United We MUST Stand Victor S Parra President

United We MUST Stand Victor S. Parra President and CEO United Motorcoach Association

Overview of UMA • Founded in 1971 to represent the interests of the tour and charter motorcoach operators • Today, members include nearly 900 motorcoach operator companies and 200 manufacturers and suppliers including companies such as: (manufactured in Turkey) (Volvo)

US Motorcoach Industry • Equipment sales: • Declined by 8. 7% to 2, 173 in 2007 down from 2, 381 in 2006 • Reasons for the decline • New engines that meet new emissions standards added $30 -35, 000 (US) to the price of a new bus • Six to eight year replacement cycle behind us • Concern about a possible economic downturn that will dampen discretionary spending.

US Motorcoach Industry • Motorcoach Travel • Increased in 2006 by 6. 1% to 631 million passenger trips from 595 million passenger trips in 2005 • Mileage surpassed 2005 by 2. 3% to 2. 444 billion miles • Number of buses in operation increased by 1. 5% to 39, 068

US Motorcoach Industry • Current Markets • • Seniors – 5 -10 % and holding steady Students – 35 -40% and remaining stable Corporate/Convention – 25 -30% and growing Contract Services (military, contract services, government, non-profits, etc) – 10% growing slowly • Social Events (weddings, parties, etc. ) – Less than 5% but growing

Motorcoach Industry Challenges • High (very!) fuel costs – more than a 40% increase over the past year • More regulations coming – • • • Mandatory seat belts, Fire suppression systems, Lower emissions engines, more bio-fuels, Further restrictions due to security …. plus more complicated and less uniform regulations – each state imposing new and different constraints

Motorcoach Industry Challenges • Higher operating costs from increases in tolls, fuel taxes, vehicles registration fees, etc. • Driver and mechanic shortage – higher labor costs • Higher insurance costs – current mandate of $5 million liability may go higher • New security initiatives will further restrict travel into US

Motorcoach Industry Challenges • Automobile remains preferred alternative form of ground transportation • Fear of the dreaded “R” word – recession • Drop in home values reducing discretionary spending • Cost of the next Highway Re-Authorization, >$300 billion • Motorcoach travel still has “low end” image, travel of last resort

Motorcoach Industry Opportunities • New and more attractions emerging that lend themselves to motorcoach travel. • More hotels and destinations building motorcoach friendly facilities. • US more affordable than ever – US dollar remains weak vs. most foreign currencies • Equipment more comfortable with new features – Satellite TV, Internet access, GPS, etc.

Motorcoach Industry Opportunities • Younger and more technologically savvy operators entering the industry • Operator making better use of the Internet to generate business – Busrates. com • “Greening” of the Motorcoach industry – operators promoting environmental advantages of motorcoach travel

Future Needs • Need to improve marketing and image of industry • Streamline regulations to enhance both compliance and enforcement. • Mechanism to help consumers make more informed decisions – a rating system similar to the IRU 4 -Star Program • Develop legislative and regulatory consistency across the country to ease interstate commerce. • Reduce barriers for entry and travel into and throughout the US. • Find meaningful and effective alternative sources of fuel

UMA’s Programs, Services and Priorities to support the US Motorcoach Industry

UMA’s Programs, Services & Priorities • Education and Training • Sponsor North America’s largest equipment show, the UMA Motorcoach EXPO: honored guest -- Graham Smith CEO Heyfordian Travel (UK), President of the IRU Passenger Transport Council and Vice President of the IRU • Bus and Motorcoach NEWS – Motorcoach industry’s only newspaper • Bus and Motorcoach Academy – online business management and driver training • Annual UMA Safety Management Seminar • UMA 20 Groups – learn cutting edge management techniques and share best practices

UMA’s Programs, Services & Priorities • Public Policy • Provide industry representation in Washington DC – Congress and the White House – and in state and local governments through state associations • Federal Agencies – – Department of Transportation, Federal Motor Carriers Safety Administration (FMCSA) – National Highway Traffic Safety Administration (NHTSA) – Federal Transit Administration (FTA) – Environmental Protection Agency (EPA) – Occupational Safety and Health Administration (OSHA)

UMA’s Programs, Services & Priorities • Marketing and Image Enhancement – Busrates. com – lead generation service; more than 85, 000 visitors/month –. Travel Initiative — important to our branding efforts – Go Coach – brand industry as environmentally responsible » New low—emissions engine » Reduce Congestion on highways, roads and in cities

UMA’s Programs, Services & Priorities • Cost Saving Services • Insurance services – workers comp, health, life, excess liability and more • Fuel Savings Program – Mansfield Oil and Wright Express programs • Movie and Music licensing agreement • Discount Office supplies and Tires

UMA’s Programs, Services & Priorities • Partnerships » National Tour Association (NTA) – MOU with China to be point-of-entry for all Chinese travelers to US » International Motorcoach Group’s Global passenger Network (GPN), » Trailways, » Grayline » National School Transportation Association (NSTA),

UMA’s Programs, Services & Priorities • Partnerships and now… International Road Transport Union (IRU)

UMA Motorcoach Expo 2009 All are invited to attend the next UMA EXPO, January 21 -25, 2009 in Orlando, FL

THANK YOU What it takes to drive your business! www. uma. org