MEDIA REPORTS: Orion Pacific, the Orange, Calif.,-based charter and tour operator involved in the deadly Monterey County, Calif., bus crash this week, drew high ratings for its
inspections and safety compliance, according to D.O.T. records.
JUST FYI: The Limousine Association of Houston circulated the below memo today on how operators should handle swine flu precautions.
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UPDATE: NEW YORK (MarketWatch) -- A poll by London consultancy Ascend projects a 7.5% drop in international business airfare spending over the next 12 months. In a Thursday release, Ascend said it polled 280 frequent business travelers from over 35 countries, with 53% saying they expect their company's travel budget to drop significantly. "This is the weakest outlook for international business travel in nearly 20 years," said Ascend Chief Economist Peter Morris. Ascend said results reflect policies across many large international companies and corporations, not just individual respondents.
BUSES FOR BUREAUCRATS: A newspaper editorial praising the use of mass-style transit for proms and condescending to limo companies should get your operator blood boiling.
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BLOG BLOCKERS: Thanks to some technical enlightenment, we've found a spam blocker that appears to be working for now. So we can all stop "moderating" and let the free speech fly -- but not too freaky.
CADILLAC PROFESSIONAL VEHICLES: GM announced today it has appointed a new manager to oversee the Cadillac division that handles vehicle sales and marketing to the limousine and livery industry. The industry is a leading fleet buyer of Cadillac DTS sedans and stretch limousines, and of the Cadillac Escalade models: standard, ESV, and Hybrid.
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ANOTHER DEADLY BUS CRASH: If planes are statistically safer than all forms of ground transportation, yet hyper-vigilant about wearing seat belts, why not motorcoaches as well, which have higher passenger injury and death rates than planes? The latest motorcoach rollover in California keeps the issue out front. . .
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NAME BLAME: LCT Magazine's veteran operator-writer, contributing editor, and online columnist Jim Luff tells a tale this week of an industry war and clever name-game in Denver.
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SELLING IN A RECESSION: Keeping customers and finding new business are more critical than ever now. East Coast Editor Linda Moore asks operators for the best ways to hire, keep, pay, retain, and motivate a sales force.
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FEEDBACK PURGE-ATORY: We hate to do this, but your feedback comments once again must be moderated -- meaning reviewed before posting. Please be assured we will do this as quickly as possible. Your comments can go one of two ways: 1) Straight up to the blog; or 2) Down into the trash. We know instant posts are best for blogs, but unfortunately, LCT needs the more cautious format (after a year of live posts) due to three key reasons:
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FOUR YEARS OF EXPERIENCE: Lexani Limousine of Mesa, Ariz., does $1.4 million in annual sales and employs 35 workers.
STORY HERE. The owner started when he was only 15.
CONGRATULATIONS TO JON LESAGE: Our former colleague has launched
LeSage Communications, a public relations firm for clients in the areas of green sustainability, the auto industry, chauffeured transportation, ground transportation, travel and tourism, and entrepreneurship. Jon brings a wealth of experience editing, writing, and researching at LCT Magazine and at Bobit Business Media publications. He also developed a specialty in green vehicles and sustainability efforts. You can keep up with him at
his new blog as well.
FRUGAL FALLOUT: Los Angeles operator Chris Hundley of Limousine Connection was quoted this weekend in an L.A. Times article estimating that prom-related limo rentals are down 25% across the industry compared to last year. The only question is how much of this reduction can be attributed to actual declines in teens' personal budgets versus how much stems from the populist-driven, peer pressurizing fear factor that makes people not want to spend on life's enjoyables.
Marketing slogans for troubled times? "Kick conformity. Rent a limo." "Frugality sucks. Live it up with a limo." "More is more. Got limo?"
LINDA MOORE ASKS: In this recessionary climate, some operators are closing down while others are limping along. What happens when a bankrupt or on-the-brink company can't pay? How do you deal with collections?
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RANDOM PHOTOS & FACTS: LCT offers a few items and shots from the April 21 Greater California Livery Association's Expo near Los Angeles International Airport.
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KEEPING POLITICAL SCORE: As the business travel and chauffeured transportation sectors suffer the Big Chill, it helps to make sure your political memory stays sharp, members of the Greater California Livery Association were told this week
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NEW BLOG: LCT Magazine would like to welcome a new voice of analysis and reason to the industry: Matt Assolin, the 22-year-old vice president of Nikko's Transportation Service of Houston, a worldwide chauffeured car service provider. Assolin recently earned a bachelor's degree in finance and a minor in economics from the University of Houston-Downtown and plans to start his M.A. in economics soon. Assolin combines his family business background with economic expertise to look at how economic and financial news affects the chauffeured transportation industry. His most saleable quality: A supply-side economics perspective -- a much needed antidote to the hopeless socialist nonsense afflicting the private sector. Operators, pay attention. Blog:
http://www.limomoney.blogspot.com/ -- M.R.
