The Intercity Bus: America’s Fastest Growing Transportation Mode: 2010 Update on Scheduled Bus Service

Abstract

Intercity bus service in the United States remained robust through 2010 as a result of rising travel demand, escalating fuel prices, and investments in new routes. These and other factors propelled motor coach travel to its highest level in years and made the intercity bus the country’s fastest growing mode of transportation for the third year in the row. “Curbside operators,” including BoltBus, DC2NY Bus, and Megabus, which eschew traditional stations in favor of curbside pickup and provide customers access to Wifi and other previously unavailable amenities, enjoyed particular success. Express services linking major cities in the Northeast and Mid-Atlantic states grew at a particularly rapid rate. This Chaddick Institute briefing provides a status report on the intercity bus sector during the 2010 calendar year. It has two primary objectives: i) to evaluate the extent of the sector’s expansion between 2009 and 2010, and ii) to review the extent to which the recent growth of curbside bus operators is reducing fuel consumption and promoting energy efficiency. Major findings include the following: 1. For the third year in a row, intercity bus service was the fastest growing mode of intercity transportation, outpacing air and rail transportation. 2. Intercity bus operations expanded by 6.0% in 2010, showing that the sector’s renaissance continues. 3. “Curbside operators,” such as Boltbus and Megabus, expanded the number of departures by 23.9% and now account for more than 400 daily bus operations. 4. Megabus has reported ridership growth of 48% in cities served in both 2009 and 2010. Although data on other operators is not available, the curbside sector’s overall rate of growth appears to be at least 33%. 5. Passenger loads handled by curbside bus services are reducing fuel consumption by about 11 million gallons annually—the equivalent benefit of removing 23,818 vehicles from the road.

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