The Rise of Customized Passenger Transport in China

In recent years, China’s transportation industry has undergone significant transformations. A noteworthy trend is the rise of customized passenger transport, which caters to the evolving demands for more flexible and personalized travel options. The 2023 Annual Report on Customized Passenger Transport in China provides a comprehensive overview of this expanding sector, offering insights into its market scale, operations, and future potential.

This focus on tailored services parallels other recent trends in Chinese tourism and travel behavior. For example, specialized tourism experiences—like “Spec Ops” or extreme adventure tourism—have also seen increasing popularity, offering unique, customized travel packages for thrill-seeking individuals. If you’re curious about how China is applying this tailored experience concept to tourism, check out this article on Spec Ops tourism in China.

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Key Market Developments in 2023

The report highlights that 1,438 operators across China are engaged in customized passenger transport services, representing 9.44% of the country’s bus transport operators. These operators collectively manage 6,531 custom lines, constituting 4.88% of all national bus lines, showcasing the rapid adoption of this new transportation model.

On a broader scale, 30,573 vehicles were employed in the sector, transporting 101 million passengers throughout the year. The increasing volume of custom travel points to a shift in China’s traditional passenger transport market, driving modernization and diversification.

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Regional Leaders and Innovation Highlights

The regional distribution of these services provides fascinating insights. Provinces such as Jiangsu, Sichuan, Guangdong, and Shandong led in the number of customized lines and vehicles. Operators have been experimenting with several innovative service models to enhance user experience:

• Beijing’s Ring-City Commuter Buses: These buses link the capital to nearby cities like Tianjin and Langfang, aiming to shorten commuting times by over 30%. By unifying operations across municipal boundaries, the service has achieved high seat utilization rates and improved operational efficiency.
• Zhejiang’s Medical Shuttle Service: Customized transport plays a crucial role in healthcare. In Hangzhou, direct shuttle services connect hospitals with surrounding rural towns, ensuring patients can make medical appointments and return home the same day. With 33 specialized routes and 65 daily runs, the service is an excellent example of how transportation infrastructure can address public health challenges.
• Guangdong’s Station-to-Station Bus Service: In collaboration with online platforms, Guangdong has implemented a “point-to-point” transport model. Riders select boarding and drop-off points online, reducing travel times and increasing convenience. With over 170 stations and 200 operating lines across key cities, the initiative has seen a 50% repeat rider rate, underscoring its success.

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Service Modes and Operational Characteristics

The study identifies three major service modes shaping the market: door-to-door pick-up, fixed-point pick-up, and hybrid services (one fixed point and one door-to-door). Notably, 44.92% of services use fixed points, while the remaining options offer flexible combinations to meet varying travel needs. The vehicles employed for these services range from 7-9 seat minibuses to larger vehicles with over 20 seats, reflecting regional operational differences.

Platforms such as Bus Butler, Xtrip, and Baba Express play a pivotal role in managing operations, with many relying on non-transport companies to run the platforms (60.81%). This indicates the growing importance of tech-driven services in the transportation industry.

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Challenges and Future Prospects

Despite the rapid growth, customized passenger transport faces challenges. The average seat occupancy remains under 30% for 40.8% of lines, while only 9.23% achieve a utilization rate exceeding 70%. This highlights the need for further optimization in matching supply with demand.

The age distribution of passengers reveals that 21-40-year-olds account for 56.92% of users, while 7.54% are aged 60 and above. Encouraging a broader demographic to use these services remains a goal. Additionally, passenger retention is relatively low, with a repeat purchase rate of 30.86%, suggesting room for improvement in building loyalty.

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Conclusion

The 2023 Annual Report reflects a sector on the rise, driven by consumer demand for flexibility, convenience, and innovation. From Beijing’s intercity buses to Zhejiang’s medical shuttles and Guangdong’s digital station-to-station services, customized transport is shaping the future of travel in China. However, as the report emphasizes, achieving sustainable growth will require further service optimization and user engagement.

China’s experience offers valuable insights for other nations exploring similar transportation solutions. With ongoing technological integration and policy support, customized passenger transport is set to become a cornerstone of China’s evolving public transportation landscape.