Note: Reflects survey responses from 175 motorcoach companies nationwide. covers responses from 161 bus companies. Source: United Motorcoach Association, 2000 UMA Benchmarking and Second, based on mailings, surveys, and statistical esti- Operating Ratios Study. mates, the American Bus Association 2000 Motorcoach Figure 10. Motorcoach industry sources of operating Census estimates that 63 percent of all employees work full revenue, 2000. time. As shown in Table 7, the study estimates that larger

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10 TABLE 7 Percentage of full-time employees at motorcoach More than 10 hours, following 8 hours off duty; companies, by fleet size owned/operated, 2000 After 15 hours on duty, following 8 hours off Number of Employees Full-Time Employment duty; and 100+ 76% After 60/70 hours on duty in 7/8 consecutive days. 50-99 63% Medical standards and physical qualifications-- 25-49 64% Apply only to employees of private companies, not of 10-24 52% <10 51% government-owned operations. Total 63% Drug and alcohol testing--Applies to all drivers of Source: R.L. Banks & Associates, American Bus Association, 2000 vehicles with a seating capacity of more than 15 pas- Motorcoach Census. sengers. Commercial Driver's Licenses--Are required of all drivers of vehicles with a seating capacity of more than motorcoach companies have a greater percentage of full- 15 passengers. time employees than do smaller motorcoach companies. Operating Cost per Mile Driver Duties The duties of a motorcoach driver typically include, but are The American Bus Association, in their Destinations not limited to, the following: magazine, "2001 Industry Survey" estimates motorcoach operating costs at $1.90 per mile in 2001, an increase from Inspect the bus before leaving the garage or terminal; $1.42 in 1999. The United Motorcoach Association's Bench- Be alert when driving in order to prevent crashes; marking and Operating Ratios Study estimates that of the Keep to schedules and adhere to tour guidelines; and costs of sales (all costs directly attributable to trips, exclud- Interact with customers and tour guides as required ing general overhead), approximately 32 percent are labor; in order to help make the trip more comfortable and 28 percent are associated with equipment insurance, licenses, informative. and depreciation; and 39 percent, costs such as fuel and repairs, vary depending on mileage. This breakdown is shown in Figure 11. Both of these studies relied on national Driver Regulations surveys to estimate figures representative of the entire motorcoach population. Motorcoach drivers are subject to a number of FMCSA reg- ulations, which include but are not limited to the following: Motorcoach Sales Hours-of-service (HOS) regulations--The new HOS regulations that went into effect in January 2004 do not As shown in Table 8 and Figure 12, annual motorcoach apply to motorcoach drivers. Old HOS regulations, those sales nationwide peaked in 1999 at 4,100 vehicles, and have in effect on October 1, 2002, apply to employees of pri- since declined to their 1995 to 1996 levels of approximately vate companies, but not of government-owned compa- 2,400 vehicles. According to the American Bus Association, nies. The old HOS regulations stipulate that a motor- the average cost of a new motorcoach is approximately coach driver may not drive $350,000. 28% 32% Direct Labor (Wages, Expenses, Benefits) Mileage Expense, Includes Fuel Equipment Insurance, Licenses, Depreciation 39% Note: Reflects survey responses from 175 motorcoach companies nationwide. Source: United Motorcoach Association, 2000 UMA Benchmarking and Operating Ratios Study. Figure 11. Motorcoach costs of sales, 2000.