Luxury Coach & Transportation

September 2018

Magazine for the professional limousine, charter and tour industry.

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Page 33 of 83

FINANCE A strong global economy and the growth of travel and tourism are propel- ling a thriving bus and motorcoach industry. Travel bookings hit $1.7 trillion last year. e sector is also changing in several ways, which presents owners and op- erators of private sector specialty, tour, and charter companies with a variety of factors to consider when growing, up- grading, and maintaining their fleets. With evolving technologies influenc- ing vehicle design, a range of new regu- lations emerging, and environmental concerns rising to the fore, it's impor- tant for owners and operators to stay informed and prepared on how these trends can affect their business cash flow — and, in turn, the ways they ac- quire and finance fleet vehicles. Below, we highlight some of the latest trends and how bus and coach provid- ers can make use of varying lease types and structures for efficient and afford- able fleet financing. Factors Affecting The Industry Rapidly advancing technology is chang- ing the way in which most industries operate, and bus and motorcoach transport is no exception. New rules and industry standards about safety and environmental impacts are requir- ing bus and motorcoach companies to evaluate their operations and, in some cases, vehicles. One major technology trend is the advancement toward autonomous ve- hicles. As companies like Google's Waymo and Intel's Mobileye are testing autono- mous cars, the bus and motorcoach industry is implementing this smart technology as well. In fact, California's first autonomous bus service began in March 2018 in the city of San Ramon. Secondly, new regulations are af- fecting the industry overall, and indi- vidual companies. For example, as of April 1, motor- coach drivers in the U.S. found to be out of compliance with a new man- date requiring an electronic logging device (ELD) or automatic on-board recording device (AOBRD) can be put out of service for several hours. is means companies must not only in- vest in these devices, but spend addi- tional time and money ensuring they are maintained, function properly, and used by all drivers. 3 2 WWW.LCTMAG.COM LUXURY COACH & TRANSPORTATION SEPTEMBER 2018 A rendering of MCI's new all-electric J4500e prototype, which completed its phase one testing. iStock image © CarlQuick & © D-Keine. Composed by Michael Chen. How To Best Finance Bus And Motorcoach Fleets Choosing the best leasing and purchasing options is critical to running vehicles that provide stable short- and long-term cash flows. By Austin Wilson

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