TALE OF AN OLD LIMO: We maintain a privately owned limousine in our fleet that is a 1997 model. That limo is in mint condition with 250,000 miles on it and I’d take it across the Mojave Desert tomorrow feeling safe.
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MARTIN ROMJUE: How to handle the media avalanche hitting limousine companies nationwide.
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MARTIN ROMJUE: Small businesses are experiencing a tempest in a tax pot. When will they get their fair share?
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MARTIN ROMJUE: I am glad to know one of the bright stars of the limousine industry.
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MORE SKEPTICS NEEDED: A global environmental expert reports the truth behind subsidized electric cars in a Wall Street Journal commentary this week. How refreshing to read some common sense amid the green hype.
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The first female president of South Korea, Park Geun-hye, was inaugurated on Monday. Besides being the first female president, she was also the first one to ride in a Korean-made limousine during the inauguration ceremony: a specially-designed, heavily-armored Hyundai Equus. The former President, Lee Myung-bak, rode in a Mercedes-Benz S600 Pullman Guard and a BMW Security 760Li.
The use of a native-built limo will certainly be a point of pride for Koreans, as most auto-manufacturing nations chauffeur their heads-of-state in cars built on home turf. No doubt the occasion will be used as a marketing tactic by Hyundai as it aims to raise its status in the luxury sedan market. And as Korean businessman get used to the notion of homegrown luxury vehicles, they may be look for the same ride when travelling abroad.
Korean news site, Chosun Ilbo, reports the stretched Equus was produced in conjunction with Stoof, a German company that specializes in armored vehicles, and cost in the neighborhood of $1 million. The vehicle, which weighs between four and five tons, has had its intake and exhaust system enhanced to increase horsepower. (Read more about the presidential modifications, including run-flat tires and bulletproof glass, here.)
During her inauguration, Geun-hye promised to revive the South Korean economy. Interestingly, Geun-hye’s father, Park Chung-hee, was president of South Korea from 1963 to 1979 and presided over a period of rapid economic growth from which Hyundai emerged a powerhouse motor company. LCT Report On Stretched Hyundai Equus Here — Denis Wilson, LCT East Coast Editor
A 1964 Lincoln Continental converted by Chicago-based Lehmann-Peterson into a 21-foot long limousine is now on display at America's Car Museum in Tacoma, Wash., where it will call home for the next three months. This piece of limousine history is also part of Vatican history. Read more to learn why.
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BIGGEST LIMO NIGHT OUT: A trusted veteran operator in Southern California who drove for the Oscars last night gave me some candid observations today about the Academy Awards from a chauffeured perspective. [Under a full moon in Los Angeles]. To borrow a cliche and mix some metaphors, the Academy Awards is considered the "Super Bowl" for Southern California limousine operators.
Before 9/11, the highest call number for limousines used during the Oscars was more than 1,900. On Sunday, night the highest was around 1,150. There were few stretch limousines in the mix of sedans, SUVs and high-end premium sedans. The limo business model is being pinched from all sides, due to post-Recession fallout, corporate budget cuts, movie studio budget cuts, and changes in corporate travel policies.That adds up to a lot of rate and pricing pressure, with some companies even quibbling over a one dollar rate differential and taking their business to another provider. Chauffeured transportation companies always have been rate driven on thin margins, but the above factors have only squeezed those margins further, the operator says.
But he concludes on a hopeful note. There will always be demand for limousine services, including stretches to a certain extent. He advises that limousine operators with the most robust future are those who commit to these four rules:
1) Innovate with the latest technology and tech-friendly vehicles
2) Manage your operators “hands on” with a relentless attention to. . .
3) Customer service, service, service (can’t say it enough, but that’s what differentiates your operation the most).
4) Watch the bottom line intensely, as in ALL P&L components.
— Martin Romjue, LCT editor
CHAUFFEURED TRENDS: Two recent Wall Street Journal stories point to wider indicators for the chauffeured transportation,in an economy sending mixed signals. A Feb. 13 article, “What Recession? Americans Regain A Craving For Luxury,” (actual article requires subscription) explains how luxury consumption shows signs of recovery and strength. On that theory, where Louis Vuitton goes, there go the limos, which is good for the upper slice of chauffeured clients. But a second article the same day, “CEOs Fly Coach? Business Travel Turns Frugal,” (MarketWatch access to article here) reports that companies are pressuring its employees to “travel down” to coach class and less expensive hotels, forgoing perks. The increase in business travel spending overall is attributed to higher pricing by providers, not more travelers. In an atmosphere where companies are pinching the perks, easily expendable chauffeured vehicle services should adapt by providing lower-priced tiered service to forestall an exodus to taxis and airport shuttles. That means: Chrysler 300, Toyota Avalon Hybrid, Hyundai Genesis, etc. – affordably priced vehicles with good fuel mileage that can preserve the chauffeured service for cost-conscious business travelers. — Martin Romjue, LCT editor
LIMO COMPANY STIFFED: RMA Worldwide owner and NLA board director
Robert Alexander contends that White House party crasher-turned reality TV star Tareq Salahi has crashed his bottom line by $34,000 in unpaid limo bills. Alexander was quoted recently in the
Washington Post about the dispute. This is one issue where LCT is not coy about taking sides. After all,
RMA Worldwide Chauffeured Transportation is a 2011 LCT Operator of the Year Award winner, and the company was featured in the October 2012 issue of
LCT as a model of client retention. So Salahi's complaints about RMA's service deserve plenty of skepticism. The only editorial comment I would make is it should be no surprise that someone who tries to mooch off a White House party would [allegedly] try to stiff a private sector limousine company to get attention.
-- Martin Romjue, LCT editor
EDITOR'S VIEW : Blog version of Martin Romjue's January 2013 monthly LCT Magazine column.
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A PACKAGE STEAL: A man who allegedly
stole a limousine full of bachelorettes in Saratoga Springs, N.Y., gave new meanings to the terms "taking clients" and "chauffeur driven." He'd probably been treated much better had he just gotten into the back to mingle. So here's a suggested alibi for the 22-year-old suspect: He was a secretly hired stripper and the limo drive was all just part of the act.
-- Martin Romjue, LCT editor
WELL WHO WOULDN'T BE? It's
a Soviet-era retread boxy enough for iron window curtains. Sorry to burst Vladimir Putin's nationalistic ego, but the Russians just don't do limos very well. Even the Kim Jong ruling dynasty of Stalinist North Korea used
Lincoln-Continentals for the Dear Leader's funeral last December. So we at LCT would like to make a diplomatic suggestion to the KGB-schooled President Putin: Look West to the free world for your limousine; President Obama really likes his limo. Since Putin has rigged himself to be in office until 2024, that's a long time to be riding around unhappy in a limo. To come to think of it, the
2013 International LCT Show in Las Vegas has the best limousine selection in the entire world. If a head of state can't find one there, then maybe it's time to step down.
-- Martin Romjue, LCT editor
NOT OUR FAULT: Well, at least if you are a business owner who did not vote to re-elect President Obama.
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DRAMA @ DIGEST: LCT received word this morning that a mutual complimentary show pass exchange that has been going on between LCT and Digest staffs for years has been canceled by Limo Digest owner Ric Cohen.
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HURRICANE SANDY: Operators must cope not only with a natural disaster but potential financial ones as well.
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CHICAGO CLIP n' HIT JOB: President Obama's hometown of Chicago, where he earned and learned his political stripes,
charges the most taxes to travelers among the top 50 U.S. destinations, according to a recent
study by the Global Business Travel Association Foundation. This should come as no surprise. Technically, this is conincidental since Obama didn't levy the taxes (he's been a federal-level politician since being sworn in as a U.S. Senator in January 2005). But it is fortuitious and only fitting that the
President who has badmouthed business travel, corporations, and the wealth-generating 1% be reaffirmed in his sentiments by his hometown, now run by his former White House chief of staff. Bottom line: Obama is no friend of the limousine and charter bus industries.
ABOUT PHOTO: Would business travelers to Chicago save on traveler taxes by riding bicycles about town?
-- Martin Romjue, LCT editor
WHO IS AT FAULT? Erratic passenger behavior, which a host aboard the bus tried to stop, nevertheless leaves a black mark on the industry.
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Tom Mazza was a mentor, a friend and an ardent advocate for the chauffeured transportation industry.
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The stretch limousine market is about to see a radical shift bringing more options to operators.
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DEPENDS WHAT DEFINITION OF LIMO IS: The U.S. government caused some unnecessary outrage last year when it revealed that the number of limousines in the government increased under President Obama. Turns out their definition of a limousine was too broad, counting government shuttles and mini-buses in addition to sedans and stretches used to ferry VIPs and dignitaries. Now, the General Services Administration has redefined a limo as a "vehicle with a lengthened wheelbase, generally driven by a dedicated driver with possible customization, including 'privacy panels' and stretching for capacity and comfort." USA Today OnPolitics article here. Glad the GSA got its terms right and knows the difference between a limo and a shuttle bus. Now if the government could stop calling spending increases "investments" and tax cuts "costs." One minor quibble: Chauffeur should be used instead of "driver." But this at least is progress, and LCT Magazine, part of a private sector non-publicly traded business, is glad to counsel the public sector bureaucrats FOR FREE on anything they need to know about chauffeured transportation, or basic economic principles of free enterprise for that matter. -- Martin Romjue, LCT editor
Be careful before plugging into green energy. It could zap your wallet.
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THE LIMO SHOW: LCT editors took to the airwaves last week for David Bastian's weekly blogtalk radio show, sponsored by Towne Livery. We're not exactly Howard Stern material, but it was a good experience in getting the word out about all the new vehicles on the market. And just to clarify: We like ALL vehicles at the Show and don't pick favorities. Those decisions are up to chauffeured clients and their limousine operators. -- Martin Romjue, LCT editor
SECONDS OF LIMELIGHT: One thing leads to another for Chris Hundley, owner of Limousine Connection in Los Angeles. After he was quoted in an Associated Press article about high gas prices that went viral, he got a call from NBC to do an interview for its Feb. 27 edition of NBC Nightly News. Hundley appears for a few seconds in a report on rising gas prices and how they affect fleet and delivery businesses. He told LCT that he hosted an NBC News crew during the day which shot some footage of him and his vehicles in North Hollywood, Calif., where Limousine Connection is based.
While just a brief clip, such exposure for an operator goes a long way in establishing credibility and authority -- some of the best P.R. for a business. And NBC Nightly News is the top-rated evening newscast in the U.S., with more viewers than comparable newscasts on all the 24-hour cable news channels. -- Martin Romjue, LCT editor
Chauffeured transportation at a young age can create future clients. Or future prima donnas.
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MARTIN ROMJUE: In my role as editor of LCT, I'd like to address our coverage of a high-profile news event.
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TRAGEDY AVERTED: Operator Chris Hundley of Limousine Connection in Los Angeles recounts via Facebook a harrowing freeway rescue last night that was eerily reminiscent of another freeway fire incident he was involved in last year.
Suppose the first one trained him and prepared him for the second one? No doubt Chris Hundley is the good guy you want with you when you're in a real jam. -- Martin Romjue, LCT editor
LOS ANGELES AUTO SHOW EXTRA: While Lincoln made a strong debut of a revamped MKT and MKS today, it will take years to turnaround a brand that has seen steadily declining sales since 1990.
Los Angles Times Business section article here.
EXPOSED: Illegal operators like this huckster in Rhode Island featured on a TV report not only undercut legitimate operators but tarnish the image of the chauffeured transportation industry, not to mention risking the safety of passengers. It proves why strong regulations are needed, and how the media can provide a worthwhile public service via exposes. -- Martin Romjue, LCT editor
Limo letdown for bride and groom: wpri.com
WEDDING DAY FIASCO:
The wedding party whose stretch limousine burned out while heading up a California mountainside recently lashed out and named in a newspaper column the Bay Area company and operator that owns the limo. Members of the chafffeured transportation industry will recognize the name. -- Martin Romjue, LCT editor
2013 VEHICLE PREVIEWS: New retail versions of several vehicles of interest to the chauffeured transportation industry are debuting at the annual Los Angeles Auto Show Nov. 18-27.
Lincoln will unveil updated MKT and MKS models with new grilles; Cadillac plans to showcase its much anticipated XTS sedan with an advanced technology system called Cue.
Lincoln debuted its livery version, the 2013 Lincoln MKT Town Car on Feb. 14 at the 2011 International LCT Show in Las Vegas; Cadillac will debut its livery vesion XTS sedan at the 2012 ILCT Show on Feb. 13.
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This vehicle "scrimmage" in L.A. should set the stage for the big livery vehicle "showcase showdown" in Las Vegas: MKT v. XTS.
Late word at LCT is that the order bank for the Lincoln MKT Town Car officially opens Dec. 5, with the first "Job 1" vehicles delivered to Lincoln dealerships in March 2012. -- Martin Romjue, LCT editor
2013 MY CHANGES IN THE WORKS: Car & Driver Magazine spotted a Lincoln MKT test vehicle with
a thinner, more refined front grille being tried out for possible styling changes. From the C&D blog: "The 2013 Lincoln MKT is slated to go on sale in spring 2012, and it should make its first public appearance at November’s Los Angeles auto show." Of course, the
2013 Lincoln MKT Town Car prototype actually debuted Feb. 14 at the 2011 International LCT Show in Las Vegas. --
Martin Romjue, LCT.
He claims the show “Nail Files” aired footage of him suffering from diabetic shock but portrayed it as him being drunk (VIDEO FOOTAGE AVAILABLE).
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NO CREDIT TO BIZ TRAVEL BADMOUTHER PRESIDENT OBAMA: At least something seems to be going right amid the jobs-n-stagnation malaise we last saw in the
heyday of Studio 54. Latest projections show
2012 business travel spending worldwide is likely to top $1 trillion. Such a genuine version of a trillion-dollar stimulus program should benefit chauffeured transportation and charter and tour companies whose fortunes are tied to a mostly private sector economy full of people on the move. But don't take it for granted; the government still has myriad ways to screw up or spook entire industries and sectors. --
Martin Romjue, LCT editor
AN INDUSTRY FIRST? Last week, LCT E-News included an item about
a client who stole a limo bus, drove it home, and left his wallet with his pants on the bus.
This thief proved a little bit smarter, opting to just roll the limo bus off a cliff. But, if investigators find his pants and wallet in the wreckage. . .
FOLLOW THE PROFIT PERFORMANCE: Amid all the dismal financial news and political panic, there are signs of strength among some of the major private industry sectors. Financial analysis firm Sageworks just ranked the Top 10 Booming Industries based on YOY profit performance. The Orange County (Calif.) Register posted a simple online info gallery that ranks the top 10 industries in reverse order. -- Martin Romjue, LCT editor
SAY IT ISN'T SO: The end of Lincoln Town Car production is about a month away, as final orders are delivered.
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Americans want higher fuel mileage, but not if it means paying more for vehicles. That's good for the chauffeured transportation industry. Driving greener shouldn't cost a penny more. Motto going forward: Practical luxury without sacrifices.
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A BLIP, A BUMP, OR AN ICEBERG AHEAD? Where business travel goes, so follows chauffeured transportation, which relies heavily on airport/hotel related corporate travel runs and convention-related business. The latest figures show
short-term slowdown but continued long term growth in business travel. Most other economic indicators are flashing red amid a deficit stalemate and possible Obama-double-dip. -- Martin Romjue, LCT editor
NO BIG 3 FOR LIMO: As automakers promote Lincoln Town Car alternatives in the livery market, one player that will be
missing from the future limousine vehicle action is Chrysler. Although the 300 stretch limousine as customized by select coachbuilders has been popular with younger limousine clients, the 300 sedan never did too well in the chauffeured transportation industry and never caught on with the corporate crowd. -- Martin Romjue, LCT editor
Whoops, there it goes again. President Obama's Presidential seal on the limousine keeps slipping, just like those polls.
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Public relations diva Lizzie Grubman lives the mantra, "any press is good press," as she's famous for bulldozing her Mercedes SUV into a crowd of partiers, and more recently, for being sued by her chauffeur, who claims Grubman stiffed him for $1 million worth of overtime.
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NEW AND SOPHISTICATED GADGETS are causing more hassles for drivers who have trouble understanding the technology, which can get buggy.
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FROM WALL STREET JOURNAL: As a follow-up to
an article and LCT blog post last week, the newspaper is portraying
Lincoln's latest re-branding and vehicle upgrading efforts as a last-ditch push to boost sales of its vehicles. It is in the best interests of chauffeured transportation operators that the Lincoln brand and vehicles endure and rebound, including the MKT, MKZ Hybrid, MKS, and/or future versions or models. -- Martin Romjue, LCT Magazine
FINE TUNING: Report shows that the debut of the 2013 Lincoln MKZ Hybird, one of the models that is part of the Ford Fleet Limousine & Livery Vehicles program, will be delayed until the second half of 2012. Ford apparently wants to spend more time improving the styling of the mid-size luxury sedan, which could get up to 48 mpg. That would make it one of the most economical luxury sedans on the market. -- Martin Romjue, LCT editor
Ford/Lincoln plans to upgrade to its Lincoln models, including the MKT, to boost sales and widen appeal, acccording to the latest media reports.
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PARTISAN LIVERY: The Obama Administration finally demonstrates to the American taxpayer the true distinction between a "Limousine Liberal" and a "Chauffeured Conservative." Hint: The CC pays for the ride out of his own money earned in the private sector.
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BLURRING GROUND TRANSPORTATION: Are we headed for a transportation APOCALYPSE? With the luxury-driven chauffeured transportation sector indulging such little compact brats as the Toyota Priussy, we now get word that CABBIES IN NEW YORK ARE GOING ALL-OUT LEXUS! Go figure: You can pay less for a Lexus cab ride in New York than a chauffeured ride in a Prius or a Ford Fusion Hybird. This could be cosmically consequential, and maybe we are headed for a Vehicle Rapture in the industry. That might please the always SCHEMING, SNOOTY-GREEN NEW YORK TAXI & LIMOUSINE COMMISSION, which does not exactly trend toward, shall we say, vehicle tolerance and diversity. What will be left behind? -- Martin Romjue, LCT editor
ALL ARNOLD JOKES ASIDE, what better way to transport the Marriage Terminator's growing family(ies?) than in large chauffeured vehicles?
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NOT THAT SPECTACLE: Another, lesser known royal nuptials, happens July 2. The couple will be
CHAUFFEURED IN A LEXUS LS 600h, demonstrating their commitment to the environment. As long as such a commitment NEVER compromises or cheats on luxury, it's a vehicle relationship worth keeping. -- Martin Romjue, LCT editor
TAKING THE OPPOSITE APPROACH:
A report from Southwest Florida provides a snapshot of an OPERATOR FILLING UP A BLACK VEHICLE, while describing fuel-driven economic woes. Which brings to mind that the Great Recession/Gradual Recovery in many ways needs to be considered the Contrarian Economy; things are not what they seem, the old rules don't always apply, and sometimes it's best to go against the panicky herd. For example, during the last surge in fuel prices, SUVs piled up on used car lots while waiting lists mounted for those little Toyota Priussys.
Many customers could name a price for an SUV and walk away. By January 2009, fuel prices actually dipped below $2 per gallon again. So now, with fuel prices once again revistiing 08 levels, it will be an opportune time for operators to stock up on cheaper SUVs. Gas prices will come down again, eventually, which will mean it's time to buy a hybrid, once those waiting lists subside -- again. -- Martin Romjue, LCT editor
GETTING NOTICED: Operator Douglas Schwartz of EXECUTIVE LIMOUSINE in Bellmore, N.Y., and the president of the LONG ISLAND LIMOUSINE ASSOCIATION, landed in the business section of the New York Times today in a column about Small Business. The topic is about Internet advertising and social media, and how Schwartz has adapted to and invested his ad dollars in them for better returns. The column also EVALUATES AND ASKS FOR FEEDBACK on Schwartz's web site. A follow up column next week will highlight constructive criticism of the Executive web site. Call it a two-fer: Good exposure and a chance to get expert advice on doing better.
Separately, the LILA WEB SITE deserves praise for its simple, news-oriented format, which is a useful service for operator-members. Best of all: It's not too busy and gets to the point. -- M.R.
JANUARY 2011 LCT:
LCT Magazine kicks off the New Year with a cover devoted to the next generation Lincoln limousine vehicle and the team behind it bringing it to market.
The 2013 Lincoln MKT livery version debuts in less than six weeks at the
2011 INTERNATIONAL LCT SHOW at the
PARIS LAS VEGAS. Operators from around the worldwide will have a chance to sit in the prototype and sample the stretch version, which will bring a more futuristic bullet look to the traditional stretch limousine.
As with any new vehicle, we are seeing some enthusiastic embrace of it; some wait-and-see skepticism; and a few cases of panicky clinging to the last version of the Lincoln Town Car Executive L. The track record for new vehicle models generally is one of gradual acceptance that turns to strong devotion over time.
LCT Publisher Sara Eastwood-McLean touches one of the many hot button issues of the chauffeured transportation industry in a column asking why operators must pay
TAXES ON CHAUFFEUR TIPS.
Don’t forget to register for the
2011 INTERNATIONAL LCT SHOW with theme of "Driven To Succeed." Pre-registrations as of this week are double the number at this time last year, with the Show still six weeks away. We’re sensing a lot of penned up demand for networking and shopping the trade show floor that LCT’s unparalleled industry events offer.
We look forward to seeing our readers and attendees. Thanks to all who have hung in there with us during the last two difficult years. Happy New Year and many wishes for rebound successes in 2011.
— Martin Romjue, LCT editor
LCT posts memorial photos of veteran operator and industry mentor DEAN SCHULER, who died Nov. 19, 2010. A memorial event and party was held in New Orleans on Dec. 2.
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MKT LIVERY VERSION NOT FAR BEHIND:
A prototype of the next generation Lincoln hearse was made available in Dearborn, Mich., recently, in full view of photographers for various auto media. Of course, the MKT livery version, likely to be called the MKT-L, will be make its official debut at the 2011 INTERNATIONAL LCT SHOW in Las Vegas on Feb. 14, along with prototype limousine MKTs from Lincoln and DABRYAN COACH BUILDERS.
See blogs and reports on the MKT Hearse at JALOPNIK, CAR & DRIVER, and AUTO BLOG. In the 21st Century, "graduates" of Planet Earth will be ascending in a cross-over styled hearse instead of the station wagonesque models of yore. -- M.R.
COMMUNITY SPIRIT: Operators looking to support a good cause or charitable endeavor can take a page from an 82-year-old South Florida man, who
LOANS HIS STRETCH LIMOUSINE and chauffeur to wounded military veterans who are vacationing along the coast. Although the limo is a private vehicle, the concept can be used by any chauffeured operation. -- M.R.
MARKETING MESSAGE: It seems more than a handful of people could be persuaded to take chauffeured vehicles to and from the airport to avoid the PROBLEMS OF LONG-TERM AIRPORT P-LOTS. Ditto for an advertising campaign that shows frustrated travelers standing in long cab lines outside the baggage claim area. Message: "NEXT TIME, GET YOUR OWN CAR." -- M.R.
LIMOUSINE ASSOCIATION OF HOUSTON: With a possible tropical storm on the way, Joe Jordan of LAH has circulated these helpful tips for operators facing storms and floods.
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AUGUST 2010 100 LIST IN THE MAIL:
This year's LCT BLACK BOOK takes on an intriguing dimension as Lincoln and Cadillac prepare to roll out new livery base models in the coming year or two. As usual, LCT features the 100 largest industry fleets in the here and now, but the bigger question is, what will these fleets look like in the future? Big changes are coming, and operators need to get ready, says LCT Publisher Sara Eastwood-McLean in her BLACK BOOK PUBLISHER'S PAGE.
