Intercity bus travel in the U.S. has long been dominated by one iconic brand: Greyhound. With its fleet of 1,200 buses, Greyhound shuttles nearly 16 million passengers annually to 2,400 North American destinations.
Known primarily for catering to budget-conscious, long-distance travelers, the company also offers charter services for businesses, conventions and schools. And its Greyhound Package Express business provides same-day delivery to thousands of destinations.
But a drop in passenger demand due to the Covid-19 pandemic has forced the bus operator to cut back its schedule.
“The pandemic has hit the bus and motorcoach industry really harder, I think, than almost any other segment,” American Bus Association President and CEO Peter Pantuso said.
In its fiscal 2021, Greyhound saw an average of just 10,000 passenger journeys per day compared with 40,000 during the previous period. The company reported an operating loss of $12 million in fiscal year 2021 and a loss of $15 million in fiscal year 2020.
Competition from low-cost airlines and a combination of increased automobile access and low fuel prices in recent years have also led to mounting headwinds for the bus operator.
Greyhound provides an affordable travel option for people living in rural areas and others with limited economic resources. So, what does the future look like for the bus operator and what happens to intercity bus service in America once the pandemic ends?
Watch the video to find out what’s next for Greyhound.
Watch more:
Leaving a tip is an American custom. Why that’s a problem
Why Americans are eating more snacks
Source: Business - cnbc.com
