Motor Coach Industry Costs|
A major factor for charter rates in our industry and throughout Upstate New York for Motor Coach Operators is the cost of fuel. For 2011, this has certainly impacted the charter business. The fuel costs have not gone down at all for those who use diesel fuel. In 2008, the fuel costs did rise significantly, but for a shorter period of time. The costs eventually diminished to levels the various charter companies could budget or afford without impacting their charter rates.
Recently, an article published in a periodical known as "Bus & Motorcoach News" indicated that with the "stalled economy and a rash of costly accidents, higher insurance premiums are on the way" That also will effect the rates Motor Coach companies charge.
We as Motor Coach Operators strive to maintain and secure good equipment to provide our customers, yet with the regulations on engine manufacturers to produce "clean burn" efficient engines, that too has raised the cost of new buses to an average of $500,000 each. Not only has this cost to acquire new equipment increased, but also the cost to maintain these new "clean burn" systems has increased.
Effective September 18 of this year, the NYC Port Authority has tripled the rates charged to travel through the tunnels and over the various bridges entering and existing New York City.
All in all, our customers deserve to know what drives their charter prices when a carrier quotes a trip to your favorite destination.