Study Shows Strong Value Perception of Government Buses

Government Buses Seen as Good Value, But Demand Simpler Booking​

New Delhi, March 26 – A recent study indicates that a majority of travelers believe government buses offer good value for money, while also highlighting areas for improvement in the booking and service experience.

Key Findings from the redBus Study​

The research, conducted by online bus ticketing platform redBus, reveals that road transport corporations (RTCs) are a preferred choice for working professionals and students. The study analyzed responses from over 11,000 individuals utilizing government-owned intercity bus services, including RTCs, State Transport Corporations (STCs), State Transport Undertakings (STUs), and Roadways.

Traveler Motivations​

The primary reasons cited for using RTCs include visiting family homes (25 percent), traveling for festivals and special occasions like weddings (25 percent), work (21 percent), and studies (11 percent).

Demographics of RTC Users​

Approximately 52 percent of RTC users identified as working professionals, while 27 percent were students. Younger demographics were particularly prominent, with students representing the second largest passenger segment. Notably, among those aged 18-25, 61 percent indicated that education was their main reason for utilizing RTC services.

Price Sensitivity Among Students​

Students demonstrated a high degree of price sensitivity, with 46 percent of them traveling within the sub-Rs 750 price range – a lower bracket compared to other traveler groups.

Cost Comparison​

The study found that the average seat price (ASP) on RTCs is generally lower than the ASP for comparable private bus services. This affordability is attributed to the predominantly fixed pricing structure of RTC tickets, contrasting with the dynamic pricing practices often employed by private bus operators based on seasonality and demand.

Value Perception and Customer Needs​

A significant 66 percent of respondents expressed the belief that RTCs provide good value for money. However, nearly 50 percent of respondents indicated a desire for more streamlined booking processes and simplified refund procedures, emphasizing customer convenience as a key area for improvement.