Also in this issue: An overview of where Lincoln and Cadillac stand in their pending plans for successor models to the Lincoln Town Car Executive L and the Cadillac DTS, both of which will be discontinued after the 2011 model year. The generational shift in industry vehicles could usher in a shake up of vehicle alliances and preferences as other automakers position themselves to vie for the chauffeured luxury vehicle market. ARTICLE TO BE POSTED IN EARLY AUGUST.
FLEET MANAGEMENT: As the saying goes, it's not how many vehicles you run, but what you do with them and how well you run them that counts. To that end, LCT contributing editor Jim Luff explores the pros and cons of contracting out your maintenance services versus hiring mechanics in-house. FIX IT OR BRING IT INTO THE SHOP.
MERCEDES-BENZ ADDS ANOTHER SPRINTER: The new mini-bus/van is emerging as a durable mainstay of fleet operators looking to efficiently meet the demand for more group ground transportation. SPRINTING DOWN THE STREET.
KIDS & LIMOS: Operators are finding an evergreen market for school field trips in limousines, whether to reward academic achievers or just give kids an exciting break. What better way to reach future potential customers and their parents while creating community good will? SCHOOL HOUSE LIMO ROCKS!
DON'T MISS: The August MARKETING TIP from Create-A-Card Inc., our ever-growing BACKLOG OF LCT ARTICLES, and of course, the always nosey LCT WEB POLL.
And we hope to see you at the LCT LEADERSHIP SUMMIT happening near the BUS CON EXPO in Chicago Sept. 28-30!
-- Martin Romjue, LCT editor
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.
TABLOID TRASH: We generally try to stay away on LCT BLOG from stories involving celebrities and limousines, but a handful of such tawdry tales are too good to pass up.
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PINK LIMOS :
IMPERIAL COACH BUILDERS, the leading maker of pink stretch limousines, which are ideal for breast cancer fund-raising and girls' birthday parties, recently DONATED FUNDS TO THE BREAST CANCER FOUNDATION of the Ozarks in southwestern Missouri.
ICB executive Lisa Catterson is mentioned in the Springfield News-Leader article.
With ICB's pink limo production, and operators' growing use of them, the limousine industry is gaining national stature for its charitable efforts to combat breast cancer. -- M.R.
POSITIVE SIGNS: When a publication other than LCT does an article about the improving fortunes of the chauffeured transportation industry, then it can only be a good sign. Industry figures
Scott Solombrino of Dav El,
Rick Szilagyi of the New England Livery Association, and Massachusetts operator
Bob DiFazio are all quoted in an
ARTICLE BY THE QUINCY (MASS.) PATRIOT-LEDGER.
CAUSE UNKNOWN: But it was a 1999 Lincoln stretch limousine. Getting old, maybe? Chauffeur and passenger
GET OUT IN TIME. This is the
SECOND LIMO FIRE during the last month.
HOW TRUE IS IT? Leave it to
LIMO BOB to spice up the chauffeured transportation industry with his
LATEST GIG ON TRUTV. His program debuted on June 25 and a first season is in the works. Operators are welcome to make comments below, but beware, you definitely don't want to get on Tank's bad side.
TURNING POINT: What model Lincoln ultimately chooses to succeed the Lincoln Town Car (aka the airport car) will determine its long-term fate and define its luxury brand for a new generation, according to
today's WSJ Marketplace Lincoln article.
TV AND WEB REPORT: "Gentleman Jim's Limousine Service is a subsidiary of VANCOUVER PARTY BUS, a company that closed earlier this month after 16 of its 17 buses were pulled off the road due to safety issues. . . ."
STEALING A LIMO: Hmmm, suppose you might STAND OUT AND GET CAUGHT? How about taking a Toyota Camry instead (blends in with traffic more)? Better, yet, suppose an expensive limo might have GPS? This operator has the correct DETERRENT AGAINST LIMO THEFT.
SUMMONS SUCCESS: A recent ground transportation
VEHICLE STING OPERATION at Los Angeles International Airport is the type of service operators should expect from their tax dollars and license fees. We need to see more such enforcement at major airports in the interests of leveling the competitive field. The tough economy brings with it too many off-the-books operators. -- M.R.
NEXT GEN LUXURY: The makers of the two most widely used livery vehicles in the U.S. -- the Lincoln Town Car and the Cadillac DTS -- are scoring some of their highest J.D. POWER QUALITY RATINGS ever, even beating out Toyota. For Ford and GM, strong quality standings create a strong foundation to develop and promote the next generation of livery sedans due out within the next year for the 2012 model year. -- M.R.
DEFRAUDED FUNDS HELPED PAY FOR LIMO FLEET: Operator William Murray, former owner of Luxury Limousines and a former NLA member, gets an earful from his victims. Now he has a reservation for a
CHAUFFEURED RIDE TO THE BIG HOUSE. LCT background article:
FEDERAL BUST AND SHUTDOWN.
A SCAM OR A SALE? We've all been conditioned to be suspicious of any e-mail and phone offers from Nigeria, but this limo company on the market, if legitimate, at least indicates that a market for stretch limousines can exist in exotic, unlikely locales. Any American operators need a Nigerian affiliate? Cheers to the Nigerian limousine industry.
ABOUT AS LOW AS IT GETS: It was bad enough that hundreds of cabbies ripped off passengers by manipulating fare meters, but overcharging and/or denying service to disabled passengers?!
17 PERCENT OF THE CITY'S CAB AND CAR SERVICES got caught in the sting. ADA-compliant transportation has the potential to be a major market for luxury limousine operators, who provide a much superior quality of service.
THIS COMPANY IS GETTING READY to pursue the ADA transportation market. As always, ethical standards of customer service are priceless. -- M.R.
IDEAL EMPLOYEE: A veteran chauffeur who works for
ETS INTERNATIONAL recently was profiled and interviewed about his
CAREER AND CUSTOMER SERVICE. ETS International won a 2010 LCT Operator Of The Year Award.
WEALTH + NIGHT OUT + DRINKING = GET A LIMO. Sounds simple enough. Many DUIs are preventable with the relatively affordable use of a chauffeured vehicle (cheaper than a DUI). Unfortunately, a New York City housewife and divorcee of the fourth-generation J.P. Morgan heir
DOESN'T GET THE CHAUFFEURED CONCEPT. DUI mug shots like hers would be good advertising tools for operators pursuing the party market. -- M.R.
TALKERS FOR TODAY: A Kentucky TV station that exposes an illegal limo operator proves a big hit; Denver International Airport faces permitting problems; and Americans increasingly become skeptical of climate change, so will your customers?
Read full story
BLOG BREAK: LCT BLOG will post content again on Tuesday, June 1, including a preview of the June/July issue. LCT wishes you a pleasant and safe MEMORIAL DAY holiday weekend, and one filled with gratitude and remembrance.
CUSTOMER DISSERVICE: The
Kentucky Limousine Association is warning members about a Louisville operator who has drawn numerous complaints from abandoned and ripped off customers.
INVESTIGATIVE TV REPORT HERE.
WHAT'S WRONG WITH THE NYTLC? The New York Taxi and Limousine Commission is finally trying to discipline some of the CABBIES CAUGHT CLIPPING the most passengers, but it looks like the fines for the rest of the bunch will be well below the amounts they ripped off. But then the NYTLC has to abide by its priorities. While it spent all this time and energy on formulating and enforcing a ban on Bluetooth in for-hire vehicles, thousands of cabbies were overcharging passengers, through a combination of faulty equipment and/or the manipulation of it. Your government at work. -- M.R.
TO CATCH A LIMO: Bureaucrats at the San Francisco International Airport seem hellbent on enforcing
STRICT GREEN VEHICLE REGULATIONS, which will be the subject of a major
GCLA TOWN HALL MEETING TUESDAY NIGHT. But, aren't there much more pressing things on the table, such as the
ILLEGAL OPERATORS LURKING on airport property? Any SFO green vehicle policy will be rendered meaningless if illegal operators, who don't follow any rules anyway, keep accessing the airport. So let's get this straight: SFO wants to criminalize non-green vehicles used by LEGAL operators, but yet it and the California Public Utilities Commission so far cannot effectively crackdown on ILLEGAL ones who avoid licenses, insurance, and safety checks. Maybe a solution here would be that no green vehicle policies can be adopted at any airports until state and airport authorities meet measurable, defined goals in reducing illegal operator activity. -- M.R.
REFORMS TO AVERT FUTURE OVERCHARGES; RIP-OFFS NOT WIDESPREAD: The NY cab fare overcharge investigation concludes; this is not a problem in chauffeured transportation. No meters needed. You get what you pay for.
LEAVE THEM ALONE:
Any wonder that large numbers of NYC cabbies are GETTING CITED for using hands-free electronic devices? What the New York Taxi and Limousine Commission fails to understand is that cabbies, like chauffeurs, rely on the devices to communicate and conduct business. The TLC needs to consider THE EVIDENCE THAT HANDS-FREE DEVICES are far safer that MANUAL cell phones and texting devices, which should be banned behind the wheel.
Let's hope common sense prevails at the federal level with pending distracted driving legislation in the U.S. Congress that should allow hands-free electronic devices but ban the manual ones for commercial drivers, a reasonable pro-business position supported by the National Limousine Association. Such a law, however, would need a provision overriding the little local techno-nannies of New York. -- M.R.
TRYING TIMES: Operator Bill Faeth, owner of Silver Oak Transportation in Nashville, Tenn., has experienced the challenge of a business dealing with a disaster. While his chauffeured operations remained functional and unscathed during the record floods of the past week, his other business, Glow Golf at the Opry Mills Mall near Opryland, sustained water damage. Faeth has documented some photos and flooding accounts on the Silver Oak web site.
The clean-up will occupy Faeth for several weeks. Faeth wrote in an e-mail to LCT: "The flooding came on extremely fast and no one, not even TEMA and our local Army Corp of Engineers, thought it would flood until it was too late on Sunday evening. . . . I have been dealing with the devastation of my GlowGolf business at the Opry Mills Mall and redirecting group travel that was scheduled at Opryland this week."
We wish Bill the best in his efforts to fix the damage and recover his lost business. -- M.R.
ABOUT PHOTO: Bill Faeth (R) at the 2010 ILCT Show in Las Vegas in January.
MAURICE BREWSTER of
Mosaic Global Transportation in Palo Alto, Calif. recounts a harrowing experience Saturday in NYC's Times Square for him and his wife, Rhonda.
INTERVIEW WITH NY1 HERE.
DRILLING FOR DOOM: Amid oil scares, green scares, climate scares, some facts are needed to induce deep breaths. . .
Read full story
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. . .
ON-ITS-OWN-RECOVERY: Thanks to the private sector for generating whatever recovery is taking shape in spite of government drag on the economy in the form of massive stimulus and health care measures.
A leading survey indicates most economists don't think the $787 billion stimulus rammed through last year deserves credit for the incipient recovery. So if you know any Obamamatrons parroting the party stimulus line, this survey should HOPEfully CHANGE their views. -- M.R.
LIMOS ARE GREEN:
Group transportation is still the greenest form of mobility around, whether it's two execs in a Town Car, a small group in a limo, or 60-plus passengers on a motorcoach. Let's not forget that the number one source of a cleaner environment for the last few decades has been technology. Of course, such advancement is made possible through entrepreneurship cultivated by economic growth, low taxes, and sensible and fair regulations.
Thanks to technological innovations, engines consume fuel more efficiently than ever before and our air -- at least here in Los Angeles -- has gotten progressively cleaner in the last few decades, despite more people and vehicles. So tell everyone to make a pro-Earth statement: Go Green In A Limousine! -- M.R.
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.
Read full story
POSITIVE PUBLICITY: A 22-passenger Tiffany limo bus becomes the
biggest limo in town in Sudbury, Ontario. The operator of
Nite Lite Limousine Service scores a publicity coup of sorts with a 2-minute 30-second
SLIDE SHOW on the hometown newspaper's web site.
MAJOR CATFIGHT, ERR, CABFIGHT:
NY cabbies are furious about accusations from the New York Taxi and Limousine Commission that they GOUGED CUSTOMERS through meter manipulations; whatever the final conclusions, i.e. the truth which is likely somewhere in between, we can safely say you don't have such pricing drama with the more upfront, reservation-oriented chauffeured transportation services.
New York luxury limousine operators should take full advantage of recent developments -- the meter fights, crabby cabbies, cell phone rudeness -- to promote and market the saner, more practical benefits of chauffeured transportation. This could be a golden moment to educate the riding public about luxury-limo and gain some market share. -- M.R.
LCT wants to know what operators prefer in a Lincoln Town Car successor model for MY2012: CUV or sedan? Don't forget to take
LCT WEB POLL HERE. Results are live.
EMPLOYEE STAKEHOLDERS? Whether to give employees company shares in lieu of pay raises was the issue covered in a SMALL BUSINESS FEATURE in Tuesday's Wall Street Journal that quoted and pictured Mary Paul of Chicago-based CROWN CARS & LIMOUSINES. Whenever operators are quoted in the media on business and economic matters, it helps the chauffeured transportation industry look serious and substantial in public eyes. -- M.R.
FUN, FAST & FURIOUS:
Glad to see that British limo clients have chosen one of the most politically incorrect limousines possible as their collective favorite.
No need to go green, just be seen in a mean-behaving limo. -- M.R.
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.
QUOTABLE & NOTABLE:
NLA board director Deena Papagni of A Touch of Class Transportation in Fresno, CA is quoted,and one of her chauffeurs is pictured, in an article in her hometown newspaper about the state of the local limousine industry in the heart of California's Central Valley.
(Papagni also has one of the industry's most innovative web sites -- click above link above). -- M.R.
LEADING INDICATOR? Wealthy consumers are spending again on luxury goods, according to a report in this week's Wall Street Journal, so could chauffeured service spending be close behind? Consumer spending on chauffeured transportation tends to keep pace with the performance of luxury good retailers. As goes Gucci, there glides the limousine industry. -- M.R.
NEW YORK CABBIE SCANDAL: While the New York taxi cab overcharge scandal has nothing to do with this industry, aside from underscoring why chauffeured transportation is a better option, the TLC's explanation now borders on the absurd.
Read full story
CADILLAC's XTS Platinum Concept vehicle is on course to set new standars for luxury, technology, and efficiency. Best of all, the automaker is giving operators a chance to peek ahead at its likely successor to the DTS sedan, which is one of the key base livery vehicles in the chauffeured transportation industry.
Read full story
BAUER'S INTELLIGENT TRANSPORTATION of San Francisco has carved out a cutting-edge niche with its Wi-Drive WiFi equipped luxury commuter motorcoaches, which are a success among Bay Area commuters wanting to work on the way to and from work while being a bit greener. The service is featured in today's Wall Street Journal under the headline Hailing A Luxury Ride To The Office.
BETTER STAY HEALTHY: Well its official…let the insanity begin! Our government runs amok.
Read full story
GROWTH SPOT: LCT is always on the lookout for operators growing during tough times and buying vehicles for the good times. . .
Read full story
FORD/LINCOLN GAINS GROUND: As the strongest American automaker, Ford has retooled and restrategized to the point where its surpassing Honda, Acura, and Toyota in the
J.D. POWER QUALITY RANKINGS for dependability. It's second only to Porsche vehicles, which most American motorists can't afford anyway. -- M.R.
IN THE NEWS: JEFF SERLIN of
Chauffeured Limousine and
Red Dot Shuttle Service in Bridgeport, Conn. says the company is profitable, but didn't see a YOY revenue increase for the first time in its history.
NEWS ARTICLE HERE.
TABLOID BREAK-UP in Hollywood? Now we thought this relationship was solid, since it so appropriately satiated some of the deepest celebrity desires. . .
Read full story
RESERVATION BONUS: In an example of how cheapest is not always the best, the New York TLC finds cabbies bilking customers through meter fraud. That doesn't happen with pre-arranged chauffeured transportation. You get what you pay for.
ARE THEY SERIOUS? $7 a gallon gasoline may become a reality in the near future. Why, you may ask?
Read full story
CONNECTIONS PAY OFF: The mother-daughter team that runs Reprise Limousine in Exeter, N.H. does a lot of things right, as their latest recognition shows.
Read full story
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 .
Read full story
FORMALS & ILCT POST-SHOW ISSUE PREVIEW:
The March/April 2010 issue of LCT Magazine has been drop-kicked over to the presses, and will soon rebound to all the mailboxes beyond. This issue revolves around the entire "formals" theme of weddings, proms, and funerals.
LCTMAG.COM FEATURES include: Finding limo/bus transportation for WEDDING GUESTS; handling all the hazards of PROM SEASON; and how to train your chauffeurs for FUNERAL LIMO DUTY. Funerals offer a consistent market for operators, especially as more funeral homes outsource their livery vehicle needs.
Our second big theme is the 2010 International LCT Show. We've already covered the Show in LCT E-NEWS and have plenty of photos up at LCTSHOW.COM, so our annual print coverage this year brings you eight pages of show round-ups, four photo galleries, and the launch of LCT's first-ever, reality-based Great Limo Race.
Also, don't forget to check out the latest LCT WEB POLL and Create-A-Card Inc.'s MARKETING TIP.
-- Martin Romjue, LCT editor
NEW JERSEY: Barbara Chirico, CEO of
Gem Limousine, and Donald Mallo, a vp at Extensis Group who has spoken at industry trade shows, are both
quoted in the NJ Biz Daily about the effects of the follow-up federal jobs bill on small businesses.
GOVERNMENT MOTORS GANGS UP: Do you have a Toyota Prius or Lexus in your fleet or maybe several? What you should know about the recall. . .
Read full story
OPERATOR'S FERRARI GOES UP IN FLAMES ON L.A. FREEWAY: Chris Hundley of Limousine Connection in Los Angeles experienced a close-call yesterday, suffering a painful vehicle loss. But at least he's alive, and it didn't happen to one of his limos carrying a client. . . . IN HIS OWN WORDS:
Read full story
LIMO MELTDOWN: While operators always strive to be on time, there are always those uncontrollable moments when a pick-up is late. But singer Whitney Houston's hissy fit is out of proportion to a two-minute late pick-up at an airport. The client may always have to be right from a service standpoint, but once in a while it may be good for business to fire an abusive, obnoxious client. HOPE IT'S NOT DRUGS AGAIN. May Whitney get stuck hailing cabs. -- M.R.
BRAKE JOB: Hertz, Avis, and Las-Vegas based ZipCar are temporarily pulling the Toyota Prius from fleets because of safety concerns. Toyota and Lexus vehicles comprise only a very small percentage of U.S. chauffeured transportation fleets. And with the advent of the roomier Royale Fusion Hybrid L, the chauffeured days of the subcompact Prius are numbered. Also, one California legislator reveals his frustrations with Toyota. -- M.R.
STEREOTYPE ALERT: This is not how limousine operators typically live. . .
Read full story
BREAKING: The regulatory point man for chauffeured transportation in New York City
heads to the private sector. Who could be
his successor?
ANOTHER REASON TO GO LIMO: As the pounding snowstorms in D.C. and northeastward prove, the
SUV remains the go-to invincible vehicle when the inches accumulate. Chauffeured operators with SUVs have served as high-demand lifelines for a diverse mix of clients during the last week. Let's make sure the public notices, and that operators market the SUV's all-weather versatility long after the snow has melted. [POSSIBLE AD: Take a photo of a black SUV in the snow next to a pedestrian and use the pitch: "We get you around when your transportation choices turn black and white."] -- M.R.
BUSINESS WITH A BIG HEART: Jim Luff, operator and contributing editor, shows firsthand how a limousine company can help a community deal with tragic events.
LOSING LAS VEGAS: Ritz ditches Sin City while President Obama ensures his party's political defeat in Nevada come November. . .
Read full story
SYMBOLIC SNOWSTORM: Given the scandalous revelations of distorted data on so-called climate change, you have to wonder if the heaviest snowfall on the nation's capital in a century is supposed to mean something, as in a final burial of global warming mythology and accompanying green legislation.
How appropriate that the legislators most zealous in pursuit of green-related legislation in the name of avoiding climate catastrophe can't even get to the Capitol to legislate because of. . . record snowfall. How appropriate that the only vehicles able to function in such a cold climate are the four-wheel drive SUVs so vilified by global warming theorists and mystics. Once D.C. shovels the snow off the roads, it will be time to shovel the green political grime left behind. -- M.R.
CHEECH OR CHONG AS CHAUFFEUR? One law-breaking operator serves clients
preferring more relaxation than what a bottle of water, a breath mint, and a newspaper provide.
NEW COLUMNIST/BLOGGER: LCT welcomes Jae Morey, vice president of CheapLimoRates.com, as a guest columnist to discuss issues and challenges facing the chauffeured transportation industry. His first column is below.
Read full story
IN THE NEWS: 2010 Operator Of The Year winner Bill Atkins is quoted in a media report about the
$1 BILLION INCREASE in levies to fund the New Jersey unemployment fund, which hurts smaller operators and businesses such as
Red Bank Limo.
EXTREME MEASURES? The New Taxi and Limousine Commission's new rules on electronic devices go into effect today; unfortunately, moderation is not a virtue. . .
Read full story
LAS VEGAS: Here's a random round-up of info items from this week's International LCT Show, including award winners, favorite quotes, and a nugget from Scott Solombrino. . .
Read full story
ACQUISITION: Operator John Olinger bought the company of operator Eric Weiner on Jan. 13, forming a Providence-based powerhouse in the New England chauffeured transportation market. The deal, arranged by industry business consultant Tom Mazza, was announced “on the eve of the LCT Show.” That’s good timing for some strong buzz, giving showgoers even more to talk about in the wake of the Dav El/Hertz deal. . .
Read full story
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. . .
CONCEPT TO LIMO SEDAN?
Cadillac debuted the 2010 Cadillac XTS Platinum concept sedan, with plug-in/hybird features, at the Detroit Auto Show recently. As one of the two leading manufacturers of livery vehicles, all eyes are on 2012 when Cadillac could release the successor sedan to the DTS and DTS-L. Ray Bush, Cadillac professional vehicle program manager, said in a statement: "We are very excited about Cadillac's future. The XTS is a very realistic concept vehicle." A concept vehicle is called such since certain mechanical details and/or amenities could still change before a final production version is built.
MORE PHOTOS OF CADILLAC XTS PLATINUM HERE.
As the chauffeured transportation industry awaits official word of sucessor models to both the Lincoln Town Car and the DTS, Cadillac is certainly dropping some heavy hints in order to build buzz toward the day when it releases the final version of its new model. Ford so far will officially say only that the Lincoln Town Car is planned through model year 2011. If/when new Cadillac and Lincoln livery sedan models are announced, possibly within a year or two of each other, the chauffeured transportation indusry will take one big buying leap into a new generation of workhorse luxury vehicles. -- M.R.
CAPITALIZE ON GLOBAL COOLING: Who would've thought a limousine could be converted into an
ICE-FISHING HUT?
IF DRIVERS HAD LOOSE LIPS: Actually, they can in the blogosphere. This NEW BUS BLOG from the University Transit Service in Charlottesville, Va., tells it like it is. It has the potential to become consistently comical, although given what we hear from operators and chauffeurs, the limo industry could easily top these tales. -- M.R.
200 JOBS RATED: This
latest jobs survey proves that the perceived difficulties and stresses associated with a job are never exactly what they seem. Chauffeur (No. 160) ranked behind bus driver (No. 137) but ahead of taxi driver (No. 194). Depending on what you do and how well you do it, you might not have it so bad after all, despite chronic job dissastisfaction in America. -- M.R.
DUMBO GOVMINT: The chauffeured transportation industry is awash in regulations at all levels, some of them conflicting and confusing. But this gem nicely sums up the ineptitude among some regulators. . .
Read full story
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
CYBER HAZARDS: We at LCT can certainly understand what it's like to be the target of vicious and false Internet forum comments, so it's not surprising that in the digital era a competitor would resort to such tactics against another operator. The Pennsylvania operator, ironically called Feel Good Limo, claims to be the victim of malicious fictions. The freedom and anonymity on the Internet often provides safe harbor to hacks out to destroy a business. How to handle, counter, and prevent such communications is unchartered territory, and will keep businesses and courtrooms occupied for years to come. -- M.R.
