the coach experience Volvo Buses Insights Report

the coach experience Volvo Buses Insights Report

To answer this question, and gain valuable insights, Volvo Buses together with research institute Kantar SIFO conducted a survey among 6000 coach passengers in Sweden, Germany, France, Italy, Spain and the UK. We also conducted a driver survey, with over 1000 participating coach drivers throughout Europe. The results are presented in this report. To be able to offer better products and services we have to better understand our passengers and what makes them book that next coach journey. In a rapidly changing world, the coach industry has to adapt to meet new demands. Environmental legislation, safety regulations and access to new technologies are of course important drivers. So are new travel patterns and the increasing competition from other means of transport. At Volvo Buses, we are genuinely interested in what is important to people. What it is that really matters to all the passengers and drivers who ride in and drive coaches every day. We want to gain a deeper understanding of their needs, what their experiences are of coaches today, and what their demands and expectations might be tomorrow. We want to find out What s the ultimate coach experience? It s an interesting read. Especially regarding the cultural differences between the various countries, and not least the answers from passengers in the younger generation. They are digital natives and are quite individualistic as a group. They want to choose and tailor their own solutions and they are used to immediate response. And most importantly: these passengers are a big part of our future customer base and the entire European coach business. We need to understand their perspective and meet their needs to be able to get more people to choose travel by coach, both line-haul and charter. At Volvo Buses, we regularly conduct research and surveys to gain new insights and inspiration for our development work. This report is an important part of this work, and we are happy to share it with everyone who is interested in getting to know European coach passengers and drivers a little bit better. Hopefully it will also help create a clearer picture of what the ultimate coach experience can be. Ulf Magnusson Senior Vice President Europe Volvo Bus Corporation 02

04 CHAPTER 1: THE PASSENGER 05 11 THE COACH RIDE SAFETY AND SECURITY 15 NEXT GENERATION PASSENGERS 19 CHAPTER 2: THE DRIVER 20 24 28 35 OCCUPATION: COACH DRIVER SAFE & CONFIDENT AT WORK NATIONAL COMPARISONS SOURCES 03

THE PASSENGER CHAPTER 1: 80% of millennials are willing to pay extra for add-on services.

THE COACH RIDE Satisfied passengers are essential for a successful coach business. They will most likely return for their next trip and recommend you to relatives and friends. Appreciation from happy customers is also important to drivers. So, in our passenger survey we have explored what factors are most important for creating a good coach experience. What do passengers like to do when travelling by coach, and which services meet their needs? In general, people want to sleep, read and watch films during a coach ride, while having as little contact as possible with other passengers. THE COACH RIDE 05

Seat comfort and legroom, yes but the driver is important too! If we were to focus on only one or two things to improve the passenger experience, what would they be? To find out what has the strongest impact on making a good coach ride, we gave passengers a list of options and asked them to mark the three most important things. At the top of the list in every market we find the seat and the legroom. Not that surprisingly, since the seat is crucial in making long-distance rides comfortable. But in third place, well above Wi-Fi and visibility, we find the driver. If we exclude the UK, 44% of passengers say that the driver is one of the three most important things for making a good coach ride. And even when the UK is included, the average score is 38%. 61% 38% The 36% The seat and legroom driver Visibility and the view Seeing how important the driver is to the passengers coach experience, happy and competent drivers equals a stronger total offer. What has the biggest impact on making a good coach ride? Total France Germany Italy Spain Sweden UK Legroom 61% 60% 67% 63% 67% 49% 63% The seat 60% 62% 56% 54% 66% 58% 64% The driver 38% 35% 44% 44% 49% 46% 13% Visibility and the view 28% 35% 22% 20% 18% 30% 41% On-board entertainment and Wi-Fi 24% 28% 24% 24% 27% 19% 26% Your fellow passengers 19% 17% 23% 22% 9% 21% 22% Space for personal belongings 15% 17% 18% 13% 9% 16% 18% Other 3% 2% 3% 2% 2% 6% 3% THE COACH RIDE 06

The passengers favourite seat Passengers in all countries, and across all age groups, prefer the seats with the least contact with other passengers. That means single seats, seats with no one in front or behind, as well as seats by the window. And the seat that was most popular in our survey was a single seat behind the back door, which got 21% of the votes. The second most popular seat in our survey, with 10% of the votes, was the window seat behind the front door. 21% Say this is their favourite seat We used a fictive coach layout in our passenger survey, that offers both single and twin seats, to find out more about passengers seat preferences. Top 3 things people like to do during a coach ride 63% 57% 46% 1. Sleep 2. Read 3. Watch films THE COACH RIDE 07

