RUNS ALSO PICK UP FOR CHAUFFEURS: Limousine business from
HOTELS AND PRIVATE AVIATION CLIENTS has risen, although not as fast as demand for private jet service.
OOPS, MISSED A BIG ONE: Inc. Magazine recently compiled its
BUSINESS TRAVEL 50, the 50 top picks for the best of business travel in 2010. The list is useful and up to date, but contains one glaring omission: Use of chauffeured vehicles, especially for the
PAMPERED TRAVELER. Somehow, an airplane pillow just doesn't compare to a safe, luxurious, comfortable, and punctual ride to and from the airport and hotel. -- M.R.
UNHEALTHY SALADS? Not everything in the green garden is good for you and your business.
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FRUGAL RECOVERY: Although business travel --- with its accompanying convention, hotel, airline and ground transportation business --- will steadily increase through at least 2013, the millennial-era good times among corporations won't be repeated anytime soon.
COMPANIES GOING SLOW.
OPTIMISTIC, BUT CAUTIOUS: More biz travel ahead, but more focus on making money,
LATEST AMERICAN EXPRESS RESEARCH SHOWS.
AND SO WHAT? Latest reseach from Business Travel News shows only 3.6% of travel suppliers get rejected for environmental reasons. Maybe the business community is smart and sustainable enough to understand some things the eco-warriors do not. -- M.R.
ALONG WITH CHAUFFEURED VEHICLES? In another positive sign of a travel turnaround, stays at high-end hotels are up; if more business is going to luxury hotels, then luxury vehicles should be gaining close behind.
PUTTING OFF THE RITZ: NYTimes article explains how more business travelers are
BACK ON THE ROAD, but with smaller travel budgets. If you want to counter the penny-pinch knee-jerk instinct to take a cab, then promote/offer value-added alternatives. One industry source in the know says: The number of runs are UP; but the average spend per run is DOWN. -- M.R.
BIZ TRAVEL ROUND-UP: The Wall Street Journal offers a comprehensive update of
business travel activity across various customer and vendor markets in today's editions. . .
CHAUFFEURED TRANSPORTATION CATCHING UP? That's the next question beyond today's report from Business Travel News on
SOARING DEMAND FOR BUSINESS TRAVEL. All those travelers need to get somewhere when they land.
BIZ TRAVEL REBOUND: The most optimistic report yet on business travel shows companies cannot afford to keep their staffs grounded for very long. Face-to-face interactions are crucial to good business. But non-grounded staffs will still need quality ground transportation upon arrival. . .
BUSINESS TRAVEL NEWS: In a good sign of recovery, a hotel chain typically used by business travelers
SEES SOLID GROWTH in room rentals. Rate increases are not far behind. Operators should make sure the added guests have plenty of access to chauffeured service.
CUSTOMERS FIRST: A recent letter from the president of the National Business Travel Association underscores the importance of helping out clients/customers during a crisis. Many travel-related business are forgoing the price-gouging that occurs in desperate situations. Caring for your customers during times of distress is a sure way for operators to secure lasting loyalty that can pay off for years to come. Click below to read letter.
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TRAVEL BAG:
Corporate CEOs are spending more on private jets, figures show, and of course such tidbits invariably are meant to stoke PC resentments toward the rich. LCT supports increase use of private jets, especially at FBOs, since jet passengers often get to the FBO in a chauffeured vehicle.
More flights = More chauffeured runs = More business for operators. Meanwhile, a second item in the same article reports that meeting planners are still penching pennies. -- M.R.
AMERICAN EXPRESS BUSINESS TRAVEL UPDATE: Although business travel is expected to start a comeback in 2010, most companies are still under tight travel budgets and are looking to technology to increase communication and productivity.
BROKEN CLOCK THEORY IN ACTION: The decidedly anti-business President Obama has managed to give piecemeal help to the private sector and the travel industry. Better yet, passage of this legislation doesn't involve taxpayer dollars. Now that's some real stimulus for a CHANGE, and a template for true economic revival efforts across the board .
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NOTHING LIKE SUCCESS ON THE ROAD: A column in USA Today underscores what most sensible business people have known all along, whether in recovery or in recession: Face time yields better results long-term and gets the attention you need. What does everyone do on a teleconference? E-mail, surf, instant message -- not exactly the best way to build the rapport and connections for teamwork. Operator ad campaigns could easily tap these truths. -- M.R.
2010 OUTLOOK: A report in today's Wall Street Journal shows corporations are no longer cutting back on travel at least, but reluctant to return to previous travel spending as they invest in more teleconferencing equipment.
Key statement: "U.S. companies cut their travel budgets 30% to 40% last year, but they will probably increase them by only half that amount in 2010, estimated Herve Sedky, general manager at American Express Business Travel, which provides consulting services to corporate travel departments."