COMICAL LIVERY:
A batmobile limousine was spotted on the streets of Manhattan.
The carblog Autogespot suspects that it’s built from a Corvette C4.
Any demand for this concept? Is Alfred the chauffeur?
WHAT IS THE FUTURE? It's not a sedan, or an SUV, or a station wagon, but a complete cross-over that emphasizes practical comfort.
The LINCOLN MKT SCORED a favorable review in USA Today recently, which means the vehicle carries a lot of potential moving forward. Ford/Lincoln vehicles obviously get a lot of attention from the chaufffeured transportation industry, as operators await an announcement in the coming year about the future of the Lincoln Town Car. -- M.R.
WICHITA FALLS, TX --
Prime Time Limousine is one of the latest companies to get a
BUSINESS PROFILE in its local newspaper. Such articles may sound simple to the industry, but the P.R. value is immense, since such articles help educate the moving public about the benefits of chauffeured transportation. If you haven't pitched every local newspaper, Web site, and city guide in your area, resolve to do so in 2010. -- M.R.
JACKSONVILLE, FLA: We'll take good news about the industry wherever we can get it, so this business newspaper article about the Jacksonville limousine industry looks encouraging. Even amid economic chaos, there are areas, pockets, and specific comapnies that defy the odds and do well. This week, we heard from operators who are up 38% and 46% respectively for 2009. Of course, some of those sizable gains are likely coming from clients gained from another operator who either closed or went out of business. Jacksonville is also home to Dynasty Limousine, a 2010 LCT Operator Of The Year finalist in the 11-30 vehicles category and the first limouisine company in the U.S. launching a public stock offering. -- M.R.
INDUSTRY WATCHES CLOSELY: The outcome of a class action chauffeur wage lawsuit against the largest chauffeured transportation company in Las Vegas will become a leading indicator of how operators should pay chauffeurs.
DETAILED REPORT AND COMMENTS HERE.
CLIMATE CIRCUS: Check out the latest amusements from the global warming Oh! Zone. . .
Read full story
WE HOPE IT WAS NOT A RUN GONE BAD: A woman DRIVING AN OLD LIMOUSINE dragged another woman to her death on Los Angeles' skid row, one of the worst in the nation. Not exactly a candidate for Operator Of The Year. -- M.R.
UPDATE: As LCT's Jim Luff reported in his blog column yesterday, a federal judge has awarded a group of chauffeurs
CLASS ACTION STATUS in their lawsuit to recoup wages from Las Vegas-based Bell Transportation, the largest operator in the state.
STRADDLER ISSUE: We finally finished a historic edition of LCT Magazine today and sent it off to the presses moments ago; the Dec. 2009/Jan 2010 issue not only straddles two decades, but it debuts a redesigned look and format for 2010 and beyond. You'll find the new and improved LCT eases the info flow.
This issue, which should be in your hands in time for Christmas, includes LCT's annual new vehicle model guide, business travel outlook, creative pricing strategies, fabulous photos and take-home tips from the 2009 LCT Eastern Conference, and some of the 10 best charter tours nationwide. We'll be posting more features on Dec. 31, but for now, you can check out the following MENU OF FEATURES at www.lctmag.com:
STRIVING FOR SATISFIED CUSTOMERS: The effort never ends. Veteran operator and LCT contributing editor Jim Luff describes a a balanced approach to making sure your customers keep coming back.
PACING YOUR PRICES: It's getting cutthroat out there as clients become more price sensitive and operators still must maintain minimal profit margins to keep their businesses going. How do you adjust your pricing in a tough market?
TAKING HER BACK: When economic times were flush, many operators ditched the wedding market and went almost 100% corporate. Well brides still reign in good times and bad, so some operators are now trying to win them over again and reconnect with the market segment that got them started in this industry.
GRACIOUS PRACTICES: LCT's savvy and seasoned publisher, Sara Eastwood-McLean, puts forth some useful principles on how to appreciate your customers and give people what they crave the most: Recognition.
LCT WEB POLL: How confident are you about your revenue picture headed into a new year with glimmers of recovery? Take poll right on the home page.
GET REAL BEFORE CHRISTMAS: Just add registration to the 2010 International LCT Show in Las Vegas to your holiday TO-DO list. Get it out of the way and look forward to the industry's premiere global event on Jan. 25-27, 2010. What better way to get rid of the post-holiday blues?
-- Martin Romjue, LCT editor
ETERNAL EMISSIONS: The specter of man-made global warming is morphing from speculative science into tawdry mythology, given recent developments.
Read full story
COMMUNITY INVOLVEMENT: Jackson Limousine Service in Los Angeles is sponsoring its 22nd annual turkey giveaway today for an estimated 10,000 people.
LOCAL MEDIA REPORT HERE. The event serves as an example of how operators can make a positive difference in their communities and reputations. -- M.R.
PASSINGS: The recent funeral of New York operator Fred Boyce brought out the best in livery as his fellow operators from the Nassau Suffolk Limousine Association found an appropriate way to honor their colleague.
Read full story
ARSON SUSPECTED: A 10-year operator in North Austin lost his business to a fire, which even consumed all of his security cameras.
REPORT HERE.
RESTON LIMOUSINE: Operator/entrepreneur Kristina Bouweiri recently was honored by Toyota dealers in the Washington, D.C. area. . . Look for her Perspective article in the December/January issue of LCT Magazine.
Read full story
BUT WHAT'S THE WORD on the proposed new rules banning electronic devices? Are those delayed, too?
ARTICLE HERE.
ANTICIPATING AN UPTURN: See the
LATEST SURVEY on the top recovering job markets in the U.S. These cities provide a clue as to where business activity and travel might increase demand for transportation.
QUESTION: With the news today that the national unemployment rate has reached an
Obamanable 10.2%, I must ask why news reports mention a recovery underway? Point for businesspeople to ponder: The official beginning of this recession has been declared as December 2007 when job losses started but GDP was still growing; yet now we are told the recession is over because GDP is growing again despite continuing job losses. You don't have to be an economist to understand that as long as workers are losing jobs, it's still a walking-talking-quacking-waddling-lagging duck of a recession. So next month will be the two-year mark. When the unemployment rate declines, then that should be the official end of the recession. Someone please tell the experts. -- M.R.
ISSUE ON ITS WAY: LCT's combined Oct/Nov issue brings annual coverage of development in Technology and Finance & Insurance. For technology articles, please visit the TECHNOLOGY CHANNEL in the next few weeks. Coverage of finance, insurance, and leasing can be found on the F&I CHANNEL.
ON LCTMAG.COM THIS MONTH, see the LATEST MAGAZINE FEATURES:
Check out the 27 steps to BUILDING A STRONGER AFFILIATE BUSINESS.
Learn the most effective ways to PREVENT VEHICLE THEFTS AND BREAK-INS.
See the VINTAGE LIMOUSINE perfect for weddings without all the vexations.
Chalmers Automotive has adapted a Mercedes-Benz chassis for MULTIPLE MINI-BUS MODELS.
Finally, LCT Publisher Sara Eastwood-McLean gets downright MYSTICAL ABOUT THE STATE OF THE INDUSTRY. Don't forget to subscribe to LCT Magazine's "weekly newspaper in your e-mail box," LCT E-NEWS. -- Martin Romjue, LCT editor
WIPEDOWN: LCT Magazine's JIM LUFF is featured in his local newspaper for taking advantage of a seminar that explains how to minimize H1N1 risks to clients. Operators should make sure all surfaces are clean and sanitary. As a way of reassuring chauffeured clients, operators may want to consider wrapping certain handles or equipment, such as beverage glasses and/or holders, with "sanitary seal of approval" ribbons or paper strips to communicate to customers that equipment, amenities, and handles have been sanitized for their safety. (I'm only half-serious on that one). -- M.R.
SCARY SPECTACLE: Well, the results are in. And here is why many small- to medium-sized business (the majority type in chauffeured transportation and charter and tour industries) are not hiring more people to grow by now.
Read full story
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.
WSJ REPORT: Pay, benefit questions and disputes emerge amid a weak economy, according to
an article published today. The NLA
recently educated operators on wage issues, urging I/O companies to pay close attention and get informed.
TOUGH NEW RULES: New York taxi cab, black car, and luxury limousine drivers and chauffeurs may lose the right to talk on Bluetooth phones and use GPS systems while enroute. Needless to say, this complicates and interferes with the clear communication chauffeurs need to get client from point A to point B in the fastest way. . .
Read full story
PREVIEW: October is technology month at LCT Magazine, and although we are combining our October and November print issues this year, there's no reason to wait on technology information that can help you better run your business. See posted monthly features below.
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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.
FEDERAL COACH has added a new bus, the Spirit I CE, a new cab entry bus. The Spirit I CE is built on the Ford E450 chassis with a 158” wheelbase. It features an expanded interior that fits up to 21 passengers, and offers a wide variety of interior configurations that can be tailored to fit unique customer specifications. The Spirit I CE is ADA-compliant and built with customers’ comfort and safety needs in mind. Federal Coach has built a venerable reputation as a market leader in the crafting of the highest-quality buses in the industry.
Since 1997, Federal has set out to meet the demands of a diverse market by providing a unique array of buses for a wide variety of businesses, occasions, and groups. Its model line up includes the 14-passenger Messenger built on the Ford E350 chassis, the 44-passenger Premier built on the Freightliner business-class M2 chassis, and every variety of shuttle, limo, and party bus in between.
For more information about the Spirit I CE or any of Federal’s other buses, limousines, and specialty vehicles, visit its website at www.federalcoach.com or call toll free at 1-800-292-6210.
PROGRAMMING NOTE: Due to a technical problem, LCT's weekly e-newsletter is not blasting out to the full database of subscribers. Our web department is working to correct the problem. The latest edition of LCT E-News can be
ACCESSED HERE or by going to our website (
www.lctmag.com) and clicking on LCT E-News.
CONGRATULATIONS:
To our East Coast Editor Linda Moore and Philadelphia Regional Limousine Association President Philip Jagiela. Linda and Philip wed last Saturday, Sept. 12. No limo was needed as the ceremony and reception were held in Philip's backyard.
The Jagielas live outside Philadelphia in Shamong, N.J. Philip Jagiela also owns and operates Aries Limousine Service, based in Southampton, Penn.
ROYALE NAILS IT: Instead of blindly trying to justify a compact hybrid as a luxury vehicle, as some operators stubbornly insist, Royale Limousine Manufacturuers has adapted a hybrid vehicle to luxury tastes: smooth ride, plenty of legroom, and luxury amenities. Plus the excellent mileage and cost-savings. Royale's new hybrid underscores what LCT has said all along: Don't let green zeal compromise luxury. Bye, bye Prius. . .
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BUSINESS PROFILE: The best publicity an operator can get -- aside from LCT Magazine -- is a substantive profile in a major metro newspaper.
Reston Limousine scored recently with
a column in the Washington Post. This is the first media mention I've seen that dares to estimate an operator's take-home salary after all the bills are paid. Note the candor that president and CEO Kristina Bouweiri displays about layoffs, revenues, cutbacks, etc. -- M.R.
TO ALL ENTREPRENEURS:
And anyone else who owns a business or works for a private sector enterprise. Labor Day traditionally devotes its commemorations to the dwindling confines of union labor. Well, at LCT, we want to "take the holiday back" and honor all those business owners and non-union workers, from the CEO to the barista, who toil in the private sector to fund the public one.
Regardless of how big government gets in its ballooned britches, we private sectorites get to wear the economic pants. During this painful economic year, let's hope and strive for a private sector that shall always far outsize the public one. Such a sensible concept is now endangered, with much of the threat coming from public sector unions.
So in honor of entrepreneurs, owners, executives, professionals, and private sector workers, LCT BLOG will take a break for Labor Day Weekend, returning on Wednesday, Sept. 9. We wish you the most taxless and thankful weekend possible. -- Martin Romjue, LCT editor
REPOSITION: The strategic partnership will give New Jersey-based Flyte Tyme access to a fleet of 267 vehicles. The deal is another example of how the economic downturn is leading to consolidations, mergers, and partnerships in the chauffeured transportation industry.
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NEW TRADEMARK, MORE INVENTORY, CHANGED MANAGEMENT: Los Angeles-based
American Limousine Sales culminates a decade-long journey from dealership to full-fledged limousine sales, trade-in, and manufacturing service.
TODAY'S PRESS RELEASE HERE.
SEPTEMBER 2009 LCT PREVIEW: The print edition is heading toward subscribers, but we just couldn't wait to release some of it ahead of snail mail. In this month's issue, readers will find the timely topics of OPERATORS WHO LOWBALL and the importance of devising a NETWORKING PLAN, preferably at the LCT Eastern Conference just one month away.
The features on lowballing and networking reflect two different approaches to coping with a recession; the first approach is for short-term gainers and desperadoes, the second for those serious about building long-term business. While lowballing is legal and competitive, unless it's done by a gypsy operator, the old rule still applies for operator and client alike: You reap what you sow, and you get what you pay for. Those rules also apply to networking, joining industry associations, and attending LCT events: What you put in, is what you get out.
The other two articles on www.lctmag.com feature revenue opportunities with DOUBLE-DECKER BUSES, and LCT Publisher Sara Eastwood-McLean's latest take on industry trends. Main point: Think PEOPLE MOVING, not just luxury pampering on wheels.
About the Cover: Royale Limousine Manufacturers of Haverhill, Mass. has repositioned itself with two innovative vehicle lines that meet changing demands and tastes in chauffeured transportation.
Finally, the 2010 OPERATOR OF THE YEAR FORMS, are now posted on the LCT home page. Just download, fill out, attach to supplemental materials, and send to me at Martin@lctmag.com. We know it's been a rough year and everyone understands -- but don't neglect a shot at gaining industry prestige and the opportunity to help others with your successes. Entry deadline for OOY, LCT Marketing Awards, and LCT Association Award of Excellence is Oct. 1.
-- Martin Romjue, LCT editor
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.
A-1 LIMOUSINE INC.: The Starr family recently reached a milestone for their Princeton, N.J.-based
family business.
ARTICLE HERE.
ALERT: The Disqus comments system that we use as part of our LimoCentric feedback program has had a few outages during the past week, causing some posted comments to disappear. I have double-checked our settings to make sure we are allowing instant posting from both registered Disqus users and unregistered guests. We are still trying to figure out how to restore lost comments. Visitors may re-post comments if desired. Thank you. -- Martin Romjue, LCT editor
LCT BLACK BOOK: Who's Who/100 Largest Fleets. The August issue is in the mail with the industry's only annual rankings of the 100 largest fleets. Much has happened in the economy and the industry since August 2008; this year's list takes on a new format in showing who's up, who's down, who's on, who's off, and who's hiding out.
We figured this year would be a good time to go black -- as in black vehicles, black economic times, and staying in the black as the new high-standard of industry survival and success.
SIGN OF HARD TIMES: Find out in the print issue which two leading chauffeured transportation companies declined to provide any specific fleet numbers. What's up (or down) with that?
-- Martin Romjue, LCT editor
BIZARRE: Another reason for
BUYER BEWARE on the used and repo limousine vehicle markets. Is it worth the hassle for the original owner to "unstretch" the recovered vehicle? Is he stuck with a limo?
REALITY CHECK IN THE CARDS: Seems as if the Democrats are going wobbily on the reviled, anti-business union-driven card check legislation which has been deemed one of the biggest political threats to the chauffeured transportation industry. In the face of near-universal opposition from the private sector, moderate Democrats are realizing they want to get re-elected. Union card-check legislation has been a priority topic at the last several LCT conferences and trade shows. Hopefully, the radical Employee Free Choice Act will be taken off the industry threat list soon; there's plenty ahead with equally destructive cap (grab) n' trade, high tax, and government health care proposals. -- M.R.
LOOSE LIMO LIPS: Actress Jada Pinkett is a wife who talks too much, but nevertheless, in her own special way she helps promote the limousine industry. -- M.R.
ELEGANCE: She joins Rosie, Diana, and Emily in a classic fleet of leading limo ladies. . .
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SALISBURY, Mass. --
Four Star Limousine, a 2009 LCT Operator Of The Year finalist, marks 15 years of service to the Greater Boston area this month. Four Star Limousine was established in 1994 by Brion Svenson. Having previously worked for limousine companies, Brion knew he would enjoy the industry long term, so he bought his first six-passenger limousine. The immediate goal of the company was to provide corporate clients with a level of personalized service and attention to detail that one would expect from a quality transportation service. Brion now runs Four Star with his wife, Georgieanna Svenson.
Four Star Limousine has grown to include a fleet of nine vehicles consisting of corporate sedans, SUVs, limousines, and a limo coach. Four Star has 12 employees, including professionally trained chauffeurs, full-time office staff, and auto detailers and mechanics. Brion attributes the company’s continued growth and success “to our focus on personalized customer service and detailed preparation.” Four Star Limousine remains active in its local community and region.
NEW COMMENT SYSTEM FOR LCT: The latest content upgrades at
LCTmag.com allow you to comment on news articles, features, AND LimoCentric blog posts. The comment option appears as a click-link at the bottom of each article/post. This is not only a good way for to offer varying viewpoints but to help set the record straight, or at least your version of it.
CLARITY NEEDED: Flex-fuel vehicles appear to be unstoppable, but there's
GROWING DEBATE about whether the ethanol blends damage engine systems. Environmentalists and the auto industry offer varying assessments.
RATE DEBATE: A recession invariably brings up a key question on service pricing: Maintain your rates or cut them to snag more business?
One New York operator has publicized his policy of
keeping rates at 2004 levels. Is this unusual? Is this prudent? Should you swallow higher costs, fees, and taxes in a recession? How do you keep and add customers, maintain quality service, and compete in a cutthroat recession?
UNCONFIRMED: Photo shows new, restyled successor to the Cadillac DTS for 2011. Ray Bush, program manager for Cadillac Professional Vehicles, told LCT today in a statement: "Cadillac is not prepared to discuss future product plans and does not comment on future product rumors."
SPECULATION: Sources familiar with the auto industry say automakers don't make new models official through P.R. efforts until about one year before actual release to retail dealers; they still want consumers to buy the current model years so people don't delay purchases to get "the new look." Ditto for a possible successor to the Lincoln Town Car which Ford plans to build at least through the 2011 MY. So far, Ford has refuted any reports of a Town Car sucessor, despite rampant rumors. The multiple sources and leaks along with adamant automaker denials at least raises the question of whether or not the chauffeured transportation industry could be getting two major new model revamps -- or at least confirmed new models in the pipeline -- by 2012 on the two biggest workhorse sedans of the industry. -- M.R.
SEARCHING THE DEPTHS: Where is that
economic black box from the recessionary plunge that will finally indicate the bottom and give clues on what happened, why, and how not to repeat?
MORE SIGNS TODAY that business travel is not recovering yet. The concept of "green shoots" of recovery should become a comedic punch line, given that they are acting more like greenhouse gases on the economy. Who were the fanciful idiots that predicted ONLY 8% UNEMPLOYMENT? Make sure you keep tabs and never forget. -- M.R.
THANK YOU, MR. JEFFERSON: If only we could have given you an air-conditioned Caddy stretch back on July 4, 1776. LCT Magazine wishes all of Limoland a happy and free FOURTH OF JULY Independence Day weekend. Remember to thank an AMERICAN military servant, a military veteran, a law enforcement officer, and/or a firefighter who, along with all of their predecessors and war-time allies, have made 234 4th of Julys possible under the banners of human dignity, law and order, and freedom (I'm counting 1776). LimoCentric will fire up again on Monday. -- M.R.
ABOUT THE PICTURED LIMO
FRIENDLY WARNING: Find out why every single reader comment ever posted on LimoCentric will disappear on Monday, July 6 @ Noon PDT. . .
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WEB-SPECTACLE PREVIEW: See the latest content from the July 2009 "MAINTENANCE" issue of LCT Magazine. Select stories are now available on our multi-layered WEBsite, INCLUDING our first-ever WEBXclusive feature article.
The magazine won't hit your mailboxes for another, err, two weeks or so, but you can get acquainted with the following content:
- 10 Things an operator learned from doing his own maintenance
- What to look for when browsing used and repo limos and fleet vehicles
- Basics to keeping a bus in top running shape
- A global operator's advice on navigating the econ-storm
- LCT Publisher Sara McLean's primer on low maintenance success
Just click on the website or go straight to features.
NOT THE RECESSION: The
cap and trade scheme being cooked up this week with green zeal would decimate American economic growth. Despite
contrary scientific evidence that refutes man-made global warming, the unreliability of global warming data measurements, and lack of cooperation from mega-polluters China, Russia, and India, the cap-n-trade crowd doesn't want
facts or freedom to get in the way. -- M.R.
NUMBER OF OPERATORS: Here we go again -- one of this industry's red-flag-in-front-of-bull issues. A research report issued today is way off, both from the estimates of LCT and its leading competitor. . .
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NO REBOUND NEAR: Reuters reports this morning that Dav El Chauffeured Transportation Network's fleet is down 20% in vehicles compared to last year, and BostonCoach has cut its number of employees from 1,200 to 877. The fear factor of using luxury travel appears to be compounding the effects of the recession.
STORY HERE.
KEEPING SCORE: Small businesses aren't seeing much hope or change amid the declining credit environment. Chauffeured transportation operators with 10 or fewer vehicles are most vulnerable in this recession. The massive economic stimulus package was signed by Obama on Feb. 17; four months and counting, and no signs of a recovery for America's business backbone yet. -- M.R.
AUTO QUALITY RESULTS: Cadillac vaults from
No. 10 to No. 3; TOYOTA still on top. For all the stimulus taxpayer money and bailouts GM has taken, they'd better be moving up the rankings.
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."
INNOVATION: A Texas entrepreneur has come up with a brilliant concept that points the way toward the future of "chartered" "jet-style" chauffeured transportation. And the Bed & Breakfast market is one waiting to be tapped. Let's hope
THIS WORKS.
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.
PINK LIMOS CAN BE COOL: A New York operator has come up with an innovative concept for a worthwhile cause. . .
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MISTAKES HAPPEN: Ahem, the Dallas Morning News gets us wrong in a story about Premiere Transportation Services of Dallas, a 2009 Operator Of The Year Award winner. . .
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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.
MEDIA BLITZ: Billy Jinks, the 19-year-old founder and owner of Lexani Limousines, has gotten a lot of media attention, including from LCT, for owning a limousine company in a recession at an age when it's best to start being an entrepreneur. Videos are up HERE and HERE. Jennifer Lawhead of the Crosby/Wright public relations firm now handles interview requests.
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.
LCT EAST COAST EDITOR Linda Moore has been busy this week attending a quarterly NLA board meeting and annual Capitol Hill lobbying event. Inspired by the experience, here is Linda's first dispatch. More to come on LCT's Driving Force e-newsletter and July print edition.
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FIRST-YEAR FINISH LINE: Operators Pat Christofferson and Heidi Bunnell started a chauffeured transportation company just as the economy tipped into full-blow recession. The mother-daugther team, both former schoolteachers, mark their first year in the industry, with added clients despite the economic and industry challenges.
A local newspaper profiled Reprise Limousine today, three months after they were featured in the March issue of LCT Magazine.
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.
CONGRATULATIONS: To Alex and Jen Jaciw, owners of Palo Alto, Calif.-based Lone Star Limousine for being interviewed and photographed for a Wall Street Journal small business story about revising prices during a recession. (page B-5). That is prime media exposure.
Lone Star also will be mentioned in the July issue of LCT Magazine for winning a prestigious Silicon Valley area business service award.
GCLA UPDATE: The richest, most populous state with the most chauffeured activity in the world appears headed into an economic Dark Age. The effects on operators are tragic and unnecessary. GCLA leaders sum up the situation. . .
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NEVER CLEVER: This
teen limo thief reminds one of a robber who leaves a business card. If you want to steal a car, get away, and hide it, suppose you should choose one that blends in with traffic? BOLO for a white stretch. . .