ANNUAL EXPO: The Greater California Livery Association held its annual Expo last night at the landmark Proud Bird restaurant just off the southern most runway path of LAX: NLA board member and Windy City Limousine owner George Jacobs delieverd an optimistic keynote with tips on getting new business; GCLA first VP Jonna Sabroff issued a call to accountability for politicians decimating the business travel sector; and operators and vendors offered up some anecdotes from the front lines. More coverage and photos to come Thursday.
Jacobs, who has worked in the industry since 1979 and served several terms as NLA President, said of the GCLA: "This is the best association in the country without a doubt." The GCLA recently received the 2009 LCT Association Award of Excellence; it retains its own lobbying team; successfully represents operators from markedly disparate areas of the state; has been out front on efforts to roll back the political intimidation of the business travel sector; and deals with one of the most aggressive regulatory and tax climates in the nation. California also ranks as the state with the highest number of operators. -- M.R.
OPERATORS MUST UNITE: How much government can we take? We must band together as an industry and hold busy-bodies accountable.
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LIMOFFICIENT: Earth Day need not be a source of anxiety — just some benevolent awareness.
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LINDA MOORE ASKS: Why aren't you part of an association AND the NLA?
LINDA EXPLAINS: Why you should belong. Bottom line: You hurt your business if you don't.
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ARE YOU CLUELESS AND UNCOUTH? See 10 things that can annoy just about everyone in your operations, no matter how vital and important you are. You may get away with some of this during good times, but not during a recession. Circulating this list also would be a constructive passive-aggressive way to get co-workers you know to stop doing THESE DREADFUL THINGS. -- M.R.
OBESE OPPS: Now that flier fat taxes have replaced air rage as the latest commercial airborne concern, could chauffeured companies find a widening opportunity?
With about two thirds of the American populace considered obese, surveys increasingly show passengers favoring added fees for hefty fliers or double-seat booking. What better way to counteract the seat squeeze and pocketbook pinch for the porky set than to market chauffered vehicles to them as the before and after antidote to a stuffy flight.
There's no need to levy fat surcharges on limos, since there's plenty of room and the client controls the passenger count. And a limo certainly accommodates the horizontal types moreso than taxis, shuttles, and buses.
Possible marketing slogan: "After flying the flabby skies, a limo will make you feel lean." -- M.R.
CUTTING ONLY SO FAR: Traveling executives and business professionals may be more discreet about their arrangements, but they can only forgo so many conveniences.
Being flexible in pricing and packages still can go a long way. After all, the traveler who needs to save on time can find no better alternative than chauffeured transportation. It's not a perk; it's a necessity. -- M.R.
SNOOZING CHAUFFEURS: East Coast Editor Linda Moore recently trekked to the Newark Airport and found some operators and chauffeurs who could use a good dose of LCT's Limo 101. . .
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GLOBAL TRAVEL TANKING: What fear, stigma, and peer pressure hath wrought: Companies cutting back on business travel and hurting a huge segment of the economy. Stop listening to politicians and do your own thing. Simple lesson.
FACTS AFLAME: How do you tell Prius owners they wasted their money on an image, a pose, an aura, a. . . green mirage? Well, you shouldn't, really. Too much rage risk.
Check out the p(r)oof below. . .
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PROM SHIFT: One school system in Rhode Island is requiring junior prom-goers to
take scheduled charter buses to the prom. This has resulted in limo cancellations. As Limousine, Charter & Tour, we really can't take sides on this one. It's just painful to watch. All the more reason for chauffeured transportation operators to also offer motorcoach access.
2009 FACT BOOK PREVIEW: LCT Magazine is busy compiling and organizing the results of its annual Fact Book survey, and as usual, a few results defy conventional wisdom. Out of 11 issues that concern operators, guess which one ranked dead last? Green/sustainability programs.
Despite all the coverage of green issues, all the hype and promotion about green techniques, all the emphasis on green vehicles. . . operators aren't too worked up over them. There are numerous ways to interpret this: souring economy puts green issues on the back burner; the public is burned out over global warming drama and hysteria; cap and trade schemes spook the business sector; green vehicles are still too expensive; lower gas costs have taken the urgency out of going green; or, just maybe, a chilling truth is crystallizing like a thickening sheet of ice.