40% would like to be able to buy sandwiches on board Cold beverages 56% Warm beverages 45% Sandwiches 40% Snacks 40% Warm meals 14% Alcoholic beverages 9% Three-course dinner 7% In Spain, 10% of coach passengers would like to be able to buy a three-course dinner on board. And the French are not far behind at 9%. However, the most asked-for food on a coach ride, in general, is sandwiches and snacks, which 40% of passengers would like to be able to buy. 14% of German passengers would like to be able to buy alcoholic beverages on board. 10% of Spanish passengers would like to be able to buy a three-course meal on the coach. Passengers in the North European countries, Sweden, Germany and the UK, stand out with 14% wanting to be able to buy alcoholic beverages on board. But those 14% should be weighed against the fact that almost 50% of coach passengers in our survey said they find it annoying with people drinking alcohol on board. THE COACH RIDE 08

A coach needs to be optimised for both relaxation and work Even though many people like to socialise and work during the coach ride, sleeping is still the most popular activity among coach passengers. Overall, passengers seem to prefer calm activities like reading and watching films. And in France and Spain, as many as 23% say they like to meditate during the ride. 63% of Spanish passengers like to sit back and watch a film during the coach ride. Sleep Read Film Eat Germany 67% 60% 41% 40% UK 57% 56% 40% 41% France 58% 51% 45% 20% Italy 62% 55% 52% 27% Spain 68% 61% 63% 40% Sweden 66% 59% 33% 25% Total 63% 57% 46% 32% Socialise Work Meditate Take off shoes Germany 55% 12% 9% 11% UK 20% 10% 8% 12% France 36% 16% 23% 9% Italy 29% 16% 17% 8% Spain 18% 24% 23% 8% Sweden 29% 19% 10% 23% Total 31% 16% 15% 12% Did you know Swedes don t wear shoes inside their homes? And 23% even like to take their shoes off on the coach. THE COACH RIDE 09

In Germany 55% say they like to socialise on the coach ride. Spain on the other hand is the country with the least interest in talking to their fellow passengers, with only 18% saying they like to socialise on the coach. THE COACH RIDE 10

SAFETY & SECURITY Safety is an important issue to passengers. It is so important that many passengers would like to be able to get information about the vehicle s safety features before booking a ticket. Today, all European coaches must be fitted with seatbelts, automated emergency brakes and lane departure warning systems. But at Volvo, we are always at the forefront, developing new technology to ensure a safer journey. Passengers are very interested in safety and security, which means this is a commercial opportunity for operators. SAFETY & SECURITY 11

Seatbelt usage is going up It wasn t that long ago that no-one in the coach, except the driver, wore a seatbelt, but since it became a legal requirement in Europe the use of seat-belts has increased steadily. And looking at our survey results, seatbelt use in coaches is now quite high. However, at Volvo we are not satisfied until we reach 100% seatbelt use and 3-point seatbelts in all seats. Seatbelt use in Europe 32% 62% 71% 73% 76% 83% Italy Germany UK Spain France Sweden Safety a competitive factor Almost 50% of passengers in our survey say they want information about safety features already when booking a coach ticket. This indicates that if more safety information becomes available to the passengers, the level of safety could become an important factor when choosing which company, or even which vehicle, to travel with. The highest figures come from Spain and Germany, while interest in information about safety features is lowest in Sweden. This could be due to the safety level in Swedish coaches already being considered very high, and therefore not as much of an issue for passengers. Information that passengers are interested in when booking a coach ticket 60% 63% Safety features The AC system Coach brand None of above 47% 36% 29% 18% 33% 46% 39% 46% 21% 18% 45% 36% 25% 15% 42% 45% 18% 21% 36% 19% 20% 39% 37% 30% 21% 8% Total Sweden Germany France Italy Spain UK SAFETY & SECURITY 12

Many passengers are worried about security on board While safety is about avoiding accidents, security is about avoiding criminal activity. About making passengers feel secure that no harm will be done to their person or possesions while riding the coach. Security issues could for example include coaches being robbed or hijacked, or violence and abuse from fellow passengers. On average 36% of passengers say they are interested in increased security on board and 44% are worried about their luggage. This leads us to the conclusion that a coach operator who succeeds in making passengers feel safer and more secure, has a strong selling point. However, the numbers differ a lot between countries. Passengers interested in increased security on-board Interested Would pay extra Spain 55% 24% Italy 49% 24% Germany 42% 24% Sweden 27% 11% France 24% 11% UK 20% 8% Total 36% 17% In Germany, Italy and Spain, almost 1 in 4 is willing to pay extra for increased security on board. Passengers worried about the security of their luggage 84% 82% 27% 26% 25% 22% Spain Italy UK France Germany Sweden SAFETY & SECURITY 13

