The Impact Of Consolidation And Strategic Considerations In The Motorcoach Industry

Abstract

Little has been written about the motorcoach industry, an industry that is largely comprised of small family-run businesses, and an industry that has witnessed a changed competitive environment during the late 1990’s and early 2000’s due to the impact of consolidation.  In this paper, the author (an insider to the industry) discusses the motorcoach industry and the effect of consolidators.  Using survey data drawn from163  motorcoach owner/operators from across the country in early 2002, the author discusses the rising insurance cost crisis as the major concern by many operators in the industry.  The link between consolidation effects and insurance costs are examined.  From this analysis, strategic considerations for motorcoach owner/operators to ensure future viability are provided.