Local Bus Charter Service

SIC 4141

Companies in this industry

Industry report:

This category includes establishments primarily engaged in furnishing local bus charter service where such operations are located principally within a single municipality, contiguous municipalities, or a municipality and its suburban areas.

According to the U.S. Census Bureau, 1,327 establishments operated in this category in 2009. Industry-wide employment totaled approximately 29,173 workers, who received a total payroll of more than $727.5 million. Companies in this industry tend to be small in size, with more than 90 percent employing fewer than 100 workers.

The local bus charter service industry, whose primary business is local sightseeing tours and airport shuttle service, grew rapidly after 1982. The number of employees increased from 3,781 to 8,782 from 1982 to 1997, and the number of establishments grew from 163 to 503 during that time. The average salary for all employees in 1997 was $16,094. In 2001, 1,395 establishments operated with 33,406 employees receiving a total payroll of $660 million. By 2004, the number of establishments dropped to 1,265, and the number of employees decreased 11 percent, while annual payroll remained stable. The mean annual salary for charter bus industry employees in May 2005 was $26,540, and the 18,940 industry employees who were only bus drivers received an hourly mean wage of $11.75. In 2007 there were approximately 1,300 establishments operating in this industry, employing 31,343 employees who earned more than $737 million and generated just under $2.45 billion in revenues. By 2010 inter-city and transit bus drivers were earning an average of $13.13 an hour, and the mean annual wage for all occupations in the industry was $31,550 a year, according to the Bureau of Labor Statistics.

One of the industry leaders in the early 2010s was Coach USA Inc. of Paramus, New Jersey, with almost $290 million in revenues and approximately 5,000 employees. Coach operated about 2,700 vehicles, including buses, trolleys, and large vans, as well as school buses, through 20 subsidiaries in North America. MV Transportation Inc. of Fairfield, California, had $726.4 million in 2010 revenues and employed 12,389 people. MV provided fixed-route, shuttle bus, and paratransit services in 27 states and Canada with a fleet of about 7,000 vehicles. First Student Inc., headquartered in Cincinnati, Ohio, became the largest school bus service provider in the country after purchasing Laidlaw Transit Services Inc. in 2007. With 57,000 buses, First Student had revenues of $3.2 billion in 2010 and had 68,000 employees. Although a small company, with sales just short of $50 million in 2010 and 1,360 employees, SuperShuttle International Inc. of Scottsdale, Arizona, was an important provider of shared-ride door-to-door shuttle services, such as transportation to and from airports. In the early 2010s it carried approximately 8 million passengers a year.

Affiliates of the Denver-based Gray Line Worldwide (a subsidiary of Coach USA), a sightseeing and tour operator association with a global membership of 150 companies, provided charter services and airport transfers across the country to accommodate local niches in more than 50 cities in the United States. For example, Gray Line of San Francisco offered sightseeing expeditions around the city, as well as tours to nearby attractions, such as the Napa Valley wine country. It also offered tours in about 10 foreign languages to accommodate international tourists. Gray Line of Alaska offered land tours of Anchorage, Fairbanks, Ketchikan, Skagway, Valdez, and the state's capital of Juneau, some lasting as long as 10 days. In addition to its 27 daily sightseeing tours, Gray Line of Las Vegas did a high volume of business in airport shuttle service.

According to a American Bus Association (ABA) study of U.S. and Canadian charter bus services, in the middle of the first decade of the 2000s about 47 percent of motorcoach mileage was for charter service, 27.4 percent for scheduled service, and 2.1 percent for both sightseeing tours and airport service. A follow-up study, the Motorcoach Census Update 2010, showed that the number of motorcoaches operating in 2009 in the United States and Canada was down slightly from 2008, at 35,026, as were passengers per service mile (34 compared to 35.6).

Despite declining numbers, the ABA continued to promote motorcoach transportation as "the safest, most fuel efficient, and least energy intensive" of all types of transportation. The industry also served as a vital go-between for airport and cruise ship travelers and was often the most affordable option of travel. The September 11, 2001, terrorist attacks against the United States put a strain on the economy and exacerbated declines that the charter bus industry had already been reporting, but the ABA indicated that industry outputs rebounded in the middle of the first decade of the 2000s before declining again later in the decade as the nation struggled with an economic recession. By 2011, however, signs of recovery were appearing for the industry.

Although the market in the United States was fairly saturated, research firm IBISWorld predicted that the industry value added (IVA) would rise at an annual rate of 2.8 percent through 2016. According to a 2011 IBISWorld report, "As the economy recovers, more individuals will begin to spend money on trips and other vacations that may require scheduled and chartered bus services." In addition, "Participants are forecast to benefit from urban population growth, the aging U.S. population, the green movement, and the government's continued attempt to promote alternate modes of transit."

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News and information about Local Bus Charter Service

Provision of Charter Bus Services
Mena Report; July 7, 2015; 543 words
...are invited for Charter Bus Services Last Day For Questions...At 5:00 Pm Local Time Last Day For...providing charter bus services. b) All vehicles...operate charter bus services in a safe, reasonable...drivers to the service. The Contractor...
Charter-bus service files Chapter 11 bankruptcy
Indianapolis Business Journal; November 4, 2002; 700+ words
...bumpy the city's charter-bus industry has become...sell the charter service, Hostetler said...USA shuttered its local operation at 3801...has entered the local market and is subleasing...Global Passenger Services, Travelways entered...Tiger Coaches' local operation. ...
NFTA Cancels Non Essential Bills Game Bus Route; Charter Service Available
The Niagara Falls Reporter (Niagara Falls, NY); October 2, 2012; 700+ words
...month, a group of local residents could...afternoon waiting for a bus at the Factory Outlet...problem was that this service had been canceled...to compete with charter companies," explains...be competing with charter companies and that...such as buying new buses. "Then there is...I ...
Contract Notice: Virginia Local Government and Public Bodies Issues Request for Proposals for Charter Bus Services
US Fed News Service, Including US State News; April 22, 2012; 243 words
RICHMOND, Va., May 3 -- Virginia Local Government and Public Bodies has issued a request for proposals (No. 12-020305-0228LH) on April 19 for charter bus services. Contract, Tender Notice Type: RFP Closing Date...
Charter Bus Service
Mena Report; September 19, 2015; 283 words
IT - Invitation to Bid (ITB): Charter Bus Service Bid Opening Date: 03/11/2015 Available Date: 09...Conference: THURSDAY OCTOBER 8, 2015 AT 10:00 A.M. LOCAL TIME AT ANNE ARUNDEL COUNTY PURCHASING DIVISION, 2660...
Supply and Management (Full Service) of New and Retreaded Tires and Related Accessories Required for the Arst Bus.reference Number: 57 / 2016
Mena Report; October 7, 2016; 348 words
...management (full service) of new and retreaded...required for the arst bus. reference number...management (full service) of new and retreaded...required for ARST buses in scheduled and charter service. Approvals, types, number and bus tires fitted measures...15/11/2016 ...
Provide Bus Transportation Services
Mena Report; April 3, 2014; 267 words
...for Provide Bus Transportation Services Provide air...School Bus type buses, charter buses and shuttle type bus services for special...events or services per the following...anticipated service requests...to and from local destinations...
Department of Homeland Security - FEMA Issues Grants Notice on "Fiscal Year 2015 Intercity Bus Security Grant Program (Ibsgp)"
US Fed News Service, Including US State News; April 4, 2015; 394 words
...operators of fixed route intercity and charter busesThe description of the Grant...owned and/or operated by State, local, and private sector partners...operators of fixed route intercity and charter bus services."Full Announcement: http...

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