Intercity Bus Industry in Texas 6

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Intercity Bus Industry in Texas 6 TECHNICAL REPORT DOCUMENTATION PAGE 1. Report No. 2. Government Accession No. 3. Recipient's Catalog No. FHWA/TX -94-1337 -I F 4. Title and Subtitle 5. Report Date November 1993 INTERCITY BUS INDUSTRY IN TEXAS 6. Performing Organization Code 7. Autbor(s) 8. Performing Organization Report No. Kay Fitzpatrick, Karen Kuenzer, Torsten Lienau, and Tom Research Report 1337-IF Urbanik II 9. Performing Organization Name and Address 10. Work Unit No. Texas Transportation Institute The Texas A&M University System 11. Contract or Grant No. College Station, Texas 77843-3135 Study No. 0-1337 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Texas Department of Transportation Final: Office of Research and Technology Transfer October 1992 - August 1993 P.O. Box 5051 14. Sponsoring Agency Code Austin, Texas 78763 15. Supplementary Notes Research performed in cooperation with the Texas Department of Transportation and the U.S. Department of Transportation, Federal Highway Administration. Research Study Title: Intercity Public Transportation in Texas 16. Abstract The intercity bus industry in the United States has been in a decline since the end of World War II. The decline is attributed to the increase in the use of private automobiles and competition for intercity passengers by airlines. Passage of the Bus Regulatory Reform Act in 1982 allowed bus companies to exit from unprofitable routes, resulting in a decrease in the number of places served by intercity buses. Despite the exit from unprofitable routes, bus companies in the United States still have not enjoyed the profitability they had during earlier years. The Intermodal Surface Transportation Efficiency Act of 1991 mandates that states spend a certain portion of their Section 18 (rural transit) funds on intercity bus purposes. This mandate can be waived by the governor of a state if the governor certifies that intercity bus needs in the state are being "adequately met." An informal telephone survey of nine states known to have active intercity bus programs revealed that the states were planning to use their Section 18(i) funds on instituting vehicle loan programs, providing route operating subsidies, helping with capital costs, placing highway signs, printing intercity bus brochures, and making terminal improvements. Two surveys were performed to el icit the opinions and demographic characteristics of both the Texas general public and intercity bus riders. A survey of bus station characteristics was performed concurrently with the bus rider survey. A tinal survey solicited comments from representatives of Texas bus companies. Government-owned multimodal transportation facilities was a frequently cited improvement that would serve two purposes: tirst, they would streamline the transfer from one mode of transportation to another, and second, they would eliminate the reliance the smaller bus companies have on terminaJ facilities owned or operated by larger companies. Operating subsidies for rural routes and billboards or highway signs advertising intercity bus service were other suggestions mentioned by bus company representatives. 17. Key Words 18. Distribution Statement No restrictions. This Intercity Bus Industry, Bus Service, Section document is available to the public through NTIS: 18(i) Funds, Surveys, Bus Riders, Bus National Technical Information Service Companies 5285 Port Royal Road Springfield, Virginia 22161 19. Security Classif. (of this report) 20. Security Classif. (of this page) 21. No. of Pages 22. Price Unclassified Unclassified 167 Form DOT F 1700.7 (8-72) INTERCITY BUS INDUSTRY IN TEXAS by Kay Fitzpatrick, P.E. Assistant Research Engineer Karen Kuenzer Graduate Research Assistant Torsten Lienau Assistant Research Scientist and Tom Urbanik II, P.E. Research Engineer Research Report 1337-1F Research Study No. 0-1337 Study Title: Intercity Bus Industry in Texas Sponsored by the Texas Department of Transportation in Cooperation with U.S. Department of Transportation Federal Highway Administration November 1993 TEXAS TRANSPORTATION INSTITUTE The Texas A&M University System College Station, Texas 77843-3135 IMPLEMENTATION STATEMENT The information contained in this report will provide information to Texas Department of Transportation (TxDOT) on the current status of the intercity bus industry in Texas. The report provides historical information on both the national and state industry, presents the locations currently with and without an intercity bus stop, and discusses the programs funded in other states. It also reports on findings from surveys that requested attitudes toward and/or characteristics of the industry from the general population (household survey), from bus riders (on-board bus rider survey), and from the bus companies (anonymous maHout survey). The information and data contained in the report provide a definition of the current state of the industry and can be used to assist the department in evaluating Texas' intercity transportation needs. v DISCLAIMER The contents of this report reflect the views of the authors who are responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the Texas Department of Transportation or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation. This report is not intended for construction, bidding, or permit purposes. This report was prepared by Kay Fitzpatrick (PA-037730-E), Karen Kuenzer, Torsten Lienau, and Tom Urbanik (TX- 42384). Vll ACKNOWLEDGEMENT The authors would like to recognize the efforts and guidance provide by Bill Strawn and Richard Christie of the Texas Department of Transportation in directing this project. Their feedback and comments were always appreciated and timely. The authors wish to thank the numerous contacts at bus companies, the bus drivers who assisted in the on-board survey, and the passengers who completed the surveys. The following companies permitted TTl representatives to board their buses and distribute surveys: All American Travels, Arrow Trailways of Texas, Central Texas Trailways, Continental Panhandle Lines, Inc., Greyhound Lines, Inc., Kerrville Bus Company, Inc., Sunset Stages, Inc., T.N.M.&O. Coaches, Inc., and Valley Transit Company, Inc. We also extend our thanks to Kirk Barnes, Marty Lance, and Chris Huggins who assisted the authors in distributing the surveys on the buses. Nicole Beasley is also recognized for her patience and diligence in coding the responses from all the surveys and in working with the final production of the report. Vl1l TABLE OF CONTENTS Chapter LIST OF FIGURES .................. ..................... Xlll LIST OF TABLES ................... ..................... xv SUMMARY ........................................... xvii 1. INTRODUCTION ......................................... 1 STUDY SCOPE AND OBJECTIVES ............................ 2 ORGANIZATION OF REPORT ................................. 2 2. NATIONAL INTERCITY BUS INDUSTRY ........................ 5 HISTORY AND DEVELOPMENT ............................... 5 NATIONALTRENDS ....................................... 8 Industry Profile .......................................... 8 Financial Condition of the Industry ............................. 14 3. NATIONAL REGULATIONS ................................ 19 HISTORY OF NATIONAL REGULATION ......................... 19 Early Regulation ........................................ 19 The Motor Carrier Act of 1935 ............................... 20 The Bus Regulatory Reform Act of 1982 . 22 Easing of Entry ............ 22 Easing of Exit . 22 Ratemaking Flexibility . 22 The Intermodal Surface Transportation Efficiency Act of 1991 ............ 23 EFFECTS OF THE BUS REGULATORY REFORM ACT ON THE U.S. INTERCITY BUS INDUSTRY ............................ 25 The Bus Industry Prior to the Bus Regulatory Reform Act of 1982 .......... 25 Passenger Profile . 25 The Decline ......................................... 25 The Bus Industry Since the BRRA . 26 Passenger Profile . ..... 26 User Ratings . ............................... 26 Number of Routes . 27 Causes of Decline Since the BRRA ...................... 27 Positive Results of the BRRA . 29 IX TABLE OF CONTENTS (continued) Chapter 4. TEXAS INTERCITY BUS INDUSTRY ........................... 29 HISTORY AND REGULATION OF INTERCITY BUS SERVICE IN TEXAS ... 29 TEXAS INTERCITY BUS OPERATING TRENDS .................... 30 TEXAS INTERCITY BUS ROUTES ............................. 33 COVERAGE AREA OF TEXAS INTERCITY BUS SERVICE ............. 39 S. ACTIVITIES OF OTHER STATES ............................ 47 GAO REPORT ON AVAILABILITY OF INTERCITY BUS SERVICE ........ 47 Operating Assistance . 49 Vehicle Assistance ....................................... 49 Terminal Assistance ...................................... 49 Other Forms of Assistance .................................. 50 ISTEA Mandate . 50 TELEPHONE SURVEY ..................................... 50 Massachusetts .......................................... 51 Michigan ................................ 51 Nebraska .. .......................... 51 Nevada .............................................. 52 New York ............................................ 52 North Carolina .......................................... 53 Oregon .............................................. 54 Pennsylvania . ............. 54 Wisconsin ............................... ............. 54 Summary ............................................. 55
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