STARTED A LIMO COMPANY LAST YEAR: These stories are always popular with operators (we know because we see the numbers of hits for each blog post) -- and show what's possible.
SLEAZING LAS VEGAS: LCT's Driving Force e-newsletter features
an article today from the Las Vegas Sun about a lawsuit filed against taxi and limo companies and Vegas area strip clubs for allegedly creating illegal kickback schemes to bring customers. The article mentions limo companies but focuses on the taxi drivers. Without a precise breakdown, would the assumption be that it's more of a cab than limo problem?
SERVICE SCREW-UP: A limousine operator
sought by the Maryland Public Service Commission failed to show up for a prom run last month, but the stranded, disappointed Baltimore-area teen-agers eventually received a
complimentary limousine outing, courtesy of
limos.com, a national online limo reservation and referral service.
WHITE HOUSE CORRESPONDENTS' ASSOCIATION: Kristina Bouweiri, CEO of Reston Limousine, recently worked an after party for the annual White House Correspondents' Association Dinner, an annual roast and love fest among elite politicoes, old establishment media, and Hollywood celebs. Oh, and the President, too. Reston provided transportation for some of the after-party attendees. Bouweiri has posted about her experience and some celebrity shots. NOTE: Bouweiri is providing a good example of an operator blog, a valuable marketing tool in the new media age.
LCTMAG.COM: We've posted some preview information from our leading industry Fact Book today @ lctmag.com. The 2009-10 Fact Book documents through a statistically valid survey what has happened to the chauffeured transportation industry and how it's holding up during the worst recession since WWII.
Also posted today are findings from the first-ever Limousine Environmental Action Partnership benchmark green vehicles survey, and advice from LCT Publisher Sara Eastwood-McLean on navigating through difficult times.
The 2009-10 Fact Book also features the first-ever comprehensive snapshot of the charter and tour industry.
Look for more Fact Book highlights next week on all three of our web channels -- TECHNOLOGY, DRIVING GREEN, AND FINANCE & INSURANCE -- and in the Driving Force e-newsletter.
Print Fact Books are being mailed out. . .
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. . .
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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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.
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.
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.
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.
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?
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.
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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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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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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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?"
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.
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.
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.
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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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.
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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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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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.
NYC, NASSAU & WESTCHESTER TLCs SET UP NASSAU RECIPROCITY
New policy allows chauffeured operators to move about with more flexibility
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LIMOUSINE, CHARTER & TOUR:
No better way to explain it than with this example.
The term "LimoLiner.com" best sums up the direction of the industry to larger group vehicles with limousine services that are advertised and booked online.
The May issue of LCT Magazine will feature one medium-sized operator who would have never thought about going into motorcoach service this time last year.
Now he's about to buy his fourth motorcoach, while his stretch limo fleet has fallen from seven to one.
JUST A RUMOR -- FOR NOW. Black is the second most popular vehicle color choice among consumers, and obviously the first among chauffeured transportation operators. And while
this report dispels any recent rumors, it's not far-fetched to consider that global warming do-gooders might overreach and actually try this stunt. If they can "talk" about remotely controlling household thermostats and "de-carbonizing" much of the electricity grid, then they surely could consider a ban on black vehicles. In this case, going green and keeping the types of vehicles customers prefer must remain a black-and-white issue. -- M.R.
ARGUMENTS AGAINST: Here is one more factual finding to be added to the industry lobbying arsenal against the union-driven Employee Free Choice Act: It's
blatantly unconstitutional. That's something to file away for use against zealous unionistas out to destroy free markets and free speech. -- M.R.
MORE BAD NEWS: We at LCT regret relaying this type of information, but unfortunately it's a sign of the dismal times.
STORY HERE. Federal is an industry stalwart, with a legacy going back to the stagecoach era. It is one of the strongest, most trusted coachbuilders in the world, and the industry should count on them bouncing back.
LESSONS FOR OPERATORS: This WSJ account of how the business community stood strong and unified against the anti-democratic card check legislation is a better example of "Yes We Can" than anything politicians in DC can muster. The chauffeured transportation industry would do well to draw from this example as it battles rampant regulations, a decimated business travel climate, and Avis WeDriveU. Regadless of prevailing political winds, unity coalesced through NLA and local association involvement, as well as LCT Magazine events, can net results favorable to operator survival and service growth. -- M.R.
REGULATORY HEAVY HYBRID HANDS: This doesn't look took pleasant for the NYC taxi industry; it certainly must not happen to luxury limousine operators in NYC. Stay up to date and get on board with LBOA, an active, vigilant industry association looking out for you.
BUT NOT HERE: Some big-time Saudi prince with a name as long as a stretch limo has reserved 66 of them for 90 days at Lake Geneva, Switzerland. . . .
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UNION MISCHIEF UPDATE: News that 41 U.S. Senators are
lined-up against the union-driven Employee Free Choice Act may be the formation of a firewall against this anti-business, anti-worker, anti-democratic legislation.
LCT ALUM LANDS NEW POSITION: Former LCT Managing Editor Jon LeSage will be working with the Limousine Environmental Action Partnership (LEAP) as a communications and research consultant. The press release below. . .
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UNION OFFENSIVE: This
latest example of union tactics shows the vicious desperation of the campaigners for card-check legislation -- one of the single worst legislative threats to businesses and the democratic ideal. Expect more to come before this fight is over. Unions have a track record of burdening and decimating the industries they infect, i.e. Detroit automakers and U.S. airlines. Don't let chauffeured transportation become one of them. -- M.R.
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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FLEX FUEL & CARD CHECK: These scams are two of the most odious threats to the health of the chauffeured transportation industry in America. Get the facts on these loser trends. . .
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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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PALE GREEN VIEWS: The American public is increasingly questioning the global warming hype, according to the latest survey results, and becoming more skeptical. Maybe it's the economy making people less stupid?
A recession tends to refocus priorities and render past "imperatives" frivolous. Tell someone facing higher taxes, a halved 401(k), plummeting home values, a shrinking business, and/or frozen or declining pay that, um, you'll just have to pony up even more $$$ to fight global warming? That's something for operators to consider before spending "green" money. An operator should make sure "green" spending decisions are subject to the same rigorous cost-benefit analysis as any other investment, capital expenditure, or supplier outlay. -- M.R.
GOOD VS. BAD: Two newspaper articles were posted today on limousine operators that illustrate two sides of the coin. . .
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FACT-AVERSE MEDIA: The chauffeured transportation industry has sustained a "drive-by" media barrage about the sedan services provided to many corporate clients in New York. This means operators of all sizes need to be out front rebutting the misleading claims in the report. . .
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KEEPING CURRENT: The following message from GCLA board member Mark Stewart shows how limousine associations nationwide should be responding to the recession and revenue hits among operators: Organize operators; keep them informed; offer them survival strategies; focus goals on fighting bad regulations and politics. . .
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PACKAGE PRIMER: If you are at a loss to explain the complexity of the so-called stimulus package to your employees, chauffeurs, clients, and suppliers, here is a quick helper that can put it into simple terms. It's the classic tale of the professor and the student. . . .
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KEEP YOUR EYE OUT: For any TV reports in the New York area, possibly NBC Channel 4, about executives supposedly abusing limousine or Town Car service. We shouldn't put it past politicians and the media to start targeting clients in the back of Town Cars with class warfare labels. . .
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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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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.
EMPLOYEE FREE CHOICE ACT? Call it the LAZY LABOR THEFT ACT. As if porky so-called stimulus, higher taxes, crippled corporations, and anti-capitalism weren't enough. Now the labor minions of the Democratic Party appear to be readying some of the most destructive anti-business legislation since the Depression-era Smoot-Hawley Tarriff of the 1930s. . .
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BIZ DOES AS PREZ SEZ: Don't just blame the mortgage crisis, financial exotics, and regulatory incompetence for your business woes. . . .
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AUTOMAKER SETS RECORD STRAIGHT ON NEAR-TERM FUTURE OF TOWN CAR
Check out the latest on plans for the Town Car and rebates below. . .
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BUS BONANZA: I had a Q&A interview with Eron Shosteck, the American Bus Association's senior VP of communications, marketing, and media relations. More details below. . .
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WATCH OUT: California ex-governor turned mayor of Oakland turned attorney general Jerry Brown is cracking the whip on worker's comp. His latest lawsuit filing
goes after what he considers to be a fake employee-owned company business model being used to avoid worker's comp payments. It's all part of an underground economy where business owners are avoiding worker's comp and payroll taxes funding disability and unemployment insurance programs, according to the LA Times article. In this suit, the state is asking for civil penalties of at least $300,000 from Contractors Asset Protection Assn. Inc. of Rancho Santa Fe. This is serious business requiring staying current on state regs, and watching out for affiliate work and joint ventures with companies not staying legit. -- J.L.
PASSINGS: Our thoughts and prayers are with H.A. Thompson and his family as they mourn the loss of his wife, Lucille. H.A. is founder and owner of Rose Chauffeured Transportation in Charlotte, N.C., a 2008 LCT Operator of the Year Award winner. H.A. has one of the most optimistic and generous personalities in the industry, evident in his seminars, articles, and conversations. H.A. offers a tribute below. . .
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INDUSTRY IMAGE: Please say it isn't so; the self-professed Octo-Dad is described as a "local limousine rental service owner." He claims he's the fertilizer of the Octo-Mommy flock. We'd prefer no connection between the Octo-Spectacle and our distinguished industry, but if he indeed is the ill-seeded progenitor, then at least refer to him as a "chauffeured transportation provider." One question: Is he legal? Does he have a TCP license in California? We suggest that if he turns out to be DNA Daddy of all those ducklings, then he better have a 16-pack Hummer stretch in his fleet. -- M.R.
NEW EDITOR JOINS BLOG: Linda M. Moore, our new Associate Publisher and East Coast Editor, joins LimoCentric as a regular contributor. Her vast expeience in limo publishing, managing, operating, writing, etc, no doubt will enhance all the content fanfare and drama we try so hard to maintain. Her first post below. . .
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RECESSIONARY RIDE: Privately owned
Fidelity Investments reports that its employee share values increased in 2008, but 18% less than they did the year before. Analysts believe this is a good place to be during a recession that has plummeted many investment firms downward. A Moody's Investors Service analysts think that Fidelity has had a downturn through its subsidiaries including BostonCoach, real estate investments, and a Maine tomato-growing enterprise. BostonCoach has had to cut down on its costs and has had less affiliate work to send out, according to operators we've talked to. It's a good thing to be in the Fidelity Investment family at this point though since the parent company looks like it will get through this down time fairly well, and BostonCoach will benefit from this back up. -- J.L.
CALIFORNIA CRAZY: California is the home of LCT Magazine, but we must admit that our state can be a royal embarrassment. Because liberal legislators have been too inept and greedy to keep the state budget balanced since the late 1990s, the annual vehicle licensing fee now must rise from .65% of the value of a vehicle to 1.15%. And guess which businesses are
affected the most? Those with fleets. Even moreso, those with luxury fleets. So the "car tax" on a $70,000 limousine will rise from $455 per year to $805 per year. This is just one more hurdle for the chauffeured transportation industry in California, which already faces enough of an anti-business climate. We urge operators and the GCLA and its lobbyist to look into offsets, exemptions, and/or legislation that can at least spare providers of ground group transportation the dreadful car tax inrease. Whether the vehicle is a bus or limo, they're both greener, safer, and more efficient than self-transportation since they take vehicles off the road. Sounds like an industry ripe for a tax rebate or giveback. -- M.R.
FEDERAL 
JUDGES RULE: There you have it; a panel of FEDERAL! judges in Tampa have ruled that a Prius is not a limo. We hope this case sets a precedent nationwide, and delegitimizes the mousy little Prius as both a limousine and a livery vehicle. Using a skimpy Prius instead of a Town Car is like substituting a scrap of tofu for Prime Rib.
If we're going to consider the Prius for a limo, then, what the hell? Why not an xBox or a Matrix for a hearse, with the coffin sticking out?
We at LCT must admit that we get excited about the Oscars; NO, not because of the gaudy designer dresses, but because of all the LIVERY finery on display.
What really amuses us is the celebrity Prius shuffle; show up in the little Eg(g)o mobile, and then leave out the back door after the ceremony in some big black SUV, sedan, or stretch limo to the parties. Amid all the politically correct green posturing and stage drama, we're glad to see the sleek, big, black, luxury vehicles still command the back office and the box office. -- M.R.
(Pictured is starlet Jessica Alba getting pulled over in her Prius because she tinted the windows beyond the legal limit to hide out from the Pooparazzi. Oh, the hazards of the Prius lifestyle!)
HOW'S BIZ? If your operations have been tracking the stock market since Jan. 20, then it can't be that good. Here is why you are still losing clients, selling vehicles, and sensing a growing malaise. Please let LCT know through the feedback funciton below if/when you experience any form of fiscal, economic, revenue, and/or profit stimulus. Speaking of which, is Nancy Pelosi using any black livery vehicles during her "working trip" to Rome? Maybe a stimulus for this industry can start there. -- M.R.
SIGN OF TROUBLED TIMES: A
Bloomberg News article about the cutbacks in corporate travel and perks starts off , of course, with an easy target: limousines. Alex Mashinsky, owner of LimoRes.net, is quoted. In our humbly biased opinion, the limo or the sedan is still a better value than a cab, a coach seat, or a rental car. Instead of giving bankers, executives, and managers bloated bonuses, how about rewarding them with frequent limo rides? -- M.R.
GOTCHA: Luff foils a house burglary in progress. Man arrested when he calls for a limousine as a getaway vehicle.
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MACRO BLAME: The chauffeured transportation industry may occupy only a small sliver, or niche, of the overall private sector, but what happens among industry behemoths, such as banks, automakers, and financial institutions, often directly affects the fortunes of everyone from operators/owners to chauffeur/entrepreneurs. So it's important to maintain an accurate perspective of WHY the domestic and global economies are oozing away faster than a California mudslide. It also helps to point fingers at
WHO AND WHAT CAUSED THIS. -- M.R.
EXCELLENCE EXTRAORDINAIRE: I had the privilege of re-presenting the 2009 LCT Association Award of Excellence (Association of the Year) to the board members of the Greater California Livery Association last night before their first meeting of the year. LCT first announced the award during its annual gala in Las Vegas on Jan. 27, with GCLA President Alan Shanedling accepting it then. This was an honor long overdue. A panel of judges from the NLA Liasion Committee selected the GCLA from a group of three finalists that also included the Limousine Association of Houston and the Georgia Limousine Association.
Last night, the award was presented for the benefit of the membership which turned out in force at the Proud Bird restaurant near LAX. The GCLA stands at the cutting edge of industry advocacy in that it represents operators in the state with the most chauffeured transportation activity, and a state with a government that serves up operators with some of the most formidable regulatory and legislative hassles in the nation. California is often labeled a trrendsetter, and that certainly is the case with the GCLA; its success sets a model standard for other industry associations nationwide in advancing regulatory fairness and warding off crippling taxes, fees, and bureaucratic policies. Congratulations to the GCLA as the chauffeured transportation industry faces one of the toughest years in decades in a state with one of the most incompetent and wasteful governments. -- M.R.
IN MEMORIUM: LCT Magazine offers its condolences to Tom Mazza on the passing of his mother. Mazza has been a major leader and teacher in the chauffeured transportation industry who has helped professionalize chauffeured service. Obituary, below. . .
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LEADING STATES: California and Tennessee may have very little in common, aside from thriving music scenes in Los Angeles and Nashville. But both states rank number ONE in terms of the transportation industries served by LCT Magazine. Tennessee recently was ranked as the
No. 1 motorcoach desination by a top tourism publication. And Califronia consistently scores as the top state for chauffeured transportation activity, as proven by LCT's Fact Book findings. (New York City ranks as the top METRO area for chauffeured transportation). -- M.R.
NO ONE IS RECESSION PROOF: The luxury good and services sector, once thought immune from recessions, is taking a major hit, like every other aspect of the economy. The misfortunes of
wealthy Southern California enclaves (aka Limoland) provide another context for how the recession affects operators nationwide. When Beverly Hills retailers discount their wares up to 80%, you know there is serious change in the luxury climate. As an aside, these deep discounts also reveal how dramatically so many goods and services are marked up during boom times. -- M.R.
LEGAL NEWS: Chauffeurs have filed a federal class action lawsuit in Las Vegas against their employer, Whittlesea -- Bell Transportation, the fifth largest chauffeured transportation company. The
lawsuit seeks back wages for Bell Trans chauffeurs and cites a Labor Department opinion and multiple court cases. The argument is that chauffeurs are entitled to minimum wage and overtime. This is happening two years after voters approved a state constitution amendment to raise wages, and adds to complications of Nevada's minimum wage law. This is a legal battle being fought state by state; a federal court ruling will overshadow state jurisdiction. This is an important case to follow. -- J.L.
LIMO IT UP, SURVIVORS: The latest post-Show figures from LCT Magazine reveal more than 2,300 attendees registered for the 2009 International LCT Show held Jan. 26-28 in Las Vegas. 62% pre-registered, while 38% pleasantly surprised us on the spot. Attendees hailed from 47 states and 28 nations.
As a staff, we couldn't be more thrilled with such solid turnout. Yes, it's down compared to last year. But then there has been an economic and political sea change since then, and given a media-fueled Depressionesque debacle, such turnout at our show should be considered phenomenal. The ILCT Show also hosted 94 exhibitors on 100,000 square feet of trade show floor space. What's more, consider that the 2,300 registrants come from an overall smaller pool of industry participants than what existed in March 2008. It goes without saying that there has been at least a nominal contraction in chauffeured transportation. So once LCT Magazine gets the latest nationwide operator total from our Fact Book survey, we'll know the true ratio of success.
Best of All: LCT proves once again that its content and trade show franchise is the dominant, unparalleled player in the chauffeured transportation industry worldwide. For us, that's sure easy to digest. -- M.R.
BIG TIME BANKRUPTCIES? As the recession deepens, companies once thought recession-proof, or at least resistant, are facing major financial hurdles. An analysis of debt and cash ratios out today shows the
TOP 15 likely companies to fail in 2009. Chauffeured and charter operators should take note in case these companies are clients or are being viewed as potential clients. In any case, metro regions where these companies are headquartered obviously would be hard hit by economic ripple effects. -- M.R.
BRIGHT SPOT: LCT's newest coverage segment seems to be holding up well, considering the rather calamitous outlook for the economy overall. Motorcoaches provide economies of scale for group ground transportation, and have evolved to the point where they actually exceed the amenities and comforts of airline economy class. Motorcoaches are safe, green, and clean, and frankly, the classiest way for a large group to travel now that airline service has gone the way of un unruly school bus. You can't get more comfortable than in a limousine, luxury sedan, limo bus -- or motorcoach. -- M.R.
PAINFUL CUSTOMER SERVICE LESSON: What is the worst possible fiasco for a limousine company, other than an accident involving one of its livery vehicles? This story should send a shiver through every operator. The New York limousine company humiliated in the article has learned the ferocious consequences of poor, careless customer service, and worse, the failure to adequately remedy it. YOU CAN NOT do this at any time, and especially in a recession. In the age of the Internet, negative media publicity will damage your operations and create lasting impressions. That's why it's also important to attend LCT Shows and seminars; it's like an extra insurance policy against business moronics.
One quibble with the article: When interacting with the media, operators need to stress the importance of using the term CHAUFFEUR, not "limo driver." Big difference. Most reporters don't automatically understand the difference.-- M.R.
SUSTAINABILITY BALANCE: Please click on this map, and see if you can find the global warming. Maybe all those carbon offsets have worked already? Most of the nation will freeze tonight. Bet those folks in Kentucky who've been without power for most of the week would love to overnight in a greenhouse. Even us LCTers in humble Southern California will be dipping down to 54 degrees -- the warmest spot on the U.S. 48 tonight.
This colder than usual winter makes one want to warm up the SUV for 10 mintues, drive out to a log cabin in the snowy countryside, turn on some kerosene lamps, ignite the fireplace, and smoke a cigar with the brandy. I wonder if all the carbon could be credited toward the stimulus package. The more carbon we emit, the more green jobs we need to offset it. -- M.R.
STRETCHING IT: British public officials in Birmingham and towns across the country
are not happy with the increase in stretch limousines, which are usually built by U.S. limo manufacturers and imported. A traffic commissioner will be meeting with the UK limousine trade association and local authorities from across the country to discuss safety issues. Chauffeured transportation was provided for years through luxury sedans, which can weave through the tight streets and not cause as many logistical problems as stretch limos. But young customers have loved the stretches. It will be interesting to see what happens.
In other global news,
Australian operators are feeling the recessionary pinch as business drops 30%-40%, much like what the U.S. industry is experiencing. -- J.L.
ILCT UPDATE: Two hours ago, the winners of this year's LCT awards were announced.
In the 1-10 vehicle category: Leader Chauffeur Services, Kansas City, Mo., Bruce Heinrich
11-30 vehicles: Corporate Transportation Solutions, Sacramento, Calif., Chris Quinn
31-50 vehicles: Premier Transportation, Dallas, Eric Devlin
51+ vehicles: International Limousine Service, Washington, D.C., Richard Kane
Association of the year: Greater California Livery Association
For the marketing awards, Leros Point to Point won three while finishing in the top three finalists for the 51+ vehicle category.
Day two of the LCT Show went through smoothly. The atmosphere has been very positive, which has been great to see given the economic downturn pressures. Exhibitors were more than pleased that operators came to their booths to do business. While there were less this year than last year, those in attendance are here to understand their equipment purchasing options, and to network with each other. Most operators and exhibitors sent less people this year to save money and keep work flowing back at the home office. Operators have found the same to be true for customers, especially corporate accounts who might only need three cars instead of six for a staff meeting. -- J.L.
VEGAS BABY: Less people are in attendance than last year, but for the ones who showed up, they're serious about doing business. There are less operators here, but the exhibit hall is packed with coachbuilders, buses, tech services, insurance, finance, etc. And for the operators in attendance, there's a lot of networking and serious discussions about what's going on in their market. Except for rare exceptions, the operators that we've talked to are down 30% to 40% in revenue right now, and some down about 50%. This all hit the fan in late November/early December. Scott Solombrino gave his usual dark and serious economic warnings and motivational tips during his keynote speech. For the operators and suppliers in attendance, the mood is mainly upbeat and positive. They're glad to see each other and have a lot of hope that their businesses will make it through this dark time. In other news, Ron Sorci, CFO of Aventura Worldwide, was elected president of the NLA, and Richard Kane is taking on the first vice president role. -- J.L.
2009 INTERNATIONAL LCT SHOW: We're off to the Venetian Resort in Las Vegas for the 25th annual LCT trade show and conference, the largest and most valuable chauffeured transportation business event in the world. We are expecting you there. Four out of every 10 attendees register onsite, so there are plenty of mintues left to make the correct last-minute decision: SHOW UP AT THE SHOW.
The airline tickets are cheap, the Vegas hotels have cut room rates, and everyone is looking for a good deal and a good time. Don't follow the crowd: Act like it's 1999, not 2009. And who knows -- the ideas and insights offered at the show may keep your business running until. . . 2019?
We'll also be unveiling a new LCT, with hundreds of copies of our historic, keepsake February 2009 issue being distributed on the show floor. Show up and learn about the exciting plans and future ahead for the LCT franchise, and why you need to be a part of it.
Finally, we'll post a blog item or two from the show, but then mabye we won't. After all, if the whole industry is there networking and connecting, who needs to be reading a blog? But we'll have plenty of posts and breaking news upon our return on Thursday, Jan. 29. Keep those limos, sedans, SUVs, and buses on the move. -- M.R.
BREATHLESS COVERAGE: How does LCT Magazine plan to cover the inauguration? Why, the same way as POTUS 44! From the windows of the limos, of course. . .
