This article has been contributed by The Mr Prashant Kumar, Co-founder of Zingbus
India’s travel landscape is experiencing a notable transformation, as the appetite for intercity travel is swiftly outpacing the antiquated supply-driven infrastructure. This shift in logistics is paving the way for intercity bus services to become a pivotal player in India’s mobility revolution, especially in ‘Bharat,’ or non-metro regions, where the middle class and aspiring youth are seeking travel options that are not only budget-friendly but also reliable, comfortable, and tech-savvy. As of the fiscal year 2023, the Indian intercity bus market boasts a valuation of INR 539 billion ($6.7 billion), which is more than double its worth from the previous year. The market is anticipated to continue its upward trajectory with a robust 8.5% Compounded Annual Growth Rate (CAGR). This impressive growth of the bus market is vital for nurturing a more mobile and economically prosperous India.
Responding to a New Generation of Travelers
A key factor fueling this boom is the rising desire for cozy long-distance journeys among India’s expanding middle class and adventurous wanderers. Although numerous travelers still view expenses as a significant barrier, there’s a clear shift towards pursuing enhanced comfort and modern conveniences. In light of this, forward-thinking companies are enhancing their services with tiered models that address this varied demand. This shift in consumer habits has prompted bus operators and aggregators to reevaluate their offerings, providing tiered choices to cater to all market segments. One clever tactic they’ve embraced is a dual-brand strategy. Companies that are targeting budget-minded customers promote a “Lowest Price Guarantee” along with a money-back promise.
Simultaneously, these companies offer premium choices for those seeking a more luxurious experience. This includes sleeper or semi-sleeper seats, free drinks, and entertainment systems. This approach of addressing diverse customer preferences highlights the industry’s growth to satisfy the complex needs of a changing travel market, making affordable travel in India more attainable.
Filling the Gaps in Transport Network
The bus industry is proving its importance by addressing the significant gaps in India’s transportation system. While Indian Railways is an affordable option, its immense popularity has led to persistent problems with capacity and booking delays, with several trains being overbooked in just a few days. On the other hand, air travel is quick but way too pricey for most people and only connects a few major hubs, with most of the flights going to just six major cities.
Programs like the UDAN scheme are trying to enhance regional air connectivity, but they’re a long-term project and don’t yet offer the detailed point-to-point service that buses do. In this scenario, buses are the adaptable, scalable, and cost-effective answer. Buses can offer more regular services and span a wider area, connecting smaller towns and cities that lack direct rail or air links. The convenience and flexibility of buses, along with the rise in digital usage, make them an excellent choice for travelers. They help avoid the ‘airport hassle’ and the unpredictability of train bookings.
Souvik Dey
Powering Economic and Social Mobility
Outside of metros, intercity bus travel plays a vital role for what many refer to as “Bharat,” which highlights the economic strength of Tier 2 and Tier 3 cities. These cities are rapidly evolving travel hubs, acting as essential centers for economic development, student movement, and workforce relocation. The bus system is a key part of workforce migration, offering a dependable and frequent transportation option for millions of workers who commute regularly between their hometowns and expanding industrial areas.
This network is also crucial for student mobility, with universities being significant trip generators as students head home for holidays multiple times a year. The significance of this transport connection became glaringly obvious during the COVID-19 lockdown when the halt of public transport left countless migrant workers stranded. In these areas, where trains and flights often fall short, buses serve as an essential means for social connectivity and for bolstering regional economies. By providing last-mile connectivity and reaching a wide array of smaller towns and cities, modern bus services facilitate the movement of goods, services, and people, which in turn enhances local businesses and tourism.
The Future of Intercity Mobility
The future of intercity mobility is being influenced by two major trends: the complete integration of digital tech and a significant shift towards sustainability. With over 690 million active internet users across Tier 2 and Tier 3 cities, there’s been a surge in mobile-first bus ticket booking. This digital-first strategy is evolving from just booking tickets to offering a comprehensive digital experience that features live GPS tracking for better transparency and punctuality, along with customer assurance programs. For instance, some companies provide an ‘On-Time Guarantee’ that gives a 50% refund if delays go beyond 45 minutes. This emphasis on reliability and customer service, paired with tech solutions to monitor driver fatigue and ensure proper ticket access, is bringing professionalism to a market that has traditionally been quite fragmented.
The second big trend is the shift to electric buses in India (EV buses), which brings a ton of environmental and economic perks. Looking at it from an environmental angle, one EV bus can cut carbon emissions by almost 71% when compared to a diesel bus. On the economic side, even though the upfront cost for an EV bus is quite steep, the long-term savings really make up for it. Operators can save several lakhs per bus each year, mainly because of lower fuel and maintenance expenses. This shift is backed by government programs like FAME II, which provide incentives and subsidies to help make EVs more affordable. Some companies, such as Zingbus, are already taking advantage of this by rolling out electric fleets on key intercity routes.
A New Era for Indian Mobility
The intercity bus sector in India is undergoing a major transformation, shifting from a fragmented and chaotic market to a modern, digitally integrated, and passenger-centric system. This swift growth, driven by the expanding middle class in ‘Bharat’ (non-metro regions), represents more than just statistics; it marks a significant shift in travel preferences. As the sector matures, it is successfully bridging the crucial gaps that result from the limitations of rail capacity and the expense of air travel. In the future, this transition will likely accelerate with new product innovations and greater urgency attached to their environmental sustainability. The use of digital platforms to enhance the passenger experience with features like live tracking, reliable schedules, and more convenient booking will continue to strengthen passenger loyalty and trust in what is commonly regarded as an unreliable industry.
Meanwhile, the electrification of buses will change this industry forever, with government incentives and a lowering of the total cost of ownership, lowering operational overhead, not only making bus travel greener but also making it a more economically attractive choice for operators. All things considered, the intercity bus service is much more than a transportation option in light of the developing narrative; it supports economic growth, social connection and environmental sustainability and has the means to help facilitate the future of intercity mobility in India.
Ashwini
Leave a Reply