In all countries the youngest age group, 18-29 years, is more worried about their luggage (average 53%) compared to the oldest age group, 60+ (average 36%). SAFETY & SECURITY 14

NEXT GENERATION PASSENGERS Millennial passengers, 18 29 years old, distinguish themselves in our survey in many ways. Clearly, it is crucial to understand these passengers characteristics and preferences. By doing so we can anticipate trends that will have an impact on the travel and coach industry in the next few years. The younger passengers are looking for individual experiences. It s about my needs, my space, my journey. NEXT GENERATION PASSENGERS 15

80% of millennials are willing to pay extra for add-on services Although many 18 to 29-year-olds have a limited income, they are still the age group that is most positive to paying extra for services that meet their unique needs. It seems that it is more a question of attitude and behaviour than economy. This willingness to pay extra for services decreases with age and is lowest in the 60+ age group, which would rather have everything included in the price. Passengers who would consider paying extra for one or more add-on services 80% 71% 63% 57% 18 29 years 30 45 years 46 59 years 65+ years Services millennials are interested in paying extra for 30% Wi-Fi fast enough for video- and music-streaming 19% Increased physical privacy/a secluded space 19% Entertainment system with movies, TV series, music and games 17% Travel kit with blanket, neck-pillow, earplugs and sleeping masks 15% Increased security on-board 9% CO 2 compensation 6% Travel information with estimated arrival time, map and GPS location 5% Sightseeing information about sites and attractions that you pass 2% Camera view front and rear of bus NEXT GENERATION PASSENGERS 16

A world of their own The survey result shows that millennial passengers like to create a world of their own when travelling by coach. They want to plug in their headphones, watch films and feel the world around them disappear. Sweden is the country in which young passengers are the most interested in increased physical privacy. 43% are interested and 28% are willing to pay extra for it. NEXT GENERATION PASSENGERS 17

1. They want a secluded space 35% of passengers 18 29 years old are interested in increased physical privacy, and 19% of them find it important enough to pay extra for this service. Passengers 18 29 years old were also the most positive when we asked about their interest in future developments offering sound and vision isolation. 2. Wi-Fi is everything 63% of millennial passengers are interested in Wi-Fi fast enough for video and music-streaming, and 30% are willing to pay extra for it. Not strange since to this group it is crucial to be able to listen to music and watch films. The only thing they enjoy more on the coach trip is to sleep. Interest in a virtual reality headset with sound and vision isolation: 1: Not interested 5: Very interested Interest in ergonomic reclinable seats with leg rest and acoustic cover that keeps noise out: 1: Not interested 5: Very interested 3.35 1 2 3 4 5 4.15 1 2 3 4 5 Hop on and zone out When comparing the age groups we see big differences between younger and older passengers. To passengers over 65 years the journey seems to be part of the destination. They like to socialise and look at the view, while 18 to 29-year-olds would rather plug in their headphones, watch films, sleep and eat. Top 3 things millennials like to do on a coach 73% 47% 57% 45% Sleep 30% Watch films Eat 23% 18-29 years 60+ years (for comparison) NEXT GENERATION PASSENGERS 18

CHAPTER 2: THE DRIVER 40% of drivers want to learn more about safety features.

OCCUPATION: COACH DRIVER In the passenger survey we could see that the driver plays a vital role in creating a positive passenger experience. But what makes the coach ride a good experience for the driver? What is important when choosing where to work, and which factors are vital for making a coach driver happy and satisfied on the job? A coach driver who gets to drive the right vehicle and meet happy passengers, enjoys work and is most likely to stay with his or her employer. OCCUPATION: COACH DRIVER 20

There is a strong bond between the driver and the vehicle A good coach driver is highly attractive in the coach business. In many countries drivers can pick and choose between offers from different employers. So, what can a coach operator do to attract and keep drivers in the long run? One of the answers is to offer the right vehicle. In our survey it turns out that the most important factor for a driver when choosing an employer is the coach they get to drive. There is clearly a strong bond between the driver and the vehicle. For some, it s almost like their second home. Most important to coach drivers when choosing their employer? 13% 11% 14% 8% 1. The coach I get to drive 14% 22% 18% The coach I get to drive Flexible work schedule Where (geographically) I get to drive The manager The co-workers Possibilities for training and further education The length of the routes I get to drive OCCUPATION: COACH DRIVER 21

