5.3 Current Landscape Of Transportation Services
The Major Players
Vehicle Travel
Vehicle travel, including personal cars, rideshare services, trucks, and buses, accounts for the largest share of passenger miles transported in the U.S. Over 270 million registered vehicles operate on 4 million miles of public roads (Office of Highway Policy Information, 2022a, 2022b). Ridesharing firms like Uber and Lyft have grown dramatically since launching in 2009 and 2012, respectively. Uber provided 9.44 billion rides globally in 2023 (Iqbal, 2024).
The car rental industry is perhaps the most important part of vehicle transportation in the hospitality and tourism field, yet it is often overlooked as a career pathway. This field is consolidated globally. Specifically, Enterprise, Hertz, and Avis Budget Group control over 94% of the market (Schmidt, 2024). Enterprise dominates in the U.S. with a market share over 40% through its extensive network of neighborhood locations, a strategy it honed over decades of growth through acquisitions. Advantage and Alamo are subsidiary brand options. Consolidation increased as car rental firms acquired one another or were sold to investment and private equity firms. Overall, the top players focus on loyalty programs, supply chain resiliency, and differentiated branding to stay competitive.
Automobile travel is important to tourism in domestic U.S. market segments. Yet, there are concerns that problems in this industry are causing tourism numbers to drop. For example, traffic congestion is an increasing concern in major metros. This is particularly poignant in the Pacific Northwest. Seattle drivers spend approximately 140 hours delayed each year, costing $1,624 per driver from fuel and lost time (INRIX, 2018). The second largest city in the Pacific Northwest, Portland, ranked 19th for congestion nationally and is thus similar to Seattle for cost and delay times. These issues stem from how sprawling regions force car dependence. To address this, Seattle’s transportation plan prioritizes denser neighborhoods with public transit access. Portland aims for 25% of trips to be by bicycling and walking by 2035. Rideshare and micro-mobility options like scooters have grown. Yet, high car use persists in part due to safety and security issues while walking or on public transportation (University of Washington, 2021).
Trucking is essential for freight movement. The food supply chain for restaurants and many other hospitality businesses is reliant on freight movement from trucking. U.S. trucking revenue reached $875 billion in 2021 with 3.6 million truck drivers (Placek, 2023). Trucks transport 72.5% of domestic freight tonnage (American Trucking Associations, n.d.; BTS, 2024). Major fleets include UPS, FedEx, YRC Worldwide, and J.B. Hunt. The Ports of Seattle and Tacoma facilitate regional trucking, meaning those working in major Ports (e.g., Seatac Airport) need to be aware of the importance of trucking to the U.S. economy.
Rail Travel
Global railways carried 1.6 billion tons of freight and 9 trillion passenger-km in 2019 (UIC Statistics Unit, 2023). Passenger rail dominates in Europe and East Asia. Leading operators include Deutsche Bahn, SNCF, JR East, and China Railway. High-speed rail expands rapidly, reaching over 59,000 km worldwide in 2021 (Statista Research Department, 2023b). The U.S. lags in passenger rail, with Amtrak holding a minor modal share. BNSF, CSX, Norfolk Southern, and Union Pacific lead U.S. freight rail, connecting key ports and economic hubs.
The Pacific Northwest has growing passenger rail but dominates in freight. Amtrak Cascades links Vancouver, Seattle, Portland, and Eugene with over 380,000 annual riders (Washington State Department of Transportation [WSDOT], 2022), while a proposed high-speed rail line is projected to attract 1.8 million annual riders (Saltman, 2017; WSDOT, 2023). Sounder and MAX light rail expand regional transit. BNSF and Union Pacific are major freight railroads in the region, linking to the ports. Seattle’s Airport Link light rail eases airport access. Rail enables efficient freight movements between the Northwest’s agricultural, industrial, and natural resource regions. High-speed rail plans envision faster links to Vancouver, B.C.
Water Travel
Maritime shipping carries over 80% of global trade by volume (UN Trade and Development, n.d.). The top 5 carriers by capacity are Mediterranean Shipping, Maersk, COSCO, Hapag-Lloyd, and ONE (Alphaliner, 2024). Global port throughput reached 25,000 million tons in 2021, led by Shanghai, Singapore, Shenzhen, Ningbo-Zhoushan, and Guangzhou (Shanghai International Shipping Research Center, 2021, as cited in Nanjin Deers Industrial Co., 2022). Cruise lines saw 28.5 million passengers globally pre-pandemic in 2019, dominated by Carnival, Royal Caribbean, and Norwegian (CLIA, 2019).