TURNAROUND: Airfares and load factors increase for global airlines, data shows, but total recovery is still in the distance.
LOSING LAS VEGAS: Ritz ditches Sin City while President Obama ensures his party's political defeat in Nevada come November. . .
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CO-BRANDED: Article in
BUSINESS TRAVEL NEWS. . . Also, key source tells LCT this deal could be a "game-changer" for the chauffeured transportation industry as more large operators and rental car companies might strike deals to bundle/cross-promote ground transportation to cost-conscious companies looking to streamline business travel expenses. . . That would benefit affiliates connected to the major operators aligned with rental car company deals, but pose new challenges for regional independent operator not connected to chauffeur/rental car combo ventures. . . Expect more downward, competitive pricing pressures in major cities and markets for chauffeured service. . . More such deals could be coming in 2010. . .
HAPPY NEW YEAR/DECADE:
We've posted a FEW MORE FEATURES from the December/January issue of LCT Magazine, all related to the theme of more efficient money-saving group travel.
Most notable is LCT's annual OUTLOOK FOR BUSINESS TRAVEL. 2010 portends at least a slightly more active year than 2009, one of the most devastating to the sector.
As travelers look for more practical ways to get around, COMMUTER MOTORCOACHES are seeing a lot of success in the San Francisco Bay Area.
And with more consumers opting for shorter vacations or staycations, LCT offers 10 CHARTER IDEAS that could spur creativity among charter and tour operators.
FEBRUARY 2010: LCT will distribute its annual "SHOW ISSUE" early at the 2010 INTERNATIONAL LCT SHOW in Las Vegas, now just a few short weeks away on Jan. 25-27. The issue will feature the 12 finalists for LCT's 2010 Operator Of The Year Awards along with their tips for success. Don't forget to register for the Show by Jan. 8 to take advantage of room discounts at the Palazzo Resort Hotel & Casino.
-- Martin Romjue, LCT editor
SAMPLE RUN: Here's a quick review of my first chauffeured ride in a Ford Flex. . .
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WELCOMING A NEW YEAR: The transportation sector could be seeing the
first sustained signs of growing business travel demand, which after a disastrous 2009, cannot be happening a moment to soon. If this trend holds, 2010 will provide some welcome relief to corporate-oriented chauffeured transportation operators that struggled through 2009.
Southwest Airlines, however, does not see a biz travel rebound.
AND THEIR BLACK VEHICLES, TOO:
Populist rage against money-making people not only tanked chauffeured limo demand in 2009 -- it also grounded many private chartered jets. But as some eminently reasonable business titans are EXPLAINING IN FORBES MAGAZINE, private jets are actually one of the most efficient ways to get business travel and consultation done in today's globalized economy. Ditto for the chauffeured vehicles needed to take hard-working private sector executives and managers to and from the jets.
Here's to more private jet-black vehicle combos in the New Year. [SIGN OF A HEALTHY ECONOMY W/PLENTY OF JOBS: "Would you like an Escalade to go with your Gulfstream?"] -- M.R.
Business Travel News has released its 2009 Large Market Benchmarking Report: Finding Room For Making Ground Moves. The assessment summarizes a tough year for chauffeured transportation operators.
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PINCHING PENNIES ON THE ROAD: The good news is that biz travel IS coming back to a certain extent, but corporate bean counters are making sure their employees maximize value. NEW YORK TIMES ARTICLE HERE. Operators can help meet and even increase demand for their services by making life simpler for the bean counters; sell them on convenient, comfortable group transportation (SUVs, mini-buses, vans) with simple, straightforward pricing packages. Somewhere between a rental car and a public bus ranks the most sensible option for business travelers: Chauffeured transportation. -- M.R.
SLOW RECOVERY: The business jet industry -- whose clients often use chauffeured transportation to and from FBO facilities -- won't be building many new planes for several years,
latest reports show. New jet deliveries to fractional operators is down 66% Y-o-Y.
HOCKEY STICK: The ballyhooed economic recovery looks increasingly like a hockey stick; thanks to a failed porky stimulus package and higher taxes that will lower the value of U.S. currency and exacerbate inflationary risks -- while continuing to spook consumers into saving and pinching even more.
LATEST OUTLOOK ON BUSINESS TRAVEL at least shows no more decline, but not nearly enough growth to warrant a sigh of relief. All the more reason for operators to diversify and grab hold of the growing motorcoach and mini-bus market segments. -- M.R.
ANNUAL CONVENTION THIS WEEK: The National Business Travel Association is holding its annual convention in San Diego this week, wrapping up today; 26 chauffeured transportation companies have displays on the floor of the San Diego Convention Center. The NBTA
APPOINTS A NEW LEADER.