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SOME GOOD NEWS: Two recent developments on the energy front should leave the chauffeured transportation industry with plenty of hope, both for the viability of gas-engine vehicles and the demise of fraud-fuel, excuse us, flex-fuel vehicles.
1) It appears the good-ole gas engine just keeps getting cleaner and more efficient, as it has steadily since the days of the Model T. With the latest advances in technology, and ones yet to come, gas engines eventually could challenge the hybrids in terms of energy- and eco-efficiences. Read about it here.
2) As corn prices rise, the ethanol industry is getting squeezed, with producers hurting financially and closing factories. We hope the latest free market fluctuations trigger the grisly implosion of this unprofitable, govenrment-babied energy venture that should have never been started. Ethanol is useless. It requires as much carbon to create it as it supposedly saves, it's hard to find, the industry can't make a profit on its own, and ethanolholics take affordable foodstuffs out of people's mouths. Not to mention the carnage to our croplands. We hope the final book on E-85 will be written with Chapters 7, 11, and 13. Read about it here. -- M.R.
SPECULATION: We at LCT admit we're obsessed with the Town Car and its possible successor. We just want to make sure the newbie after the 2010 model year is just as good or better. So is this a BIG HINT? -- M.R.
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POTUS 44: Luxury limousine operators will benefit from special access privileges in and out of Washington, D.C. Chauffeured vehicles can at least get inauguration goers to the public access areas within sight of the U.S. Capitol. NLA President Richard Kane offers observations in this
MarketWatch press release.
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NEW MODEL: It's a car! No, it's a truck! No, it doesn't fit in either category. And it's a
hybrid, too. President-elect Obama will be driven to his inauguration in this new Cadillac limousine, and it's the first time that a president's limo isn't a stretched version of a current Cadillac car model. It's been customized to protect the president from terrorist attacks with run-flat tires, bulletproof glass, and a completely sealed interior to ward off a chemical attack. It's also luxurious: a 10-disc CD player and hand-stitched leather interiors, plus other accouterments.The Secret Service is not giving out all the secret diagnostic info on the limo, but did release this photo, taken along the Potomac River. -- J.L.
SUCCESSOR TO DOUG WALCZAK NAMED: I spoke for the first time today with Jeff Nichols, the new Global Fleet and Limo/Livery Manager for Ford Motor Company.
He started his new position Jan. 5, and succeeds Doug Walczak, who works down the hall from him at Ford's Detroit-area headquarters. Jeff will attend his first International LCT Show later this month, and looks forward to his crash course in the industry. Be sure to say hello and meet him at the Ford display on the show floor.
Jeff brings auto industry experience too extensive to mention here, so we'll save it for Driving Force, our e-newsletter that gets blasted out Wednesday afternoons. Of course, I couldn't resist asking Jeff about the successor to the venerable Town Car, to which he replied, "The Yugo. With floorboards." So no new developments yet on the vehicle to replace the Town Car after model year 2010, but we know this industry is getting a Ford rep with a smart sense of humor. Best wishes to Jeff. -- M.R.
NEW MKS: While Ford Motor Co. remains mum on the successor to its famous Lincoln Town Car, due to expire after the 2010 model year, we can't help but note with interest this development.
Now Ford has repeatedly said the MKS will not succeed the Town Car, but then again. . . luxury vehicle, plus green technology, plus V-8 performance? Is something walking and talking like a Town Car?
In any case, there is still considerable doubt as to whether the MKS will succeed the Town Car. We happened to be walking by a black MKS in a parking lot and noticed the legroom is considerably less than that of an Executive L. Even stretched six inches, it would appear less. Hopefully, Ford ends the suspense soon and unveils a livery vehicle destined to secure its longstanding market share. -- M.R.
A SLIVER OF GOOD NEWS: Americans may not be cutting back as much on travel as thought this year, putting getaways ahead of gadgets and other spendables. Given the
list of vacation preferences, there may be opportunities for chauffeured and motorcoach operators to offer affordable ground transportation, i.e. green, group, etc. It is important for operators to communicate the overall value of chauffeured service, especially the practical, hassle-free, point-to-point benefits. -- M.R.
MOTORCOACH OLYMPICS: It may be the inauguration of the POTUS 44, but the perennial Constitutional event serves as a
showcase for motorcoach service. About 10,000 motorcoaches from around the U.S. will head into the D.C. area Jan. 20, creating a transportation spectacle unprecedented for even previous inaugurations. This will be a true test of charter bus service: Getting passengers to a place where they can access transportation into the city region -- in time for the inaugural -- and then find their buses upon return. Not to mention maneuvering in traffic and dealing with unexpected detours and delays. -- M.R.
UPDATE & OVERVIEW: This online article nicely sums what LCT has been reporting over the last few months about the destructive inroads of the rental car industry into chauffeured transportation. NLA President Richard Kane and Limousine Association of Houston President Joe Jordan are quoted in this comprehensive report. Along with union-driven card-check propossed legislation, the deepening recession, and the drive toward greener livery vehicles, the Avis issue has the potential to radically remake the dynamics of chauffeured transportation. The rental car/chauffeur arrangements must be fought at every level so that ALL chauffeured vehicles fit the same definition and comply with the same rules.
Look for more coverage in the March and April issues of LCT Magazine. -- M.R.
NLA EXPERTISE: An operator and board member of the National Limousine Association managed to stay compeitive on New Year's Eve despite the recession. Deena Papagni, owner of a limousine company near Fresno, Calif., was quoted in this article:
EXCERPT: Deena Papagni, the President of Touch of Class Limousine Services says she is staying competitive by offering customers the same rates from 10 years ago and it's working. "You just can't sit in your house just because we are in a recession," said Papagni. "Everything looks fantastic," said Papagni, "our whole fleet is booked with the exception of one limousine and one corporate Sedan. But, other than that our bus is booked, our super-stretch SUVs are booked."
MERRY CHRISTMAS, HAPPY HANUKKAH, & HAPPY NEW YEAR: Happy Holidays is so unsatisfying; which holidays are we supposed to be happy about? Christmas? Memorial Day? Arbor Day?
LCT Magazine wishes everyone the seasonal Christmas greeting of choice as we take a break from LimoCentric. We'll be back on Monday, Jan. 5, refreshed and reinvigorated for 2009 with stockings full of blog posts.
LCT Magazine looks forward to big changes and plans next year. The year kicks off with the central global event in chauffeured transportation: The 2009 International LCT Show in Las Vegas, Jan. 26-28. Register now. If you wait until after the New Year, well, we still want you to attend, so holiday procrastination can be excused. May Santa arrive in a limo. . .
EXCELLENT EXAMPLE: Here is
recent proof how a chauffeured transportation company can find demand for multiple vehicle niches, and provide needed services. Smaller airports, second-tier resort/vacation cities, areas without adequate public transit -- all need consistent ground transportation in all types of economies. -- M.R.
GLOBAL WARMING DISSENT: If dissent is truly patriotic, then let us indulge some more skepticism and subversion on global warming hysteria, especially as the northern half of the U.S. glosses into a massive ice-over. . .
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NO 300s FOR 30 DAYS: Dismal Detroit gave us a first taste of bankruptcy today, shuttering all Chrysler plants for 30 days due to dwindling sales. For chauffeured transportation, this obviously affects the livery and limo-friendly Chrysler 300. No worries about finding available models, though, since there is plenty of inventory in showrooms. Only problem is many buyers can't get the credit they need. -- M.R.
MALIBU WONDERLAND: We wonder if the global warming aficionados along California's thespian coast will
chill out now about massive, destructive, cataclysmic temperature increases that will leave us all parched on Mars-like terrain. And even if that did happen, we'd still need big, bad chauffeured SUVs to get around. -- M.R.
CREDIT CRUNCH: The Brits tend to be very enthusiastic about American-style limousines, and strongly embrace the industry. So
this story certainly resonates in the U.S., and points to trouble ahead.
ACTING OUT: We must give the Screen Actors Guild and its coterie of thespians some credit: They sure know how to enchance an epic economic drama.
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GREATER CALIFORNIA LIVERY ASSOCIATION: From Tuesday night meeting in Los Angeles: The good news was a lot of operators showed up, and realized the importance of commiserating and connecting. The bad news was summed up by NLA President Richard Kane: "The economy sucks." More below. . .
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SAGGING: The Screen Actors Guild is prepping for a possible strike during the holidays and union members will vote on January 2. The Writers Guild of America strike lasted 100 days and ended right before the Academy Awards. Operators lost business: "Among the hardest hit were owners of Los Angeles-based limousine companies: with actors boycotting awards shows such as the Golden Globes in support of writers, chauffeurs were left idling in their busiest months of the year."
Read on for more coverage.
CANADIAN HASSLES: Operators at the Pearson International Airport in Toronto have to deal with "scoopers," the Canadian term for illegal limousine operators who prey on tired passengers waiting in ground transportation lines. Casey Jason, a Toronto area operator and chairman of the Ontario Limousine Owners Association, recently was quoted in the
Toronto Sun warning operators about the practice. LCT Magazine recommends that the industry find a legal way to render these scoopers the transportation equivalent of pooper scoopers. -- M.R.
MOTORCOACH MARKETS: The fact that Air Tran is flying into the nation's second country music capital may seem like a plus only for air travelers and airlines alike, but such expanded service to second-tier tourist spots carries a lot of potential for motorcoach operators as well. The more airlines expand into such markets, the more likely its flights can be packaged with comfortable, chauffeured motorcoach tours and transportation service. Towns such as Branson, Mo. lack extensive public transportation, and motorcoaches can provide reliable options beyond just rental cars at a airports.
Example here. -- M.R.
GET READY FOR MORE: Sales, mergers, and acquisitions of limousine and chauffeured transportation companies will become more common throughout 2009.
Sample sale here. This economic trend is being addressed in the January issue of LCT Magazine and no doubt will be discussed at the 2009 International LCT Show in Las Vegas, Nev. Sales and consolidations, however they might temporarily winnow down the industry, can position companies to strengthen for the long haul. -- M.R.
HEADS UP: Buses
ready to roll during tough economic times.
TV STARS: Limousine operators do a ton of charitable volunteer work in this country. They tend to be quite pleased, as do their staff, with reactions they get from community members who adore getting free limo rides. The ABC show "Extreme Makeover: Home Edition" provides you with a very good opportunity to add to an experience that people will love and never forget. You'll feel good about it and many times will get publicity.
Local papers love to cover the stories, and you can mention this in your own company news and websites.
If interested, you can email the show's management. Looking forward to hearing all about it. -- J.L.
SKEPTICISM NEEDED: Americans are being implored, begged, beseeched, nagged about bailing out the Big 3 automakers. Why such desperation? Are we getting the full, accurate picture of options and consequences? Should colossal bungling and irresponsibility by management and unions alike be rewarded with our taxpayer money?
This alternative view provides some sobering facts that say, NOT SO FAST. -- M.R.
MASSIVE TRANSIT: The Obama Inauguration next month gets bragging rights for attracting record crowds, but now transportation providers and traffic coordinators are realiziing the challenge of getting everyone around. More than
10,000 charter buses alone will descend on Washington, D.C. We're pleased to see the best of chauffeured transportation on display: thousands of buses, SUVs, sedans, and limousines. But where will they park them all? One operator told LCT that he is providing free subway tickets to any clients who get stuck in traffic. In any case, there is no excuse for anyone to ride alone. And let's remember the inauguration of the 44th as the one where chauffeured transportation came to the rescue. The politicians can thank the industry with less regulations. -- M.R.
FINE LINE: Should you cut your fuel surcharges now that gasoline is headed well south of $2 per gallon? Will clients resent surcharges in a down economy? Would you be seen as gouging your customers? Or is maintaining a fuel surcharge a way of recouping earlier losses?
These companies, including a limousine operator, are staying the course.
Each operator needs to evaluate fuel surcharges individually, considering markets, revenues, client tolerance, and cash flow. But at some point the question will beckon: When is it time to let it go? Many businesses thrived without fuel surcharges, even when gas was in the $2 to $3 per gallon range. We're entering a dicey business climate that may not be forgiving to fuel surchargers, and consumer backlashes can be quick and brutal. Remember the lessons about greed that the current economy is teaching. Pay attention. -- M.R.
LIMOBSCENITIES: If you are easily offended, then DON'T CLICK HERE. Avis has circulated what the chauffeured transportation industry would consider porn. It's set off a massive chain-reaction e-mail flare-up among major operators nationwide and key people connected to the NLA and LCT Magazine.
The Avis/We Drive U transportation travesty has the potential to remake the face of chauffeured transportation in America -- and not for the better. What the whole issue demonstrates is the absurdity of excessive government regulation. When there are too many stupid, costly rules to follow, there is not only confusion and reticence about how to enforce them consistently, but more incentive to avoid them altogether. Hence, the presence of illegal operators and the faux-quasi-poser chauffeur service called Avis We Drive U. The regulation-exempted Avis operations are as potentially damaging to this industry as the union-driven card check legislation. Avis either needs to follow the same rules, or the rules should be thrown out for everyone. It's all the more reason for operators to stay connected, stay on the offensive, and of course, JOIN THE NLA AND COME TO THE INTERNATIONAL LCT SHOW next month -- now, more than ever, your livelihood depends on it. -- M.R.
DC LIMO OPPS: Operators in the Washington, D.C. metro area are set to reap revenues from the once-in-a-four years inaugural festivities. We HOPE that the chauffeured bonanza described below will foreshadow the results of economic CHANGE that will restart the economy with AUDACITY and boost the fortunes of chauffeured transportation. Well, we can at least DREAM. -- M.R.
From The Washington Post: Limousines are being booked, and hairdressers and aestheticians are being reserved at a pace they've never seen. "It's as if we're not even in a recession," said Lena Tali, owner of Blackberry Limousines in Sterling, Va., which is renting a "Hummer package" for $1,700 a day, a 10-passenger limousine for $1,400 and a Mercedes S500 package for $1,200 -- fuel, taxes and gratuities included. "I'm sure we'll be booked up for the five days. I've got people calling me from all over, even out of state. They aren't even worried about the prices, because they know it won't be cheap."
PARADIGM SHIFT? After a painful bout of hyper-inflation for gas this year, the ensuing credit collapse, and the dunking of the Detroit 3, we very likely will see a permanent shift in vehicle preferences. The three factors just mentioned only strengthen the market for greener vehicles -- luxury and everything else.
More evidence here. -- M.R.
NO, NOT THE UGLY CAR: The climate experts! Once more, we see a news report about some unusual evidence of climate cooling. What should arouse our skepticism is the seemingly knee-jerk qualifier that always crops up in these type of climate accounts. . . .
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CHRISTMAS CHEER: With so much focus on economic problems and industry challenges, we are glad to see a reminder of the right priorities in life. This limousine company provides an
inspirational and heartwarming service -- no money and marketing needed, just a big heart. We hope every chauffeured transportation company in America takes a cue from this example; it certainly puts money matters into perspective. -- M.R.
GREEN IMAGE: Why are
Big 3 CEOs riding in hybrids to lobby for federal loans, instead of private jets or non-hybrid luxury cars? It's all about putting out the right image. Automakers need federal funding, and have come back for round two of lobbying efforts - and want to avoid criticism for the image they're projecting. Corporate execs learned this lesson in recent years and have been switching out of stretches and into sedans and SUVs. Having hybrids and other alternative-fuel vehicles ready for executive transportation continues to provide revenue opportunity. High-level execs still need to be chauffeured, and want to look good when stepping out. -- J.L.
CORE STRATEGIES: The limousine and chauffeured transportation industry, at its heart, is a premium, luxury-oriented service. So there is always a segment of clientele that for all practical purposes is recession-proof. Whatever financial hits they take, the losses won't impinge on lifestyle. Since luxury transportation closely tracks luxury goods consumption, operators should note the latest marketing trends among upper-end retailers who cater to the wealthy. Just as these retailers are fawning over their core demographic to keep them spending, many luxury transportation operators may well consider the same. Reaching out with special promotional events, giveaways, packages, and "buzzy" tactics, may be one worthwhile strategy to cover the core clients and get through this recession. -- M.R.
MORE DRAMA: Ford CEO Alan Mulally just told the Wall Street Journal he's concerned that GM and Chrysler may not survive. OUCH!!!
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JUST IN CASE: Ford Motor Co. submitted a plan to Congress yesterday outlining its strategy to restore profitability, or break even, by 2011. Ford will be introducing electric and plug-in hybrids, eliminating its corporate jets, cutting executive compensation, and asking its labor union to be more flexible. Ford is asking the feds for a $9 billion line of credit, but believes it can get through the financial crisis without borrowing the money unless market conditions sink way down.
The Detroit News is carefully tracking this story along with news updates and analysis of GM and Chrysler's lobbying efforts.
FLAIR FOR LIMOS: With the overdose of bad news about the economy and struggling operators, we at LCT are always looking out for the positive glimpses of this industry , and today, we found one. This Tampa Bay operator brings a wholesome, community-minded approach to his work, and can serve as an inspiration to others in the chauffeured transportation industry. Success can happen anywhere, during any time, and depends more on attitude than anything else. -- M.R.
BUSCENTRIC: Stay tuned for much more coverage of charter and tour bus news and management topics in LCT Magazine starting in the February issue... and a new LCT blog focusing on the bus business and what's happening with motorcoach and shuttle buses. Having buses in your fleet and marketing them to the right customers is a great way to build business, even during a recession. It's a very important industry sector for LCT to expand its coverage. When you talk to operators active in the bus business, they'll tell you two industry associations are important to know about and consider joining. One is
United Motorcoach Association and the other is
American Bus Association. Their websites are chock full of industry info and resources.
BUSY MEDIA DAYS AHEAD: As president of the NLA and CEO of one of Washington, D.C.'s highest profile chauffeured transportation companies, Richard Kane will be getting lots of press in coming weeks as the Presidential Inauguration draws near. His company is preparing to service its 10th Presidential Inauguration, having first provided vehicles for the big day after President Richard Nixon was re-elected in 1972. Here is the
latest interview in the DC Examiner. -- M.R.
CLASS, TIME FOR RECESS(ION): A panel of academic economists now has officially decreed that the U.S. has been in an economic recession since December 2007. Thanks for the breaking news, you academic whipper-snappers. Maybe if they had been hanging out a bit more with Main Street businesses they could have figured things out faster and been more in tune with solutions that actually work.
We've always understood recessions to be two consecutive quarters of negative GDP growth, which very likely will mean the third and fourth quarters of 2008 -- as opposed to the whole year. At this point, being a quarter or two off is no worse than most other economic predictions. Frankly, Americans are fed up with the "expert analytics" of "acadumbic economists." All the MBAs, finance gurus, Wall Streeters, Ivy League "gee-whizzers," Fed pontificators, academic economists, investment economists, government economists, moronic economists, etc. could not effectively evaluate or maintain our entire economic system for the better part of this decade. It's time again for us private-sector taxpayer grown-ups to take control, and of course, bail out the idiots. -- M.R.
Headline we'd like to see: WAL-MART SHOPPERS TRAMPLE WALL STREET CREDIT SWAPPERS
ACTION NOW: The National LImousine Association recommends that its members support the combined request of GM/Ford/Chrysler for federal funds to stave off bankruptcies. The chauffeured transportation industry is a major buyer and user of luxury vehicles built by the Big Three.
Endorsement here.
AND THE WINNER IS: Being nominated for, and winning, awards offers excellent publicity opportunities for operators. You'll see press releases launched on companies getting the nod from LCT Magazine and Limousine Digest. Another good opportunity is winning local business newspaper awards. Ultimate Class Limousine once again won the Long Island Business News award for
Best Limousine Firm. US Limousine and M&V Limousines were runners up. And for the seventh year in a row, Greene Classic Limousines has won the
Atlanta Business Chronicle award for top ranked local operator. How do you win these awards? Apply for them, as you would for LCT's Operator of the Year, and do a complete, professional job. Think of it as submitting for a corporate contract. -- J.L.
QUALITY ACHIEVEMENT: Congratulations to two industry coachbuilders for getting Cadillac's official stamp of approval. Information and links below. . .
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DYNASTY LIMOUSINE: One of the finalists in the LCT Operator of the Year category for 11-30 vehicles category provides us with an
industry bright spot amid a faltering economy and battered transportation sector. The Jacksonville, Fla.-based operator has seen revenues and profits actually increase. We emphasize that amid any general trend, there are plenty of exceptions. LCT has heard from enough operators anecdotally nationwide to conclude there are more than a handful of chauffeured transportation companies experiencing a 1999 business atmosphere instead of the 2009 gloomosphere. Using the right tools, strategies, messages, and innovations often can circumvent or at least hedge against countervailing economic forces. -- M.R.
MY HOW THINGS CHANGE: The
Los Angeles Auto Show is considered the first major auto industry event for the new model year. It used to be in January, but ever since being moved to November, it's competed less with auto shows in Detroit and New York and has provided a first-look at cool new stuff. The irony this year is that GM and Chrysler gave it a thumbs down, and Ford was the only Big 3 manufacturer to attend and show its cars. The Detroit automakers must keep their costs well trimmed, so it's not surprising they stayed home. Another interesting part of the L.A. Auto Show is the central focus on green, altnernative-fuel vehicles, even as auto sales plummet down and gas prices go the same route. -- J.L.
NO HOPE LEFT FOR LIVERY? The Obama-inaugural-mania appears to have consumed available chauffeur and livery vehicle services in the greater Washington, D.C. area. A
DCExaminer.com article interviews Richard Kane, CEO of International Limousine Service of Washington, D.C., and Richard Alexander, owner of RMA Limousine in Rockville, Md., about the avalanche of requests for high-end luxury vehicles. That's good for chauffeured transportation, but politically speaking, does anyone from the incoming Obama adminstration or its ranks of supporters care to pedal into D.C. on a bike? Wouldn't that be making a positive green statement? For a political clique that seems so serious about going green, they sure don't hesitate to ride around in the black. -- M.R.
FUEL FREEFALL: Who would have thought that gas prices would fall about as fast as they rose last spring and summer. The cynical wisdom maintains that gas prices always rise faster, and fall slower. This time around, with the economy tanking, it doesn't look like gas prices are taking their time to drop.
This limousine operator has dropped her $25 fuel surcharges. This may make good business sense, now that gas averages more than $2 per gallon LESS than in June/July. As consumers tighten spending, you never want to give them a reason to justify holding back. Look for more fuel surcharges to become de facto rebates. -- M.R.
AT LEAST: We're not fretting about $147 per barrel oil and runaway inflation. So we're not headed toward the 1970s. Oil prices are likely to
fall lower. Amid all the economic trouble, we can be gleeful if the Arab oil princes and their companies take a big hit. While it likely will mean only one less Rolls-Royce for your typical oil sheik, their real pain will come from diminished economic stature and influence. Let's keep pushing for those greener, fuel-saver vehicles. -- M.R.
BIG 3 COLLAPSE WOULD BE CATASTROPHE: A leading analyst said today that if Ford, GM, and Chrysler file for bankruptcy, the American economy would violently contract. Full story and his words:
A Deutsche Bank economist quantified the impact of the collapse of the trio on the American economy. Deutsche's Joseph LaVorgna estimates that if the auto-makers were to file for Chapter 11 bankruptcy protection in the first three months of next year, it could cause US GDP to shrink by at least 4% as auto production would fall by 30% to 35%. He also believes unemployment would immediately leap from its current level of 6.5% to as high as 8.25%.
RAIDING THE CUPBOARD: In an economic downturn, every little marketing idea or possibility helps. For operators, here is another potential limousine market:
Govenrments trying to lure businesses. Along with real estate agents taking clients on tours of foreclosed homes, local Chambers of Commerce, county governments, and state business groups may be eager to impress potential business relocators. As is often the case in a recession, businesses start eyeballing lower tax and regulatory climates, and may consider moving to states more hospitable to business. If you operate in such a state, be on the lookout for organizations that want to impress business owners with limo tours. -- M.R.
