The Motorcoach Operator’s Business Report: Where the Money Is Moving in 2026

International tourism remains soft, domestic group travel is holding up, insurance is taking a larger piece of operating expenses and private operators are becoming more cautious with equipment. The numbers don't point in one direction—and that's what makes them worth looking at.

by Danny B.

I've been looking deeper into tourism and transportation numbers lately, but this time I wanted to look at them less like industry news and more like a financial report.

We hear a lot about whether tourism is up or down, whether charter business is strong or slow, or whether operators are busy. Those things matter, but they don't necessarily tell us what is happening underneath the business.

Some of the latest numbers actually seem to contradict each other. International visitation is still below 2019 levels. Private operators cut new-coach purchases sharply in the second quarter. Insurance has become a major operating expense. At the same time, domestic group travel is growing and motorcoach travelers generated $72.5 billion in direct spending last year.

So instead of trying to say whether 2026 is a good year or a bad year for the motorcoach industry, I wanted to put some of the numbers together and see what they tell us.

The Numbers

Indicator	Latest Figure	Trend
2025 international visitors	68.3 million	Down 5.5%
2026 international visitor forecast	70.6 million	+3.4% forecast
2026 domestic group spending	$117.6 billion	+1.4% forecast
June Top-25 group hotel demand	+3.1%	Strongest in a year
Motorcoach traveler direct spending	$72.5 billion	+3.9%
Total motorcoach economic impact	$161.6 billion	Up from $158B
Private new-coach sales, Q2	–27%	Sharp decline
Operators paying $20K+ insurance/unit	49%	Cost pressure
Operators whose premiums more than doubled	53%	Cost pressure

Taken together, I don't read these numbers as an industry running out of business. I see demand holding up in some areas while the cost and risk of producing that revenue are changing.

68.3 Million: International Tourism Is Still Behind

Inbound international visitation declined 5.5% in 2025 to 68.3 million visitors. U.S. Travel forecasts a 3.4% increase to 70.6 million this year, but that's still well below the roughly 79 million international visits recorded in 2019. Their current forecast doesn't expect a full return to the 2019 visitor level until 2029. (U.S. Travel Association)

The spending picture shows the same problem. International inbound travel spending fell 2.4% in 2025 and is forecast to increase 1.6% to $178.4 billion this year, which would still leave it about 18% below 2019 on an inflation-adjusted basis. More recently, international visitation remained down 4.3% year-to-date through June. (U.S. Travel Association)

For ground transportation, there's a multiplier effect behind those numbers. An international group can produce an airport transfer, hotel movements, sightseeing, attractions, shopping and several days of regional touring. So a decline in international groups can reach much further into transportation than the visitor count alone suggests.

At the same time, international tourism isn't disappearing. U.S. Travel is forecasting recovery. It's just taking longer than many expected.

$117.6 Billion: Domestic Groups Tell a Different Story

Domestic group travel looks considerably stronger. U.S. Travel forecasts domestic group spending at $117.6 billion in 2026, up 1.4%, compared with only 0.7% projected growth for overall business travel. (U.S. Travel Association)

The more recent indicators are also interesting. In June, group travel was the strongest-performing domestic segment. Top-25 group hotel demand increased 3.1%, its strongest reading in a year, while DMO group demand was running 8.3% above its 2023–2025 average. Corporate hotel booking pace was ahead 7.3% for August, 8.6% for September and 5.6% for October. (U.S. Travel Association)

There's another change worth watching. U.S. Travel expects higher costs to push some travelers toward shorter-duration, lower-cost trips and regional drive markets. (U.S. Travel Association)

That creates an interesting split in tourism. International inbound is still recovering, while domestic groups and regional travel appear more resilient.

Youth and amateur sports also showed up in U.S. Travel's group-travel research as one of the growth segments, along with mid-sized cities and technology-driven events. (U.S. Travel Association)

None of that guarantees business for a motorcoach operator. But it does show where some of the underlying travel demand is moving.

$20,000 Per Bus: The Cost Side Looks Very Different

This is probably the part of the report I find most concerning.

The ABA Foundation's preliminary insurance study found 98% of surveyed operators experienced premium increases over the past five years and 53% said premiums more than doubled. Nearly half—49%—are paying at least $20,000 per power unit for liability insurance. Roughly one-third reported that insurance now represents 20% or more of total operating expenses. (Buses)

What's interesting is what happened alongside those increases. 59.6% reported no major change in claim frequency, while 98.5% said they were using at least one safety technology. At the same time, 71.2% reported fewer insurers willing to quote their business and 83.5% said insurance availability had worsened. (Buses)

Nearly 85% of operators said they've already raised customer prices because of insurance costs. (Buses)

That's where looking only at industry revenue can become misleading.

An operator can increase sales and still have less money left over if insurance, labor, maintenance, fuel, financing and other expenses are increasing faster than rates.

Revenue and profitability aren't the same measurement.

–27%: Private Operators Are Buying Fewer New Coaches

Another number that stands out is equipment.

Private-sector new-motorcoach purchases fell 27% in the second quarter of 2026. Overall sales remained relatively flat because public-sector and pre-owned demand helped offset the decline in private new-coach purchases. (Buses)

I don't know that there is one explanation for that.

Equipment is expensive. Financing matters. Insurance matters. Operators have to consider driver availability, maintenance, utilization and what they expect future demand to look like.

