IntrCity SmartBus, the largest tech-enabled fleet of inter-city buses in collaboration with 1Lattice, a technology-enabled consulting, advisory and research firm, has released a report titled "Top Trends Driving Growth of Outstation Bus Market."
The report provides a comprehensive analysis of the outstation bus ecosystem, examining the parameters of choice for outstation bus travellers across various service providers, and how those choices vary with different factors.
Additionally, the report examines the drivers and barriers to online penetration for outstation bus travel and highlights the infrastructure development in India for different modes of transport.
The findings of the report highlight the potential of the online bus market in India, which is expected to reach 10%, but has the potential to grow to 25% driven by a shift in customer behaviour and an overhaul in bus operator business operations.
The report also talks about the potential for expanding the reach of outstation travel operators beyond metro and tier-1 centres by focusing on affordability as the central offering.
It further sheds light on the various reasons for businesses to choose full-stack tech aggregators such as the requirement of a steady revenue stream and a better value proposition in terms of operating and revenue conditions.
In India, the outstation travel market remains largely untapped by organized players. Given the country's huge population and rapid urbanization, there is an increasing demand for various modes of transportation, including personal and public.
Growth of road infra is faster compared to railways and airports
Indian national highways infrastructure has the fastest growth rate of 8% CAGR over FY20-25, compared to railway track lengths (1.1% CAGR) and Indian airports (6% CAGR), making it the most rapidly growing supporting infrastructure for outstation travel. Private pre-bookable buses cost INR 1-3 per KM, comparable to AC class of railways (INR 1.5-2 per KM) and much more economical than flights (INR 5-15 per KM).
With better connectivity to more cities, road transportation presents a highly economical option supported by the fastest-growing infrastructure.
Private pre-bookable buses offer better convenience to travel for 1000 kms distance when compared to trains or flights
Private pre-bookable buses are a convenient and economical option for travel over distances of less than 1000 km, with multiple options available for different cities and convenient departure times.
The buses offer faster travel experiences e.g. Ease of availability:- Private pre-bookable buses are more readily available than railways or airways for different non-metro/metro cities, with multiple buses at convenient times, as opposed to limited operational airports/railway stations, few operational flights/trains, and the need for interchange.
Comfort & amenities: The buses offer exceptional comfort and amenities, such as recliner/sleeper seats, charging points, entertainment systems, live tracking, blankets, water, snacks, and Wi-Fi making private pre-bookable buses stand out when compared to cars, trains, or public buses
Economical and lower wait time
The average wait time at the departure station for private pre-bookable is around 15 mins, which is very low when compared to flights (which require 90 mins for people with luggage check-in) or slightly lower when compared to trains (frequent delays when compared to schedule running time making the avg wait time to be around 20 minutes.
Ease first / last mile connectivity: Multiple pick-up and-drop facility within the city limits reduces last/first-mile connectivity to 20 mins on average when compared to flights which would require 60-75 mins of travel to the airports (as airports are present in outskirts and for few cities like Bengaluru the average travel time to airport might be more than 2 hours)
"Full-stack tech aggregators have democratized the use of superior end-to-end tech for better operations and consumer experience in the outstation bus market. Our research has shown that full stack tech aggregators have higher customer satisfaction levels compared to others” said Praneet Singhal, Director – Technology & Internet, 1Lattice. "This is largely due to factors like cordial staff, safe driving, multi-state presence, comfort, and convenience” he added.
Commenting on the report, Kapil Raizada, Co-founder - IntrCity SmartBus said, “We are excited to collaborate with 1 Lattice to jointly launch a report on the outstation bus market. It provides us with the chance to comprehend current growth, project future growth, map out the market in great depth, and also meet the ever-changing demands of consumer preferences. With rapid urbanization and increasing demand for affordable transportation options, there is a significant opportunity for the growth of inter-city buses. The report findings suggest that the online penetration for outstation bus travel can potentially reach 25% with a shift in customer behaviour and an overhaul in bus operator business operations. With this, IntrCity SmartBus is committed to providing tech-enabled solutions to enhance the outstation bus travel experience, and we look forward to leading this transformation in the industry.”