The Pacific Northwest’s inland and deepwater ports facilitate regional commerce. The ports of Seattle and Tacoma together form the U.S.’s third largest container gateway, enabling trade with Asia (Washington Public Ports Association, n.d.). Seattle’s cruise industry rebounded to over 1 million passengers in 2022 after the pandemic freeze (Swift, 2024). Bellingham, Olympia, and Vancouver, U.S. also host cruises. Ferries remain vital for transit serving communities like Seattle, Victoria, and Alaska. Fishing, cargo, and recreational boating thrive given the Northwest’s natural marine access.
Airline Travel and Airports
Commercial aviation transported 4.5 billion passengers on 38 million flights globally in 2019 before the pandemic (IATA, 2020). Top airlines by capacity include American, Delta, United, Southwest, and China Southern (Centre for Aviation, 2021). The U.S. accounts for one-third of global flights (Mala, 2022). Key airports are Hartsfield-Jackson Atlanta, Beijing Capital, Dubai, Tokyo Haneda, and London Heathrow. Emerging markets lead growth; air traffic doubles every 15 years (ADB Safegate, 2017).
Seattle-Tacoma International Airport is the Pacific Northwest’s major air hub. Pre-pandemic it served 51 million passengers, including flights by Alaska, Delta, Southwest, and United (Port of Seattle, n.d.). Portland and Vancouver airports also provide regional flights. Boeing manufactures jetliners locally near Seattle and employs over 170,000 people across the U.S. (Boeing, n.d.). Aerospace manufacturing and maintenance facilities across the Northwest support the aviation ecosystem. Investments in sustainable aviation biofuels also drive local innovation.
Market Trends And Challenges
Vehicle Travel
The overall vehicle travel sector faces trends from electrification to autonomy. Car rentals face additional movement such as evolving mobility preferences, especially among younger travelers.
Electric Vehicle (EV) sales are projected to comprise at least two thirds of car sales globally by 2030 (Morrison, 2023). This impacts levels of vehicle travel in the tourism sector, from buses to rideshare and from rental cars to public transportation. Falling battery prices are driving adoption. However, limited model availability and high purchase costs hinder growth currently. Full autonomy remains elusive but advanced driver aids penetrate markets gradually. Ridesharing and mobility as a service disrupt ownership models. Overall, road transport decarbonization is slow compared to aviation and shipping’s commitments.
Ridesharing has further cut demand for short urban rentals, hindering the car rental industry. Travel volatility from COVID-19, economics, and geopolitics disrupted bookings throughout the global rental car industry. Rental companies emphasize Model 3 Teslas, SUVs, luxury vehicles, and subscription programs in an effort to adapt. It remains too early to tell whether these approaches are staving off competition. Rental car companies have realized their interdependence with hospitality and tourism organizations. Firms such as Enterprise and Hertz are now partnering with airlines, hotels, and loyalty programs to embed rental options across trips. However, there are fleet issues the industry is dealing with. First, there are concerns about aging vehicle fleets, which in turn increases some costs. Supply chain issues during COVID caused shortages as well. Firms are balancing brand consistency, pricing power, and agility to attract customers.
Political debates continue around automotive pollution standards, gas taxes, EV incentives, and infrastructure funding. The bipartisan infrastructure bill passed in 2021 will provide $550 billion for roads, bridges, and EV charging over 5 years (Infrastructure Investment and Jobs Act, 2021. However, auto emissions remain highly politicized. Concerns persist around traffic deaths, racial equity in infrastructure, and suburban sprawl patterns. Cities like Portland and Seattle grapple with managing congestion, micromobility, and parking effectively.
Rail Travel
Passenger rail growth worldwide strains existing networks. Countries from India to Egypt to Britain debate high-speed rail expansions. However, construction costs, land disputes, and debt overhangs challenge mega-projects. Freight rail bottlenecks particularly constrain U.S. supply chains. The Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law (2021), earmarked $66 billion for rail (Federal Railroad Administration [FRA], 2024), but labor shortages and outdated technology constrain carriers. Intermodal rail faces competition from trucking’s flexibility. Most global railways remain state-owned, complicating private sector participation.
