Four Reasons Why The Concept Of Branded Bus Will Be An Emerging Trend In India

Prashant Kumar. Feb 13, 2021

We live in connected societies; therefore, ease of travel is their ever-standing requirement. For intercity travels, as compared to other forms of transport, like rail and air, road transport finds favor amongst travelers as it is most flexible in terms of destinations, numbers, and frequencies. Hence, the popularity of buses for intercity travel. In India, though there are a huge number of government and private bus service operators for inter-city travel, their reality leaves a huge gap in traveler satisfaction. The concept of branded buses, like zingbus, Yolobus, RailYatri and Orange Tours and Travels, Gogobus, Purple travels which offer certainty in their service levels have found many takers for this service making it an emerging trend in the country. Some pertinent factors contributing to the adoption of the concept of branded buses are:

The rise in the demand for comfortable travel:

India has 50+ cities with a 1Mn+ population which act as hubs for over 300 smaller towns with 100k+ population and more than 20 Mn people move across this network daily. With an emerging middle class in tier 2 and 3 cities, India has a huge demand for comfortable travel services. The demand for economical and comfortable intercity bus travel is on the rise. The rising Indian middle class has more disposable income on its hands and it is ready to splurge a bit extra on comfort and ease of traveling.

The current dismal state of bus services in India and a Renewed government interest:

There are 27 state-run transport corporations (SRTCs) and more than 15,000 private bus operators in the country today, yet the state of bus services at best can be termed dismal. the needs of the commuters go largely unnoticed and unserved especially in tier 2 and 3 cities. With the expansion of employment opportunities at such centers, the travel woes increase multi-fold. Many state governments are encouraging quality private operators for better services and this year's budget also promoted the growth of the private sector in the space.

The rise in internet connectivity & increasing demand for online ticketing:

India is the second-largest mobile internet user in the world with an estimated 483 million users amounting to only about 35% of its total population. The widespread reach of the internet is supremely conducive to the adoption of online bus ticketing. Online ticketing is popular through platforms like Paytm and Redbus. Globally, and the trend is well-supported in India as well, online bus ticketing is on the rise - from a total Gross Transaction Value (GTV) of 50 Mn USD in the year 2013, by the end of 2019, the number stood at 900 Mn USD by the end of 2019. The two factors together make for a strong case for the success of branded bus services.

Corona and its lasting effects on people’s habits:

The effects of the Covid-19 pandemic are far-reaching and will be long lasting. The is likely to play a major role in the decision-making process of the commuters as more and more of them will prioritize safety, hygiene, and wellbeing in their travel above other factors. This will directly benefit the players in the branded bus space and this preference will also encourage new players to enter the sector.

In short, we can expect to see huge changes in the intercity bus-travel segment, as the future is electric buses which would be entering the market and has a fabulous future in the upcoming times.