But when private companies suddenly reduce new-equipment purchases by 27%, I think it's worth paying attention to. It may say something about how confident operators are in adding fixed costs right now.

It also raises another financial question: Is fleet size still the best measurement of growth?

A company with 30 buses isn't necessarily financially stronger than one with 20. Utilization, revenue per unit, maintenance costs, debt and margin can tell a very different story.

$161.6 Billion: The Industry Is Still Moving a Lot of Money

Then we get to the number that makes everything else more interesting.

The ABA Foundation's new economic-impact study found that motorcoach travelers generated $72.5 billion in direct spending in 2025, up 3.9% from $69.8 billion in 2024. When indirect and induced economic activity is included, total motorcoach economic impact reached $161.6 billion, up from $158 billion the year before. (Buses)

The industry supported 897,449 jobs, generated $51 billion in wages and salaries and produced $28 billion in federal, state and local taxes. Group motorcoach travel alone accounted for $92.6 billion of economic impact. (Buses)

That's what makes the current market hard to summarize.

$161.6 billion in economic impact.

$72.5 billion in traveler spending.

Domestic groups growing.

But also:

International tourism still below 2019.

Private new-coach purchases down 27%.

53% of surveyed operators saying insurance premiums more than doubled.

Those numbers can all be true at the same time.

Seven Numbers That May Be Worth Comparing Inside an Operation

This got me thinking about what industry numbers actually mean at the company level.

Every operator has a different business. International tours in New York aren't the same as casino work in Chicago. College athletics isn't the same as commuter service. A five-bus operation doesn't have the same economics as a 100-bus fleet.

But there are a few numbers that can help put the larger trends into perspective.

Number	What It Can Help Show
Revenue per coach day	How much revenue each available unit is producing
Revenue per loaded mile	Revenue earned while carrying passengers
Deadhead percentage	How much fleet mileage isn't producing passenger revenue
Contribution margin by customer	What remains after the direct cost of servicing an account
Contribution margin by market	How different types of business compare
Insurance cost per coach day	How premium increases are affecting daily operating economics
Top-five customer concentration	How dependent revenue is on a small number of accounts

I'm not suggesting there is one correct number for any of these. Geography, equipment, customers and business models are too different.

What I find more useful is watching the direction.

If revenue per coach day is increasing but contribution margin is falling, why?

If revenue is growing but deadhead is also growing, how much of that new business is actually reaching the bottom line?

If a major customer produces a lot of revenue but requires newer equipment, long deadhead and 60- or 90-day payment terms, what does that account really contribute?

If insurance increased 40% but rates increased 10%, where is the difference being absorbed?

Those are questions the gross revenue number can't answer.

Strongholds, Weak Spots and Concentration

Another thing these industry numbers made me think about is concentration.

A company may have spent 20 years developing international tourism. Another may be extremely strong in schools, sports, casinos, government transportation or corporate work.

Those are valuable positions.

But they also look different when the underlying market changes.

A customer representing 50% of revenue can be a tremendous relationship. It's also 50% of revenue tied to one relationship.

A bus sitting several days each week may represent available capacity. It may also represent an expense that's already being insured, financed and maintained without producing revenue.

A customer paying in 90 days may still be very profitable. But financially, the operator is carrying that receivable for three months.

None of those automatically means something needs to change.

They're simply different ways of looking at the same business.

What the Next 12 Months Are Worth Watching

I'm not trying to predict where the industry goes from here. There are too many variables for that.

But based on the current numbers, there are several things I'm going to keep watching: international visitation, domestic group spending, corporate and meeting demand, regional travel, insurance cost per unit, private equipment purchases and motorcoach traveler spending.

I'm also interested in whether the gap between demand and profitability gets wider.

That's probably the biggest question I came away with after putting this report together.

Motorcoach travel is producing substantial economic activity. People are traveling. Groups are moving. Money is being spent.

But how much of that money ultimately reaches the operator's bottom line?

We don't have one national number that answers that.

Every company has its own answer.

Bottom Line

I started researching this because I wanted a better picture of what's actually happening with tourism and ground transportation.

What I found wasn't really a good-news or bad-news story.

It's more complicated.

International tourism remains a weak spot, although recovery is forecast. Domestic group travel looks stronger. Regional travel may benefit from travelers looking for less expensive trips. Insurance is consuming a larger share of operating expenses. Private operators have become more cautious about new equipment.

Yet motorcoach travelers still generated $72.5 billion in direct spending last year and $161.6 billion in total economic impact.

There's clearly money moving through this industry.

Where it's moving, what it costs to capture it and how much is left after expenses are probably the more interesting numbers.

Every operator will look at those numbers differently based on their own market, fleet and customers.

That's why I wanted to put them together in one place.

Not to tell anyone what to do with their business.

Just to give us a better financial picture of the business we're already in.

Sources

U.S. Travel Association — Spring 2026 Travel Forecast
U.S. Travel Association — Travel Insights Dashboard
U.S. Travel Association — 2026 Group Travel Report
American Bus Association Foundation — 2025 Motorcoach Economic Impact Study
American Bus Association Foundation — National Motorcoach Insurance Study Initial Findings
American Bus Association — Motorcoach Industry Research

About the Author

Dhinel “Danny” Biyanwela works in motorcoach and ground transportation with experience in operations, vehicle sales, finance and fleet management. Through BTE Group LLC and The Motorcoach Insider, he writes about the business behind transportation and the economic changes affecting independent operators.