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Has The Chinatown Bus Phenomenon Evolved
n the late 1990s when the carriers was offering was ripe
first low-fare bus service for competition. In truth were
from Chinatown in New York the ‘full service’ offerings of
to Chinatown in Boston started the traditional bus companies
running, few would have expected worth a premium? Hardly. Customer
the impact it would have had on service lacked on every level,
the bus industry as a whole. This bus stations did not offer a
was not a service that was comfortable waiting area, buses
marketed to the general public. were often shabby and service was
It was supposed to appeal to a plagued by delays.
targeted group of people--recent
Chinese immigrants--who needed an Years after the advent of this
inexpensive way to travel between first New York to Boston route,
the two cities to visit family, it is worth examining how it has
shop, or work. The growth of this caused the bus industry to evolve
phenomenon was organic. The as a whole. Overall, it seems
general public heard of the like the independent companies
“Chinatown bus” via word of and the traditional carriers are
mouth. It caught on quickly and meeting somewhere in the middle.
soon the market was flooded with Independent carriers have had to
other companies offering similar offer more amenities, adhere to
service on a variety of routes. more closely to safety standards
and regulations, and increase
It would be incorrect to say that fares. At the same time, the
the only reason that these traditional carriers have been
companies succeeded was due to forced to offer fiercely
price. Certainly this was the competitive pricing and generally
main enticement for travelers. tighten up their operations.
However, it must be said that the Greyhound and its partners tend
service that the traditional bus to offer the most competitive
pricing on the popular New up by the Federal Motor Carrier
York-Boston and New York-DC Safety Administration (FMCSA) to
routes. Further, these routes are step up inspections of “curbside”
the only ones for which online (Chinatown) bus companies.
customers do not have to pay the Despite the increased
hefty $4 online booking surcharge inspections, the FMCSA reported
usually imposed at Greyhound’s that curbside carriers had about
website. They heavily promote the same rate of violations as
this discounted pricing and it other types of carriers under her
usually requires customers to agency’s authority3. This may be
book in advance online a sign that unsafe operators have
(purchasing tickets at the time either stopped running or have
of departure can be almost twice improved their level of safety.
as expensive as via their
website). Fortunately bus travel is
generally an extremely safe mode
What about safety standards? This of transportation, with an
is the most contentious point of average annual fatality rate of
debate in the industry. There are only 22 for the past 10 years. No
numerous reports of safety bus fatalities to date have
violations and certainly involved Chinatown bus carriers.
anecdotal accounts of poor safety Mishaps are frequently reported
practices. However, it does not for all segments of the
appear that the actual safety industry--municipal buses, line
records of these companies are run carriers, charter and tour
really worse than other bus companies1,2. No concrete
carriers that are subject to the research has indicated that
same federal regulations. Thanks Chinatown bus companies have a
to intense lobbying efforts, in higher incidence of problems than
2004 a special task force was set other operators.
established segment of the bus
It is important to note that what industry. In all likelihood the
was once a small niche of the bus evolution of the industry is not
industry is now a crowded complete. We will probably see
segment. To lump all carriers some regulatory changes which
following this low-cost model in will effect how the Chinatown
the same group would be carriers run their operations.
misguided. The quality of the Likewise, as competition within
service offered by the various the segment increases, the poorly
companies varies greatly. Some run operators will most likely be
are fly-by-night concerns while forced out of the game. The
others have transitioned into traditional carriers will have to
sizable companies with many continue to offer competitive
employees and fleets of buses. fares and will also have to find
new ways compete. What is
Another development is that abundantly clear is that
Chinese immigrants are no longer customers are more than happy to
the only players in this segment forgo many of the services
of the bus industry. Several offered by traditional carriers
so-called “Chinatown” bus in order to save money.
companies are owned by Hassidic
Jews. In addition many charter 1Police: Driver fatigue likely
bus companies have entered the factor in fatal bus crash
line-run business using the same Monday, November 28, 2005;
low-cost model as Chinatown bus Posted: 7:15 a.m. EST (12:15 GMT)
lines. http://www.cnn.com/2005/US/11/27/
california.bus/
The Chinatown bus industry has
grown from a simple, 2T bus catches fire in Everett;
one-man-operation to an blaze is 4th in 5 weeks
No riders are hurt; officials FMCSA administrator, given before
seek cause the House Committee on
By Lucas Wall, Boston Globe Transportation and Infrastructure
October 6, 2005 Subcommittee on Highways, Transit
and Pipelines. Washington DC,
3 Testimony of Annette Sandberg, March 2, 2006
About the Author:
Violet Sorenson works for GotoBus.com, the leading online marketplace for bus tickets and tours in the USA. You can find out more information about the company at: www.GotoBus.com
Read more articles by: Violet Sorenson
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