LAST MINUTE LIMO PEOPLE: Thanks for all the diligent submissions for LCT's 100 Largest Fleets List; many are coming in with complete insurance and/or vehicle registration information attached. We're planning some new twists to the list this year, including ditching the term "TOP." It was never meant to imply a quality ranking; just quantity. LCT will still accept surveys postmarked May 30 along with early Monday morning fax-n-online stragglers. -- M.R.
LATEST FINDINGS: All hope is not lost; surveyed financial executives still must impress and
win clients and close deals. That means getting into planes, hotels, restaurants -- and chauffeured vehicles.
SCHOOLMARMS AT THE GATES: Don't think for a minute that recent isolated cases of limo-bans at school proms will remain atypical. LCT has noticed a growing and disturbing trend of public school officials regulating, banning, or obstructing the free choice of renting limousines for the prom -- an established prom tradiiton. It is emerging as a key threat to a bread and butter market of the chauffeured transportation industry. . .
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PORSCHE UNVEILS NEW HYBRID:
We've noticed Porsche promoting its hybrid version of the 2010 Cayenne S. We at LCT are curious: Is this a viable livery vehicle? We know it's expensive, but would either the gas or hybrid versions have appeal to enough high-end clients to make it worth adding to a fleet? Do you know of any operators who have them?
More information about the Porsche Cayenne Hybrid at the LCT DRIVING GREEN CHANNEL. -- M.R.
KNOW YOUR PLACE: Which is, back at work. Who did Jim Luff think he is trying to relax at home for two days before heading to the California coast for an extended vacation? How dare he try to get away from a 24/7 chauffeured operation? As Jim reports in his latest vacation dispatch, if a major infrastructure problem and employee death are meant to occur, it will happen on your vacation. . .
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STUART ROTHSTEIN QUOTED: The NLA board member and owner of a contractor-based chauffeured transportation service in Chicago talks about his metro market and
offers an overall assessment of how the recession is hurting the industry.
GM's SELF-INFLICTED DEBACLE: Remember how GM panicked and begged last fall amid mea culpa pledges to shape up? If only they could get billions of our taxpayer dollars, they could survive and keep thousands of jobs, while providing plenty of consumer and fleet vehicles? There's no delight in
GM's impending bankruptcy -- just a vindication of everyone who properly understood the dynamics of the private sector that pointed to a much needed bankruptcy filing last fall. And here's another prediction: With majority government-union ownership, look for GM to become more like the DMV or the U.S. Postal Service. Consumers will avoid their vehicles as unions stymie quality reforms and the government forces GM to provide light, tight green vehicles that sensible consumers and chauffeured clients will avoid. For the sake of chauffeured transportation and the market for luxury vehicles, GM should spin off Cadillac now into its own viable independent brand. -- M.R.
SECOND IN A YEAR: Breaking developments. . .
LINDA MOORE ASKS: Is the term "limousine" a goner? Does it belong in the category of dirty words? Will the stigma ever vanish? Are operators who take limousine out of their names being practical or fearful? Will stretch limos become popular again? LCT will be addressing these questions in upcoming coverage, but Linda wants to get some discussion started.
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SMACKDOWN: Former South Florida operator and Florida Limousine Association member Linda Moore takes former colleagues and FLA members to task for the latest intra-association bickering over elections, influence, and agendas. But she reserves her strongest firepower for those operators who whine but never find the time to volunteer or participate.
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DON'T WRITE OFF THE GAS GUZZLERS JUST YET:
An experimental electric Hummer H3 supposedly gets better mileage than a Toyota Prius. This could be a good sign for evolviing green technologies that may some day sustain large, luxurious vehicles.
Let the industry create a new category of livery vehicles: BBGs:. Big Black Greens. -- M.R.
LESSONS FROM LEISURE: Even seemingly routine vacation activities offer operator Jim Luff the openings to network, market, and eyeball customer service. . .
