It's probably safe to say that few motorcoach operators did cartwheels to celebrate the U.S. Supreme Court decision last month, allowing the Bush Administration to push ahead and open U.S. highways to Mexican buses and trucks as soon as it wishes.
We also doubt many coach operators would agree with Transportation Secretary Norman Mineta when he said that "opening the market between Mexico and the United States for trucks and buses means more opportunities for American companies, more jobs for American drivers and better deals for American consumers."
The fact is the U.S. motorcoach industry never really warmed to the North American Free Trade Agreement that serves as the basis for opening bus and truck traffic between the United States and Mexico.
When NAFTA was being debated back in the early 1990s, the industry was united in the view that there was nothing in the proposed agreement that would enhance the business or the realistic business opportunities of American coach operators.
In fact, the industry told Congress in 1993 that there were provisions and inequities in the agreement that could harm the U.S. coach industry business environment. As usual, Congress didn't listen and NAFTA was ratified with complete open-door policies.
So, now that it looks like the NAFTA provisions governing cross-border bus and truck traffic will at last be implemented, will the entry of Mexican motorcoach companies hurt the precarious U.S. bus industry or will this be just a small blip on the competitive radar screen?
Many in the American trucking industry are worried that low-priced Mexican competitors will rush across the border to steal work and jobs. For some in the motorcoach industry, that may be a real threat.
Operators in Arizona, California, New Mexico and Texas will almost certainly see increased competition from Mexican carriers who can continue to operate from their bases in the cheaper business environment across the border. While the cost of meeting U.S. vehicle and driver safety regulations will be the same for those operators as it is for American companies, the cost of labor, real estate, repairs and other variables will unquestionably remain cheaper for Mexican operators.
Most likely, Mexican operators will be at their best in capturing customers in the most price-sensitive markets, in regular route service, and in offering cheap-fare charters within a day's drive of the border.
But because of support issues and existing limitations on the use of foreign labor, as those carriers travel further north and father from their home base, the Mexican price advantage will wither. A Mexican carrier, for instance, that wants to do business in Chicago will pretty much be forced to pay the same prices for labor, taxes, services and incidentals as an American operator in Chicago.
Just as it has always been, the customer will make the ultimate decision about which companies win their business. Most American consumers will continue to patronize only American operators. Some may try the new guys. Sadly, price will continue to be the only competitive beacon for many customers unless concerns about Mexican carrier safety are proven to be more than a politically convenient anti-NAFTA rallying cry.
But that doesn't mean American coach operators can't compete. Safety, service and price, in that order, should continue to guide your operating principles. And reinforcing the axiom "you get what you pay for" should be a frequent refrain your customers hear from you.