Our markets

Market size

€3.5bn

• Regulated bus and intercity coach market 

Concessions

185

• ALSA has 162 intercity coach concessions, 22 urban bus contracts and one other concession

Market composition

• ALSA has the leading position in a highly fragmented market 

Market trends

• Modest passenger growth in coach, reversing recent trends in public transport. 
• Resilient urban bus demand 

Market features

• Regulated and highly segmented market, with three levels of government regulation: central (long distance coach), regional (regional coach) and city (urban bus).
• Each concession is exclusive to the operator, based on compliance with the public service obligation. Flexibility required to meet changing demand 

Customers

• Urban: all ages, work and study, multiple trips per week
• Intercity: mostly young people, few trips per year; for leisure, visiting family; on regional services also work and study 

Competition

• Intercity competition from state-backed rail (now operating under reduced subsidy) and low cost airlines.
• Bus and coach concessions are awarded through competitive public tender, typically every ten years 

Labour

• Traditionally less flexible labour market reflecting domestic practice

Market size

US$24bn

• Total school bus market in North America, represented by 531,000 routes
• 32% is outsourced; 68% in-house 

National Express market share

10%

• National Express operates 15,292 regular routes

Market composition

• Top five players operate approximately 90,000 routes
• 40 companies operate 200+ buses; rest of outsourced market split between 4,000 operators

Market trends

• Growth is traditionally inflation and population driven. The recent increase in outsourced conversion is due to public funding pressures 

Market features

• Local relationship and service delivery important 

Customers

• Local school boards, funded largely by local property taxation
• Transport is a significant part of local education spending 

Competition

• Bigger players have access to capital, geographical reach and some scale advantages
• Potential for some market consolidation 

Labour

• Traditionally part-time workforce
• 30% of National Express staff unionised

Market size

£4.8bn

• 97% is privatised

National Express market share

1,650

• 1,650 buses operated in the fleet
• Focused on the West Midlands & Dundee markets 

Market composition

• Largest five operators represent around 70% of the UK market
• Remainder made up of a large number of private operators 

Market trends

• Short-term economic pressures from austerity and local unemployment
• Longer term economic regeneration and environmentally-driven public transport growth opportunities over the car 

Market features

• Primarily deregulated market; vehicle/ regulatory oversight
• Low barriers to entry - flexibility and scale of operations is key 

Customers

• Over 90% of West Midlands network is commercial; remainder mostly public service tenders
• Around 75% of revenue from passengers, balance concessionary 

Competition

• Active competition from national and local operators 

Labour

• Primarily unionised with strong industrial relations 

Market size

£300m

• of contested revenues in the scheduled coach market (almost all privatised)

National Express market share

1,000

• Around 1,000 destinations served
• National Express is the UK scheduled coach market leader

Market composition

• National Express has the only nationwide network of services
• Other competitors tend to focus on specific regions or corridors 

Market trends

• Revenue growth through the recession, reflecting value and convenience of coach
• Selected price competition from rail through advance purchase discounted fares 

Market features

• Highly deregulated market
• Customer safety and disability access supported by regulation
• Operators able to compete flexibly on selected routes 

Customers

• Customer satisfaction important in driving longer term loyalty
• Ongoing rail fare increases make coach increasingly attractive 

Competition

• Selective competition from large bus operators and localised services 

Labour

• Outsourced model; 80% operated by third-party partners on long-term contract
• Consistent service and behaviour standards across all operators 

Market size

£6bn

• of UK franchise revenues over next five years (based on likely pipeline) 

National Express market share

2 franchises

• Two franchises (reducing to 1 in February 2012) - NXEA and c2c
• These represent 10% of the UK franchise market 

Market composition

• Top four players have around 70% of the market
• 19 UK franchises in total

Market trends

• Growth over the past decade driven by passenger volumes and fare increases
• Dependent on employment and GDP
• Fares will increase by 1 to 3% in real terms over the next three years 

Market features

• Regulatory environment - expected to change to longer franchises and increased operator autonomy
• Highly regulated qualification and operational processes 

Customers

• Steady growth in passenger volume over time 

Competition

• Increased international competition in UK franchise bidding 

Labour

• Relationships are managed within each franchise, with high union representation