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The American Bus Association (ABA) welcomed the new U.S. House of Representatives bill called the Coronavirus Economic Relief for Transportation Services (CERTS) Act, which is aimed to help the decimated motorcoach industry survive COVID-19 and was introduced by Reps. Darin LaHood (R-Ill.), Albio Sires (D-N.J), Alan Lowenthal (D-Calif.), and Don Young (R-Alaska).
The CERTS Act is a companion bill to the identically named Coronavirus Economic Relief for Transportation Services (CERTS) Act of 2020 in the Senate, which was introduced in early July by Sens. Jack Reed (D-R.I.) and Susan Collins (R-Maine). This bipartisan legislation would provide $10 billion in emergency economic relief funding in the form of grants (no less than 50 percent of total funding) and other economic assistance through the U.S. Department of the Treasury to motorcoach operators and school bus companies.
"We commend Representatives LaHood, Sires, Lowenthal, and Young for their leadership in recognizing the current plight of the motorcoach industry during this pandemic and taking action to help this critical industry survive," said ABA President & CEO Peter Pantuso. "We highlighted to Congress the error they made when they left us out of the CARES Act, and we are very pleased to see both House and Senate members of both parties working to now fix this oversight. The private motorcoach industry moves 600 million people a year—whether it is students, the military, commuters and leisure travel, we are moving America. If we are not there when America is ready to travel again, who will?"
According to the ABA Foundation, the $15 billion-a-year motorcoach industry is currently operating at about 15 percent of capacity because of COVID-19. As a result, most of the nation’s 3,000 bus motorcoach companies have had to furlough employees and their 36,000 vehicles are mostly idle. For those few companies that may operate very limited service, there will be significant additional operating costs as they observe public health recommendations for social distancing, cleaning, and the use of personal protective equipment (PPE). These added costs come on top of already high overhead and insurance costs for the industry, with new buses costing $500,000 or more. And the vehicles in operation may require not only significant debt service, but also ongoing maintenance so they are ready when called upon.
"This industry and its employees provide vital transportation services, playing an essential and critical role in the national transportation network. If the motorcoach industry fails, it will have a devastating and reverberating effect throughout the entire economy," said Pantuso. "The impact will affect not only the capacity of the national transportation network, but also schools, national emergency response capabilities, the manufacturing sector, the financial sector, the tourism sector and beyond. All citizens deserve vital, reliable, and affordable transportation services for their daily lives, and require safe and reliable transportation services."
The House bill does not yet have an assigned number. The text of the Senate bill, S.4150, can be read here.
Visit buses.org for more information.
[07.20.20]
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As signs of recovery continue in the business travel sector, travel procurement professionals are prioritizing the health and safety of employees according to a new poll released on July 16 by the Global Business Travel Association (GBTA). More than half of travel buyers reported their company has changed its travel policy and 70 percent characterize the policy changes as being ‘somewhat’ or ‘a lot.’ When asked what travel program changes have been made due to the pandemic, instituting new rules about pre-trip approval (53 percent), having more frequent or detailed pre-trip communications or briefings (35 percent), collecting health information (virus exposure or preexisting conditions) from employee travelers (24 percent); and clarifying or changing rules about ticket credits/unused tickets (22 percent) were cited most frequently.
Consistent guidelines and standards continue to be critically important across all verticals in business travel; however, there is a need for more communication of safety protocols. While a majority of GBTA companies (68 percent) said they have enough information on supplier cleaning and sanitation practices, one-quarter said they would still like more (24 percent). In addition, half (49 percent) felt they have enough information about operational changes such as flight rescheduling or check-in procedures, but one-third (37 percent) said they would like more information.
Despite the rising infection rates in some parts of the world, companies are still considering a return to travel. Half (49 percent) are considering resuming all travel (regardless of country or region) in the near future, although do not currently have definite plans. Only one in five (18 percent) GBTA member companies report they do not plan to resume all travel in the near future.
Region/Country |
Plan to Resume Travel in Near Future (1-3 months) |
Considering Resuming in Near Future, but No Definite Plans | Do Not Plan to Resume in Near Future | Not Sure |
China | 10% | 32% | 38% | 21% |
Hong Kong | 9% | 32% | 37% | 21% |
Taiwan | 10% | 31% | 35% | 24% |
Asia Pacific (minus China, Hong Kong, and Taiwan) | 11% | 36% | 33% | 20% |
Europe | 17% | 42% | 23% | 18% |
Latin America | 8% | 37% | 35% | 21% |
United States | 24% | 41% | 21% | 14% |
Canada | 22% | 39% | 22% | 17% |
Middle East/Africa | 11% | 34% | 34% | 21% |
All International Travel | 10% | 43% | 29% | 18% |
All Domestic Travel | 34% | 40% | 12% | 13% |
All Travel | 14% | 49% | 18% | 19% |
Domestic and essential business travel is likely to resume first. Among respondents who reported their company has canceled at least some domestic business trips, four in ten (44 percent) expect domestic travel to resume in the next 2-3 months. One in three expects domestic travel to resume in the next 6-8 months (34 percent) or are unsure (15 percent). GBTA members in Europe (77 percent) are more likely than members in North America (37 percent) to expect domestic business travel to return in the next 2-3 months.
