By Dave Millhouser

What if we gave a recession and no one came?

One prominent radio personality says we should deal with economic downturns by simply not participating.

Easy to say.

For years, our industry was relatively immune to bad times. Folks had to get places and we were the most economical way to go. Hungry people devolved from restaurants to McDonalds, and travelers traded down from airplanes to buses.

Beginning with deregulation in 1980, the game changed. The percentage of business that came from charters and tours (and, therefore, was more exposed to economic cycles) skyrocketed. During the same period, regular-route service stagnated, struggling to compete with dramatically lower airfares and the automobile.

Several paragraphs to tell you something you already knew: These days, were no longer different from everyone else. Times are tough.

One bright spot is that bad times offer opportunity. Anyone can succeed during a boom. But a downturn weeds out weak players and tends to reward innovation. The survivors thrive when things get better.

Sticking with my tradition of stealing other folks ideas, this seems a good time to let you know what some operators are doing.

Curbside carriers have, for several years, done OK operating discounted express service, and some charter carriers have been tempted to have a run at it. Low overhead and high load factors have made some profitable. You can make money in regular route but you can lose it too. Nothing swallows cash like grinding down the highway, guzzling diesel, with eight discounted passengers.

If youre in a town where regular-route service might make sense, give some thought to who youll compete with. One company responded to the last recession by starting a line that competed with an 800-pound gorilla that had, until then, been friendly. A conversation would have prevented disaster and the gorilla might have offered alternatives that made everybody happy.

If competition is manageable, and youre convinced that lots of people want to travel this route, plan to lose money at first. More importantly, establish some sort of drop-dead numbers. How much money are you willing to lose before this thing turns a profit? The big guys do this.

Some routes work, some dont, and there are often surprises. Be honest with yourself about the difference between a budget and a bottomless pit.

A key to success in this service is constant attention. Know how youre doing -- on a daily basis. The budget has to allow for operating trips with few passengers, so that clientele can trust you.

This is HARD. Dont, for a minute, imagine operators are making tons of money without huge effort and risk.

One friend says hes now pursuing more contract business. He acknowledges the margins are thin, but he keeps his equipment and valued employees working.

In addition to the financial benefits, hes refining his work force. For most of the industry, the driver shortage is over, and nows the time to weed out weak links in your operation. Doing what it takes to hold the good ones is key to thriving when the recession is over.

The same guy is working at "yield management" -- a clever way of saying hes trying to maximize his rates when coaches are in short supply, and determine what makes sense during slow times.

Many operators are working hard at lowering costs. This facet requires leadership as well as intellect. One of the guys I respect most sold his sports car. He needs his staff to make sacrifices, and feels he cant ask them to give up more than he is. The Chevy works fine and his people work as if they are all in it together.

Some companies use drivers as sales people. When times are slow, they turn them loose to seek new business, paying a commission, and letting them drive the trip. Good drivers ARE salespeople, why not use that skill?

In some states, operators eliminate overhead by pulling license plates off coaches during slow periods and cutting insurance. Others make an effort to lease coaches to companies in regions that are either avoiding the recession, or experiencing seasonal upturns.

Several folks I spoke to said business wasnt that bad, but they were scaling back capital commitments in expectation of a slowdown.

Not a bad idea but youll want to be sure that the decisions you make to survive these bad times dont cripple your chances for growth when things get better.

There are a lot of ideas out there; these were all I could steal for this column. Why not eliminate me as the middle man, and talk to other operators about what theyre doing? One way to do that is to be active in trade associations, and maybe (he said shamelessly) attend the UMA Motorcoach Expo.

Dave Millhouser is a bus industry marketing consultant and freelance writer. Contact him at: dave_millhouser@hotmail.com.