The No. 1 operator concern? Fuel costs. After the speculative fuel price horror of 2008, that is no surprise. So what is the connection between the first and last concerns of operators? Who knows, but maybe a good plan of action for now is for the U.S. to find more sources of oil AND vigorously pursue the development of green luxury vehicles that save on gas. -- M.R.
Of DUNKIN' DONUTS AND BASKIN ROBBINS! CEO behind iconic American brands to deliver keynote address at premier East Coast industry event. . .
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BARTERED RUNS: Are you trading to survive? Finding good values?
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AIRPORT HOSPITALITY: When is it worthwhile to have someone greet youR clients at airports, help them with their luggage, call the limo or sedan, and then escort them to the curb -- as opposed to having the chauffeur wait and greet?
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VALUE MARKETING: One of the best ways to market and promote your company is through a blog, or web journal. It takes some time, but costs little to nothing, as one savvy operator has learned. . .
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LIVERY REVELATION: We have seen the light. LCT has discovered that, yes, the Prius can in fact be a limousine.
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WHERE TO PARK? The influx of motorcoaches into cities often creates traffic hassles; where do you park all the motorcoaches that bring in day trippers, shoppers, commuters, and people willing to spend money? The cities of Alexandria, Va. and New York's West Side of Manhattan are facing this dilemma. The motorcoach trend is one that should be encouraged and embraced; after all it takes cars off the road and carbon out of the air. So cities would be wise to invest in motorcoach parking lots and/or flexible waiting/parking rules. With growing pressure for more efficient transportation during a recession, governments and authorities need to lay the groundwork for motorcoach growth. -- M.R.
DON'T LET THIS HAPPEN: While understandable that prom-goers will want to save money this year because of the recession, operators need to be advertising, promoting, and explaining why limousines should not be part of the cuts. Orlando area teens are organizing
carpools to the prom -- a troubling trend for operators who count on a revenue boost during prom season. Operators need to explain why it makes more sense to cut back on an expensive meal, an elaborate tux or dress, or pricey hotel suite after-parties instead of the safest, most comfortable, and most memorable transportation available. (Equiip your chauffeurs with digital cameras so they can take free, complimentary photos of the limo experience that can be e-mailed the next day). And limos still get to use carpool lanes. -- M.R.
UNSPEAKABLES: LCT usually gets an earful from various industry quarters whenever we broach the "back-of-the-limo" subject, but you can count on East Coast Editor Linda Moore to be brave and address any situation operators face. Operators take strong measures against booze and drugs on prom nights, but what happens when the prom run turns into a porn run? Linda's tactful and tasteful inquiry below. . .
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DANCING IN SEPTEMBER? Not quite. Latest forecast is for the recession to end in September but unemployment to remain high for another year. ARTICLE HERE.
Hopeful nugget: "Several factors are offering hope, chief among them businesses' sharp cuts in production and inventory late last year. The economy may be reaching a point where even meeting subsistence demand requires an increase in output. Empty shelves need to be restocked, even if at lower levels than before." -- Wall Street Journal
OBAMA HOME STATE ECONOMY WRECKED: Hotel occupancy DROPS 75% IN HAWAII in February, usually the state's busiest month. So what's the choice strategy of desperation among state leaders? Why, appeal to President Obama, the state's most famous native son, for some PR stimulus. But he's the same President whose administration and political party have so demonized corporate and business travel that hotel, resort, travel, hospitality, and chauffeured transportation industries are suffering, not just in Hawaii, but across the board. Where's the hope bro, and can you spare some change for your home state? -- M.R.
CAN YOU SPOT THE TWO FOR YOU? AutosCraze blog has posted the top seven environmentally friendly vehicles. We're not sure why just seven, since we could think of a few more, but it's a worthwhile list. An important caveat: No. 6 and No. 7 would be the only green vehicles on this list that qualify for luxury-based chauffeured transportation. The rest are fine for the motoring public but not chauffeured clients. And of course, the more people get into any large chauffeured vehicle, whether a stretch limo, SUV, limo bus, or motorcoach, the greener the vehicle gets. You don't need alternative fuels to be seen as green. -- M.R.
VALERA GLOBAL was recently mentioned in an article on managesmarter.com about training drivers. They also were featured in the December 2008 LCT for their progressive approach to human resources.
Excerpt and link below. . .