WORLDWIDE SLUMP: One silver lining of 2008 for chauffeured transportation had been the weaker dollar, which, while contributing to inflation and high commodity prices, kept exports strong and international travelers coming to the U.S. Now, the economic infection has
spread around the globe. It's all the more reason to emphasize viable, feasible ground transportation services, i.e. GET ON THE BUS. -- M.R.
GETTING THE WORD OUT: Towne Auto Group's David Bastian sent out this letter to the chauffeured transportation industry to build support for the Detroit automakers during a very tough time.
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PANIC BUTTON: GM faces the most critical make-or-break moment in its company history. Click below to read more about its latest letter to America and the debate over bankruptcies and bailouts. . .
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SUPREME LIMO: No limousine operator should ever feel self-conscious, or beyond hope, about vehicle fuel consumption when compared to this heavily-fortified piece of livery. Details are emerging about GM's new Cadillac limousine for the President. The stretch is about as un-green as possible, although its occupant will be relatively green given his minimal political experience. So although President Obama won't be riding in a green vehicle, he will no doubt reaffirm his green credentials by groping for more green from taxpayer wallets. -- M.R.
NYC NEWS: New York City's Mayor Bloomberg announced this morning an incentive program to motivate taxi owners to switch over to fuel efficient vehicles. This happens not long after a federal district court judge ruled that taxis don't have to live up to the TLC's 25 MPG mandate.
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OUTLOOK: Corporate business travel is taking a big hit, with companies looking to save money any which way. See MSNBC Report. We would caution against overzealous corporate travel cuts. Three points to consider:
1) Face to face meetings are more productive than teleconferences: Notice how everyone e-mails, instant messages, and surfs the Net while teleconferencing? People pay attention more when there's face time. It's harder to plug in elsewhere when seated around a conference table with everyone watching.
2) Also, we are horrified at how some companies are asking employees to double up in rooms. This is an outrage. If you, as a company owner, can't afford two hotel rooms, then dont send two people. Professional business travel is not a high school band road trip with everyone bunking in everyone else's rooms. Employees should collectively refuse the "bunk up" mentality. What cheapskates. However, we at LCT have no gripe with corporate travelers "bunking up" for limousine and livery ground transportation. No sense in two people riding in two separate Town Cars. Two or more people in a black luxury vehicle also renders that vehicle very green, indeed.
3) Getting on the road for conferences, trade shows, and meetings actually can be a mental break for employees and managers; something about a new environment that fuels creativity and motivation. Of course, the hotel room needs to be comfortable (Courtyard, Hampton Inn at least), and the ground transportation should be chauffeured. We insist. -- M.R.
JIM LUFF SAYS: Find a mentor for yourself and pay it forward by mentoring someone else.
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COUNTDOWN TO THE TOP TWELVE. . . In about 24 hours, the industry will learn the finalists for the 2009 LCT Operator of the Year Awards. Aside from being the leading awards in the chauffeured transportation industry, winning one means an operator has finally arrived. Past winners use the awards to tremendous marketing effect -- an inestimable asset during a recession -- and serve as experts and leaders in the industry. Four of the 12 finalists announced tomorrow will become Operators of the Year after a panel of six judges scores all finalists in the following business categories: 1) staff/chauffeur training; 2) Industry and community involvement; 3) Use of technology; 4) Customer service; 5) Safety performance; 6) Media and marketing.
The finalists will be announced on Driving Force, LCT's weekly e-newsletter, on Wednesday afternoon, Nov. 12, and will be posted on www.lctmag.com. Operators of the Year will be divulged and celebrated on Tuesday night, Jan. 27, 2009, at the annual LCT Awards Gala at the International LCT Show at the Venetian Resort & Casino in Las Vegas.
DOOM, GLOOM, & BLOOM: Not all operators and companies are sustaining losses in this economy on a cliff.
Individual states, cities, and regions form their own economic micro-markets with varying levels of employment, business activity, and capital investment.
One St. Louis operator is seeing record revenues, based partially at least on a Hummer limousine. So the bottom line is that a magic formula for surviving a recession is a myth.
It boils down to how each company handles its own unique set of circumstances. -- M.R.
COMING WEDNESDAY: Who are the TOP TWELVE for 2009? Look for the 2009 LCT Operator of the Year finalists to be announced Wednesday on Driving Force, LCT Magazine's weekly e-newsletter. Three finalists in four categories -- 1) 1-10 vehicles; 2) 11-30 vehicles; 3) 31-50 vehicles; 4) 51+ vehicles -- will be named as contestants for the most prestigious and widely recognized awards in the limousine and chauffeured transportation industry. Each finalist will be profiled in the February 2009 issue of LCT Magazine and recognized at LCT's annual Awards Gala at the International LCT Show 2009 in Las Vegas on the night of Tuesday, Jan. 27, 2009. The FINAL FOUR winners will be revealed at the banquet.
DISTINGUISHED LIVERY: We're obviously interested in the highest profile limousine in the world, the stretch that carries the President. Read about Obama's new unofficial Caddy. The only question we have is, given the deepening recession and Obama-philic references to combatting global warming, shouldn't The One set a good example for frugality and earthly stewardship by riding in an armored Prius? Just wondering. -- M.R.
SUFFERING SQUEEZES: Independent small businesses -- the bulk of the chauffeured transportation industry -- are facing many obstacles, including fewer credit and capital opportunities and declining payrolls amid the troubled economy. STORY HERE. If there is one sector of the economy that deserves more attention, protection, investment, and bailout safety nets than the bungling brats of Wall Street , it is the vast layer of small busiensses that undergird our economy and employ most private sector workers (You know, those of us and our companies who pay the bulk of the taxes that funds the public sector, including the sugar-babied government workers in California who get to retire after 30 years @ 90% pay until death) . Let us hope the incoming political claque has enough sense to exempt such businesses from heavy-handed regulation and additional taxation. Small businesses are the real Golden Goose of our economy. -- M.R.
GAS GUESSTIMATE: Gasoline prices have dropped to their
lowest level in 21 months, with the national average now at $2.24. With the economy sliding downhill, at least there's one good trend happening out there. It does raise some questions for the chauffeured transportation industry:
-How long will this stay low? Oil industry analysts have differing opinions; some believe it will spike back up once demand increases. But they don't really know.
-Do operators need to reduce their fuel surcharges? If you increased to 10%, do clients expect you to go back to 7%?
-Will operators still be asking for green cars? Are the corporate client requests for green cars still strong as companies struggle with the recession? Will the green movement still be a top priority for the public and customers?
Lots of questions. Let's see what happens.
-- J.L.
BTN Breaks Carey Story: Avis Budget Group today confirmed to Business Travel News that it has declined to increase its stake in chauffeured transportation provider Carey International to 80% from 45%. Avis Budget had one year to assume the majority stake following its initial October 2007 investment in Carey.
"Due to the challenging economic environment, we have chosen not to exercise our option," Avis Budget vice president of corporate communications and public affairs John Barrows said in an e-mail to BTN today.
Avis Budget officials had described the initial $60 million investment in Carey as a way to diversify its offerings to offer a complete ground transportation solution to the corporate market. "It's another product to put in our bag," Avis Budget CEO Ronald Nelson told BTN in January. "Many of our top customers spend as much on limo as they do on car rental."
SLOWING SLOT MACHINES: Here's a no brainer: When the economy clamps up, people can't afford to throw money away. Atlantic City gambling operations are taking some
big htis. Maybe the casino floors can be retracted to accommodate wholistic Zen nature gardens. Just a freaky thought on a Friday.
BAD GUYS: A limo operator and his mechanic are
going to jail in England for dealing cocaine. The limousine business was just a front for drug dealing. Using a chauffeured transportation business as a storefront for an illegal business, and to use the limos to transport contraband, also happens in the U.S., according to an FBI agent who spoke to me off the record. It's not a common occurrence, but it does happen near airports in major cities. It's very good to background check your affiliates and farm-outs - just in case.
-- J.L.
"People say there is a recession, but I took in $10,000 in new business Monday in Bakersfield, Calif.," says Jim Luff. Read on to hear his story.
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ACTIONS & CONSEQUENCES: The electorate sent an irrefutable message last night, one that should be heeded and respected. While jubilation prevails, the accompanying relief and optimism did not extend to the post-election spasms of Wall Street. Some realities are solidly established as well: 1) After Jan. 20, we will not have a government divided between two parties -- the situation that prevailed for much of the 1990s and aided the prosperity boom; 2) All levers of government now reside in the hands of one sheriff in town, and whatever happens, there will be no more excuses about lack of power to accomplish goals given the hefty Congressional majorities; 3) Blame will be very easy to assess and assign should anything go wrong.
For chauffeured transportation, the most immediate concerns include the union-backed card-check legislation that could hamstring and eventually decimate some operators. An escalating recession likely will continue to stymie customer demand. New transportation regulations could add to the cost of doing business. That all may sound pessimistic, but so far, the pessimists have been accurate, however unwelcome their messages. Silver linings do always emerge, and creative entrepreneurs reflexively think, work, and succeed outside the box regardless of circumstances. And that is the real source of hope and change. -- M.R.
WHAT'S NEXT?: That election campaign was dragged out for quite a long time - nearly two years. It looks like the decision has been made and there won't be any lawsuits challenging state balloting, a la the 2000 election. Both McCain and Bush have given complimentary bow out speeches. So what's next for President-elect Obama, and how will this affect the chauffeured transportation industry?
CNN Money offers a good overview of the economic issues that affect the new administration. The limousine industry has mixed feelings. In an LCTmag.com web poll that happened about two months ago, a little more than half of the respondents backed McCain and the rest Obama. Speakers at industry events have mostly expressed apprehension about the impact of an Obama administration on labor laws and enforcement, business regulations, and taxes. Whatever the Obama administration and the increased number of Democratic House and Senate members go after, they have something much larger to deal with than anything else: the credit crisis and its impact on the global economy. They'll have to dig through this with the help of the other party, the business community, and the public.
-- Jon LeSage
NEW YEAR LCT: Our January 2009 issue will offer a complete guide to business travel trends for next year. HEADS UP: It won't be as pretty as this year. But at least some level of business will be getting done and surviving companies and their employees will still need to get around. Business travel preview here.
INNOCENT UNTIL PROVEN GUILTY. . .But just in case any of you do business with this company, you should know what's going on. Story here.
SLIVER OF A SILVER LINING? Chauffeured operators are looking for any sliver of good news amid a declining economy and falling reveneues. Well, we found one:
international tourists. American visa rules have been loosened this year and foreign tourism is up. Global visitors tend to spend more amid the dazzling distractions and amenities of America. Some of that travel budget should be going toward chauffeured transportation. Americans may be staying at home and cutting back, but many visitors from around the globe could provide a market opp for much needed revenues. -- M.R.
ELECTION DAY OPPS: At LCT Magazine, we sure have had our fill of limousine poles, especially with our attempts to document the latest trends in party buses (see September issue). And while you can certainly argue that party poles on limo buses provide a valued public service to our highly-mobile, entertainment-oriented, consumerist democracy, the types of polls that will predominate on Nov. 4 can offer operators a patriotic marketing idea. If business is slow and you are looking for a good cause, taking people who need rides to the polls looks like a worthwhile way to build community good will. There are likely senior citizens, single mothers, and people without cars who could use a ride. And you never know, depending on which candidate wins, supporters of the winner may be open to the idea of renting a limousine or party bus to celebrate in the election aftermath. So throw a little red, white, and blue into the limo, and be thankful our nation still values the privilege to vote and the freedom needed to succeed as an independent business. -- M.R.
A federal judge
just ruled in favor of taxi owners in New York City who don't want to be forced to acquire 25 MPG cars. No word yet on how this would affect black car operators. Stay tuned.
WHAT'S NEXT? As I finished editing an article on van pools coming out in LCT's December issue, I thought about discussions I've had with operators in the past few months. For van pools, the issue is that luxury chauffeured transportation is not a hot commodity for corporations and government agencies using these services. They might not be willing to pay more for a plush van and a chauffeur. My thought: maybe this isn't such as a bad situation. There are many operators around the country who've grown and added subsidiaries in all scopes of transportation, and this includes ambulences, school buses, moving trucks, "black cars," and taxis. Yes, I said it: taxis. These operators are becoming large ground transportation companies. They also provide classic luxury chauffeured services, but can basically service any needed transportation in their market area. As the economy sours, it's important to look at viable options for your company. Van pools might be a good move to make, but it might require flexibility on your part.
-- Jon LeSage
OUCH!!! There's always something happening in the back of a limousine. Sometimes it's bank robbers on a getaway, or a fistfight right after a prom or a night on the town. And there's this story - involving a man hitting his wife with a champagne bottle in the back of a limo. What can you do? And why do these stories end up in newspapers and websites? Don't bad things happen in taxis, too?
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DIGEST THIS: While we won't publish the state of the industry presentation from the recent Limousine Digest Show in the pages of LCT Magazine, we just can't resist spinning a speech given by two LCT advisory board members and then scooping our competitor. . . .
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NLA President Richard Kane recommends that members contact their U.S. senators on amendments to the Real Interstate Driver Equity (RIDE) Act. This will also be coming up before the House either in late November or after the first of the year.
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GREAT IDEA: What is it about bank robbers using limos to get away? The latest episode,
which happened in Dallas, is not the first time this has happened this year. Perhaps watching TV news or surfing the web gives these guys ideas: "Hey, I'm going to do that in my town!" A stretch limo might look much better as a getaway car than a rusted out, crashed in 1985 Buick LeSabre, but it doesn't seem to be working for these bad guys.
Gasoline prices have now dropped to their lowest level in nearly 19 months, according to the AAA's weekly survey. The national average is $2.668, about 35% lower than at its highest price ever in mid-July.
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FOR HIRE: The Baby Boomer generation started turning 60 two years ago
when the U.S. Census Bureau estimated that 7,918 of them were turning that age each day. They're obviously a great revenue source for operators, as these Americans have more expendable cash, more time on their hands, and usually
have kids who are growing up and needing transportation. Now that the Year One boomers are 62 and getting closer to retirement, you should also think about this community being an important source for chauffeur hiring. As we've seen lately in the news, retirees (and those soon to be) are stressed out to the max as they watch the value of their 401ks and IRAs dropping way down. They need to make money, even if it's part-time work. Most operators have excellent chauffeurs who are in that age range, sometimes a few years older. As long as they retain their health and driver safety, aging boomers are probably the best source of strong chauffeur candidates to cultivate.
-- Jon LeSage
SCARY LIVERY & TOWN CAR TERROR! What happens after you’ve just stepped into a Town Car, the doors have clicked to locked, the chauffeur starts driving. . . and then he tells you he’s angry, you are his last run, and he will quit his company that night? LCT Editor Martin Romjue recounts his nerve-jiggling experience with a farm-out that went up in flames, or better yet, a. . . . Chauffeur On The Edge!
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Two previous chairpersons of the New York City Taxi & Limousine Commission are supporting the federal lawsuit filed by the Metropolitan Taxicab Board of Trade challenging the 25 MPG rule that is due to start up Oct. 31, 2008. Howard Harrison sent out this response in Limo Talk National Newswire from current chair Matthew Daus and the original press release announcing opposition to the TLC's mandate.
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California's housing market conditions have been one of the starting points for national, and then global, financial and credit market collapses, according to economic analysts. The
Wall Street Journal just published a story analyzing the situation - it might be the beginning of a positive economic trend: "While the volume of existing-home sales across the U.S. fell 10.7% in August from the previous year, according to the National Association of Realtors, there are signs that the most damaged of markets are starting to heal themselves. Across hard-hit California, sales volumes rose 65% in September compared with a year ago, said MDA DataQuick, a San Diego-based real-estate information service."
On the other side of the coin, market conditions are still very unstable. The drastic drop in home prices in some California markets mean several homeowners are upside down in their loans, which moves them toward foreclosing their mortgages. The problem isn't solved yet, but it may have hit bottom and start stabilizing. Let's hope for the best.
CUSTOMER CONFLICT: It's not an easy time for operators, especially those in hurricane zones or dealing with corporate clients going out of business. Unfortunately, there's a more regular, routine problem that comes up: dealing with unruly, violent customers. Two stories were posted with this sad tale - one in
Toronto and one in
Daytona Beach. Why is it that an industry that provides such a high level of service gets dragged into these messes? Passenger alcohol and drug overuse is part of it, along with powder keg problems in major cities. Many chauffeured companies do what they can to subvert or stop these fights through chauffeur training, dispatcher communications, law enforcement agency relationships, and vehicle security equipment.
The National Business Travel Association has surveyed travel managers on how they're dealing with the global credit crunch. Travel is being cutback, but it's good to know how this is being done and what chauffeured companies can do to adapt.
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NO SO FAST: This story about the
Ford Escape Hybrid shows why the move to greener luxury absolutely cannot compromise any standards with regards to safety, comfort, size, and covenience. In the zeal to curb carbon emissions, regulators, automakers, and the industry need to make sure haste does not lead to waste. -- M.R.
OIL PRICES PLUMMET: The one redeeming factor in the economic contraction is a steep downturn in oil and gas prices, which are the primary drivers of inflation. UPDATE HERE. While the U.S. may be suffering stock and job market losses, at least we're all paying less for gas and dealing with lighter inflationary pressures. That can only be a silver lining for operators, many of whom are seeing fewer client runs. At least the gas won't cost as much. But don't get rid of that fuel surcharge just yet. A percentage drop, though, might be a nod in the right direction. -- M.R.
TRAVELING MERCIES: Given the declining economy and airline hassles, the stress level for the typical business traveler has skyrocketed.
NY Times story here. Imagine this scenairo: Hearing that your flight is being delayed so the airline can switch to a smaller aircraft while the airport TVs overhead are echoing the latest news on the Dow plunge. You need to stand in line for a new boarding pass, with the possibility of being put into a middle seat, while you've just lost 15% of your entire net worth. The solution? A luxury chauffeured sedan! Operators can market to stressed out business travelers, by showing them what they can look forward to at their destination: A First Class ride to wherever they need to go. It makes up for the discomfort of flying. So while operators face a bear market in business travel, that can be offset by the bull market in stress among remaining travelers. -- M.R.
AGGRESSIVE PRICING: The future clearly belongs to online limousine bookers and reservation sites. LimoRes.net just raised another $20 million to fund global growth. Such service sites will proliferate and net more customers, especially as clients see tighter budgets and diminshed bottom lines. For operators, that means competitive value pricing and excellent service. There's not much margin for error in a slowing economy and an online landscape of instant price comparisons. -- M.R.
The Motley Fool is
a good website to visit for getting the latest news, analysis, and recommendations on making your investment strategy work. For anyone who has money in stock market mutual funds (such as through IRAs and 401-Ks), or even more traditional funds full of T-bills, municipal bonds, and CDs, this is a very bad period to live through. What your funds were worth one month ago versus today - oops! Check out this information source and stay tuned. This is going to take months and months to get through, but it's very good to stay informed and make necessary changes to your investment strategy. You probably want to retire someday.
LONG-TERM RESCUE: A leading entrepreneurial foundation finds that older, baby-boomer entrepreneurs will be providing much of the ingenuity and drive to re-start economic growth in future years. This could be a favorable long-term trend to emerge from the current economic shambles: Smaller, more diverse businesses independent of large corporations and investment firms.
From the L.A. Times article: "Though many people think of entrepreneurs as twentysomethings laboring in their garages on the next Silicon Valley success, the reality is that people age 35 and older have higher entrepreneurship activity rates."
For chauffeured transportation operators, a nation teeming with busy new entrepreneurs, both old and young, would be a substantial market and business opportunity. Entrepreneurs are starved for time, and what better way to save time than to use chauffeured sedans and limousines plugged into digital technologies. As has been the case for decades, small to medium sized businesses and similar-sized services that cater to them will remain the economic muscle of America. -- M.R.
National Limousine Association President Richard Kane emailed out this letter to the industry asking for financial support donations for operators in Houston and Baton Rouge, La., impacted by Hurricanes Ike and Gustav.
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PORTLAND, OR and TAMPA, FL: Findings here.
Even if the economy was purring like a happy cat, operators and chauffeurs must deal with a constant pressure: collisions. On Saturday night, a racing car in Fort Worth, Texas,
smashed into a stretch Hummer, injuring 10 passengers. When you look at the crash photo and see how punched in the Hummer was, the good news is that no passenger was killed. On the other side of the coin, a sad thing happened in Holyoke, Mass., when a chauffeur struck a bicyclist
and then died soon after stepping out of the limousine to see what he'd done. Bad events happen in this business regularly - roads are packed with vehicles, bicyclists, and pedestrians, and things can get out of control.
NOT LOONY: At first glance, the VW Phaeton should deserve a spot in our loony limo gallery, but the stretch limousine is more likely to make you mad instead of laugh. The quality of VWs has plummeted since the German automaker peaked in the U.S. in 1998-2000 with its VW Jettas and Passats. I know from personal experience that a Passat is not a reliable vehicle, incurring all kinds of maintenance problems and repairs well before old age. I finally got rid of it at 53,000 miles. So it's rather pathetic to see a VW Phaeton limousine feigning livery luxury and reliability. We didn't even know there was such a thing. The Phaeton was VW's response to the BMW 7-series and other high-profile luxury sedans in the $85,000 to $120,000 range. It sold so poorly in the U.S.during the early 2000s that dealerships yanked it. VW should stay out of livery; it's not a car associated with reliable, classy chauffeured transportation. -- M.R.
BTW/FYI: A Phaeton limo carrying an Austrian governor, Joerg Haider, crashed at 88 mph Saturday night in Klagenfurt, Carinthia, kiling the Neo-Nazi sympathizer. No mourning needed for the vehicle or its occupant.
WAGE TRENDS AND COMPARISONS: It goes without saying that wages and labor issues have moved to the forefront of operator concerns. Here are the latest findings from payscale.com on what chauffeurs are earning, based on experience and region of the country.
IS MAIN STREET LIKE WALL STREET? That's the big question facing chauffeured operators nationwide as the U.S. financial sector skids into an irrational, full-blow panic. LCT Magazine would like to hear from operators. What's going on in your area/market? Is the sky falling? As an industry, it's important to get the right perspective and the right-sized picture. Whatever drama plays out in the media, it's the daily grind that tells the most truth. Please e-mail us at martin@lctmag.com or jon@lctmag.com, or just post an observation or comment below.
FINANCIAL TIP: Any investment advisor who down-played investments in gold or gold-related mutual funds since the early 2000s has been proven a moron. It's also interesting to note how the "grandma and grandpa investments" of gold, CDs, bonds, Treasuries, blue-chips, and just plain old cash in the dresser have proven right. And how gambles in home equity loans, real estate speculation, exotic fringe mutual funds, restaurant stocks, and global/international mutual funds have proven. . . well, less reliable than a slot machine in an Atlantic City casino. -- M.R.
Highland Park, Ill.,
chauffeur Leonel Cesar has been getting criticized by parents for calling the police on drinking teens in his limo bus after being unable to reach the parents. "We know we are going to lose some business," said Any Time Limo General Manager Alex Mich. "It's not about the money; it's about doing the right thing." While the kids are underage, the parents say it was better and safer to use the limo and let the teenagers drink rather than let them drink and drive. It's a tough call, but the chauffeur was following company policy and his boss backed him up. This has happened several times in the past 2-3 years. Prom business can be tough to handle, just like winery tours.
During a time of economic downturn, there are still geographic zones that are doing well - neighborhoods where residents value luxury ground transportation. Chauffeured transportation companies will always provide rides for those who can pay for it.
Forbes did a nice job of rounding up data that might help you beef up your business plan. For Forbes' top 500 list of top dollar zip codes,
California neighborhoods house half of the list; New York, Connecticut, and Florida, also host rich residential zones. Read on for more information including real estate sales trends.
Here are the most typical news stories you can read about limo operators in online newspapers:
-A local operator provides rides to kids going back to school or prom.
-A car crashes into a limo causing harsh or tragic consequences.