Happy passengers are the best part of the job Everybody wants to feel appreciated at work. That goes for coach drivers too. And since their daily feedback comes largely from the passengers, it s not surprising that happy passengers are regarded as the best part of the job. However, we can see a notable difference when it comes to the driver s age. It seems that the connection between driver and passengers changes with the driver s age; the older the driver, the more positive the passenger response. An example of this is that older drivers say they get more applause and encounter fewer unpleasant passengers compared to younger drivers. What is the best part of your job? Total 18 29 30 45 46 59 60+ Happy passengers 44% 29% 43% 46% 54% The driving itself 29% 30% 31% 26% 27% Seeing beautiful nature/ places 15% 26% 14% 16% 10% Exciting roads 12% 15% 12% 12% 9% 74% get spontaneous applause It is not only airline captains who receive applause. 74% of coach drivers say they get spontaneous applause from passengers often, or at least now and then. The atmosphere on board seems to be very friendly, and the majority of coach drivers, 63%, say they rarely or never encounter angry or unpleasant passengers. OCCUPATION: COACH DRIVER 22

How often the driver encounters angry or unpleasant passengers Total 18 29 30 45 46 59 60+ Often 8% 18% 7% 6% 4% Now and then 29% 35% 31% 29% 20% Rarely 53% 43% 54% 54% 59% Never 10% 4% 8% 11% 17% Drivers 60+ years say they get more applause, and encounter fewer unpleasant passengers than younger drivers do. 85% recommend being a coach driver Being a coach driver means a lot of responsibility. At the same time, it s a flexible and quite well-paid job. According to our survey the majority of coach drivers, 85%, are so happy with their job that they would recommend others to join the profession. OCCUPATION: COACH DRIVER 23

Safe & confident at work A coach driver spends thousands of hours behind the wheel every year. Staying alert and focused is key for safe driving, but also essential for the driver when it comes to feeling safe at work. Today, a range of advanced systems support the drivers in various situations, and our survey shows that drivers want to learn more about safety features and driver support systems. Ultimately they are responsible for bringing passengers comfortably and safely to their destinations, every day, all year round. The introduction of new advanced driver support systems also means an increasing need for driver training and education. SAFE & CONFIDENT AT WORK 24

Coach drivers rate safety as a top priority The top list of what is important to drivers as regards the coach s features and functions Scale: 1 (least important) to 7 (most important) 1. Safety 2. Handling/manoeuvrability 3. Visibility 4. AC 5. Engine power 6. Dashboard layout 7. Luggage capacity 1 2 3 4 5 6 7 5.5 5.2 4.8 3.4 3.3 3.2 2.5 Coach drivers put safety at the top of the list of what is important. And at numbers 2 and 3 we find Handling and Visibility two areas also closely connected to safety. SAFE & CONFIDENT AT WORK 25

52% want to learn more about driver assistance systems Modern coaches are getting more and more advanced. Drivers are supported by sophisticated systems that can sometimes even override the driver to maintain safety in a critical situation. The introduction of new systems means a constant need for training and education. In our survey it s also clear that drivers feel a need for getting more information about driver assistance systems, safety features and safer driving. To be able to maintain happy passengers, they also want to learn more about things such as how to run the kitchen. What the drivers feel they need more information or knowledge about 22% Service taking care of passengers 38% How to run utilities (kitchen, toilet, infotainment) 27% Eco-driving training 40% Safety features 34% Safety driving training 52% Driver assistance systems SAFE & CONFIDENT AT WORK 26

Drivers who are 60+ years are more interested in developing their knowledge and learning more compared to other age groups, according to our survey. SAFE & CONFIDENT AT WORK 27

NATIONAL COMPARISONS Coach drivers in Europe have a lot in common, but when you dig deeper in the survey results you find interesting differences between countries. 1000 coach drivers from 34 European countries took part in our survey, with the highest number of participating drivers coming from Finland, France, Italy, Sweden and the UK. What s most important for the driver and what makes a good working day differs between different nationalities. NATIONAL COMPARISONS 28

Germany coach drivers favourite country There is no doubt: Germany out-performs all other countries when it comes to popularity among coach drivers. In our survey the drivers were asked to rate the best countries when it comes to service, support and satisfying the driver s needs. Germany won in all categories. Even though many drivers tended to vote for their own countries, the votes for Germany came from drivers all over Europe. Germany seem to do everything right when it comes to satisfying coach drivers. The country was chosen number one in everything from best service to best food on the road. NATIONAL COMPARISONS 29

