The coach industry has become used to consolidation in recent years. But the latest example of that – creation of The Coach Travel Group via the bringing together of seven well-established and respected independent operators – is a sea change from before.
An eye on retirement from at least one business in the new group is understandable, but others are led by younger and growth-hungry members of the sector. Is its formation a push by those involved to hold the line against incomers to the coach industry that have made clear their interest in contract work?
Possibly so. Strength in numbers is a significant attribute in that market. FirstGroup – buyer of York Pullman and with other coaching interests – talks in its full year results of a focus on maximising commercial return through long-term and high value contract wins. Such a strategy from much larger businesses has not gone unnoticed among SME coach operators.
But when constituent members of The Coach Travel Group are considered in the round, undeniable expertise in all parts of coaching work is present. The group highlights the depth of those operators’ strengths in home-to-school; 232 such routes are delivered each day. Tourism-related work is also a big part of those companies.
Key too is CEO Tom Stables. He knows the scheduled and contracted markets very well via a previous position as leader of National Express’s operations in the UK and Germany. Mr Stables will no doubt have learned much from that business and be able to bring it into the newly formed group.
Interest in the significant milestone – as described by Mr Stables – was quickly piqued among other coach operators, and The Coach Travel Group describes itself as having an ambitious growth strategy.
Where does the development leave the rest of the industry? Talk by the new group of being the supplier of choice and bringing value to coach passengers across the UK will raise some eyebrows.
That is understandable, although the sector has been in a similar position before and ultimately saw little change. There was more than enough work to go round, as there is now. In any case, neither drivers nor vehicles grow on trees. Organic expansion is thus not easy, but a well-funded business will no doubt look to grow via acquisition.
Whether that happens soon or after a settling-in period remains to be seen. But industry consolidation, acquisition and talk of future growth by various players sits with the regular grant of O-Licences to new coach operators. Social media shows that those businesses are often quickly successful. Coaching is ever-evolving, and that shows no sign of changing.