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MULTI-TASKING = MANGLED RESULTS: With cell phones, IMs, Blackberrys, and laptops available to stay plugged in 24/7, who's got time to just focus on one thing at a time? Actually, the truly successful businesspeople do. The rest allow technology to make them think they can do it all while in reality coming off as hopeless half-taskers.
This online column by a veteran Southern California
businessman and entrepreneur offers some helpful advice. -- M.R.
ONE TOUGH VACATION CUSTOMER: Don't think that just because Jim Luff is heading to the beach until June 8 he won't be working. Whether he bellies up to a bar, buys an ice cream cone, or sits down to a sumptuous dinner, he'll be sizing up the customer service and demanding the best -- just like he insists his company provides. Jim starts his first-ever series on vacationing as the owner of a 24/7 chauffeured operation. . .
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MEMORIAL DAY: LimoCentric will take a four-day pause until Tuesday, May 26 for the Memorial Day holiday weekend.
No one will be reading here, anyway, unless a big name goes bankrupt.
Photo is of a 1965 Lehmann-Peterson limousine.
OF COURSE IT CAN. What kind of a question is that?
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MOVING FORWARD: We would never be so bold as to predict a bottoming out for the industry, but the GCLA's May meeting proved there is a consistent pulse. . .
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WARNING ABOUT WAGES: This week, operator and LCT scribe Jim Luff delves into the difficulties of defining wages and compensation for chauffeures and employees, and how one major chauffeured transportation company could be facing a rude reckoning.
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COMING WEDNESDAY IN DRIVING FORCE: Watch for Linda M. Moore's extensive report on the Philadelphia Regional Limousine Association's struggle against the Philadelphia Parking Authority. It's a regulatory tale typical of what so many operators must contend with. Check it out in Wednesday's edition of LCT's e-newsletter, DRIVING FORCE.
LCT’s Top 100 Fleets survey is circulating through the industry as we speak and will be compiled after the May 29 survey deadline. The list will be published in the August issue. Of course, the more accurate the better. So now’s your chance to sound off.
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GOOD REGULATION: The NTSB has decided to require seat belts on commercial motorcoach buses, a long overdue regulation following a string of deadly U.S. bus crashes in recent years. With almost as many people riding in motorcoaches as in planes, this measure is a no-brainer. The only difference between motorcoach and airplane seatbelt rules is that on a plane, passengers must wear them when told; on a motorcoach, it would be optional. Is that because seat belt use is impossible to enforce on a motorcoach (no flight attendants)? But then some states require motorists to wear seatbelts in front auto seats, so why not on buses? -- M.R.
LEAVING LAS VEGAS: 400 business conventions cancelled and counting. The Nevada Governor makes one of the boldest explanations to date on exactly why the Vegas business and leisure hospitality markets have taken a tumble, hurting the area's chauffeured transportation market along with all others. This unnecessary economic suffering clearly points to who is to blame and who should be held accountable. -- M.R.
LONG, HOT SUMMER: More than one-third of American workers plan to
forgo a summer vacation this year in another sign of the dismal travel times. Some motorcoach operators are marketing
"staycation" tours for locals who many just take one or two days off to relax near home. Would this concept work for chauffeured operators as well? Limo staycation outings and excursions? It may be a viable market this year given the expected drop-off in out-of-town leisure travelers. -- M.R.
OPERATOR DEBATE: We're glad to report that after Linda's last "Fee Fight" question and the passionate and instructive feedback comments, she did not resign nor apologize. We would never want an LCT editor professionally fatwa-ed simply for asking a tough question or making a controversial point. Now Linda broaches the topic of networks. Seems as if everyone can farm-out and in, but does that really constitute a network?
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HANG UP, SHUT UP: East Coast Editor Linda Moore grapples with the whole cell phone-cyclone-syndrome. While it's an issue for everyone in the working world, it can get even more dicey for operators who have to stay constantly connected to either run a business or handle a client run. What's the balance, Linda asks?
