The intercity bus industry is set to outpace air and auto travel in passenger growth this year, according to a new study from DePaul University’s Chaddick Institute. The report, “Stepping Up Service: 2025 Outlook for the Intercity Bus Industry,” projects a 4% increase in ridership, surpassing the U.S. Travel Association’s forecasted 2.8% growth for air travel and 2.4% for auto travel.
“The industry has enjoyed a sustained rebound, with traffic returning to pre-pandemic levels on many routes,” said Joseph Schwieterman, the study’s lead author. “Major bus lines are busy making up for lost time.”
The recovery follows a challenging period marked by driver and equipment shortages, reduced Greyhound mileage, and customer hesitancy to return to bus travel. Technical issues with some online booking platforms also hampered growth. However, the sector has rebounded, with companies expanding schedules and modernizing fleets.
Success and struggles
Peter Pan Bus Lines quickly expanded after Megabus’s parent company, Coach USA, filed for bankruptcy last June, dropping its Northeast service. Other operators, including Florida-based RedCoach, various Trailways carriers, and Hispanic-focused operators, have also increased service and upgraded fleets.
FlixBus, which acquired Greyhound in 2021, has aggressively targeted major metropolitan markets rather than rural routes with lower population density. Greyhound’s recent purchase of 60 new motorcoaches for its Northeast corridor has bolstered its national network and improved its brand image.
Warm-weather regions like the Sunbelt and Southwest are expected to see significant gains. But growth in the Midwest, Northeast, and Pacific Northwest are anticipated to be stagnant.
“The bounce back across the country has been quite uneven,” said Zaria Bonds, a co-author of the study.
Rural and secondary routes in the Mountain States and Pacific Northwest continue to experience lagging traffic. The study highlights gaps in service, such as the lack of direct bus or rail connections between Las Vegas and Reno, Nevada, and circuitous routes between Salt Lake City and Portland, Oregon.
“The loss of traditional stations has hurt travelers who need to make transfers to reach their destinations,” Bonds said.
State programs grow
State-managed bus networks are stepping in to address transportation voids. Programs such as Colorado’s Bustang, Ohio’s GoBus, Oregon’s POINT, and Virginia Breeze are expanding service with federal support from the U.S. Department of Transportation’s 5311(f) program, which funds transportation for cities with populations under 50,000. Bustang, for instance, has dramatically increased service, offering more than a dozen daily trips along Colorado’s busy Interstate 70 corridor from Denver to Glenwood Springs.
While uncertainty remains over long-term funding, intercity bus networks have proven more resilient than local transit agencies facing financial challenges from the end of pandemic-era federal aid.
The industry’s projected 4% ridership increase suggests a strong future for intercity bus travel, mirroring the recovery seen in Amtrak and air travel.
“This is good news for budget-minded travelers,” Schwieterman said.
The Chaddick Institute will host a free webinar on its study on Feb. 27 from noon to 12:50 p.m. CT. Interested participants can register online. The full report is available through the institute’s website, and inquiries can be directed to chaddick@depaul.edu.
