The Crucial Role of the UK Bus & Coach Sector
The UK bus and coach industry is crucial for its role in providing essential public transportation services, driving economic growth through job creation, ensuring accessibility for individuals of all abilities, promoting
environmental sustainability through zero-emission technologies and reducing congestion on roads. The sector serves as a critical lifeline for communities, enabling mobility, supporting businesses, and enhancing overall quality of life, while contributing to a more sustainable and interconnected society.

Specialising in asset finance for this crucial sector, Propel partnered with routeone magazine to commission a new and comprehensive survey of UK Bus & Coach owners, CEOs, MDs, and Finance Directors/Managers. This report comments on the findings of this crucial study, providing timely, relevant and valuable insights into the industry’s current state and future prospects.

Methodology and Participation
The 2024 survey gathered insights from 68 UK operators, including owners, CEOs, MDs, CFOs/FDs, and managers. Responses were collected and analysed anonymously, providing a candid view of the industry’s
outlook.

Participants in the National UK Bus & Coach Directors’ Survey 2024 were well-distributed across the UK. 18% of respondents were from the South West. The West Midlands, South East, and Eastern England each represented 13% of the sample, while the East Midlands and Scotland were each at 10%. The North East, North West, and Wales accounted for 6% each. The majority of respondents (61%) operate between one and 10 vehicles, with 28% managing fleets of 11-30 vehicles, reflecting the scale and diversity of the bus and coach sector.

Fleet Composition and Investment Trends
Full-size coaches emerged as the predominant vehicle type, accounting for 66%, consistent with SMMT statistics.
They were followed by minibuses (57%), midi coaches (38%), midi buses, and single-decker buses, each at
22%, with double-decker buses slightly behind at 19%. Only 1% represented veteran vehicles.

Looking ahead, operators anticipate investing in various assets over the next
12 months:
• Full-size coaches (48%)
• Garage and workshop equipment (28%)
• Minibuses (25%)
• Single-decker buses (17%)
• Midi coaches (16%)
• Double-decker buses (13%)
• Midi buses (8%)
Additionally, respondents highlighted plans for PSVAR conversions and accessibility equipment upgrades.

Vehicle Procurement Preferences
When it comes to acquiring vehicles in the next 12 months, the distribution between new and used suggests a balanced approach to vehicle procurement, with operators weighing factors such as availability, cost-effectiveness, and specific operational needs.

The Role of Asset Finance
Asset finance emerged strongly as the preferred choice of external finance among operators:
• A substantial 46% of respondents indicated a clear preference for asset finance
• 20% utilise bank loans
• 15% rely on overdrafts
• 8% each use manufacturer/dealer finance and credit cards
• 5% turn to family and friends
• 3% use online finance platforms

Respondents highlighted several key advantages of asset finance:
• Utilise the asset immediately (27%)
• Preserve existing credit lines (25%)
• Simplify budgeting (25%)
• Affordable payments (25%)
• Conserving working capital (24%)
• Tailored payment options (22%)
• Avoiding capital outlay (18%)

Key Factors in Choosing Finance Providers
When seeking finance, operators prioritise:
• Strength of the relationship (65%)
• Competitive pricing (63%)
• Availability of finance options (33%)
• Expertise in the sector (30%)

Conclusion
The National UK Bus & Coach Directors’ Survey 2024 highlights the industry’s resilience and forward-thinking
approach in the face of evolving challenges.
At Propel, we remain committed to supporting the bus and coach industry with tailored asset finance solutions, deep sector knowledge, and cutting-edge technology. By understanding the unique needs and challenges of operators, we aim to empower businesses in the sector to thrive, invest, and grow.