PROBLEMS OF THE HAULIER AND CARRIER.
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Char-a-bancs Passengers' Fares and Operating Costs. A Guide to Accurate Quoting so as to Ensure a Sufficient Profit.
A T this period of the year, proprietors and -La operators of passenger-carrying vehicles are cudgelling their brains to estimate the fares whiih shall be charged during the forthcoming Beason for various trips in chars-à-banes and buses, particularly in connection with pleasure outings of a regular nature. I may, therefore, with advantage devote my attention this week to some thoughts upon the problems presented to our readers in this connection.
One of the inquiries which has been sent to me concerns a 50-mile circular trip with a char:a-banes, but the details provided are insufficient to enable me to furnish an accurate reply to the questions raised. However, the subject is of such general application that We may discuss the points in some detail, in order to arrive at approximately accurate figures for varying circumstances.
The letter sent by the inquirer concerned merely states that the vehicle is a 28-seater ehar-à-bancs used in the provinces, which it is proposed to utilize for circular tours of 50 mites, and the information requested is : " What would be the minimum fare to be charged for such a trip ? " Whether pneumatic or solid-tyre equipment is not given, and the most important factor in the case, viz the number of days per week on which this trip will be carried out, is omitted. Obviously, the number of occasions when the journey will be made alters, to a very marked extent, the operating costs which, in turn, affect the fares to be charged. The 50-mile journey is not further described and, therefore, I am not certain whether the trip will take a whole day, in the event of sight-seeing opportunities arising, or whether it is merely an " out-kind-home " ride with, perhaps, a few minutes stop at the most.
If the vehicle is employed on one jqb for a working day, obviously its scope for other work will be limited and, therefore, the whole of the desired profit for that day must be allocated to the one trip and the fares charged proportionately. Briefly, we must examine the running costs and standing charges and add them together to find out what is the Minimum amount to be received in fares to cover the ,operating costs. This, of course, is not enough. A further amount must be added to provide for the profit which it is desired to receive from the vehicle in question, and the total sum must then be divided to ascertain the minimum fare which any passenger should. pay for his ride.
In the case of a pneumatic-tyred vehicle, the operating costs for three days' work of this class, i.e., 150 miles per week will be about 211 us. I am ignoring the possibility of the vehicle doing other work, as there is no information on this point, but users may easily amend the figures to suit the circumstances of their own particular cases by selecting the weekly mileage, and must allot the costs in respect of the circular trips to the passengers then carried. If the journey is made on four days in the week, the vehicle covers 200 miles and costs, approximately, 213 2s. If the trip is made on five days, the approximate costs will be about 214 19s., or, if six 50-mile journeys are carried out, the total costs will probably be 216 es.
Having chosen the operating cost figure which applies to the case, we must split up the total figure to find out the expenses of each round trip. For three, four, five and six journeys, we find that the cost will be 23 17s., £3 5s. 6d., 23, and 22 14s. 8d. per trip according to the number in each week B36 These figures will be the costs of the trip and no allowance is made for profit at the present stage.
To cover the bare expenses of their joy-ride, each passenger must first of all be charged, roughly, 2s. 9d., 2s. 4d., 2s. 2d., or 2s. respectively.
Turning now to the char-à-bancs equipped with solid tyres, we will take the same mileages and note the operating costs. One hundred and fifty miles per week for 210 10s., 200 miles per week for 211 16s., 250 miles per week for 213 15,, 300 miles
per week for 214 Os. The cost per journey calculated from the above figures will be 23 10s.,22 19s., 22 12s. 2d. or £2 7s. 8d. Again, working on similar lines, the expenses per passenger will be 2s. 6d., 2s, lid., is. 10d., is. 80.
To ensure a minimum profit of Re per vehicle per week, this amount will have to be added to the weekly operating costs and the same process of cal
culation adopted. Taking, as an instance, an 150mile week for both classes of vehicles, i.e., pneu
matic and solid-tyred, we find that the sum for each trip will be 25 17s, or 25 10s. Allocating the amount per passenger, we get 4s. 3d. or 4s, for the 50 miles as the minimum fare to be charged iaLorder to yield the desired return..
The particular inquirer proposes charging a fare of approximately 6s. 6d. for the trip and he will, therefore, according to the foregoing figures, be on.
the safe side if circumstances are normal. If the trip in question is one which is made during the summer months only, the total annual profit desired will have to be gained during the period of work and, therefore, a larger provision for profit must be made. In view of the fickle nature of English summers, and the many wearying factors which affect the passenger-carrying trade, it will be advisable to make adequate allowance for idle days and the changes in public fancy.
The figures given in the previous paragraphs will serve to indicate the broad nature of the question, and the many points which have to be dealt with in drawing up estimates for the season's work. The figures and calculations given are merely approximate, but the methods may be followed an order to arrive at the correct statement of affairs in connection with any particular undertaking which is being considered. 8.