Charter Bus Services Market

Charter Bus Services Market Outlook (2023 to 2033)

The global charter bus services market is expected to secure a valuation of US$ 18.7 billion in 2023. During the forecast period of 2023-2033, demand for charter bus services is expected to increase at a CAGR of 3.8% and reach a market size of US$ 27.1 billion by the end of 2033.

In 2022, the global bus charter services market was valued at US$ 18.0 billion, accounting for ~5% of the global public transport service market.

Report Attributes	Details
Market Size (2022A)	US$ 18.0 Billion
Estimated Market Value (2023E)	US$ 18.7 Billion
Forecasted Market Value (2033F)	US$ 27.1 Billion
Global Market Growth Rate (2023 to 2033)	~3.8% CAGR
North America Market Share (2022)	~32.0%
East Asia Market Growth Rate (2023 to 2033)	~4.6% CAGR
United States Market Growth Rate (2023 to 2033)	~3.4% CAGR
Key Companies Profiled	Barons Bus; Chinook Charter Services; Coach, Inc.; Dousman Transport Co., Inc.; Durham School Services; Fullington Auto Bus Co.; GOGO Charters; Golden Touch Transportation; King Charters; Metrowest car service; Northwestern Stage Lines; Quality Assurance Travel; SBI Charters; TCS; Wisconsin Coach Lines; Other Key Players

Demand Analysis of Charter Bus Services (2018 to 2022) Vs. Market Forecast Outlook (2023 to 2033)

The charter bus services have potential utility in the corporate sector due to their versatile user case scenario and cost & time efficiency. The penetration of charter bus services is prominently driven by group charter services which enhance the traveler’s experience and strengthen team spirit.

During the assessment years, charter bus services are expected to have significant demand due to the increasing adoption of hybrid buses by charter bus service providers. Since, these buses will help companies in the reduction of carbon footprint, greenhouse gas emission, and fuel consumption.

• Short Term (2023 Q1-2026): The market growth is nearly stagnant during the short term. These services are availed mostly by a group of people, therefore, people's awareness of infectious diseases will be restraining the demand for these services.
• Medium Term (2026 to 2029): The corporate sector is the leading user of these services. Most of the offices with remote operations will move back to the offices and are expected to exhibit the demand for charter bus services during the mid-term.
• Long Term (2029 to 2033): The penetration of hybrid (electric and fuel-based) charter buses by market players will be a key factor driving the market growth, supported by government initiatives towards reducing carbon emissions and sustainability.

East Asia and Europe are projected to rise with the highest CAGR of 4.6% and 4.0% during the forecast period.

The image above represents market bifurcation based on region and Application. Group charter services hold the leading share of 68.0% in the global charter bus services market.

What are the factors driving the demand for the charter bus services market?

“Versatile use case of charter buses”

People can travel in a variety of ways and with a degree of flexibility owing to charter bus services. It enables users to plan a path to the most fascinating locations quickly. Therefore, passengers have complete freedom to travel and spend as much time as necessary at designated locations. Additionally, it eliminates the need to organize every aspect of the route because a corporate logistics specialist will handle all aspects of the arrangement for a bus rental with a driver.

Moreover, charter buses are a prominent option for people in the corporate sector to work while traveling somewhere without any hustle because of perks like free Wi-Fi, undercarriage storage space, and onboard bathrooms. Owing to all these features charter bus services are gaining immense popularity worldwide.

“Cost and time efficient of charter bus services”

The price of hiring a charter bus is still reasonable despite its appealing qualities and advantages. When each consumer contributes the same amount to the group, the cost of the charter bus service drops even further. The charter bus services are affordable, pleasant, and cost-effective when compared to other modes of transportation.

While charter buses save time and have become more useful for group travelers. One of the greatest methods to manage time and arrive on time for your corporate/private events is to use a group charter bus rental service. The drivers will be familiar with the routes and make sure that everyone is boarding the vehicle in plenty of time for the trip. The driver's experience and expertise ensure that passengers in charter buses always arrive quickly and safely.

Factors restraining the growth of the charter bus services service market

“Fluctuating fuel prices adversely affect the charter bus services providers”

Vehicles are transforming from fuel-based to electric ones. However, most of the charter buses still run on fuel (petrol and diesel). The price of fuel is included in the service fare of charter buses and that has a substantial impact on the overall profit margin of the service provider.

