The slumping national economy is turning motorcoach operators into business sleuths.

Although theyre not out hunting for criminals, they are busy looking for ways to round up new customers to help bolster revenues and examining daily operations in search of possible ways to trim expenses.

It is a scenario thats being played out all across the country as the slowdown in general business activities begins to more seriously impact the motorcoach industry.

"Its definitely hurting us," said Gene Wright Sr., president of B & W Charters in Kalamazoo, Mich., noting that charter customers are making fewer long trips and schools are starting to use their own buses for more of their activities.

Doyle Cummings, president of Adventure Bus Charters and Tours in Sumiton, Ala., said charter business is off about 10 percent, partially because some regular senior customers are backing out of new trips. "Theyre living off the interest on their savings and theyre not making much any more." he said. "Thats their play money and they dont have enough to play now."

Dale Bohn, general manager of Kincaid Coach Lines in Kansas City, Kan., said bookings at his business have been off, too, and it is increasing competition. "People seem to be shopping around a lot more than they have in the past and theyre making a lot more last-minute bookings," he said.

Cost-cutting challenges

Most operators are accelerating their efforts aimed at cutting expenses, especially fuel costs, which have become their biggest challenge.

"Were hammering our drivers about saving fuel every day," said Cummings, "Were asking them to cut idling time, shorten their trips and cut every mile off a trip they can."

Scott McGaughey, vice president of MBI Charters in Naples, Fla., said he gave up a long-time practice of buying fuel from a supplier whose price was a little higher, but who was convenient for his drivers. Now he has his drivers fill up where ever they can find the lowest price. "If they see something cheap when theyre on the road, theyll even pull over and top off," he said.

Scott Holmes of Mayo Tours in West Monroe, La., went a step further and installed a diesel storage tank at his garage so he can buy fuel in larger quantities and at lower prices. "Its not too much of a difference but in the long run it will save us money," he added.

In addition to looking for bargains at the pump, operators are instructing drivers to constantly be on the watch for other ways to reduce fuel consumption, including regularly checking the tires on their coach to make sure they are properly inflated.

"I have my drivers shut down if they are sitting for more than 10 minutes now," McGaughey added.

Rates vs. surcharges

Although fuel surcharges have become fairly commonplace in various parts of the country, many operators are holding back on them and, instead, increasing rates.

Alphonso Hernandez of Five Star Tours in San Diego recently tacked on a 6 percent fuel surcharge, while Wright put on a 3 percent surcharge and said it could go higher if diesel continues to climb. Bohn also added a small fuel surcharge, mostly to cover the higher fuel costs that his drivers encounter when they take trips to the East and West coasts.

"I just cant do that," Cummings said of a fuel surcharge. "If a church or youth group raised money for a trip, I cant tell them at the last minute that they need another $200."

Martin Gunther, president of Gunther Charters in Hanover Md., agreed, emphasizing that it would be unfair to his customers to increase their price once they have signed up for a trip. "That just alienates folks," he said.

However, Gunther did increase his charter rates by 10 percent recently as a hedge against fuel increases and other expenses that have gone up as well.

Peg Motley of Wheatland Express in Spokane, Wash., increased her rates by $1 a mile, Hernandez raised his by 9 percent, and Holmes increased his by about 20 percent, but worked them in gradually over a 12-month period.

McGaughey also hiked MBI rates between 1 and 10 percent, depending on the number of miles rolled up during a trip. "If the bus goes to the hotel, then the golf course where it sits for five hours before going back to the hotel then there would be a very small increase," he said. "But if it is a longer trip then it would warrant a higher surcharge."

Bringing in business

In addition to cost-saving measures, operators are zeroing in on ways to bring in new business and new cash as well.

"Were doing grass roots marketing and using the Internet to do it," said Hernandez, adding that the effort is targeting business and schools.

He said Five Star representatives regularly review the list of convention and conferences prepared by the San Diego Visitors and Convention Bureau and then sends e-mails to the businesses, offering them shuttle services. "Its been working, too," he noted.

Hernandez said the company also keeps in regular touch with schools in the area via e-mail so it knows of any school trips that might need bus service.

Wright is going after more convention shuttle business for B & W, too, but in areas outside his Kalamazoo base where business has slowed. His advertising and promotions have landed him jobs in Detroit, Chicago and even some cities in Florida. "But they all know that things are slow in Michigan, so were not getting top dollar for the shuttles," he added. "But thats better than having our buses sitting."

Cummings Adventure Bus also is looking beyond its Sumiton hometown and is bidding for work in other nearby cities, too. In addition the company has begun offering discounts for trips taken early in the week and has spruced up its Internet page in an effort to draw more hits and more business.

Motley said Wheatland is pushing an advertising campaign designed to get more riders on its airport shuttles. "Were trying to be more visible so more people know us," she said. "If we can get more passengers on our shuttle runs then it will help cover the fuel costs more."

The equipment game

Equipment also has become a money-saving target for some operators.

McGaughey said he recently swapped out four of his 10 coaches for new models and it already is paying off in fuel efficiency. Plus, he said the new coaches have given him the added bonus of being able to shut down when parked, even in the Florida heat. "These buses cool down so much faster than our older ones so we can turn them off when theyre sitting and still get them cooled quickly when we need to," he added.

Gunther plans to go even further.

Hes turning around his entire fleet of 20 buses and not only expects to have less maintenance costs, but will be able to bank some money, too. He said he has a substantial amount of equity in his fleet of 2000 model coaches and will be able to put enough of a down payment on the new buses to keep his interest rate and monthly payments low and still have money left over.

Meantime, some operators are calling for federal help.

"We have to tell our congressmen and senators that they have to come up with some type of alternate fuel," offered Cummings.

Wright suggested, too, that the motorcoach industry hook up with the trucking industry to increase its clout and campaign for the federal government to find a way to reduce the cost of fuel.

"We have to get the prices down," he stressed.