Key Takeaways

• Intercity bus ridership in the U.S. is projected to grow by 4% in 2023, surpassing other travel modes.
• Colorado’s Bustang leads state-supported services, while other states like Virginia and North Carolina expand their intercity routes.
• FlixBus continues to grow its presence, enhancing its network following the acquisition of Greyhound, despite some challenges with rural service recovery.

U.S. Intercity Bus Travel on the Rise

Intercity bus ridership in the United States is expected to grow by 4% this year, as reported by The Chaddick Institute’s annual review. This growth surpasses projections for airline and automobile travel. The increase is attributed to the expansion of bus services by private companies and state-supported operations, according to Joseph Schwieterman, director of the Chaddick Institute for Metropolitan Development at DePaul University.

One standout in the rise of state-supported intercity services is Colorado’s Bustang, which has seen significant success. Serving communities from Fort Collins to Colorado Springs and Denver to Grand Junction, Bustang transported nearly 280,000 passengers in 2023 using a fleet of 80 buses and shuttle vans.

The growth of such services is enabled by the Federal Transit Administration’s Section 5311 program, which allocates funding for rural public transportation. States like North Carolina, Virginia, and Washington are also expanding their intercity bus capabilities. Virginia is set to introduce its fifth intercity route this year, while Washington has outlined multiple expansion options, including new routes.

In addition, Maine recently launched a state-supported bus service operating on both weekdays and weekends, connecting Portland with Lewiston and Auburn. South Dakota is also considering increasing bus service with recommendations for new routes following a recent study.

Intercity buses have also begun serving major airports more frequently. For example, several regional bus lines now operate to Boston Logan International Airport, and multiple companies serve Miami International Airport. Other major airports like Chicago O’Hare, Philadelphia International, and New York’s JFK also offer direct access via intercity bus routes, improving connectivity between different modes of transport.

Overall, the estimated number of intercity bus passengers could reach around 50 million in 2023. FlixBus, which acquired Greyhound in 2021, is currently the largest operator in this sector. The CEO of Flix North America, Kai Boysan, emphasized the appeal of bus travel as it remains affordable and accessible, signaling a positive future for long-distance bus services.

Since integrating its booking systems with Greyhound in February 2023, FlixBus has focused on major routes between metropolitan areas, while Greyhound aims to expand its national network. FlixBus’s service has grown by 20% in the Northeast since early 2024, with ongoing expansion efforts in the Southeast, Texas, and California.

Investment in new buses is evident, with Greyhound acquiring 60 new motor coaches, Trailways adding 30, and Peter Pan purchasing 15. The third quarter of 2024 saw a significant increase in coach sales, up more than 15% compared to the previous year.

Although growth is visible, the report highlights a slower recovery for service along rural and secondary routes, partly due to the closure of many bus stations after Flix acquired Greyhound. This has left some riders waiting at curbside locations without adequate amenities. In larger cities, challenges persist as well; FlixBus is operating on a month-to-month lease at Chicago’s main bus terminal, which is for sale. Conversely, New York City plans to build a new bus terminal in Midtown, set for completion by 2032, indicating a potential shift toward improved infrastructure for bus travel.

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