Among GBTA companies that have canceled at least some international business trips, one in ten (16 percent) said they expect international travel to resume in the next 2-3 months. Two in five expect international travel to resume in the next 6-8 months (40 percent) and one in four are unsure (25 percent) as to when international travel will resume. GBTA companies based in Europe (33 percent) are more likely to expect international business travel to resume in the next 2-3 months than are members based in North America (13 percent).
The return to travel from a supplier perspective follows a similar geographical divide, with more travel suppliers and travel management companies (TMCs) in Europe reporting an increase in bookings (50 percent) than in the U.S. (27 percent). Note: Cases have been trending upward in the U.S. since late June while staying flat in many parts of Europe and Asia. This poll was conducted July 7-13 and included respondents from around the globe.
“The slow recovery of business travel continues with a noticeable uplift in Europe. The U.S. recovery has remained largely static, probably in line with new COVID-19 cases that dominate our headlines, slowing progress,” said GBTA Executive Director Dave Hilfman.
“GBTA is continuing to support members to introduce consistent health and safety measures for every travel vertical, a key requirement to enable travel programs to resume. As we have seen from the poll results, buyers have had to adapt to the changing demands, significantly altering travel policy to reflect the necessary increase in health and safety protocols. GBTA is working with our buyer members to help navigate the new norm and road to recovery.”
When asked how COVID-19 had impacted their organizations, 81 percent of travel suppliers have furloughed employees and 78 percent have reduced or laid-off staff. Half (53 percent) of companies who have furloughed employees have returned some or all staff to work in some capacity.
Most respondents felt the business travel industry has experienced the worst in terms of canceled flights (73 percent) and hotel operations suspension (66 percent). However, one in four said they believe the worst is yet to come in terms of layoffs/furloughs and revenue loss (44 percent each).
Methodology
The poll conducted by GBTA is the 9th poll of the membership to measure the effects of COVID-19 on business travel. The poll was fielded from July 7-13, 2020, and received 2,167 responses from member companies globally. View the entire poll results here.
Previous GBTA poll results can be viewed here, here, and here.
Visit gbta.org for more information.
[07.16.20]
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The University Transportation Research Center (UTRC) at The City College of New York has been analyzing how the COVID-19 pandemic has already changed every aspect of mobility. In a new webinar series produced by UTRC and sponsored by the International Association of Transportation Regulators (IATR), speakers from the leading transportation trade groups discussed the unique and unprecedented challenges posed by the pandemic, and what they expect as they navigate reopening and ensuring a safe future for all riders. Held July 9 and moderated by UTRC Transportation Technology Chair Matt Daus of Windels Marx, The Reinvention of the Taxicab & For-Hire Vehicles Industries featured panelists Ira Goldstein of the Black Car Fund (BCF), Brendan Sexton of the Independent Driver Guild (IDG), Cira Angeles of Livery Base Owners, Michael Woloz of the Metropolitan Taxi Board of Trade (MTBOB), Avik Kabessa of the Livery Round Table, and Eric Rothman of the Drivers’ Opportunity Service Association (DOSA).
NYC was a major epicenter of the outbreak and had to pivot quickly, which forced city officials and trade group leaders to solve problems they never faced before. Transformed overnight from the city that never sleeps to the city that is sheltering in place—shuttering the region’s ubiquitous subway system at one point and rendering the normally bustling Times Square a ghost town—the trade groups estimate that ridership was down 85-90 percent across all sectors. With all of those vehicles out of service, it created new situations: where to park them so insurance could be reduced. The organizations leaped into action to help drivers and bases tap into federal assistance or unemployment, get access to medical professionals, and even offer legal advice free of charge.
Beyond those challenges, drivers were a lifeline for many essential services, including delivering food, medical supplies, and packages during the shutdown. For those who did continue to work, it became critical to protect them and their potential passengers. Handwashing is crucial to preventing the spread, but drivers don’t have easy access to bathrooms or running water over the road. Goldstein reports that in conjunction with the IDG, BCF was able to assemble and distribute more than 20,000 kits containing masks, hand sanitizer, and gloves to drivers and bases. He says that it was one of the most-appreciated programs in all his years at the Fund.
Modes of transportation had been shifting long before the pandemic as the region learned to strike the right balance between established transportation providers and the aggressive impact of TNCs. Before COVID presented its own mental wellness issues, an uptick in medallion driver suicides starting two years ago rocked the taxi community. Both BCF and IDG had established a wellness program that continued to offer drivers a chance—virtually and over the phone—to seek assistance and form a bond with others who were also struggling.
As the city awaits further guidance from Mayor Bill de Blasio, the trade groups continue to advocate for those they represent.
The webinar is available on demand, which can be accessed here.
[07.14.20]