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CHARTER BUS CRASHES: In response to some high profile bus crashes, the California Assembly has
passed a "safety bill." That's progress, but there's no mention of passenger seat belts for motorcoaches. Isn't that the real issue? -- M.R.
ECONOMIC PILLAR SUFFERS: The following letter today by Jonna Sabroff, executive vice president of the Greater California Livery Associaiton, sums up the high stakes for chauffeured transportation in this economy and how its fortunes are so closely linked to the business travel sector, which has been decimated by fearful corporate cutbacks and politicized populist rage.
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PERSPECTIVE: For an excellent summary of Avis WeDriveU's operational weak spots and mistakes, visit the All Things Limousine blog, a solid forum of industry information and operator know-how. As WeDriveU defeats pile up and the Avis chauffeured business model tanks, the quality practices of the real and legit chauffeured transportation industry will stand strong and speak for themselves. -- M.R.
DEALING WITH DOOM N' GLOOM: LCT contributing editor Jim Luff has been noticing how many businesses are desperately cutting prices as consumers pull back on spending. What does that mean for your operations? How do you stay busy without giving away the store? You can tell Jim all about it below
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FROM THE FRONT LINES OF LIMOLAND: "If I had another 25 cars I could get them all out easy," says Robert Tatro, owner of Presidential Limousine Service. "I know people are shopping more by price this year than they have in the past but they still want to do the special event for the prom. Prom is only one time."
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LINDA MOORE ASKS: Why are there so many line item charges on chauffeured transportation bills? Are operators becoming more like hotels, with their nibblesome "resort fees?" Do fees drive away customers?
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LABEL IT JUST SO: As anyone who's visited LimoCentric of late knows, chatter about the litte Prius really gets the PC fur flying in some industry slivers, since it challenges traditional chauffeured vehicle identities and roles. But this article actually underscores the positive value of the little Prius -- as a viable and worthy green taxi-cab. (The little Prius also serves as an excellent commuter car and a cost-saving government fleet vehicle (utility checks, social worker runs, mayor-mobiles, etc.).
Most amusing is the wink-wink term "green limousines" used in the headline. Glad the headline writers applied tongue-in-cheek "quote marks," since even they can tell the little Prius is not a serious limo or chauffeured vehicle. But dressed up all in yellow with a driver, let that little Prius rip down any road. -- M.R.
LINDA MOORE ASKS: I am not sure about your geographic area but in New Jersey gas stations post two prices: one for cash and one for credit. Why is that they can do this and other industries can’t? In the merchant agreement you sign with the credit card companies you are clearly prohibited from doing this. If anyone has further insights, please let me know why gas stations are able to do this? Is this a state by state thing?
NO LIMOS ON THE LOT: A
New Hampshire operator is quoted in a
local news story saying he cut prices 10% this year and now has all stretch limos rented out for key prom weekends. There are industry stalwarts who say never cut prices during tough times, and others who would rather cut a little to keep vehicles moving. The industry pricing debate we've heard discussed at multiple LCT events revolves around this key question and a second: If clients get used to a lower price level, will they devalue your service and balk at back-to-normal rates when the economy improves? -- M.R.
HOPE FOR GREEN LIVERY:
The green vehicles now used for limousine purposes obviously are first-generation and still evolving. But they are worthy templates that point to a better automotive future.
With each passing model year, the vehicles become more efficient as the green-power sustains bigger, roomier models. With private and public sector green technology research set to mushroom in future years, the day will arrive when stretches, SUVs, big sedans will no longer carry the PC-stigma of gas guzzler.
The key lesson in green vehicle investments is: Don't settle for little or less, and never compromise luxury standards. Check out the LATEST INFO on the 2010 Lexus Hybrid 450h. You can also see more on LCT's Driving Green channel. -- M.R.
