Direct to your destination: the size, scope and competitive status of express coach carriers in the United States

The advent of express coach bus lines offering guaranteed seating and emphasizing curbside pickup and drop-off is contributing to a revival in intercity bus travel in the United States. Relatively little is known, however, about the scale and geographic scope of these carriers or the competitive landscape in which they operate. To fill this void, this study evaluates the service networks operated by the two largest express coach operators in the country, BoltBus and Megabus, and evaluates a data set of 4775 fares sold on megabus.com. The results show that these carriers cumulatively serve 127 intercity segments and operate about 52.9 million bus miles per year. Together, these carriers have grown to about one third of the size of Amtrak, with Megabus and BoltBus providing 3.3 billion and .69 billion seat miles of service, respectively, compared to Amtrak’s 12.8 billion. With respect to the types of routes it serves and the competition it faces, Megabus has evolved into a carrier quite different than Boltbus; more than one third of Megabus’ bus miles are operated on segments without Amtrak service, while virtually all of BoltBus’ miles face this competition. The analysis of Megabus’ pricing shows that fares rise modestly within 2 weeks of departure, while the per-mile costs are much less ($.08/mile) for 300–399 mile trips than for those 50–99 miles ($.22/mile). Nevertheless, the dispersion of fares tends to fall as the departure date nears, regardless of distance. Together, these prominent bus lines serve 66 of the 100 most heavily traveled U.S. city pairs that have characteristics suitable for intercity bus service—which is more than Amtrak. With further growth on the horizon, planners, federal regulators, and researchers should collaborate on establishing reporting requirements for this expanding sector.