-Taxi drivers and owners complain about limos taking rides from them at airports or hotels.
-Cities and states pass new regulations and fees squeezing limo operators.
-A start-up story on a new operator in a small town.
Here's one about three young dudes starting up Go Limo in Columbia, Mo. They've got a bright pink Hummer stretch and plan to buy a Prevost coach bus. Whatever the point of these stories is for local papers, it's good that they industry gets more coverage now than a few years ago.
MAYBACH MADNESS: The chauffeured saloon, the most expensive, luxurious, and exclusive livery sedan worldwide, debuts at the Paris Auto Show. It may not be the best investment during a recession, but it could work in areas where the rich keep spending regardless of overall circumstances. The Maybach makes the Mercedes S-550 look a bit basic.
On-time performance for U.S. airlines was up - more than a year ago and more than the month before. While it may sound hard to believe, canceled flights are down, too. (Our experience lately has been that early morning flights are on time and afternoon/evening flights get delayed because of cancelations.) Read more in the
USA Today travel section. If you don't believe it, ask
FlightView what they've learned lately.
The credit crisis drove down U.S. auto sales in September - read all about it in this Detroit News piece (a great newspaper to look at regularly to follow the auto industry, by the way). During retail sale downturns, automakers are usually open to making good incentive deals with fleet buyers - this might be a good time for you to make that happen.
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ELECTRIC CHARGE: Silicon Valley-based Tesla will be offering a $60,000 five-passenger luxury sedan powered by lithium-ion battery packs. It's part of the company's new $250 million assembly facility where the first sedans are likely to roll off the assembly line in late 2010. The new plant is expected to produce at least 15,000 sedans — up to 30,000 with the addition of a second shift for sale in Europe and the U.S.
Read more in BusinessWeek's coverage.
Ten tips from the NFIB on how to keep your eyes on the prize during crazy economic times.
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Chauffeured transportation operators and coachbuilders will usually mention United Arab Emirates and its gleaming, expanding city Dubai when talking about what they're focusing on in key international markets. While the Middle East is a tension zone for the U.S. in the post-Iraq war era, it's also a very important region for economic expansion and travel, and UAR plays an important role in this transition. It's not uncommon to see press releases on chauffeured services being started up in the area,
such as a program linked to UAR's fairly new, growing airline, Etihad Airways. Dubai is a dynamic urban center today - it's now home of the world's tallest tower and other eye catching sites. It's also the focus of a
corruption scandal, but it is an important business center for those tracking international markets.
HYBRID-LUXURY:
Mercedes-Benz will unveil its first hybrid luxury sedan in 2010, the same year that will be the Lincoln Town Car's final model year. A review of the 2010 Mercedes-Benz S400 BlueHybrid.
Mercedes, which provides the S-550 as a staple of European livery markets, appears to be aiming toward a larger share of the U.S. sedan service market.
Mercedes made a noticeable mark on the trade show floor of LCT East earlier this month, with its 550 and new R-Class models.
Economic and automotive forces will redefine the next decade of luxury transportation: green, sophisticated, stylish, and solid. -- M.R.
The U.S. Senate just passed a $25 billion loan program for automakers building fuel efficient vehicles. The House also passed this bill on Wednesday
and President Bush is expected to sign it by end of day tomorrow. Automakers have been lobbying hard for this money for nearly two years as they feel the pressure of increasing vehicle fuel efficiency at least 40% by 2020. To reach this level, automakers' costs will be more than $25 billion, but they've been asking for a cost-saving loan program such as this one. Detroit was able to get what it needs during days of $700 billion loan clamor.
The New York City Taxi & Limousine Commission has extended the new car purchase 25 MPG mandate on taxis out another month until the end of October. This happened after taxi owners sued the city, and the TLC is waiting for a verdict.
Read all about it - this will impact Black Car operators and their Jan. 1 start up, and Luxury Limousine operators are closely following the story.
AVIS GETTING AGGRESSIVE: Avis seems to be accumulating a lot of attention lately, as it asserts its rental and chauffeured vehicle services.
The global travel community has just named Avis its favored rental vehicle company. Its 40% stake in Carey and foray into South Florida chauffeured markets are giving chauffeured operators fits, since Avis doesn't have to play by the same rules.
Look for coverage on the escalating battle in South Florida on LCT's e-newsletter and future issue of LCT Magazine.
The NLA, the Florida Limousine Association, the West Florida Limousine Association, and the Florida Ground Transportation Associaton have created a strong, united front on tackling this issue that could have unprecedented consequences for passenger safety, regulatory integrity, and future operator business models. More to come in LCT -- online and in print. -- M.R.
LOTS OF LINCOLNS: The venerable Lincoln Town Car has been ranked No. 6 on Forbes' list of Ten Easiest Cars to Bargain For. The Cadillac Escalade, also a major livery vehicle, ranked No. 4. The complete article here. This is a good time to buy 2008 models, since the 2009 model season starts Oct. 1 and 2008 has been one of the slowest sales years for Detroit's Big Three.
New York City is the obvious center of turmoil in the financial industry downturn. What other cities are tied into this mess and could also be going through tough times? According to
an analysis piece in Business Week, "the impact of a downturn could be more serious in smaller cities that are less diversified. Wilmington, Del., where many of the nation's credit-card companies are headquartered; Charlotte, N.C., home of Bank of America and Wachovia; and Sioux Falls, S.D., where many back-office jobs are located, each have about 15% of residents working in finance, real estate, and insurance."
This is a time of change in the chauffeured transportation industry, as many operators downsize, merge, and look for new customers. If you're in a market directly affected by the financial industry crisis, one of the best moves is finding out what other operators are doing to expand their business as the economy staggers from one punch to the next. LCT Magazine will be covering this, and we'd love to hear from you on what you're going through now, good and bad. You can click the Feedback button, or send an email to me at jon@lctmag.com.
-- Jon LeSage
VOICE AND VOTER OF REASON: Former General Electric CEO Jack Welch enjoys a high-degree of respect and stature in the financial world. Thankfully, he retired seven years ago before the Wall Street madness hit, and has spent enough time gaining perspective and becoming qualified to advise and consent on all matters economic. His latest views. -- M.R.
A LIMO TANK? Mercedes-Benz has released a steely limousine fit for the age of terrorism -- or any freeway full of clueless motorists.
The primary selling point obviously is its stalwart security features that can withstand concussive attacks and protect the human cargo within.
Given the latest wrath toward CEOs and investment idiots on Wall Street, chauffeured transportation companies may want to add one of these to their fleets for clients who want to AVOID THIS. -- M.R.
JIM LUFF REPORTS AND RETORTS: LCT's contributing editor and indomitable operator sounds off on his story about pole-driven party buses in the September issue. . .
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What are the most popular green car models these days? Knowing this might help you make fleet decisions and promote green choices to your customers...
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We've changed the Feedback button and gone back to how we started. You can post comments and they'll go up immediately. We'll be checking the blog a few times each day, and editing feedback if it goes out there too far and causes damage. The good news: nearly all the feedback we've received on LimoLicious has been good to read, so please keep it up.
WILDER THAN A PARTY BUS RIDE: These are brutal economic times, which justify some blunt talk. What is particularly frustrating for so many business owners and consumers is the sheer complexity of the unraveling investment world. Clarity becomes a highly-valued commodity amid the pain and uncertainty. One Bloomberg News columnist offers some refreshing insight. This is too big of a debacle to simply say everyone is at fault. Because when everyone is at fault, no one is at fault. So the blame game must go hand-in-hand with the economic explain-game. The other truism that emerges from the collapsing house of cards is that we should have never stopped listening to our Depression-era grandparents. They have been proven correct on financial advice and sensibility over and over and over again. All that talk about saving, investing conservatively, maintaining integrity, and delaying gratification applies to all generations in all types of economies.
For smaller operators and business owners, the one sliver of a silver lining could very well be that Main Street will fare much better than Wall Street. But this economic enema will be painful before the system is thoroughly cleansed. And chauffeured transporation companies that serve the financial industry, unfortunately, will suffer. Meanwhile, is it too flippant to ask if all those busy bodies in Washington, D.C., New York, and other major financial centers who are desperately trying to ward off a meltdown need comfortable, quality chauffeured transportation? Is it worth marketing to bankruptcy attorneys who may want to ease the pain of financial implosions by offering clients chauffeured service to their law offices? Chauffeured transportation needs to enjoy the same status as alcoholic beverages: A refuge and consolation in good times and bad. "Have a drink -- and a limo." -- M.R.
IS IT A CONTROVERSY YET? LCT Magazine Editor Martin Romjue addresses the latest industry kerfuffle which is now referred to as simply, “The Pole Factor.” Please click on. . .
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LAH President Joe Jordan also sent out
this link to a Boston Globe piece packed with photos from the hurricane and its aftermath.
A few days ago, Joe Jordan, president of the Limousine Association of Houston, sent out the following status report on Hurricane Ike and what it's like to live in the aftermath...
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LUXURY LEASES STILL AVAILABLE: For all the credit compressing and squeezing going on amid the yo-yo meltdown, auto companies are still
actively leasing out vehicles with no discernible downturn since the beginning of the year, according to
Swapalease.com. In fact, the leasing stability is good for the luxury auto industry, which of course, provides the vehicle staples to the chauffeured transportation industry. -- M.R.
How is it that airlines are losing money now that fuel prices are dropping?
Some have set up "hedging" deals, which means they locked in fuel purchases at let's say $110 a barrel and then it dropped to nearly $90 a barrel, even though it had gotten up to $140 a barrel not long ago. There are a few large operators that have set up hedging fuel programs and may also be regretting the seesaw ride fuel prices are taking them on these days.
California's Public Utilities Commission is
banning cellphone use by train engineers a week after a Metrolink crash in Los Angeles took 25 lives and badly injured other passengers. The engineer was text messaging that day, though it's not clear yet whether that was the cause of the collision. The PUC also oversees chauffeured transportation. California, like many other states, recently banned the use of hand-held cell phones in cars, requiring drivers to use speaker phones or Bluetooth. Communicating with chauffeurs in California and several other states should be regulated by operators and not so much by state governments.
After calling the financial market conditions the worst since the Great Depression, the Wall Street Journal ended its analysis piece looking at what's going well in the U.S. economy...
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Here are a few to look at, and stay tuned for an upcoming issue of LCT Magazine, with lots of show photos, and coverage of the first-ever Green Fleet event.
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JIM LUFF REPORTS: It was Friday afternoon and the day could not have been any busier both in my business life and my personal life. As the president of a children's charity, I was preparing to throw our biggest fundraiser the next day: A party for 6,000 people. I was feeling overwhelmed already when I was informed that we had a major emergency involving one of our cars in Paso Robles. . .
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FOURTH-ANNUAL EVENT HELD ITS OWN: Despite economic setbacks and operator fears, the LCT Eastern Conference scored a coup of sorts: More than 600 attendees. Given the challenging circumstances, that figure points to a lot of hope and optimism. While plenty of operators nationwide are taking some business hits, many of the operators at LCT East reported either flat or rising revenues. The trade show floor maintained steady traffic throughout the event, and the seminars this year served up specific, targeted information for improving operations and finding new ways to pursue markets and make more money. (NOTE: Obviously, these observations were made, and conversations held, before Monday's horrific global market meltdown).
Key industry trends crystallized at the show: 1) Unprecendented regulatory and political challenges on the horizon; 2) fast-moving acceptance and demand for greener vehicles; 3) a recognition of the central role that online marketing, media, and communications will play in future chauffeured industry marketing and transactions.
Based on attendee behavior, we concluded the networking and social functions were a success. LCT-sponsored events repeatedly prove to be the most relaxed, informative, and creative networking "portals" for savvy 21st Century chauffeured transportation operators. See you at International LCT Show 2009 in Las Vegas. -- M.R.
FINANCIAL FURIES: We won't recite all the headlines of today's Wall Street fiasco, but there is one nugget in a Reuters story that explains the consequences for the chauffeured transportation industry:
New York Gov. David Paterson said Wall Street might lay off 30,000 workers in a worst-case scenario.
That's 30,000 well-paid Wall Street financial managers and movers, many of whom use chauffeured transportation. This would only compound the downturn in business this year experienced by the industry's largest companies, such as Dav El, BostonCoach, Empire CLS, and Carey International.
Ditto for countless affiliates and independent operators who rely on referrals and farmouts. So far, this industry's leading pessimist, Scott Solombrino, CEO of Dav El, has nailed it. He has been predicting unfolding events with remarkable accuracy. See a Q&A with Solombrino in the upcoming October issue of LCT Magazine. -- M.R.
I'm in my hotel room right now in Chicago, getting ready for Green Fleet tomorrow and Tuesday. I'ven been watching news coverage of the Texas hurricane, hoping for the best and wondering how operators I know are doing right now. Probably in another city waiting to drive back to Houston and sift through the damage. Galveston was drenched in flooding and other areas hit including Lake Charles, Louisiana. Here in Chicago, we've been drenched in rain, connected to the hurricane. Streets have been flooded out; I went to interview Sal Milazzo, one of the Windy City Limousine owners, this morning at their sharp looking new HQ. Some of the streets have been completely flooded out, so we had to take an alternate route to the office.
LCT East went well. A few less people than last year - about 600 this time. But the ones who made it are doing well and were glad to be there. Operators love to hang out with each other and talk shop, no matter how busy and crazy their work days can be. And it was great to be at the Mohegan Sun again. We'll cover LCT East more this week, and Green Fleet, here in LimoLicious, and in the November issue of the magazine. --Jon LeSage
AIRPORT SOLUTIONS: In this small city northeast of Vancouver, B.C., operators are now allowed to pick-up arriving passengers curbside, without a prior reservation. The enlightened town council has authorized walk-out limo service, enabling passengers to hire a limo on the spot. This obvioulsy will bring more business to the region's limousine operators, since passengers can see, compare, and choose among ALL ground transportation options. It's refreshing to see government actually make life easier for operators, instead of continously trying to tax, regulate, nag, marginalize, or deter them, as is the case at so many airports nationwide.
The council simply came down on the side of common-sense business fairness -- if arriving passengers can choose between a taxi, shuttle service, or municipal bus, why not put limousines and livery sedans into the mix? Just as a shuttle service reservation can be made after claiming baggage, the same opportunity should apply to imousines and black sedans. Those preferring advanced limousine reservations can still make them and be greeted by a chauffeur, not having to worry about first-come, first-serve. But once presented with the availability of superior limousine service, many passengers likely will become loyal customers. There's nothing like seeing a comfortable, elegant Town Car, or stretch version, parked alongside a yellow cab, a bouncy blue shuttle bus, or a packed city bus. -- M.R.
SILVER LININGS: An article in the
Ocala Business Journal today proves that fuel prices do not have to be bad for business. It's all a matter of how you work with what you have.
This Florida operator makes fuel prices work to his advantage.
As always, even negative events can bring new opportunities. Pricing, packaging, and promotions allow for a lot of leverage when the economy starts to lurch in unpredictable directions. -- M.R.
HARNESSING HYPE: One sure way for an operator to gain lasting exposure, connections, and clients is by getting a TV or movie gig.
Best Transportation of St. Louis will
hit a high-profile this fall by providing limousine service to a local family getting their home made over for ABC TV's "Extreme Makeover: Home Edition."
Another operator,
Head Limo of Las Vegas, Nev., is profiled in this month's issue of LCT for having been the limousine company featured on VH1's hit reality show, "
Flavor of Love," starring rapper Flavor Flav and former supermodel Brigitte Nielsen. Owner Ricky Head, standing 6-feet 9-inches, and Flavor Flav are pictured above.
As LCT Magazine prepares for its International LCT Show in Las Vegas in January 2009, the event theme, "
Reach For the Stars," can be taken literally in the pursuit of celebrity-studded transportation opportunities. -- M.R.
Hurricane Ike is passing over Cuba on Monday, Sept. 8 and is on its way toward Galveston and Houston by Saturday, according to Stormpulse.com, which uses data provided by the National Hurricane Center. Hurricane Gustav is over and caused much less damage than did Hurricane Katrina in New Orleans and the Mississippi coastline... here's wishing the best for Texas.
Here's a press release on how things have gone in New Orleans since Hurricane Gustav passed through last week. It wasn't as devastating as Hurricane Katrina in 2005, and the city was much better prepared this time.
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POWER TO THE PEOPLE: A recent
consumer survey shows that despite -- high gas prices, global warming hysteria, alternative fuel options, carping over carbon footprints, sniping at SUVs,
finger-wagging bout consumption -- Americans still want their S-U-V.
For the chauffeured transportation industry, this should be encouraging and a sign of reality. When SUVs burst onto the motoring scene in the 1990s, many Americans found them to be ideal: roomy, comfortable, practical, safe. Ask any family with two or more children who are regular Home Depot customers; the preferred vehicle of choice is the SUV -- not the hatchback, the station wagon, or the VW Bus.
In America, like it or not, market tastes dictate material production. That's why the chauffeured transportation industry should proudly promote the SUV, whether it runs on black or green fuels, as the ideal way to get around. There is nothing to be ashamed of, and don't let the environmentalists badger your business. People who buy SUVs will be receptive to reserving them when they want to be chauffeured. Thanks to SUVs, and the Lincoln Town Cars, the most comfortable and pleasurable part of air travel are the trips to and from the airports. -- M.R.
IT'S JUST SO SOUTHERN CALIFORNIA: A Santa Monica-based limousine company has found a unique local clientele -- a niche known worldwide but endemic to this area:
LIMO REHABBERS!
Yes, if you are rich, beautiful, and famous, and can only cope with it all through drugs and alcohol, there's a limo waiting to take you to a posh Malibu rehab facility.
Lindsay Lohan, Robert Downey Jr., Nick Nolte, Ben Affleck,
Amy Winehouse, . . . these discrete limos are for you.
Carrington Limousine deserves credit for finding a market niche distinctive to its local area and for thinking outside of the livery box. At LCT, we admire operators who dare to milk new markets during an economic downturn, proving there is ample opportunity everywhere.
And rehabbers are always recession-proof. As long as Hollywood churns out the young and the senseless, rehab facilities will enjoy a steady clientele dropped off in luxury chariots. -- M.R.
Take a look at the new website offered by the U.S. Dept. of Energy, called
Fueleconomy.gov. There is a lot of good, useful information from a respected source of transportation fuel trends. Some of the benefits of visiting the site include: comparing new vehicles for purchase by mileage, emissions, and safety ratings; where to buy fuel nearby for the cheapest price; details on alternative-fuel vehicles; tax incentives for purchasing diesel-powered vehicles; and late-breaking news stories. It's a warehouse of information on a subject that's becoming top-of-mind for many operators.
GUSTAV BLOWS BY, OIL PRICES BLOW THROUGH THE FLOOR: The price per barrel of oil is plummeting toward a $100, which sounds cheap given the $146 per barrel horror of a few months ago. An
L.A. Times story offers this hopeful tidbit for operators:
Fadel Gheit, senior energy analyst for Oppenheimer and Co., said he wouldn't be surprised if oil returned to the $50 to $60 levels of roughly a year ago.
"Demand for oil from China is slowing down," Gheit said. "In Japan and Europe, the developed economies are slowing down also. All of these factors will be bearing down on oil prices in the coming weeks and months."
WOW. If that indeed comes to pass, then all of our collective panic and dread will have seemed a bit foolish. And the speculators will look like the temporary culprits. The fossil fueled era of chauffeured transportation isn't quite over yet, and may just have a few acts left. While the above prediction would be universally welcomed, it cannot provide long-term comfort. The trends this latest spate of oil prices unleashed -- smaller, greener vehicles, less miles driven, more use of livery buses, the quest for alternative-fueled limousines, fuel surcharges -- should continue until the U.S. achieves a more diverse mix of energy sources, including for oil. But what a relief if we don't have to put up with $150 per barrel oil on the way there. Let's keep those Town Cars rolling. . . -- M.R.
From Sept. 1 to Sept. 30, 2008, Ford Fleet – Limousine & Livery Vehicles is offering the following purchase incentives on 2008 models...
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If you're transporting clients next week to the Republican convention and they ask you about sightseeing during downtime, you might want to take them to
CivicFest, which shows off the history of the presidency, democracy, and Minnesota. A selling point: you get to see a real, historic presidential limousine. CivicFest runs August 29 through September 4 at the Minneapolis Convention Center.
AND THAT'S GOOD FOR LUXURY: Somehow politicians have led us to believe that rich people shouldn't get richer. But if they do, what is so wrong with that? Especially since, in America, the ranks of the rich are full of people who once were poor. So, if the rich get richer, won't they want to use more limousines and chauffeured vehicles? Among its diverse mix of clients from various socio-economic strata, the limousine and chauffeured transportation industry caters to a vast luxury consumer segment, or those people constantly demonized for being among the top 5% of wage-earners.
The lastest IRS figures show the ranks of those Americans with a net worth of $1.5 million or more increased between 1998 and 2004. As we've referenced before here on LL, the bread-n-butter wealthy clients of chauffeured transportation appear to be holding their own. -- M.R.
BUT, BUT, BUT . . . CATASTROPHE IS IMMINENT? We're starting to think the search for a recession resembles the search for WMDs in Iraq. From global meltdowns, to credit crunches, to soaring gas prices, to housing plunges. . . GDP still managed to grow a stunning 3.3 percent in the second quarter, IN SPITE OF, all the oracles of doom.
Story here. Where is the beckoning precipice to economic misery? Could everyone be cutting back on spending because, well, "everyone else is doing it?" One thing we can say for sure: No matter how much or how little the economy grows, economists will always predict it's precarious. So now, economically, we have made it through June 30, 2008 without a GDP contraction. A recession qualifies as TWO consecutive quarters of negative GDP growth. Although the chauffeured transportation industry has contracted by 4% of all operators, is that really because of economic reality on the ground, or clients cutting back because we all BELIEVE there is a recession? -- M.R.
WEEKEND WORRIES: There will be 320,000 less Americans traveling over Labor Day weekend, according to AAA Chicago. Approximately 28.64 million Americans expect to travel by automobile, a 1.1% decrease from the 28.97 million people who drove to their holiday destinations last year. Almost 3.96 million Americans intend to travel by airplane, a 4.5% decrease from the 4.14 million people who flew last year.
Once Labor Day weekend is over and people start going back to work and school, transportation will pick up. How much? Nobody knows for sure, but some operators and coachbuilders are starting to see things pick up a bit now and have hope for the future.
California Insurance Commissioner Steve Poizner is lobbying the state legislature to support his "pay-as-you-drive" insurance plan,
where drivers would pay insurance rates based on how many miles driven per year. The article doesn't mention drivers who go beyond the normal average of 15,000 to 20,000 miles per year in their personal cars. What about a chauffeured transportation vehicle that's running 50,000 or more miles a year? What would that cost compared to insurance rates paid by the industry today? Will transportation companies be considered seperately and be able to negotiate fleet discounts? This has to move through the state legislature, but it sounds like it could go over and be adopted.
. . . BUT NO LIMO CUTS? The Los Angeles Times posted a
disturbing main story in its Business section today that focuses on brides who are trying to save money on their upcoming weddings. Upon first reading this, you would think the limousine is a first hit. But the article, whether out of apathy or accuracy, fails to mention any limousine services or companies, or any brides ditching the stretch for the perfect day. That doesn't mean operators are in the clear, and underscores the need to not take weddings for granted as a supposed recession proof market.
In fact, operators need to aggressively promote their wedding services, along with bachelor and bachelorette outings, as basics, or essentials, to any complete wedding. If brides are cutting back, then let them skimp on the food, flowers, guests, and/or location -- not the limo. After all, once the bride and groom step inside the stretch to head to the reception and then to the honeymoon, it really is all about them. And a limousine always makes for a happy threesome. -- M.R.
FORTIFIED CHAUFFEUR SERVICES: We didn't think we could find a limousine more massive or militaristic than a Hummer or a Craftsman, but there it is.