CHAUFFEURED VEHICLE, NO DOUBT:
Glad to see a new limo that defies the less is more mentality and doesn't trigger a livery identity crisis. Although extremely expensive for the average operator, the Maserati limo gets it right: luxury, style, performance, power -- vehicle pleasures worth investing in and paying for. And if an operator can make a profit on one in this economy, then please apply for Operator of the Year. -- M.R.
EMPLOYEE FREE CHOICE ACT: Today's Wall Street Journal presents a
strong argument against union card-check legislation -- a major threat to American businesses and one of the leading concerns in the chauffeured transportation industry -- from an unlikely source. If a senior radical politician who lost in a major landslide election opposes the EFCA, maybe it can be stymied for good, or at least until a more favorable business climate emerges. -- M.R.
MYTH BUSTER: In a recession, the knee-jerk corporate cutback du jour tends to be business travel, as the chauffeured transportation industry is painfully aware.
THIS ARTICLE offers a refreshing rebuttal to the conference call way of doing business in a tight economy. If an operator's business clients balk at traveling, these findings could persuade them otherwise. And the concept applies to dometic travel as well. Getting all those faces together obviously means there is potential time for a chauffeur to take them there. -- M.R.
YOUR WEBSITE IS UGLY, AND YOUR MOMMA DRESSES IT FUNNY: That pretty much sums up a lot of the operator websites east coast editor Linda Moore has encountered while checking out the industry's Internet presence. We at LCT can't say it enough; if you don't have a savvy, easy, accessible website for reservations, promotions, and customer contact, you're likely losing business. (LCT plans to update its site by 12/09).
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GOOD FOR HIM: A 19-YEAR-OLD ENTREPRENEUR is making more than $1 million during a recession with 30 Mercedes, Hummers, and party buses, according to this news account. Future LCT Operator of the Year?
BUYER BEWARE: While the recession offers many opps to cut great deals on products and services, one area where operators can ensure maximum value is with a vehicle warranty. Make sure the coachbuilder promising the quality moon will be there for you if things go wrong. Now is a good time to extract extra safeguards and guarantees with a warranty. As Jim Luff has learned, don't assume a warranty will automatically work.
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SWINE FLU REDUX: Latest figures show the public is finally hitting the reset button on global warming myths and hysteria. It's not so bad. Just another reminder that green purchases should be based on economics and energy usage, not long-term weather patterns. -- M.R.
SIGN OF THE TIMES: You can't blame it all on the recession.
ARTICLE HERE. Be sure to remember which politicians and policies have been hurting the business travel and hospitality sector, thereby sinking the revenues of many an operator.
POSITIVE SCRAPLET: We take whatever we can find, so when a limousine operator gets good local press, it's certainly worth mentioning. Below article profiles a Michigan operator. It reminds us that companies are still succeeding despite the economic challenges and industry cutbacks.
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LATEST FROM LINDA MOORE. As you read the following question-of-the-day for operators, remember that the Swine Flu outbreak in Mexico appears to have peaked with fewer deaths than first reported and symptoms closer to the conventional flu than the Bubonic Plague. Maybe the swine flu can somehow be tied to global warming to create more media hysteria.
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MID-SIZE STRETCH: European Patent Office divulges sketch of Mercedes E-Class stretch limousine. Mercedes' pursuit of future stretches contradicts the notion that the stretch limousine is fading.
LINDA MOORE ASKS operators to share some positive insights, for a change. The recessionary malaise gets old, and what better way to cope with it than to find the successes, breakthroughs, and advances amid the doom and gloom. Someone out there still must be riding around in a limo?
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COMING NEXT WEEK: Coverage of recent decision by the Port Authority of New York and New Jersey to bar Avis WeDriveU from chauffeured transportation service. Such a major setback for Avis in the limousine industry's largest metro market could be the knockout punch against the WeDriveU business model. See anti-Avis strategies below, courtesy of Joe Jordan, president of the Limousine Association of Houston.
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