Countries covered: United Kingdom
The British market for scheduled bus and coach services (including concessionary fare reimbursements, but excluding public transport support) is estimated to have reached approximately £6.31bn in 2007/2008 — a 6% increase on the estimated figure for 2006/2007. Bus patronage in England continues to be driven by growth in London. Excluding London, only moderate growth was seen in bus use in England between 2003/2004 and 2007/2008.
In 2006/2007, government financial support for local bus services (including public transport support, concessionary fare reimbursements and the bus service operators grant, but excluding passenger receipts) increased by 15.5%. Since April 2006, over-60 year-olds and disabled people have been able to travel free on local bus services within their own local authority areas, and from April 2008, the same concession applied throughout the country. In 2006/2007, passenger receipts on local bus services increased by 4.5%, while total income for local bus services, including government support, increased by 8.9%.
The bus market in the UK continues to be dominated by five major operators, which together account for almost three-quarters of all buses on UK roads. In addition to their UK growth activities, these leading operators are also expanding their operations overseas. For example, FirstGroup PLC has established itself as a market leader in the North American bus-transport market following its acquisition of the US bus operator Laidlaw International in 2007. Similarly, Arriva PLC is expanding its business in continental Europe through a series of acquisitions.
According to the Confederation of Passenger Transport UK, fuel costs for bus and coach operating companies increased by an average of 9.6% in the year ending June 2008. Although fuel is a significant cost pressure, it still only accounts for an average of 13% of the overall costs of bus and coach operators, and an even smaller percentage for some of the larger companies that are able to hedge their fuel contracts. Smaller operators are more at risk, as they typically have a fuel spend below the threshold volumes at which fuel hedging contracts are available, and, as a result, face fuel cost increases that are well in excess of the national average.
Key Note forecasts that the value of the total bus and coach services market will continue to increase in the 5 years to 2012/2013. The factors that are expected to aid this increase include: additional travel under concessionary fares schemes; partnerships with local authorities; and consumers choosing to switch to public transport as a result of rising motoring costs and concerns about the environment. However, there are also some significant uncertainties for the future of the market regarding demand management policies in urban areas, and the strategies adopted by local authorities and bus and coach operators more generally.
Related Reports:
Taxi and Limousine Services
Paid Music Content: The Answer Is Blowin’ in the Cloud
Electric Vehicles 2010-2020-Cars, Buses, Two Wheelers, Industrial, Commercial, Mobility for Disabled, Military, Marine, Other
Bus & Coach Operators Industry Analysis - Europe
Bus & Coach Operators Industry Report - Worldwide
Local and suburban transit: Metro Industry Market Evaluator
Local passenger transportation, misc.: Metro Industry Market Evaluator
Taxicabs: Metro Industry Market Evaluator
Intercity and rural bus transportation: Metro Industry Market Evaluator
Local bus charter service: Metro Industry Market Evaluator
|
(0 items)
Email a colleague
Printer format
Questions about this report
Order by fax