Despite bipartisan support for upgrades, U.S. rail policy frequently stalls. The infrastructure bill was a landmark success, but regulations on freight delays and Amtrak funding routinely spark partisan disputes. Battles over routes and eminent domain affect major projects. Community groups may oppose local high-speed plans. Rail struggles to match aviation and road transport’s emissions reductions too. But growing concern over climate impacts may provide fresh momentum if policymakers cooperate.
Water Travel
Decarbonization is reshaping marine transport. The UN aims to halve shipping emissions by 2050 (Sidenvall-Jegou et al., 2023). Near-term options include efficiency gains, alternative fuels like LNG, wind power, and shoreside electricity for ships. Ports increasingly charge for emissions. Cruise lines face growing environmental pressure too, especially in sensitive regions like the Arctic and Europe. Some ports plan shore power mandates. Travel volatility from reopening, war, and health impacts create uncertainty post-pandemic.
Water transport policy often seeks to balance environmental and economic concerns. Low-sulfur fuel rules control pollution, but raise costs. Landside port congestion prompts calls to shift freight to rail. Cruise tourism generates income but overcrowds cities like Venice. Security remains paramount following incidents like pirate attacks off Africa. As climate concerns magnify, ports, carriers, and cruises must collaborate on reducing emissions without severely disrupting trade flows and tourism.
Airline Travel and Airports
Aircraft emissions pose an existential industry challenge. Aviation committed to carbon-neutral growth from 2020 and nets-zero by 2050 (Mithal & Rutherford, 2023). Biofuels, hydrogen planes, and carbon offsets aim to meet targets. Flight shame movements threaten short-haul demand. Costs for sustainable aviation fuels (SAF) need to fall below $1.50/gal to gain viability (IATA, 2022). Many airports now offer SAF. Airline consolidation continues, while new entrants disrupt models. Digitalization enhances operations, sales, and customer experience.
Policymakers balance environmental pressures and growth needs. Airlines call for government support to meet emissions goals through SAF mandates and subsidies. Airports aim to upgrade aging terminals sustainably. The Federal Aviation Administration (FAA) oversees complex airspace challenges like drone and rocket launches. Security threats evolve requiring enhanced detection and information sharing. Airlines regularly debate consumer issues like seat space. Overall, coordinated efforts across the complex ecosystem are critical to maintain aviation’s benefits sustainably.
Government Policies
Vehicle Travel
Vehicle emissions and fuel economy standards aim to cut pollution from cars and trucks. Under the Clean Air Act (1963), the Environmental Protection Agency (EPA) regulates tailpipe emissions like nitrogen oxides, particulate matter, and greenhouse gases (EPA, n.d.). Corporate Average Fuel Economy (CAFE) rules mandate fleetwide miles per gallon (mpg) minimums (National Highway Traffic Safety Administration, n.d.). California has special authority to set tougher auto standards under waivers. Conflicts often arise between California and automakers.
The bipartisan infrastructure bill passed in 2021 upgrades roads, bridges, rail crossings, and EV charging nationwide (Infrastructure Investment and Jobs Act, 2021). Federal funding through programs like the Highway Trust Fund matches state expenditures on construction and maintenance. Safety policies address seat belts, air bags, drunk driving, and crash standards. Sales incentives for EVs and fuel taxes also shape markets. Conflicts persist around funding levels and energy transition support.
Car rental regulations protect consumers, promote safety, and generate public revenue. Rental contracts must disclose terms under the Federal Trade Commission (FTC)'s Rental Car Rule (FTC Combating Auto Retail Scams Trade Regulation Rule, 2024). State laws often cap extra fees and insurance costs. The Graves Amendment shields rental firms from vicarious liability claims after accidents. Airports impose taxes and concession fees on on-site rental operators to fund infrastructure. Rental firms with older fleets must balance taxes, fees, residual values, and consumer expectations when managing inventory life cycles amid policy pressures.