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LEAVING HOUSTON: Avis WeDriveU has again been stopped in its chauffeured tracks as momentum builds against its unregulated inroads into chauffeured transportation. This was a flawed, unfair business model from the get-go, and now regulators are waking up, thanks mainly to active operators and associations pointing out the obvious. The tally of success so far: Phoenix, San Francisco, Atlanta, Miami, Houston, WHERE NEXT???
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OPERATORS ON THE SPOT: Client cancels at the last minute due to weather conditions. What do you do with their money?
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RECESSION, WHO? I talked with a 12-vehicle operator today who projects increased revenues, plans to buy more vehicles, just opened a second location, charges higher prices than competitors, does very little corporate work, and has a fleet with 75% stretches and mini-buses. . .all during the worst recession in 25 years. Say what?
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LINDA MOORE DEBATE: It has happened to everyone who's been in the industry long enough: A chauffeur leaves and takes client(s) to a competing operator. . .
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NEW JERSEY LEADS THE WAY? Pressure is mounting in the Garden State to cut the
dreaded tourism tax on motorcoaches. Excellent idea. Now, how about creating some real stimulus for the chauffeured and charter transportation industries by replicating that concept for limousines, sedans, mini-buses, SUVs -- basically all luxury-based chauffeured transportation, and then applying it in all 50 states? While they're at it, governments can cut tourism, sales, AND corporate business taxes on transportation. Now, that would be some stimulus worthy of some hope and extra change without bailing anyone out! -- M.R.
TIGHT TIMES: With prom clients squeezed financially like everyone else, the limousine becomes a target for penny pinchers. The below article is one example of what is being reported nationwide as seniors prepare for the prom. Operators need to be out front this year publicizing the advantages of limo service to keep market share -- and not take for granted that seniors will automatically rent limos because it's "once in a lifetime."
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SAFETY ISSUE: While motorcoaches, like airplanes, statistically rank among the safest modes of travel, charter bus accidents, like plane crashes, get so much media attention that they create fearful misperceptions that lead people to think they are safer driving their own cars. Now, efforts are underway to require seatbelts on motorcoaches. While motorcoaches will remain a safer mode of travel with or without seatbelts, it's not a bad idea since airplanes require them as well. -- M.R.
OFFENSIVE CLIENTS: At some point you must draw the line on obnoxious behavior, LCT contributing editor Jim Luff reported earlier this week. So what happened with the unruly customer on the limo roof?
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RIGHT-SIZED: The latest trial run of hybrid taxis in New York City shows the
Ford Escapes have succeeded without any major problems, and prove durable enough for back-to-back daily runs. This should be encouraging to the chauffeured transportation industry, since evolving green technologies will make larger hybrid and alt-fuel livery vehicles more possible. With the Cadillac Escalade Hybrid, the Mercedes R320 BlueTec, and the LimoGreen Town Car now on the market, there is never any excuse for compromising size, space, and luxury in order to look green. -- M.R.
WHY NOT? With a small segment of the luxury-based chauffeured transportation industry embracing the Toyota Prius as a livery vehicle, the relevant question that must be asked: Where does it stop? Or, where does it lead?
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BAD MOUTHERS IN BAD TIMES: How do you handle disgruntled ex-employees? Linda Moore asks. Example below. . .
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BOTH SAVE TIME AND ADD VALUE: Recent findings suggest the private charter jet industry's best days are still to come, and when compared to first class and business class commercial travel, such travel actually makes more sense for executives and corporate clients. While the Big Three auto executives bungled the industry's image in November -- if you come hat in hand to middle class taxpayers, don't show up in a jet or limo for that matter -- the industry can easily move past that image and present the correct one. As
this article shows, the messages about charter jets can be applied to chauffeured and chartered vehicles as well. It's all about the time-saving, practical value. -- M.R.
CHAUFFEUR VIDEOS: Calling all video-savvy operators to post
chauffeur testimonials here. Tell America how business meeting and event cancellations are hurting your business and employees. Don't let the politicians get away with decimating a vital segment of the private sector. Protect industry jobs now.
EXPOSURE: The groundswell of outrage in the business travel, hospitality, and conference industries has not only reached the ears of the Obama Administration, but netted coverage in the New York Times. The Greater California Livery Association and the National Limousine Association enjoined their voices to the grass-roots business movement fighting job-killing legislative curbs and controls on corporate travel and events. AIG excesses are not typical of corporate America, and should not be used by whoring politicians against industries that employ 1 out 7 private sector Americans. Let a thousand Ritz-Carlton conferences -- including the LCT SUMMIT -- bloom, and help take us out of the recession.-- M.R.
OFFENSIVE CLIENTS: At what point should the line be drawn on offensive passenger behavior while intoxicated?
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