A new study from DePaul University’s Chaddick Institute predicts that intercity bus travel will experience remarkable growth in 2025, outpacing both air and car travel. According to the report, titled “Stepping Up Service: 2025 Outlook for the Intercity Bus Industry,” bus ridership is projected to increase by 4%, exceeding the U.S. Travel Association’s forecasts of 2.8% growth for air travel and 2.4% for car travel.
“The industry has enjoyed a sustained rebound, with traffic returning to pre-pandemic levels on many routes,” said Joseph Schwieterman, the study’s lead author. “Major bus lines are busy making up for lost time.”
Peter Pan Bus Lines and Other Operators Step Up
Peter Pan Bus Lines significantly expanded its reach after Coach USA (Megabus’s parent company) declared bankruptcy last June, deciding to halt services in the Northeast. Other providers, such as Florida’s RedCoach, various Trailways operators, and specialized Hispanic-market carriers, are also ramping up operations and investing heavily in fleet upgrades.
Meanwhile, FlixBus, which acquired Greyhound in 2021, has realigned its strategy by concentrating on bustling metropolitan regions, steering away from less profitable rural routes. Greyhound has also improved its network with the introduction of 60 new motorcoaches for its Northeast corridor, further boosting its national service and brand reputation.
Disparities in Growth Across Regions
Sunny regions, particularly the Sunbelt and Southwest, are forecasted to experience the strongest ridership growth. However, regions like the Midwest, Northeast, and Pacific Northwest remain sluggish in their recovery.
Author Zaria Bonds, who co-authored the study, noted, “The bounce back across the country has been quite uneven,” She drew attention to lingering gaps in service, such as the absence of direct bus or rail connections between cities like Las Vegas and Reno, Nevada, and roundabout routes between Salt Lake City and Portland, Oregon.
“The loss of traditional stations has hurt travelers who need to make transfers to reach their destinations,” Bonds said.
State-Run Networks Fill the Gaps
Several state-operated bus networks are addressing the gaps left by private operators. Programs such as Colorado’s Bustang, Ohio’s GoBus, Oregon’s POINT, and Virginia Breeze are stepping up. With federal support through the U.S. Department of Transportation’s 5311(f) program, which funds transportation for cities with fewer than 50,000 residents, these networks are expanding and thriving. For instance, Bustang has dramatically scaled operations, offering over a dozen daily trips along Colorado’s busy I-70 from Denver to Glenwood Springs.
Even as questions loom over the sustainability of long-term funding, intercity bus networks have demonstrated greater resilience than many local public transit agencies that are grappling with budget woes after the expiration of federal pandemic relief funds.
A Promising Future for Intercity Buses
With a forecasted 4% growth in bus ridership, the intercity bus industry appears primed for a promising future. These gains reflect a broader recovery trend seen across other sectors like air travel and Amtrak.
“This is good news for budget-minded travelers,” Schwieterman said.
For those interested in learning more, the Chaddick Institute will hold a free webinar discussing the study’s findings on February 27, from 12 p.m. to 12:50 p.m. CT. Registration details and a full copy of the report are available on the institute’s website. Further inquiries can be directed to [email protected].
Source: Bus and Motorcoach News
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