Frequent fluctuation in prices of fuel worldwide is one of the major factors which may hamper the profitability of charter bus service providers and ultimately impact the overall growth of the market. Since the prices of charter bus services are expected to be constant (not frequently changed), frequent fluctuation of fuel charges substantially impacts the income of service providers and restricts the market growth. Moreover, worldwide the geopolitical situation has been quite unstable (Russia-Ukraine war), impacting the fuel supply in various economies.

Country-wise Insights

Why Does the U.S. Command a Large Share of the Global Market?

The US services market is highly fragmented with the presence of various small and large companies offering motor coaches. These companies offer more than 15,000 charter buses for different passenger trips contributing about 80% of revenue from charter bus services.

The economy is bound by a huge population from the corporate sector which is one of the leading factors attributing the demand for charter bus services due to affordable and cost-efficient travel features. Additionally, the increasing trend for mini charter bus rental in the country will create lucrative opportunities for market development in the forthcoming period.

How Can China Be a Highly Lucrative Market for Charter Bus Services?

The China market is expected to grow with a CAGR of 4.9% during the forecast period. The china charter bus service market is expected to be driven by continuous urbanization and a growing trend for bus rental services in the region. The Chinese economy has well developed public transportation system supported by government initiatives toward reducing carbon emissions.

With the utility of charter bus services, multiple passengers could approach a destination in a single trip efficiently with sustainable fuel usage and avoiding multiple private vehicles. This factor is resulting in demand for rental bus services in the region. Also, people's preference for choosing the budget-friendly and convenient mode of transportation services is another major factor contributing to the revenue growth of charter bus services in the Economy.

Category-wise Insights

Group charter services to hold the largest share in the application segment

Group charter services are gaining immense popularity in the both private as well as corporate world, due to their cost-efficient, and environment-friendly benefits. Group travel in charter buses in comparison to travel in private vehicles will be more cost-efficient to travel and substantially helps in declining carbon emission.

Additionally, Companies plan employee travel in group charter buses to strengthen team spirit. Also, it is easier to coordinate with employees. Owing to this factor, group charter services are highly in demand in the corporate sector.

Although private charter services are comprised of various benefits to the traveler in terms of comfort, privacy, and safety. These factors are resulting in the overall demand for group charter services.

Demand from Businesses/Corporates for Charter Bus Services Will Grow Exponentially

Businesses/corporates are tremendously benefited from charter bus services. During office trips, events, or any other activity, the usage of charter bus services offers an informal opportunity for employees and clients to engage in conversation. It is cost-efficient for the company, in place of hiring a private vehicle for each employee rather than hiring a charter bus.

Charter bus service providers are offering customized services dedicated to travelers like Wi-Fi and others so that employees can stay consistent in their work and improve their work productivity.

Additionally, corporates are bound by government initiatives toward sustainability and social responsibility. Therefore, opting for an environment-friendly solution like hiring a charter bus for employee travel will be highly in demand.

Competitive Landscape

Key market players in the charter bus services market are Barons Bus, Chinook Charter Services, Coach, Inc., Dousman Transport Co., Inc., Durham School Services, Fullington Auto Bus Co., GOGO Charters, Golden Touch Transportation, King Charters, Metrowest car service, Northwestern Stage Lines, Quality Assurance Travel, SBI Charters, TCS, Wisconsin Coach Lines and Other Key Players.

The charter bus service market is highly fragmented with the presence of various large and small market players in the industry. These market players are adopting key initiatives like the launch of services and expansion to enhance their footprint and expansion of market share.

For instance :

• In July 2022, Uber, has introduced its charter bus services in Houston, Texas, and the Dallas-Fort Worth metroplex.
• In December 2022, CharterUP, a tech-enabled charter bus service provider announced the expansion of its services in from Texas to other prominent region of the United States like Austin and San Antonio.

Fact.MR has provided detailed information about the provider of charter bus services market positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of the Charter Bus Services Market

• By Applicatio:

  • Private Charter Services
  • Group Charter Services

• By End-User:

  • Business/Corporates
  • Individuals

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa