Fifty Shads of….Utilization
Over the years I have learned that there are as many
definitions of fleet utilization as there are bus operators in a given
room. Some owners define their fleet’s
“maximum utilization” as every bus in their fleet producing one revenue move
every day. Others operators define their
fleet’s “maximum utilization” as the maximum hours that a driver can legally
drive every bus in the fleet every day. Clearly
there are many definitions and none of them are necessarily right or wrong.
Regardless of what your definition, one fact remains
absolutely true; buses are not getting less expensive. With the average cost of a 45’ motorcoach
tipping the scales at over $600,000 per unit, we have to face the fact that every
available minute better be a billable minute.
On a recent visit to one of our appraisal clients I was
reminded of the ultimate definition of “maximum fleet utilization”. This particular operator runs a very busy bus
company with over 200 units in their fleet.
In all fairness, these buses almost never operate beyond a 50 mile
radius of their home base. The amazing
thing about this fleet is that the nearly 100 percent of this fleet operates
between 18 and 20 hours a day, 7 days a week, 365 days a year. Which leaves me to ask, how can you do this?
I asked that very question of the company’s Vice president
of Motorcoach Operations, and got the following response. “If our CEO had his way, these units would be
operating 24/7/365, but that is just not possible”. He went on to explain that in their operation
if the buses are available less than four (4) hours a day, there simply is not
time to clean, maintain, fuel and provide the fleet with adequate preventive
maintenance.
These short turnaround time frames require a very
well-choreographed operation that includes an aggressive maintenance staff and
preventive maintenance program. Well
refined computer and software systems to track, schedule and clean the units in
the given time frame and nearly 200 in-field daily driver changes.
All of these things left me wondering, how many operators
could squeeze more revenue out of the valuable assets they already have?
Whatever your
definition of “maximum fleet utilization” looks like, I would love to hear from
you.
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