YOU DON’T GET STUCK IN A LIMO, A VAN, OR A BUS: If you must be confined in a tube-shaped vehicle with other people, would you rather have the option to “de-bus” immediately, or “de-plane” when the FAA says you can — many hours later?
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SEPTEMBER Limousine Charter & Tour: Downsizing may be the buzzword of this economy, but for ground transportation, “upsizing” with more people saves the most money for clients and brings in the most bucks for operators.
AS THIS MEGA-BUS SERVICE shows, the biggest buses of them all — double-deckers — stack the most potential for healthy business — whether for mass transport, sightseeing, or partying. More on double-deckers in the September issue of LCT Magazine.
APPALLING: In California alone, 250 luxury hotels are now in default or lender-owned, according to a recent survey. This hurts the operators whose transportation services take guests to and from resorts and hotels.
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LATEST UPDATE: Marketwatch put out a
state of chauffeured transportation overview this afternoon, which quotes industry figures SCOTT SOLOMBRINO, SERGIO SANCHEZ, SCOTT TINKLER, and our very own LINDA MOORE. Solombrino is not exactly known for being overly optimistic, so if the industry's unofficial oracle is looking toward renewed corporate business, then the bottom may have been reached. The article reports that 3,400 operators have either shut down or consolidated during the recession so far, which may be verified by our surveys next year, but the official LCT stats show about 9,700 operators in June 2008 versus about 8,000 in June 2009. LCT's latest unscientific poll shows half of operators believe their business bottom has been reached, the other half says not yet. -- M.R.
DON'T CUT TOO FAR: High-end hotels and luxury-oriented chauffeured transportation appeal to the same business travel clients, so what happens with one affects the other. The
latest pricing drama at Starwood Hotels should help inform the pricing adjustment decisions of any operator vying to compete in a recessionary market. -- M.R.
IN ALL WAYS EXCEPT ONE: Time for long distance travel. But within a few hundred miles, the time differences are likley negligible.
THIS SUMMARY describes how charter bus travel excels in every possible way. If you’ve got the time, why bother with security checks, tight seats, small windows, long lines, and delays? -- M.R.
LINDA MOORE: Drug manufacturers are still one of the few business segments spending regularly on group transportation. They often take doctors and medical personnel on trips to teach them the benefits of their products. As Congress looks at heath care reform, one of the casualties may be these trips. . .
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SIGN OF THE TIMES: The National Business Travel Association and may yet merge with the Association of Corporate Travel Executives. Key paragraph from Business Travel News:
"While the two organizations had discussed such a merger many times previously, the current economic reality appears to have made this most recent effort more substantial than prior discussions. It wasn't clear if the economy could continue to sustain two competing organizations, as some supplier sponsors supporting both organizations were seeking relief from the dual expense."
Limousine, CHARTER & TOUR: Emphasis on the C&T. One of the most promising market opportunities across chauffeured and chartered transportation lies with motorcoach and/or mini bus service, as. . . .
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EXTENDED STAY IN BANKRUPTCY: No, don't just blame the recession. Snotty-mouthed politicians who have helped chill the business travel climate, along with companies cowering in the face of criticism, all share the blame as hospitality and transportation companies suffer the
loss of corporate business travel. It was all unnecessary. How about an "America Get Going" campaign to get business on the move? Make ALL business travel expenses, including chauffeured transportation, tax deductible to stimulate the private sector. A longshot, but worth mentioning. -- M.R.
GROWTH OPP: The latest
airline forecast looks bleak, with flights getting costlier, less frequent, and more cramped. But for chauffeured transportation operators and charter/tour operators, this could be a golden opportunity to market motorocoaches, shuttles, vans, limo buses, and even stretches, as superior, value-added alternatives, especially on inter-city commuter routes. One requirement: Make sure all vehicles are equipped with WiFi access and digital TVs if possible.
GO GROUP-GROUND: While the
decline in biz travel hurts airlines and chauffeured services alike, the cheaper alternative of course is group ground transportation: vans, limo buses, motorcoaches, big SUVs. Chauffeured and charter operators should be looking for ways to meet the need and demand for more economical transportation. And don't forget the seats and legroom on most chauffeured vehicles are much more comfortable than economy class. Does the public know this for sure? -- M.R.
HANDLING CHANGE: As the business travel industry faces seismic shifts in business travel preferences and patterns, leading industry groups are trying to sort out how to pool resources and pick battles.
UPDATE HERE.
SALES TAX SLAMS INDUSTRY: Another
example and summary of how chauffeured transportation companies are dealing with the new New York state sales tax on chauffeured vehicle services effective June 1. Industry efforts are underway to minimize its effects.
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.
OF COURSE IT CAN. What kind of a question is that?
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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.
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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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.
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.
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.
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.
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.
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.
INDUSTRY ALERT: While Avis WeDriveU may be ceasing chauffeured rental car operations in Miami-Dade County, its concept is still being promoted in the travel industry, as
this travel blog shows. The chauffeured transportation industry -- the one that follows the rules and pays for licenses -- needs to keep educating travel agencies and bookers not only about the superiority of legitimate chauffeured services, but how Avis WeDriveU has been dealt a pivotal, precedent-setting blow. Similar regulatory decisions in other metro areas are very likely on the way, thanks to pressure from actively engaged industry associations. Avis WeDriveU should not be presented as a viable ground transportation alternative. Hand-in-hand with the regulatory battles goes the PR offensive as well. -- M.R.
HOTELS SET EXAMPLE: Reeling from recession-driven fearful pull-outs and cowardly poltiical attacks, the hotel, meeting, and conference service sectors are using constructive ways to work with clients and handle business.
STORY HERE. Considering a client's circumstances and cutting a deal is the long-term approach to keeping as much business now and building good-will for future growth. -- M.R.
QUIVERING NAME-CHANGERS: The fallout from the business travel backlash hurts local economies nationwide. Now some hotels, resorts, and conference centers think they can capitalize on the recession and its freakish political climate by changing their names to avoid the terms luxury, resort, spa, etc. . . .
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TRAVEL PANIC: 4Q 2008 numbers out today confirm. . . .
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S.O.S. FOR THE PALATE: What happens when the Chauffeured Sage of Boston stages a food fight at an authentic Italian restaurant in Nancy Pelosi’s “Cali-fone-ia” district?
Last night, between bites of grilled salmone, chicken cacciatore, antipasti, insalate, and spumoni, the Greater California Livery Association got a taste. . .
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DOWNTURN: This is why a consortium of travel, transportation, and hospitality groups are aggressively trying to stave off destructive legislation and corporate demonizing in Congress. Continental Airlines is just one of many companies whose recessionary challenges are being compounded by the anti-business travel climate. -- M.R.
GCLA WANTS TO KNOW: The biz travel chill coming out of Washington, D.C. could potentially decimate the business travel, hospitality, and ground transportation industries, including luxury limousine operators. GCLA members have received the following e-mail that should go out to all operators nationwide. . .
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MOMENTUM BUILDS AGAINST BAD TRAVEL RULES: The list of professonal travel, hospitality, meeting, and transportation service organizations rallying against flawed business travel legislation is reaching critical mass. Such cooperation and backbone prove that businesses can effectively move against ill-conceived governmental interference in the job-creating marketplaces. Check out below list. . .
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THE GREATER CALIFORNIA LIVERY ASSOCATION is adding its influential voice to the rising opposition against a destructive anti-business-travel bill sponsored by Sen. John Kerry, D-Mass. See latest online news item and a letter from GCLA President Alan Shanedling. . .
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NO FEAR: Another example of how the business travel and hospitality industries are countering the aggressive anti-business drivel coming out of D.C.. . . Response from LA Inc. below. . .
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SURVIVAL: Congressional busybodies are trying to ruin the temporary business prospects of much of the corporate transportation and travel industries with their overblown recessionary rhetoric about micro-managing TARP recipients and chilling the climate for meetings-related hospitality and vehicle services.. Limousine and livery operators -- not just the big players -- must take this seriously and get organized, talk back, and take control . . .
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CHAUFFEURED TRANSPORTATION should borrow the below tactic from the business travel industry, meeting planners, and destination managers in responding to the political attack on the world of business interactions. Despite a recession and bailouts, politicians do not have the right to start treating business travel like smoking. Those clueless politicans, who by the way helped cause this crisis, still ride around in chauffeured vehicles. . .
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NEW LAW: The Western Hemisphere Travel Initiative takes effect June 1. Read all about the details here.
For ground transportation companies, this has to do with cross border trips to Canada and Mexico. Great Lakes Limousine Association Executive Director Richard Greiner made the following points:
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CONGRATULATIONS!: Business magazines and associations typically present awards to industry leaders. (Does this sound familiar to you?) The Association of Destination Management Executives just unveiled its '09 winners. Read on for their names, and ideas on how to turn this into a marketing opportunity.
-- Jon LeSage
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BIZ TRAVEL BADMOUTHING: Leading hotel executives have asked Congress to stop
demonizing corporate business travelers for, um, traveling for business. Good for them; Congressional trashing of biz travel hurts chauffeured transportation operators directly. As this economic crisis unfolds, it becomes increasingly clear that fault lies with government interference in the economy as well as bungled policies and regulations -- not the everyday business traveler who helps the private sector generate the tax dollars needed to pay the public tab. -- M.R.