Shearings' parent company enter administration

[Robertj21a]

I imagine coach hire rates will increase significantly, especially at peak times.

The coach holiday business will be extremely competitive after lockdown, with tour operators demanding higher quality vehicles which with a finite supply comes at a cost.

I suspect many coach operators in the future will be demanding payment in advance from tour operators....!

I would certainly hope that any reputable travel company comes to an arrangement with their suppliers so that a sensible proportion of the total cost is paid over in advance, and with stage payments if necessary.

 

[Bletchleyite]

I would certainly hope that any reputable travel company comes to an arrangement with their suppliers so that a sensible proportion of the total cost is paid over in advance, and with stage payments if necessary.

I hired a couple of coaches recently for a Scout event and was most surprised that payment was only required 30 days before the trip (thinking on it might actually be less than that e.g. 14 days, but I can't find the invoice to check) - I had assumed a hefty early deposit would be needed but seemingly not.

Why would one voluntarily pay sooner?

 

[Robertj21a]

I hired a couple of coaches recently for a Scout event and was most surprised that payment was only required 30 days before the trip (thinking on it might actually be less than that e.g. 14 days, but I can't find the invoice to check) - I had assumed a hefty early deposit would be needed but seemingly not.

Why would one voluntarily pay sooner?

I hope that coach operators toughen up a bit with requiring sizeable deposits if they want to survive long term. It would be a shame if the lack of work at present encouraged some to get business by simply dropping sensible financial controls.

 

[Taunton]

I would certainly hope that any reputable travel company comes to an arrangement with their suppliers so that a sensible proportion of the total cost is paid over in advance, and with stage payments if necessary.

The issue with that is that if the travel organiser's trip doesn't work out, or they close down, or whatever, they have to give any moneys paid back to those customers who have booked and paid so far. This is especially where they line up their coach etc suppliers months before people book. They won't have that if they have already had to pay substantial advance deposits to coach operators (and by extension hotels etc), which would doubtless not be refunded even though the trip doesn't go ahead.

You can't organise the financial arrangements to the advantage of the coach company meanwhile to the disadvantage of everybody else.

 

[David Verity]

I hired a couple of coaches recently for a Scout event and was most surprised that payment was only required 30 days before the trip (thinking on it might actually be less than that e.g. 14 days, but I can't find the invoice to check) - I had assumed a hefty early deposit would be needed but seemingly not.

Why would one voluntarily pay sooner?

When you booked your Scouts' coaches did the operator allow you to specify months in advance exactly which vehicle you wanted, then have it liveried up in a scheme of your choice, select and train the driver you wanted and the uniform he/she was to turn up in?

I suspect we are talking different scenarios here - the day to day jobbing private hire market or the operator specific work where coaches cost £200k upwards, then you have the further expense associated with painting in the tour providers' specific livery, driver uniforms etc plus the sanctions/penalties if the provider doesn't happen to like what you sent or how the driver behaved? That's one hell of a lot of risk to be the told "sorry the tour is cancelled, we don't need you next week" After making all that commitment why wouldn't you ask for a deposit?

 

[M803UYA]

I would certainly hope that any reputable travel company comes to an arrangement with their suppliers so that a sensible proportion of the total cost is paid over in advance, and with stage payments if necessary.

I think people would be surprised by the demands of some tour operators who hire in third party vehicles, and the poor rates they pay. Problem is, coach operators would work for silly money just to keep the wheels turning.
If, as is being predicted, there will be less coach operators that will mean those left standing might obtain better rates for their work.

 

[David Verity]

I think people would be surprised by the demands of some tour operators who hire in third party vehicles, and the poor rates they pay. Problem is, coach operators would work for silly money just to keep the wheels turning.
If, as is being predicted, there will be less coach operators that will mean those left standing might obtain better rates for their work.

It would be nice to think so - or there might be a race to the bottom to hold on to what business there is. I've read recently of fee paying schools putting a pistol to their coach suppliers' heads and demanding lower rates or threatening to go elsewhere. This country doesn't realise what an asset a sound coach business is - that is until they expect coaches to turn up to replace non-existent trains or grounded planes - or they need something to spread their political slogans on.

 

[Eyersey468]

It would be nice to think so - or there might be a race to the bottom to hold on to what business there is. I've read recently of fee paying schools putting a pistol to their coach suppliers' heads and demanding lower rates or threatening to go elsewhere. This country doesn't realise what an asset a sound coach business is - that is until they expect coaches to turn up to replace non-existent trains or grounded planes - or they need something to spread their political slogans on.

I know our coaching side is bidding for every RRB contract that comes up but so is every other operator that has PSVAR coaches

 

[Titfield]

Sadly any industry where you tender for the work and there are low barriers to entry / multiple suppliers is an industry that creates the conditions for a race to the bottom. Ironically when NBC existed by virtue of being a nationalised business it had some political clout. Now with the exception of TfL I doubt any bus operator (I accept that tfL per se is not the operator) has any political clout.