INDUSTRY EXPERT REFLECTIONS


The classic playbook approach might well be to look at two strategies: diversification and/or differ- entiation. Both require some level of bravery in a downturn. But both must be worth a look. As bus services become less frequent, more expensive and in many cases of less use, maybe a move to aug- mentation or replacement is worth investigating. Demand-responsive transport has not been a sudden success, but perhaps there are opportunities to run some services, especially if local authorities or government could provide some seed funding.


Differentiation – better cars, EVs, free Wi-Fi in cars, better trained drivers and the like, could have an effect but the cost, not only financial costs, could be greater than any return. But there is a third – is the future of independent operators coming to an end? Are the costs, regulatory overheads and sheer energy required to continue in business, reaching a point where soldiering on for the next couple of years in the hope that after a new government has been in power for a year or two things will turn around, or wars will stop, and business travel will miraculously recover. Its hardly a slam dunk certainty, is it?


PART OF SOMETHING BIGGER


We are following as an industry in the footsteps of supermarkets, coffee and sandwich bars, under- takers and much of the hospitality industry; moving from small independents struggling to keep up with increasing levels of regulation, contending with well-funded competitors, trying to


react to


customer fashions, dealing with growing costs together with reducing margins, and generational change where the kids don’t want to take over what was until a few years ago an attractive business. I foresee mergers and acquisitions gaining more traction in the years ahead and ending up in a situation where a few large organisations deliver services locally. So, is that a good thing for the industry?


My response to that question is probably. Current owners can check out with a decent pay-off and realise a reward for their years of service with many being retained to manage their former businesses under new ownership. Gone will be the day-to-day one-man band struggle. Overall, the industry will


8


benefit from more professionalism and having the skills and necessary investment, together with the strategies needed to take the industry forward.


Our industry’s current model struggles to cope with the increasing demands of constantly changing regulation and a lack of strategic representation where government, policy makers and other important stakeholders are engaged early in the decision-making process. We lack a vision for the industry, we lack policies on important subjects and when others make the decisions our normal response is angry letters in the trade press coupled with bellyaching about the fairness of it all at trade shows. No introspection is evident that maybe if we had taken more (even some) notice of the external environment earlier perhaps we would have seen what was coming and been able to steer it, if not stop it all together. No, instead we are happy to muse about judicial reviews funded by bucket collections.


Maybe being part of something bigger will be a lot more satisfying and ultimately rewarding than struggling along alone in an increasingly hostile environment. If this sounds attractive, then the time to act is now whilst your business could be described broadly as thriving. That way you can leverage on its value with confidence and agree the type of deal that works for you.


Lastly, whether you agree or disagree with my thoughts on the current state of our industry, I wish you a successful 2024 blessed with good health, happiness, and joy.


JANUARY 2024 PHTM


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