Rail Travel
Rail policies aim to balance private freight companies’ interests and public rail expansions. The Surface Transportation Board oversees freight rail rates, mergers, and contract disputes (STB). Amtrak receives federal funding but struggles to upgrade aging assets. High-speed intercity projects rely on complex cost-sharing with states and railroads. Commuter rail systems like Sounder benefit from state and local support. Grade crossing enhancements improve road safety as train volumes rise.
The Federal Railroad Administration (FRA) regulates safety, technology, and operations for interstate rail (FRA). Federal standards drive advanced train control adoption. Security oversight increased after 9/11 and rail-related terror threats globally. Funding mechanisms like the Railroad Rehabilitation and Improvement Financing program attract private investment (FRA). Tax credits incentivize short line rehab too (IRS). The infrastructure bill’s $66 billion for rail advances decarbonization goals alongside ongoing regulations and financing programs.
Water Travel
Key maritime laws include the Jones Act for domestic shipping and MARPOL for vessel pollution prevention. The Jones Act, Section 27 of the Merchant Marine Act (1920), requires U.S.-built, crewed, and owned ships for coastal and inland transport. This protects local fleets but raises costs. MARPOL mandates emissions controls in sensitive sea areas (U.S. Coast Guard, n.d.). The EPA and local authorities regulate port pollution. Security oversight ramped up after 9/11 to counter potential terrorism. Cruise regulations aim to ensure health, safety, and environmental compliance.
The bipartisan bill invests $17 billion in port infrastructure from dredging to electrification (Infrastructure Investment and Jobs Act, 2021). Programs like TIGER and INFRA grants fund upgrades competitively (Office of Operations, 2024). The Harbor Maintenance Trust Fund raises revenues for channel maintenance from shippers (U.S. Army Corps of Engineers). Conflicts persist around dredging, terminal automation effects on labor, shore power mandates, cruise tourism caps, and shipping emissions cuts. Ports collaborate extensively with governments, carriers, shippers, unions, and communities to balance interests.
Airline Travel and Airports
The FAA oversees airline and airport policy, regulations, infrastructure, and air traffic management. Aircraft noise, flight paths, congestion, and passenger rights involve federal oversight. Transportation Security Administration (TSA) drives security policy following 9/11 and evolving threats. DOT consumer rules address issues from bumping to lost baggage. Interstate air transportation economic policies aim for adequate competition and resources. International agreements enable global connectivity and cooperation.
FAA NextGen airspace modernization aims to cut emissions through efficient routing and descent profiles, benefiting airlines (Federal Aviation Administration [FAA], 2024b). Airport Improvement Program grants fund capacity and sustainability upgrades like electrified gates for airports (FAA, 2024a). The infrastructure bill provided $25 billion for aviation including terminal renovations (Infrastructure Investment and Jobs Act, 2021). Airline taxes and fees fund infrastructure projects. Policy challenges include controller staffing, funding shortfalls, drones, and accelerating decarbonization initiatives across the complex, interconnected system globally.
The Impact Of The Technology Sector
Vehicle Travel
Connectivity and autonomy reshape vehicles. Embedded telematics and vehicle-to-everything (V2X) communication enable smart mobility (Federal Highway Administration, 2023). Automakers integrate in-dash apps, rear seat entertainment, Global Positioning Systems (GPS), and over-the-air updates. Autonomy progresses gradually from advanced driver aids to limited robotaxis pilots. Artificial intelligence and lidar sensing drive improvements. Big data analytics support mobility as a service integration. Major tech players across computing, telecoms, and ridesharing aim to disrupt transportation.
The technology sector lobbies intensely for incentives to spur autonomy, connectivity, and electrification. Automakers counter calls for increased privacy, security, and safety requirements around connected cars. Rural areas caution against digital divides where mobility tech leaves underserved communities behind. Cyber threats loom as vehicles become data nodes. Overall, rapid change requires proactive policy development between industry and government to maximize benefits.
Car rental leverages the on-demand economy through mobile apps and kiosks. Smartphone apps allow keyless entry to reserved vehicles. Data analytics inform pricing and optimize fleet mixes. GPS trackers monitor vehicle locations and health. Autonomous shuttle pilots aim to offer driverless rentals, beginning with predefined routes. Digitalization makes renting more convenient while generating data for targeted marketing and fleet optimization.
