Victor S. Parra

President and CEO, United Motorcoach Association

UNITED WE MUST STAND

Outline
Overview of UMA:

1. Founded in 1971 to represent the interests of the tour and charter motorcoach operators
2. Today members include nearly 900 motorcoach operator companies and 200 manufacturers and suppliers including companies such as Van Hool, Setra, Prevost (Volvo) and Trident (manufactured in Turkey)

US Motorcoach Industry

1. Equipment sales:
1. Declined by 8.7% to 2,173 in 2007 down from 2,381 in 2006
2. Reasons for the decline
1. New engines that meet new emissions standards added $30-35,000 (US) to the price of a new bus
2. Six to eight year replacement cycle behind us
3. Concern about a possible economic downturn that will dampen discretionary spending.
3. Motorcoach Travel
1. Increased in 2006 by 6.1% to 631 million passenger trips from 595 million passenger trips in 2005
2. Mileage surpassed 2005 by 2.3% to 2.444 billion miles
3. Number of buses in operation increased by 1.5% to 39,068
4. Current Markets
1. Seniors – 5-10 % and holding steady
2. Students – 35-40% and remaining stable
3. Corporate/Convention – 25-30% and growing
4. Contract Services (military, contract services, government, non-profits, etc) – 10% growing slowly
5. Social Events (weddings, parties, etc.) – Less than 5% but growing

Motorcoach Industry Challenges

1. High (very!) fuel costs – more than a 40% increase over the past year
2. More regulations coming –
1. mandatory seat belts,
2. fire suppression systems,
3. lower emissions engines, more bio-fuels,
4. further restrictions due to security
5. ….plus more complicated and less uniform regulations – each state imposing new and different constraints
3. Higher operating costs from increases in tolls, fuel taxes, vehicles registration fees, etc.
4. Driver and mechanic shortage – higher labor costs
5. Higher insurance costs – current mandate of $5 million liability may go higher
6. New security initiative will further restrict travel into US
7. Automobile remains preferred alternative form of ground transportation
8. Fear of the dreaded “R” word – recession
9. Drop in home values reducing discretionary spending
10. Cost of the next Highway Re-Authorization, $300 billion
11. Motorcoach travel still has “low end” image, travel of last resort

Motorcoach Industry Opportunities

1. New and more attractions emerging that lend themselves to motorcoach travel.
2. More hotels and destinations building motorcoach friendly facilities.
3. US more affordable than ever – US dollar remains weak vs. most foreign currencies
4. Younger and more technologically savvy operators entering the industry
5. Operator making better use of the Internet to generate business – Busrates.com
6. “Greening “of the Motorcoach industry – operators promoting environmental advantages of motorcoach travel

Future Needs

1. Need to improve marketing and image of industry
2. Streamline regulations to enhance both compliance and enforcement.
3. Mechanism to help consumers make more informed decisions – a rating system similar to the IRU 4-Star Program
4. Develop legislative and regulatory consistency across the country to ease interstate commerce.
5. Reduce barriers for entry and travel into and throughout the US.
6. Find meaningful and effective alternative sources of fuel

UMA’s Programs, Services and Priorities to support the US Motorcoach Industry

1. Education and Training
1. Sponsor North America’s largest equipment show, the UMA Motorcoach EXPO: honored guest -- Graham Smith CEO Heyfordian Travel (UK), President of the IRU Passenger Transport Council and Vice President of the IRU
2. Bus and Motorcoach NEWS – Motorcoach industry’s only newspaper
3. Bus and Motorcoach Academy – online business management and driver training
4. Annual UMA Safety Management Seminar
5. 20 Groups – learn cutting edge management techniques and share best practices

1. Public Policy
1. Provide industry representation in Washington DC – Congress and the White House – and in state and local governments through state associations
2. Federal Agencies –
1. Department of Transportation, Federal Motor Carriers Safety Administration (FMCSA)
2. National Highway Traffic Safety Administration (NHTSA)
3. Federal Transit Administration (FTA)
4. Environmental Protection Agency (EPA)
5. Occupational Safety and Health Administration (OSHA)
6. Others

1. Cost Saving Service
1. Insurance services – workers comp, health, life, excess liability and more
2. Fuel Savings Program – Mansfield Oil and Wright Express programs
3. Movie and Music licensing agreement
4. Discount Office supplies and Tires

1. Marketing and Image Enhancement
1. Busrates.com – lead generation service; more than 85,000 visitors/month
2. .Travel Initiative — important to our branding efforts.
3. Go Coach – brand industry as environmentally responsible
1. New low—emissions engine
2. Reduce Congestion on highways, roads and in cities

1. Partnerships
1. National Tour Association (NTA) – MOU with China to be point-of-entry for all Chinese travelers to US
2. International Motorcoach Group’s Global passenger Network (GPN),
3. Trailways,
4. National School Transportation Association (NSTA)… and now…
5. International Road Transport Union (IRU)

Watch the Powerpoint presentation

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