MAKING CONNECTIONS 2020 Outlook for the Intercity Bus Industry in the United States BY JOSEPH P. SCHWIETERMAN & BRIAN ANTOLIN | JANUARY 30, 2020 CHADDICK INSTITUTE FOR METROPOLITAN DEVELOPMENT AT DEPAUL UNIVERSITY | POLICY SERIES THE STUDY TEAM AUTHORS JOSEPH P. SCHWIETERMAN AND BRIAN ANTOLIN CARTOGRAPHY JESSICA KUPETS AND GRAPHICS ASSISTING MICHAEL R. WEINMAN AND PATRICIA CHEMKA SPERANZA CONTRIBUTORS COVER CHADDICK INSTITUTE COLLECTION PHOTOGRAPHY THE CHADDICK INSTITUTE DOES NOT RECEIVE FINANCIAL SUPPORT FROM INTERCITY BUS LINES OR SUPPLIERS OF BUS OPERA- THIS CHADDICK POLICY STUDY WAS FINANCED FROM GENERAL OPERATING FUNDS. FOR FURTHER INFORMATION, AUTHOR BIOS, AND DISCLAIMERS, PLEASE REFER TO PAGE 25 JOIN THE STUDY TEAM FOR A WEBINAR ON THIS STUDY: FRIDAY, FEBRUARY 14, 2020 FROM NOON TO 1 P.M. CST (10 AM PT). FREE. EMAIL
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[email protected] or the first time in history, the intercity airline-style revenue management system is F bus industry rolled into a new year bolstering the financial outlook. having three carriers with extensive networks throughout both the eastern and Despite this, the parent considers margins too western halves of the U.S. mainland.1 Each thin to retain the Greyhound unit. Operating of the three are at a strategic crossroad: profits dropped from $32.8 million in 2018 to Flixbus is promoting a bevy of new services, $14.2 million this fiscal year, which ended in Greyhound’s parent is evaluating options to March 2019. Revenues fell 7%, in part due to wholesale service elimination in western sell the carrier, and Megabus has new Canada.2 The operating margin fell from 3.6% to ownership.