Rail Travel
Rail digitization focuses on optimization, automation, and predictive maintenance. Sensors throughout locomotives and infrastructure feed constant operational data to AI systems (BNSF, 2023). Computer vision inspection replaces manual track checks. Distributed power and trip optimizer systems enhance efficiency and safety. Positive train control prevents collisions, enabled by digital comms. Drones provide aerial surveillance. Automated container yards boost intermodal capacity. Technology improves yards, energy usage, car routing, and crew utilization.
Railroads collaborate with regulators to enable modern tech adoption while ensuring reliability and security. Technology investments aim to balance efficiency gains with workforce concerns over job reductions. Rural access considerations arise with optimized crew scheduling. Cybersecurity is critical for train control and dispatch communications. Overall, emerging digital rail capabilities promise safer operations, lower costs and emissions, and higher volumes. But smooth technology integration relies on industry-government collaboration and labor force reskilling.
Water Travel
Port automation improves efficiency but alters labor needs. Command centers integrate data analytics to coordinate container flow, road traffic, and equipment (Port of Long Beach, 2023). Autonomous guided vehicles replace manned yard tractors. Automated stacking cranes speed cargo handling. AI ship berthing optimization enters use in Singapore and Rotterdam. Many processes from security scanning to captaining vessels utilize automation and internet of things connectivity.
Port cybersecurity builds on legacy systems. Some authorities question workers’ long-term role amid automation. Cruise ships adopt personalization, onboard apps, entertainment tech, and cashless payments for personalized, tech-infused experiences. Technologies create value but require adaptation. Port policies aim to balance innovation with workforce stability, local community benefits, and data protections. Technology drives competitive advantages but requires prudent implementation.
Airline Travel and Airports
Aviation leads transportation in advanced digitalization. Analytics inform flight planning, aircraft routing, and predictive maintenance. Airport operations utilize robotics, AI, and virtual/augmented reality (Marr, 2019). Dynamic gear tracking prevents baggage mishaps. Biometrics ease passenger processing. In-flight entertainment, Wi-Fi, and cabin connectivity enhance experiences. Drones offer ground services and inspection. Ultimately, full automation could enable pilotless passenger aircraft.
The technology shift requires large investments and careful systems integration. Cybersecurity is paramount for flight controls and operations. Pilot associations caution against over-automation that removes human judgment and skills. Privacy issues surround data collection as airlines personalize offers with passenger profiles, travel history, and biometrics. Accessibility matters ensure equal service for disabled travelers amid digitalization. Thoughtful policies and change management will unlock aviation tech’s potential.
Attributions
- Figure 5.6: Amtrak Cascades Seahawks train by Washington Department of Transportation is released under CC BY-NC-ND 2.0
- Figure 5.7: Port of Seattle from Columbia Center, 2022 by SounderBruce is released under CC BY-SA 4.0
- Figure 5.8: Car Rentals by Håkan Dahlström is released under CC BY 2.0
- Figure 5.9: Share of global CO₂ emissions from aviation, 2018 by Our World in Data is released under CC BY 4.0
marketing initiatives offered by airlines, hotels, and other businesses to incentivize repeat business and customer loyalty through rewards, points, or benefits.
to the transportation of goods, cargo, or freight by trucks or lorries over land routes, playing a vital role in logistics, supply chains, and commerce.
goods, merchandise, or cargo transported by various modes of transportation, including trucks, trains, ships, and airplanes, for commercial, industrial, or trade purposes.
facilities and infrastructure located along coastlines, rivers, or waterways, providing docking, loading, and unloading services for ships, vessels, and maritime commerce.
Please look for related terms in the Glossary.
the movement of goods, cargo, or merchandise by ships and vessels across oceans, seas, and water bodies, playing a crucial role in international trade and commerce.
economic activities, trade, and transactions occurring within a specific geographic region or area, involving the exchange of goods, services, and resources among local businesses, consumers, and stakeholders.
a transportation service where individuals share rides in privately-owned vehicles, typically arranged and coordinated through online platforms or mobile apps.
the process of reducing carbon dioxide (CO2) emissions and greenhouse gas emissions from various sectors and industries, including transportation, through the adoption of cleaner fuels, technologies, and sustainable practices.
petroleum-based fuels, such as diesel or gasoline, with reduced sulfur content compared to conventional fuels, designed to lower emissions of sulfur dioxide (SO2) and particulate matter from vehicles and engines, contributing to improved air quality and environmental protection.
congestion and delays experienced in areas surrounding ports, such as roads, parking lots, and cargo handling facilities.
