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In Coach Operation —
Page 78
Page 79
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More Miles Mean More Money
by S.T.R.
T0-DAY'S " big idea," in commercial-vehicle operation, is—the bigger the mileage, the bigger the opportunity for profit. Moreover, the opportunities for profits increase in much greater proportion than the mileage. This applies whether the vehicle be used for the conveyance of goods or passengers. The fact is to a large extent overlooked by operators in both categories, but it has to be admitted that there is a greater disparity between potential and actual mileages,
in respect of coaches, than there is in respect of goods vehicles.
What I mean is that the coach, and,I have in mind the coach employed principally on tours, excursions and contract work, is to some extent limited in respect of the mileage it can do, because the work for which it is used is largely seasonal; that applies much the less to goods haulage. It is of interest, first, to indicate how cheap additional mileage can be and then to suggest means for increasing potential mileages.
Take a 30-seater coach, covering an average mileage of 24,000 per annum, which is an average of 480 per week, spread over the year. The total expenditUre, in connection with the operation of the vehicle, can be summarized as follows :—The running cost aproximates to 6d. per mile, comprising petrol, 1.50d.; oil, 0.10d. ; tyres, 0.70d.; maintenance, 090d.; depreciation, 2.80d.
For the standing charges we can take, as reasonable averages, the following (per week) :—Licences, £1 3s. 3d. ; wages, £4 2s. 10d.; garage rent and rates, 13s.; insurance, 19s.; interest on capital outlay, £1 Os. 6d. ; ttal, £8 7s. 7d. On the basis of a 480-mile week that is, as near as makes no matter, 4d. per mile, so that the bare operating cost of the vehicle is 10d. per
mile. • In addition, it is necessary to make provision for fairly heavy expenditure for overheads, administrative costs, agency fees, expenses of tours organization, gratuities, advertisement, booldets and similar items. These are not likely to total less than £3 per week, which B36 is equivalent to an additional lid. per mile; bringing the total outgoing to llid per mile. Such a coach can, therefore, be run to show a modest profit, at Is, 3d. per mile, The peak-load point, in coach operation, is at the week-end. Most of the mileage is covered then, and many vehicles are, to a large extent, idle during the
middle of the week. Nothing can be done to increase the mileage at the week-ends, nor is there much trouble in filling vehicles at that time.
Finding Mid.week Work.
Efforts, therefore, must be directed towards finding work _tor the vehicle during the middle of the week. It is possible to do this, the more so as, in the absence of other inducements, the operator can offer favourable terms to potential riders. How this can be effected, may best be indicated by making the assumption that the coach is run an additional average of 240 miles per week, raising the average mileage to 720.
The standing charges are likely to remain the same as before, that is, £8 '7s. 7d. per week. There is likely to be some addition to the overheads, which may reach £4 per week, instead of £3 per week. The running cost per mile remains approximately the same (at least there is no need to assume otherwise), 720 miles at 6d. per mile being £18. The total cost per week, under the altered conditions, is thus £30 7s. 7d. .
The previous figure, at nid, per mile, is £23 per week, so that this increase of 240 miles per week has been achieved at a total cost of £7 7s. 7d. The odd amount of 7s. 7d. arises because I have made an approximation in assuming that the standing charges, in the first case, reached the round figure of 4d. per mile which is not strictly correct.
Obtaining Custom for Extra Mileage.
That is equivalent to 7.35d. per mile, so that, assuming for the sake of argument that the operator be still content with 31d. per mile profit, he could run these mid-week tours for less than 11d, per mile.
. Now, the question arises: how should the coach owner set about finding means for, attracting custom for this extra mileage? Obviously, it is no use looking to those who patronize him at week-ends. He wants to get into contact with people who can go for tours and excursions in the middle of the week. Surely, such potential riders are present in the retail traders of the district in which he operates?
. This type of citizen is busiest at the week-end, but he can usually take. a day or two off, in the middle of the week, leaving his assistants in charge. Two-day or three-day tours, offered to local tradesmen, are likely to meet with appreciation. In every town, there are tradesmen's associations that may be approached with this end in view.
Next, what kind of tour is likely to be attractive to such a clientele? It should be of a description which will afford the tradesman an entire change. Trips with an object are to be recommended, and they should not cover too much ground. There should be a limit to the distance from point to point ; no individual day's journey should exceed about 100 miles and the passengers should not be expected to remain seated in the coach for more than an hour or an hour and a quarter at a time, without a break.
There should be something of interest at every stop. Even the hotels visited should have something of interest about them. It should be an essential feature of the organization that, for each tour, there should be prepared a little booklet, not too wordy, but well illustrated.
It should be remembered that the average passenger in this country, to whatever class he belongs, has become accustomed to a degree of comfort in road travel, which he would probably not expect in his other circumstances of living. For this reason it is essential that this somewhat peculiar characteristic should receive careful attention.
Vehicles should, be selected with this object in. view ; this applies not only to chassis suspension but also to the seating in respect of well-sprung cushions and seats designed on anatomical lines.
Another word of advice to the operator : do not be greedy! Do not try to tap the whole resources of the town, in respect of retail tradesmen, in one week. A large party is not always a successful one. One coach load at a time is best, not only because, in this way, it 13 possible to find employment for a coach on the one particular tour, week after week, thus reducing overheads, but also because a sudden influx of two or three coach-loads of passengers is too much for the kind of hotel and restaurant which I have in mind.
It will be as well to indicate what I mean by the overhead expense of a particular tour. I refer to the cost of planning, for careful preparation in advance is essential. The operator, or a responsible and capable representative, must go over the ground in a car, travelling at the same rate as that at which the coach will travel, stopping at the same places and sampling the meals and accommodation which are going to be offered.
Preparation Makes Success Easy.
Success can be achieved only if those responsible first` go through the route, mile by mile, making notes (a) for the guidance of their advertising and administrative staffs in respect of timing, stopping places and hotels, (b) for the driver, making reference to points on the route which call for especial care and (c) as a basis for the preparation of a booklet giving references to landmarks, places of interest, unusual viewpoints and so on.
Dates are important, especially those of fairs, agricultural shows and the like, which may be occurring along the route. It is preferable to plan the journey so that the venues of such events, which usually create traffic congestion, should be avoided.