Trends and opportunities for ground transportation

Tourism is undoubtedly one of the sectors most affected by the global pandemic. Within this immense industry, land transportation has been one of the most affected.

The sector faces numerous fixed expenses such as insurance, parking, transport licenses, or leasing. At the same time, the operational cost is high. For example, an operation from 4 or 5 vehicles implies having two people for administration/management of reservations, planning, and dispatch of services.

Also, the sector has a low-profit margin given the high competition, a low barrier to entry, and seasonality.

Ground Transportation is the most flexible link in the supply chain of a service, adapting to the conditions of the moment such as variable schedules of flights, trains, and ships, as well as the conditions of the traffic in the city where it operates.

All these factors mean that many times some services do not cover the operating costs. COVID will bring new trends and opportunities for the sector:

Taking advantage of the opportunities offered by the new situation requires assuming challenges that the sector must face. Changes will demand digitization and automation of processes.

COVID will be an inflection point, I trust that thanks to the great adaptability, the sector manages to capitalize on opportunities.


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