Charter Bus Services NAICS 485510
Unlock access to the full platform with more than 900 industry reports and local economic insights.
Get access to this Industry Profile including 18+ chapters and more than 50 pages of industry research.
Industry Summary
The 1,000 charter bus firms in the US provide long-distance and local transport on the client’s schedule. Charter bus firms do not operate regular fixed schedules or routes and typically do not engage in scenic or sightseeing transport. Customers include schools, churches and religious organizations, civic groups, senior living centers, businesses (retreats and conferences), government, event planners (festivals, sports competitions, conventions), sports teams, performing arts groups, and individuals (weddings, parties, family trips).
Crashes and Passenger Injury
Accidents involving injuries or fatalities create liability for charter bus services and damage their reputation with prospective customers.
Volatile Fuel Prices
Low mileage per gallon for charter buses makes firms susceptible to increases in fuel prices.
Technology on Buses
Buses are increasingly equipped with a variety of technology related to operations, safety and customer experience.
Recent Developments
Mar 17, 2025 - Bus Ridership Soars in 2024
- Total revenue for transit and ground passenger transportation increased 22.1% year over year in the third quarter of 2024, according to the US Census Bureau. Intercity bus travel saw significant success as more travelers sought it out as an affordable option to air travel. Miles traveled by bus rapid transit services increased 44% in 2024, per the Federal Transit Administration. Added city-to-city routes, relatively competitive pricing, and amenities like Wi-Fi and luxury seating have allowed bus services such as FlixBus (also the owner of Greyhound) to post double digit revenue growth in 2024. Aerophobia - the fear of flying - could also provide the charter bus industry with a boost following several US air travel disasters in early 2025, as well as the Trump administration’s job cuts at both the Transportation Security Administration and Federal Aviation Administration.
- The US Department of Energy/Energy Information Administration (DOE/EIA) retail diesel fuel price decreased 37.3 cents per gallon during the 52-week period ending on December 30, 2024, to $3.503 per gallon. The benchmark retail diesel price was $3.876 a gallon on January 1, 2024. The relative stability of the recent market alongside the overall weakness of prices this year can be seen in the fact that the December 30 DOE/EIA price is the highest in four weeks, even as it is also the fifth lowest recorded in 2024, according to FreightWaves.
- Bus drivers are suffering discomfort and pain at work, according to a 2024 survey conducted for British bus worker union RMT. Four out of five drivers say that their jobs caused musculoskeletal problems such as back pain, shoulder pain, or neck pain. Nearly one quarter of respondents said that they had taken time off in the previous year due to back pain, neck pain, or shoulder pain. About 95% of drivers said that driver cabins could be designed in a more ergonomic way to reduce the risk of discomfort and pain.
- Intercity bus operators with routes that are 250 miles less are showing more interest in electric vehicles (EVs), according to Smart Cities Dive. Experts say that electric busses have not caught on with charter services because thier range is typiclly less than required for most routes and they must recharge for 3 to four hours. Charter bus companies serving universities and other institutions that prioritize sustainability are also showing more interest. “The EV bus would give a much-needed image boost,” said Joseph Schwieterman, director of the Chaddick Institute for Metropolitan Development at DePaul University. “The industry could use that.”
Industry Revenue
Charter Bus Services
Industry Structure
Industry size & Structure
A typical charter bus services firm operates out of a single location, employs fewer than 20 workers, and generates about $4 million annually.
- The charter bus services industry consists of about 1,000 companies, which employ about 82,000 workers and generate about $4.2 billion annually.
- The industry operates about 33,000 motorcoaches with the average firm operating 11 vehicles.
- The average small motorcoach firm operates a fleet of up to 25 vehicles and makes about 88 million passenger trips per year. Small firms account for 15.5% of passenger trips and 47% of passenger miles.
- Mid-sized firms operate a fleet of 25-99 vehicles and make about 87 million passenger trips annually. Mid-sized firms account for 15.5% of passenger trips and 27% of passenger miles.
- Large firms operate a fleet of 100 or more vehicles and make about 398 million passenger trips per year. Large firms account for 69% of passenger trips but just 26% of passenger miles.
- Most companies are small, independent operators - 90% have a single location and 68% employ less than 20 workers.
- Large companies include US Coachways, USA BusCharter, and Dattco. BusBank schedules clients for independent charter bus firms, and doesn’t own or operate buses.
Industry Forecast
Industry Forecast
Charter Bus Services Industry Growth
Vertical IQ Industry Report
For anyone actively digging deeper into a specific industry.
50+ pages of timely industry insights
18+ chapters
PDF delivered to your inbox