Emissions produced by aircraft, including greenhouse gases, nitrogen oxides, and particulate matter, which contribute to air pollution and climate change.
achieving a balance between the amount of carbon dioxide emissions produced and the amount removed from the atmosphere, typically through offsetting measures like carbon credits or renewable energy investments.
A state where there are no net emissions of greenhouse gases into the atmosphere, achieved by balancing emissions with removal or offsetting methods.
A phenomenon where individuals feel guilty or ashamed of flying due to its environmental impact, leading to a decrease in air travel demand.
Biofuels or synthetic fuels produced from renewable sources, used in aviation to reduce greenhouse gas emissions and dependence on fossil fuels.
The national aviation authority of the United States, responsible for regulating civil aviation and ensuring safety in the airspace.
A U.S. federal law enacted to control air pollution, establishing standards and regulations to protect public health and the environment.
A U.S. government agency responsible for protecting human health and the environment through regulation and enforcement of environmental laws.
Regulations established by the U.S. government to improve the fuel efficiency of vehicles sold in the country, aiming to reduce fuel consumption and greenhouse gas emissions.
A federal law in the United States that limits the liability of car rental companies for damages or injuries resulting from the use of their vehicles.
An independent agency of the U.S. government responsible for economic regulation of interstate surface transportation, including railroads and trucking.
Passenger rail services operating on regular schedules primarily for short-distance travel between urban centers and suburbs.
A U.S. government agency responsible for regulating and overseeing railroad safety, operations, and infrastructure.
A fund established by the U.S. government to finance the maintenance and dredging of harbors and ports for navigation purposes.
An agency of the U.S. Department of Homeland Security responsible for securing transportation systems and ensuring the safety of travelers.
The Federal Aviation Administration's Next Generation Air Transportation System, a modernization initiative aimed at improving the safety, efficiency, and capacity of the national airspace system.
A technology that enables vehicles to communicate with other vehicles, infrastructure, pedestrians, and devices to improve safety and efficiency on the road.
Applications or software installed directly into a vehicle's dashboard interface, providing access to features like navigation, entertainment, and vehicle diagnostics.
Multimedia systems or devices installed in the rear seats of vehicles, typically used to provide entertainment options for passengers, such as movies, games, or music.
A satellite-based navigation system that provides real-time location and positioning information to users, commonly used in vehicles for navigation purposes.
Software updates or patches delivered wirelessly to vehicles or electronic devices, allowing for remote updates and improvements without requiring physical access.
Pilot programs or trials involving autonomous or self-driving taxis, aimed at testing and evaluating the feasibility and safety of automated taxi services.
The simulation of human intelligence processes by computer systems, including learning, reasoning, and problem-solving, used in various applications, including transportation and mobility.
Light Detection and Ranging (LiDAR) technology, which uses laser pulses to measure distances and create detailed 3D maps of environments, commonly used in autonomous vehicles for navigation and obstacle detection.
Measures and practices aimed at protecting computer systems, networks, and data from unauthorized access, cyber attacks, and data breaches, crucial for ensuring the safety and security of transportation systems.
Vehicles equipped with autonomous or self-driving technology, capable of navigating and operating without human intervention, used in various industries for transportation and logistics.
Tractors or vehicles operated by drivers or operators for moving cargo, trailers, or containers within freight yards, terminals, or distribution centers.
Crane systems used in container terminals or ports for stacking and organizing shipping containers, facilitating efficient storage and handling of cargo.
The process of maneuvering and docking a ship or vessel at a pier, dock, or berth for loading, unloading, or mooring purposes.
The management and coordination of various activities and services at airports, including ground handling, passenger services, security, air traffic control, and facilities management.
Automated methods of recognizing and verifying individuals based on their unique physical or behavioral characteristics, such as fingerprints, iris patterns, or facial features, commonly used for security and identification purposes in transportation.