Perhaps it is Norway s spectacular scenic routes that has put this small Nordic country on the coach drivers top-3 list. The European countries that drivers most enjoy driving in 1. Germany 2. France 3. Norway 22% 11% 8% NATIONAL COMPARISONS 30

Where coach drivers feel they get the best service 1. Germany 2. France 3. Austria 23% 8% 8% Best food on the road 1. Germany 2. Italy 3. France 16% 13% 12% Although Italy and France are world-renowned for their cuisine, Germany is the country that offers the best food on the road according to drivers. NATIONAL COMPARISONS 31

National differences In Italy 51% of drivers want to learn more about safety driving, while in Finland the figure is just 19%. And in Sweden and the UK 66% say that a flexible work schedule is important when choosing their employer, while only 33% of French drivers agree. When comparing the answers from different countries we find interesting differences. Here is a closer look at some of the results from the driver survey, broken down into the five countries that each had 100 respondents or more. The best part of the job Finland France Italy Sweden UK Happy passengers 66% 45% 40% 47% 28% The driving itself 18% 28% 32% 21% 34% Beautiful nature/places 10% 13.5% 19% 18% 29% Exciting roads 6% 13.5% 9% 14% 9% UK drivers stand out in the result. Compared to other countries they seem to enjoy the beautiful views and surroundings more. How often the drivers encounter angry or unpleasant passengers Finland France Italy Sweden UK Often 1% 3% 19% 10% 14% Now and then 24% 28% 39% 18% 43% Rarely 67% 54% 32% 53% 39% Never 8% 15% 10% 19% 4% Finnish coach drivers say they rarely encounter angry or unpleasant passengers. Perhaps this is linked to the fact that drivers in Finland rate happy passengers higher than the other countries do? NATIONAL COMPARISONS 32

What drivers feel they need more information/knowledge about Finland France Italy Sweden UK Driver assistance systems 56% 45% 47% 50% 63% How to run utilities 59% 31% 25% 45% 47% Safety features 25% 59% 35% 51% 35% Safety driving training 19% 30% 51% 19% 24% Eco-driving training 23% 35% 24% 17% 26% Passenger service 21% 31% 25% 18% 18% 59% of French drivers in our survey would like to learn more about safety features. French drivers are also the ones with the highest interest in general for learning more. NATIONAL COMPARISONS 33

Most important when choosing an employer Finland France Italy Sweden UK The coach I get to drive 66% 82% 75% 51% 66% Flexible work schedule 58% 33% 56% 66% 66% The manager 46% 31% 34% 46% 42% Where I get to drive 47% 58% 28% 30% 41% The co-workers 46% 24% 27% 48% 31% Training and education 16% 42% 49% 37% 22% Route length 21% 29% 31% 23% 22% When choosing where to work, a flexible work schedule is at the top of the list for Swedish coach drivers NATIONAL COMPARISONS 34

SOURCES SOURCES 35

Coach Passenger Survey Markets: Target group: Target group: Sweden, Germany, France, Italy, Spain, UK Men and women, 18+ years, who have travelled by coach (long distance journeys, 1 hour or more) during the past three years. 6000 online interviews (1000 per market). The survey was conducted during December 2017 January 2018, together with Kantar TNS (www.tnsglobal.com). Coach Driver Survey Market: Target group: Implementation: Europe Coach drivers, 18+ years, who work with line-haul and/or charter. 1000 online interviews. The survey was conducted during March May 2018. The tables and figures in this report are derived from two different quantitative online surveys, one aimed at European coach passengers and the other at European coach drivers. The surveys were originally written in English and then translated into Finnish, French, German, Italian, Polish, Spanish and Swedish. Therefore, slight variations may have arisen from the translations. Another thing to consider is the differences between line-haul and charter. Although the same types of vehicles are used, the needs and expectations of both passengers and drivers most likely differ. In the passenger survey we did not segment line-haul and charter passengers. And in the driver survey, where this segmentation was done, the number of answers are too few to draw any major conclusions from this segmentation. Out of the 1000 responding drivers 139 state they mainly drive line-haul traffic, 395 are charter drivers and the rest work in both line-haul and charter operation. It might therefore be of interest to further research the differences between line-haul and charter passengers as well as drivers. SOURCES 36

September 2018 Volvo Buses. Driving quality of life