About Charter Bus Businesses
Charter bus businesses connect clients who need bus transportation for a short period of time to qualified drivers with solid transportation. Some companies rent the bus from another company and then perform charter jobs, while others are fully independent owner-operators that run their own company essentially out of the vehicle itself.
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Function
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A charter bus is contracted over a short period of time to either run a transit route, conduct a tour or provide transportation for a corporate retreat. Drivers and business operators will need to get appropriate licensing from the state from which they conduct their business. Drivers need a commercial driver's license. Businesses that are renting a bus to charter from another company must in many cases also pass through a company-mandated driving skills course to validate their ability with as complex a vehicle as a typical charter bus.
Features
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Most charter bus businesses own their own buses. Renting a bus from another company is both cost-prohibitive and risky, and would be difficult to make into a sustainable business model. Most charter bus businesses start off by saving up enough capital to afford a bus. Many charter bus companies make the largest part of their income through repeat business such as providing regular transportation for employees to and from a workplace.
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Significance
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Some of the most common repeat customers of charter bus companies include schools, religious centers, camps for children and more. Charter bus businesses that own their own equipment can reinvest additional funds into improving the bus itself, providing better quality seats and more involved on-board entertainment, or expanding to purchase more buses and pay for more drivers.
Warning
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There are considerable financial and safety risks involved in running a charter bus business. The bus can be involved in a car accident that damages the vehicle. An employee driver may be found liable for damages. Any injuries caused to passengers would not only result in a cavalcade of negative press coverage for the business but might result in lawsuits as well. For this reason, charter bus companies need to take care in screening their drivers and to have proper insurance to protect the health of the business over the long term.
Potential
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Many charter bus businesses diversify in terms of vehicle types and try to specialize in their clientele. For example, a charter bus focusing on catering to seniors will differentiate itself by providing vehicles with hydraulic lifts that make getting on and off the vehicle easier. Other charter bus services focus on filling last-minute gaps in regular service for other charter companies. Finding new business and competing with other charter services can become very absorbing, especially in more crowded urban markets.
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Resources
- Photo Credit Tavallai, Flickr
