The opportunity to increase hire rates prompted by the post-COVID operating landscape is putting smiles on the faces of coach operators. But for group travel organisers wanting to hire a coach, there are more frowns than smiles. What’s being done to explain the reasons?
For most coach operators, private hire rates have now risen to a more realistic level, largely due to the economics of supply and demand. However, in turn that has resulted in an often significant price hike for group travel organisers (GTO) wanting to hire a coach for a club, society or church outing.
In January, the group travel trade show ‘Excursions’, organised by Tourism South East and now in its 52nd year, brought GTOs and industry suppliers together at Farnborough International Exhibition and Conference Centre in Hampshire. The show, the first in the annual group travel event calendar, has always acted as a barometer of feeling among GTOs as they look for ideas and inspiration for the year ahead.
This year, the topic on many lips was that of the increased cost of hiring a coach. While fuel and wages were regularly cited as the reasons, the many other factors that contribute to the need for increasing prices were missing.
Explaining the background
From a GTO perspective, those wider issues don’t appear to be on the radar, or if they are, they’re not being seen as important. This disconnect is being addressed, not only by coach operators of course, but also from the other direction by the Association for Group Travel Organisers, (AGTO) the UK’s largest independent, professional membership organisation supporting and representing the interests of individuals who organise travel for groups.
“In terms of hire rates we’re now where we should have been five or six years ago,” says Andrew Scott of County Durham-based Stanley Travel. “Prices are now more realistic. 2024 was our best year in terms of turnover and profit. But then in 2025 along came additional costs, including the increase in National Insurance contributions. Our sales are up, but profits are lower, affecting our planned investment.
“You can explain all this to a GTO, and some get it. But some don’t. They don’t see fuel prices going up. There’s often no understanding that their coach has cost £320,000, plus insurance, plus everything else. We are very careful in deciding a price. But then we sometimes get asked: ‘Well, can you do something?’
“To try and help we often suggest a smaller vehicle. Sometimes we can soften the price. One GTO, who runs a ladies’ group, was looking for a new operator. She came to see us early in 2025 based on recommendation and booked six different days out. But then she had to cancel them all. It wasn’t for a huge amount of money either. The £17.50 a head went up to £25 a head. We’re not an affluent area and her members, with other cost of living increases impacting on them, simply couldn’t afford it.
“Sometimes GTOs think that hiring a 25-seater will be half the cost of a 49- or 53-seater. I have to explain there’s a lot of standing charges that don’t change, so a smaller vehicle might come in around 70% of the cost of the larger coach. We discuss with the GTO what they want to do. We can guide them in avoiding periods of high demand or where fitting in around a school run means we can offer a better price. For a long-serving customer wanting to book several trips we might charge the normal price for most of them but give one at half price. It maintains the relationship. Communication is key. Most GTOs are really appreciative if they see you trying to help.”
Show the vehicle
Alex Niemczyk, managing director of Leicestershire-based Roberts Travel Group also recognises there are challenges across the market in understanding why hire charges are where they are.
“With a GTO we will have a discussion about price, but we’re always mindful that it’s not, and never can be, a race to the bottom,” he says. “We try to understand what a GTO wants. Perhaps they’re open to different vehicle types. We can show them the vehicle, highlighting our investment in safety, quality and training. But we also continuously review our set costs. The way we work is based on data and rapport. Our GTO hirers are important to us so we explain what’s what. For us, our integrity and reputation is important, both in attracting new business and then ensuring we deliver high levels of quality and service. We also offer ideas about places to go and visit and then follow up afterwards with the GTO. I know our GTOs appreciate and value that.”
Back-office costs
For many operators there’s an often simple alternative that can ensure a GTO can provide a day out for their group.
“GTOs are telling us that where once they could get 50 people together, now it’s often hard work to get 15,” explains Hannah Southby who, together with husband Tim, run Hampshire-based Heathside Travel. “Equally, a coach can be booked for 50 but by the time the trip happens, through illness and other factors, the group could be down to 12. We help GTOs out where we can but we have to charge what we have to charge. If a GTO can’t afford a coach then we suggest booking them onto one of our publicly advertised day trips.”
Tim notes that GTOs don’t always understand what the real costs of providing a coach are.
“Yes, there are fuel and the driver’s wages,” he says, “but then you have uniforms, credit card charges and other back-office costs, even postage, for the people who don’t have or don’t believe in email. Then not forgetting the price of a new coach. In 2018 a vehicle to the specification we like was around £256,000. Today, that same coach will cost around £330,000. GTOs really need to understand all of this better.”
In Luton, Isabelle Dudley of Three Star Coaches is another operator recognising that making customer appreciate the value of the coach is a challenge.
“People will pay for a day trip,” she says, “but paying the same rate as part of a group to hire their own coach is seen as expensive. In my experience, GTOs aren’t bothered about the reasons why prices are where they are. We’ve started seeing GTOs with smaller group sizes booking their groups onto our own day excursions.”
Too good to be true
But there’s another factor at play in all of this. A GTO going online to search for a coach to hire for a day excursion for their group may be seduced by the seemingly attractive combination of a low cost, high quality coach. Sadly, for a GTO, if the offer looks too good to be true, it may turn out to be just that.
“There are some new entrants in the sector and to get a piece of the action they offer low prices,” says Andrew Scott. “Some coach brokers can be guilty of this. The brokers don’t vet the vehicles, and by the time the coach arrives with the GTO it’s too late. GTOs are finding that they’re not always getting what they paid for. The promised luxury coach and smartly turned out and well-trained driver might be anything but. In our case, GTOs ring us to say they’ve been let down. There’s been no relationship with the actual operator, just the broker.”
A role for AGTO
While operators can explain the reasons for the increase in coach hire prices to GTOs, there’s also a need for GTOs to understand the situation themselves before they head online.
“The cost of hiring a coach is a frequent discussion topic across group travel forums and events,” says Wendy Hartley-Scarff, Chief Executive of the Association for Group Travel Organisers. “While some GTOs do understand the reasons why rates have increased, many don’t. AGTO is therefore pointing out to members (GTOs and supplier partners) that there’s much more to a coach hire than simply a driver’s wage and fuel. We are explaining that rates have to be realistic to cover the increased costs of investing in vehicles, drivers, training, engineering, compliance and the necessary back-office systems.
“We also point out that, as in so many walks of life, you get what you pay for. Go for a lower price for a coach and you may find that the vehicle that arrives, if it arrives, falls short of the expected quality. Booking directly with an operator that demonstrates a commitment to quality and customer service is our recommended route to a positive experience. The communication between GTOs and coach operators remains of vital importance. In turn, AGTO, through its membership communications and industry engagement, will continue to raise awareness of issues affecting the coach industry and the wider group travel sector.”
