Earlier in 2023, CMAC Group purchased a majority stake in Coach Hire Comparison (CHC), in an acquisition that the two organisations say is mutually beneficial and which will result in “positive changes” for their respective coach industry partners.
It complements CMAC’s existing strategic partnership with CheckedSafe, with which CHC will also work closely to support its supply partners with a simple compliance tool via a bespoke-built platform that can be individually customised for every client.
Key to how CMAC and CHC sit together are their respective markets. Established in 2007, CMAC Group is now a £150 million turnover business operating in Europe and beyond. It supports clients with managed ground transport and accommodation solutions in the aviation, breakdown recovery and insurance, and rail industries alongside corporate, public, and third sector organisations.
In its early days, CMAC offered coach hire on a business-to-customer (B2C) basis. That morphed into an entirely business-to-business (B2B) strategy as demand from core industries grew.
CHC, meanwhile – founded by husband and wife team James and Laura Stokes – majors on B2C. Part-purchase of CHC thus marks CMAC’s re-entry into B2C. To that end, it has appointed Matthew Hanson as Head of Coach Hire Comparison. He works in the same office as the CMAC team, ensuring that the two businesses collaborate seamlessly, benefiting operators and customers alike.
Tech at the heart of CMAC Group plans for coach
Pivotal for CMAC was the 2010 volcanic ash cloud, which disrupted air travel across Western Europe. That helped CMAC’s B2B shift, and it has also grown its taxi provision for airlines and train operating companies. Yet coach is still at CMAC’s core, says CEO Peter Slater. He adds that flight disruption accounts for a large chunk of its business for large vehicles.
“We want to make the best use of the two brands by creating multiple workstreams for coach operator partners,” Peter continues. “Our aim is to provide more opportunity to suppliers, enabling them to access more revenue for their businesses.”
Much preparation is in hand to bring the two businesses together. Peter adds an expectation that the process will begin soon.
Technology plays a major part of planned growth. CMAC has expanded significantly over the past five years, supported by a dedicated in-house tech team.
One element of integration work is the creation of a job management platform, including a driver app, and vehicle tracking where required. An API to draw availability from an operator’s existing diary (where agreed) also forms part of those efforts.
Multiple product developments in hand
CHC’s James Stokes gives an example of how bringing together CMAC and CHC will benefit operators. CHC has long had an ‘away from base’ function to utilise otherwise idle vehicle time, yet the body of work available in that situation will grow by bringing in the CMAC pool. Equally, CMAC partner operators will be able to access CHC’s pre-booked job flow.
CHC also sits as part of other CMAC expansion. Entering new territories is among that, and a growth programme has seen it debut in regions including Benelux, France, Portugal and Spain. International expansion falls under CMAC’s five-year plan, Project Infinity. The first part for CHC will see that platform rolled out in Northern Ireland.
Efforts to optionally consolidate jobs available from CMAC and CHC with free space in an operator’s online scheduling system via API has begun. “It has traditionally been difficult to link work and vehicle availability,” James says. “But this is a gamechanger. It will open new opportunities.”
Various other ideas are in hand to allow operators to maximise utilisation of coaches and drivers. Almost completed is a CHC online payment provision. It will make easier for customers the process of transacting with CHC. Scoping work on hires into the education and tours sectors has also begun.
Meanwhile, Matthew notes that highly targeted ‘auto price’ functionality is being explored for CMAC and CHC work. That would see the customer-facing platform generate a quote immediately. Once accepted by the booker, the work would be offered to operators through a new site feature that is in development called ‘book it now’. It would enable operators the opportunity to accept work in their local area without having to quote for the job.
CheckedSafe an important part for CMAC Group work on coach
CheckedSafe co-founder Gary Hawthorne – with a long career in bus operation prior to moving to the supplier side – notes that the compliance platform has expanded to capture 105,000 vehicles and 900 operators in multiple segments. “It was a vehicle check app, but it is now a fleet compliance tool,” he says.
“CheckedSafe is exploring new industries and we were looking at ways back into the coach and taxi market. That is when we started talking with CMAC about a partnership.”
CheckedSafe also has ambitions to grow into other territories alongside CMAC and CHC. There is no plan to require operators that work with CMAC and CHC to use CheckedSafe, however.
Peter believes that bringing the three businesses together expands scope for each to work with the coach industry. He views the diversification of work sources as “levers” for each of CMAC and CHC’s clients; when one area is quiet, another should be busy.
The addition of CheckedSafe allows compliance to be assured where the customer requires it. “Combining three successful organisations creates a strong platform for the future,” he concludes.