The
tank limo could have many uses beyond the usual bridal scene; birthday parties for boys, for one. In fact, there is a
whole market for tank-themed limos, which we never knew.
And this week and next, the DNC and RNC no doubt could recruit this tank limo for patriotic purposes. But the political parties need to be careful. They certainly wouldn't want to repeat
THIS. -- M.R.
Insurance costs are up for limousine operators in New Jersey and other states. The Limousine Associations of New Jersey gave its seal of approval to Livery-sure, an insurance product created by LANJ members Tony Mahon of AJM Insurance Management, Inc. and Brad Post of PA Post. Mahon was originally asked by the association to find an insurance program that could meet the needs of all members. “One of the problems at that point is that we were dealing with a hard market in the insurance industry,” Mahon says. “What was out there was expensive and we wanted to find an insurance program that could somewhat stabilize costs.” The program covers everything: auto liability, physical damage, general liability, property, workers compensation, EPLI, bonding, umbrella, and health and life.
Click here to visit the Livery-sure website. LANJ wants to get the word out to all other state associations and encourages them to set up something similar to help their members get more control over insurance.
HOLDING ON: A business story about a
limousine operator near Daytona Beach, Fla., shows how many operators are struggling to hold on. The story in the
Daytona Beach News-Journal contradicts the industry myth that weddings, bachelor parties, and prom nights are recession-proof markets.
So far, 4 percent of operators nationwide have gone out of business, according to Richard Kane, president of the NLA, who was quoted in the article. So while the nation's GDP growth may be hovering somewhere between 0 and 1.5 percent, the chauffeured transportation industry has seen a 4 percent contraction. That's an industry recession.
While the truth hurts, LCT Magazine and this LL blog have provided ample ideas and suggestions to get creative during a recession and survive. That approach also will be prevalent at the
LCT Eastern Conference coming up Sept. 11-12 at the Mohegan Sun Resort & Casino in Uncasville, Conn. Just click on "Market Trends" and "Going Green" for starters. -- M.R.
SKIMPY LIVERY: A newlywed couple near Toronto and their limousine provider had a late, wedding night spat. Whether it was a miscommunication or incompetence, this type of an incident should be avoided at all costs. When bad word of mouth gets
into the newspapers, you have problems. There is never an excuse for an operator to leave a bride stranded. -- M.R.
DRIVING DEFICIT: The shortage of limousines at this week's Democratic National Convention has been getting a lot of media coverage - most of it with an
ironic slant on how strange it is that a party attempting to represent working and middle class voters would be upset about not having enough limo rides for their convention. Limousine operators providing stretches, buses, sedans, and SUVs at the DNC is nothing new, nor at the Republican convention. It's good business for operators, but it's tough to have enough vehicles ready to work such large events. And you wouldn't buy another 50 vehicles to work party conventions when they won't come back to your city for another 100 years.
Read on for information on booking and getting a discount through today, and Mohegan Sun room rates. We're all very much looking forward to attending the 4th annual LCT Eastern Conference.
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SO RENT A LIMO FOR THOSE SHOPPING SPREES: Rodeo Drive in Beverly Hills shows no signs of recession, as consumers with liquid assets of $1 million and up shop as if there's no economy tomorrow.
A report in the Los Angeles Times takes an upbeat look at the Jimmy Choo crowd. The article cites luxury retail experts who appeared on a Beverly Hills panel in March that was covered in LCT Magazine; their predictions were correct.
For chauffeured transportation providers, look out for your luxury clientele. If they can shop without a pocketbook drop, then they can roll out the dough for a limo. -- M.R.
Limo Bob Strausser is quite a character. A Chicago-based limo operator and custom coach builder of extreme stretches, Bob has been on cable TV and in plenty of photos with his gold chains, gold rings, sunglasses, loud outfits, and big smiles. He even spoke on a panel at LCT East two years ago, to a packed room. The
Herald News ran a nice story on him.
TRANSPROTECTION: One of LCT's first Canadian OOY finalists was
profiled recently in the Calgary Herald, a newspaper in Calgary, Alberta where
Transprotection Security Services is based. Owner Judy McBride, pictured here with LCT Publisher Sara McLean, ranked among three finalists for the first-ever Canadian Operator of the Year Award that was announced at the LCT Canada Conference July 20-21 in Toronto. The OOY award went to Global Alliance of Toronto, owned by Joe Ironi, with McBride and Craig McKutcheon of Rosedale Livery Ltd. of Toronto as finalists.
One minor correction: The article incorrectly mentions that McBride was chosen among 100 entries; there actually were about 100 ATTENDEES at the conference, but the three finalists were chosen from a much smaller pool of actual Canadian ENTRIES to the OOY Awards.
Congratulations to Judy McBride and her unique, high-end chauffeured transportation concept.
LEAVE THE LIMOUSINES ALONE: Limousines and black livery vehicles are an age-old target of government do-gooders, regulators, and spiteful bureaucrats. Chauffeurs at Phoenix's Sky Harbor International Airport delivered a strong, anti-regulatory message Friday by borrowing a tactic from the unions.
STORY HERE. It appears as if the longstanding discrimination that favors cabs has pushed operators to the breaking point.
The protest proves that the chauffeured transportation industry must remain vigilant and exert whatever pressure possible to bring government officials and regulators to the table. Fees and fines for operators have become excessive in cities and districts nationwide. A lot of educating is needed for the public sector busybody set. -- M.R.
SO JUST STRETCH IT! Attendees to the upcoming DNC in Denver are scrambling to line up airport and about-town transportation. Even taxis, shuttles, and public buses may be overwhelmed.
Story here.
But you can still get a stretch limousine with some operators. It appears as if the cost and the visibility of stretches may be a bit intimidating to delegates, dignitaries, lobbyists, media scrum, and hangers-on headed to the "greenest" convention in history.
Well, LCT Magazine has a solution for those inclined to act illiberal toward the limousines: Fear not the luxury chariots for hire. When you put three or more people into a stretch limousine, you are doing the greenest thing imaginable. You take single-riders out of cabs and rentals. A Town Car stretch is not an SUV, not a bus, not a dingy cab -- it's comfortable, classy transportation that uses the same or less gas. For groups of DNCers still looking for ground transportation, being a group of limousine liberals in this situation equals being good green citizens. So, stretch out and pull up in a stretch, and wave at the plebeians stuffed in the shuttles.
BTW, the Rocky Mountain News misspelled the name of
GENE COOK-EN-BOO, the owner of
Presidential Worldwide Transportation of Denver and president of the Limousine Association of Colorado. -- M.R.
"No Comment" never works. . . Whether it's a corporate merger or a secret relationship. . . Haven't we all figured that out by now?. . . .
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LOOKING FOR LIMOS: The impending limousine deficit at the Democratic National Convention serves as grist for a lot of ridicule and blogger Schadenfreude. . . .
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DENVER LACKS LUXURY RIDES: As thousands of delegates and media hounds descend on Denver later this month for the Democratic National Convention, some VIPs may have to settle for taxis, buses, or the ever-green option of bicycles, to get around town. . .
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VICTORIOUS VEHICLES: This is one race we hope hydrogen vehicles will win for the long haul, as in the competition for alternative energy vehicles. Maybe one day LCT can host a coast-to-coast hydrogen limousine luxury tour with stops at Ritz-Carltons across America. . . .
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BOSTON COACH/ENTERPRISE: Two leading companies in chauffeured transportation and rental transportation recently changed leadership hands, according to a report out today. LCT already has reported on the new CEO at BostonCoach. . .
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IN ITS TIRES. . . As part of its recent greening efforts, EmpireCLS Worldwide Chauffeured Services, the third-largest chauffeured transporation company, is using nitrogen to inflate its fleet tires and save on fuel costs and carbon emissions.
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HYDROGEN! Let's hope this highway and many more get built. Today kicks off the Hydrogen Road Tour, featuring a coast-to-coast convoy of hydrogen vehicles from several different automakers.
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Another story on a limo being used in a bank robbery, this time in the Pittsburgh area. This isn't the first time limos have been used in a crime. It's one of the weird parts of being in this industry, and it makes questions come up. Who owns this limo? Was the operator or chauffeur involved in the robbery? Will the police make this information public? Weird things definitely happen to transportation companies in this country, just ask somebody in the car rental industry.
Here's a letter from Connie Ray Montoya, marketing/program manager, Cadillac Professional Vehicles at General Motors. Angela Jurson initiated the CPV program back in 1991 and is now back playing a leading role in the new team.
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LOS ANGELES TIMES: Chris Hundley, owner of
The Limousine Connection in North Hollywood, Ca., is the featured small business of the week profile on today's
Business section cover. Hundley stands as an example of an operator who manages to boost business during tough times. The profile neatly summarizes what LCT Magazine has reported about Chris and his company in previous issues. Such articles are excellent public relations tools for limousine and chauffeured transportation operators.
HIGH-PROFILE CONTRACT: Dawson Rutter's
Commonwealth Worldwide Chauffeured Transportation will provide luxury vehicles for Virgin Atlantic's upper class passengers in New England.
Details here.
NOT THERE YET: No matter how much they worry and wring their hands, the economic doom and gloomers just can't get a break.
Latest reports show the economy still somehow manages to grow despite all the self-desiring prophecies of a recession. At LCT Magazine, we've heard enough anecdotal tidbits from operators who are making decent year-over-year revenue and/or profit increases to make us conclude that this industry is not quite in the doldrums. In fact, 95 percent of Americans are still employed; 96 percent of homeowners are paying their mortgages. . . With all the fear and scare talk, maybe more consumers should just chill out in a limo about the town. -- M.R.
NEW POLL: When 51 percent of people living in California -- one of the most ecologically correct, environmentally zealous, and politically liberal states in the union -- say they want to drill for more oil offshore, something significant is happening: Reality.
San Francisco Chronicle poll here. As much as chauffeured transportation and other sectors of the industry want to go green, oil and gas will always be part of the mix. Fleets may increasingly become more green, but a certain percentage of our transportation spectrum will operate on fossil fuels for years to come. So let's not junk those stretched, premium-sipping, limousines just yet -- we'll need them as much as we'll need hydrogen, hybrid, fuel cell, propane, CNG, and electric vehicles in the future. Power to the people. -- M.R.
Just like everyone else, operators are deeply affected by natural disasters, and yesterday's L.A. earthquake raised the issue again. Fortunately, no one was injured and no property damaged, at least with what's been reported so far. The hurricane that hit New Orleans and other south coast shores in 2005 was a different story. Some operators were very involved in rebuilding transportation in the area after the disaster, and some were driven out of business. Having a disaster recovery plan should be on your Things to Do list - you never know what could happen. The
U.S. Small Business Administration website offers some useful content on disaster assistance.
The 40th annual National Business Travel Association (NBTA) convention is happening right now in Los Angeles, and LCT editors are attending.
Click here to read all about it - speakers, seminars, press releases, etc. EmpireCLS put out a press release on its green program, and there are other announcements to look at.
It's coming right up again: the 5th annual LCT Eastern Conference at the Mohegan Sun Resort & Casino in Uncasville, Conn. The LCT Events department has just put out this press release with information on the two-tier conference line-up, designed for small and start-up operators and larger fleets.
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Traffic and weather conditions are always on the minds of chauffeurs, dispatchers, operators, and clients. There are a lot of online sources on these subjects tied into wireless hand-helds and computers.
This weather site is helpful to visit and is owned by the Weather Channel, which has been the main source of news on the subject on cable TV for many years. Hope the weather is nice in your town. You might need to read a three- or 10-day weather forecast and revise plans accordingly.
Ford's Limousine & Livery Manager Doug Walczak is sending out a letter to the industry on the "black car" MPG rules in New York City, and a method for changing over Town Cars and not having to only purchase hybrids. His detailed letter is presented here and is valuable for operators to read.
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HOPE ON THE HORIZON? Oil futures aren't looking to good -- for the speculator dogs, that is. This
L.A. Times blog offers hints that the price of oil is about to plunge off a cliff. That would be good for all sectors of transportation. We only hope that the speculators lose so much money, they'll have to get jobs washing limos. -- M.R.
COMMONWEALTH CEO PRAISES NEW BOSTONCOACH CEO. . . . SAID: NO BAD BLOOD. . . A GOOD MOVE. . . NOT A SETBACK FOR COMMONWEALTH. . .
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BACK FROM TORONTO, Martin Romjue, editor of LCT Magazine, sounds off on the first-ever LCT Canada event and confronts those questions that could drive one to drink . . .
(PHOTOS ON THE WAY THURSDAY AND FRIDAY)
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WE'RE BACK: Jim Luff shares his "behind the scene" experiences from LCT Canada. Our conference for Canadian operators was filled with surprises starting with a 5:00 a.m. hotel fire.
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CLARIFICATION: Old media is backtracking on an outlandish comment they reported on Al Gore saying the U.S. needs to be "oil free in 10 years." Turns out, he didn't say
exactly that. Al Gore makes so many exaggerated remarks that you have to forgive anyone from hearing the worst. Leave it to his admirers and defenders in old media to always have his back. But we still wouldn't trust him as far as we can stretch a limousine. -- M.R.
NEW INDUSTRY LEADER HAS CHAUFFEURED EXPERIENCE: BostonCoach, the fourth largest chauffeured transportation company in the U.S., has just named Larry Moulter, who ran Moulter Associates, as its new CEO and president. Moulter provided strategic consulting services to companies such as Dunkin Brands and EMC, and served as a senior advisor to Commonwealth Worldwide Chauffeured Transportation of Boston, owned by CEO Dawson Rutter. Moulter succeeds former CEO
Jonathan Danforth, who left the position in January.
COO Mark Munoz had been running BostonCoach in the interim.
Click here to read the press release. -- LCT editors
BUT IT'S IN EUROPE: Despite recent economic downers, Ford of Europe reports strong sales growth for many of its models in Europe, where gas prices and costs of living are higher than in the U.S.
Information here. The battered Detroit auto industry can use just about any good news lately, even if it's from afar. Here's to changing fortunes for Ford closer to home.
What are the most popular airports in the world to travelers? Hong Kong International Airport was named Number 1. And what about U.S. airports?
None of them made the Top 10. And there were survey results from 8.2 million questionnaires that travelers filled out. You can find also find lot of articles online about U.S. airlines losing money in the last quarter, but it's not a big surprise - just talk to travelers. Americans are getting tired of the typical airline experience, and air travel is taking a downturn. Maybe they'd rather be driven around in chauffeured vehicles?
HAZY HOLLYWOOD: Negotiations between studios and the Screen Actors Guild are
still dragging on. The contract affects 120,000 actors in prime-time TV and movies.
For operators affected by this, it's a tense and worrisome condition during a year when the economy is going through other close calls. It wasn't long ago that the Writer's Guild strike happened - a 14-week strike that ended in February. According to this and other reports, the possibility of a strike is unlikely. Let's hope for the best.
ECB LAYOFFS: Executive Coach Builders of Springfield, Mo., recently laid off 33 employees, although 25 may return to work soon, according to a report in the
Springfield News-Leader newspaper. The coachbuilder employs 200 workers. The layoffs also were mentioned on a country music
station website in Springfield. ECB, to be profiled in LCT's August issue, is the second-largest coachbuilder worldwide and has reported strong sales the first half of this year. But the latest economic negatives -- Fannie & Freddie wobbles, higher inflation, gas prices, and stock market declines -- are taking their toll on business across the transportation industry. One veteran industry operator says the downturn is the worst in three decades. All the more reason to get aggressive, creative, and adaptive.
To reduce the thick, eye-watering air pollution in Beijing, the Chinese government is stopping commercial vehicles from operating in the city. Will this solve the problem? No, the country will have to revise its emission standards and invest in better vehicles and alternative fuels. But cleaner air will make the government look better during the Olympics. And you thought your town had tough regulations?
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LIMO GREEN: Lotus is working with Jaguar and other firms to develop the "Limo Green" hybrid executive sedan that emits less than 120 grams of carbon dioxide per kilometer (which is not much more than the 104 g/km the Toyota Prius emits). Lotus is also working on hydrogen fuel cell taxis, and is well known for helping Tesla Motors launch the Roadster. The
Wired magazine blog network just announced the new green projects.
PRIVACY, NOT PIRACY: Is this man hiding in the trunk of a limousine?
That likelihood is about as absurd as the accusations against a New York limousine company that it secretly videotapes its celebrity passengers in New York and Los Angeles.
BLURB HERE.
Given the source, a celebrity news website, these allegations are very likely bogus, but nevertheless amusing.
They demonstrate a paranoia toward DriveCam, a legitimate and revolutionary traffic videotaping technology that enhances operator safety, chauffeur responsibility, and liability protection.
While this spectacle is ridiculous, operators should beware of the false rumors that spread an old-school, salacious image of the industry. In fact, the use of DriveCam is an example of the growing sophistication of the chauffeured transportation industry. We hope more operators adopt
this valuable technology. -- M.R.
TAKING A HIT: For all the concerns about the rental car industry making inroads with luxury chauffeured transportation,
today's article in the Los Angeles Times shows that industry has plenty of problems and challenges of its own. Rental car customers increasingly insist on economy cars, for obvious reasons. Except, there aren't enough to go around. So maybe this could be an opportunity for the chauffeured transportation industry: Why rent a car to drive around an unfamiliar city when a chauffeur can take you wherever and when you need to go? It might be worth the industry's while to promote chauffeured packages for visitors who otherwise might get around in rental cars. From the customer's standpoint: No gas, no insurance, no driving hassle, no figuring out the GPS, and of course, as always, a comfortable ride with a professional chauffeur. From the industry's standpoint: Another way to build revenue and compete with rental car companies on their own turf. -- M.R.
FED UP WITH COSTLY OIL: If you click below, you will see a gutsy letter by airline executives to their customers about oil commodity speculation and its damage to their industry and the economy. It's about time top leaders in the limousine and chauffeured transportation industry did the same. . .
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Most operators get headaches when they think about having their offices inspected by the state highway patrol, public utilities commission, or some other agency. Stardust Cruises, based in Santa Maria, Calif., used this opportunity to put out a press release. Read on for a good example of how/why operators need to put out more company info to the media.
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IN OSLO, NORWAY! American don't want to hear it, but we still have it easy compared to the rest of the world in terms of gas prices and supplies.
A
Los Angeles Times article today compared per gallon gas prices worldwide. Venezuela and Saudi Arabia are much cheaper, but who wants to live in those hellholes?
What we're curious about is how Norwegian chauffeured transportation companies make a profit and survive.
Here is a
possible clue as to how Nordic livery companies choose their vehicles. Maybe there are some lessons for U.S. operators.
We may experience lots of pocketbook pain at the pump, but at least we can still pull up to just about any pump and fill up right away. We're still better off than motorists in the late 1970s (see picture above): High gas prices AND long lines at service stations. -- M.R.
. . . AND ACT LIKE YOU HAVE A REAL JOB:
How amusing to see that the two leading actors unions -- SAG and AFTRA -- have pulled a Hillary-Obama split. Actors are staging scenes from a real life skit: throwing a hissy fit.
But this could be potentially
good news for beleaguered limousine and chauffeured transportation operators in Southern California, many of whom are still recovering from the writers' strike.
Another economic hit courtesy of Hollywood actors would be devastating to the area's chauffeured transportation market.
We hope SAG keeps sagging and has no choice but to follow AFTRA's lead. Not that we particularly care about the compensation nuances for actors, or the differences between the unions, but their continued employment obviously keeps the limousines and chauffeured sedans and SUVs on the road.
California operators are models of service and stability, compared to the self-involved theatrics of the region's high-strung thespians.
This industry needs dollars, not more drama. So we hope we see more
actors on the J-seat instead of strutting on the picket line. -- M.R.
Jim Luff laments new legal trends impacting the industry, including the brand-new “hands-free” cell phone law in California.
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LICENTIOUS LIVERY: LCT's annual bus and van management issue is coming up in September. We'll have the latest coverage on how to get the most out of the growing industry niches of shuttle buses, motorcoaches, van pools, and the always alluring limousine party buses. What you won't see is any reference to
this Newsweek story. While recessionary times call for creative measures, the world's
oldest marketing approach just doesn't cut it. Our advice is to play it safe and legal
with the poles. -- M.R.
LCT editors will be taking a break until next week, so no more LimoLicious until then. We hope all of you have a great 4th of July weekend, and have even more fun than the dog in the photo. As for us, we've got visits to Virginia and Colorado in store, and really look forward to it. Then it's back to LA to work hard and have more summer fun.
Fourth of July weekend is not a good one for the limousine industry, but try to have a good time anyway, says Jim Luff.
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The Writers Guild strike earlier this year wreaked havoc for several LA-area limousine operators. The possibility of the Screen Actors Guild doing the same thing is making people nervous. Will it happen? Who knows. The contract expired last night at midnight and hasn't been resolved.
Read on for more coverage.
Hybrids are being checked out by operators for all their financial benefits. The federal government had previously sweetened the pot by offering tax incentives to owners of the vehicles, but that is changing now. The
LA Times reported on how tax incentives on popular hybrid vehicles will be going away soon. It's important to weigh and balance everything that goes into your buying decisions.
Ever-increasing gasoline and diesel prices make the public and transportation business owners feel frustrated and powerless on a weekly basis. And being an elected official criticized for not doing anything about the crisis is also a stress machine. A
New York Times article lays out the heated argument in Congress. As the story says: "Fourth of July fireworks came early on Capitol Hill."
HALLOWED BE THY HYBRID? That's been the green mantra about hybrid cars, but yet
another study at least questions whether most hybrid vehicles can save owners money. Chauffeured transportation operators need to proceed cautiously and focus on these key questions: Does a hybrid vehicle purchase make financial sense? What's the point if maintenance costs outweigh or cancel out the fuel cost savings? Is the public relations payoff and good-green housekeeping seal of approval enough to make fleet hybrids worthwhile? That's obviously an individual decision for each operator based on economics and customer demand. Putting up with costly hybrids may be worth getting those corporate contracts that insist on green products and practices -- whether the green stuff really helps or not. -- M.R.
Fleets can reduce harmful greenhouse emissions while lowering operating costs, according to a new paper by Networkcar, a leader in wireless fleet management. The new paper, entitled “Go Green and Save Green,” details the six areas that can significantly reduce fuel consumption and lower air pollution...
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BAD REPORTING: Journalists and numbers tend to be a bad combination, resulting in some egregious errors. The limousine and livery division of Ford Motor Co. recently got hosed by an article in the Financial Post, a Canadian newspaper, on its Lincoln Town Car production. The article, circulated by the CanWest News Service, ended up on LCT's Driving Force e-newsletter last week. Read the straight story below.
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"The failure of the U.S. transportation network to meet the needs of a growing population and economy is already having an impact on everything from safety to the environment, from quality of life to economic growth. We must immediately reform the approach we take for funding, planning, and building infrastructure so that we can keep people and goods moving across the country and around the world." So says Thomas J. Donohue, president and CEO, U.S. Chamber of Commerce.
Click here to read his commentary and intense reader reactions.
Here's
a site to visit if want to read the latest on what's happening with airports and airlines: a topic that affects many chauffeured transportation operators. As airlines cut down on their flights to save money on jet fuel and other expenses, operators are losing some of their bookings. Staying posted is important these days.
BLACK TIMES: As businesses find it harder to stay in the black with the soaring price of black crude, previously unnecessary or unwanted alternatives are being considered: regulating speculators, drilling for more oil, taxing SUVs, begging the Saudis, ditching ethanol and biofuels. . . The limousine and chauffeured transportation industry needs to keep abreast of these oil developments and pay attention. Here is a Q&A that helps shed some light on the high prices.
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New Jersey's Star-Ledger
ran a grim story about a New Jersey man who will be sentenced today for raping a limousine driver last year. Unfortunately, safety can be a crisis point for companies in this business, and having top security procedures and protocols in place is a must do. What does your company do? Feedback is always good to read.
Ever heard of A Girl's Night Out Limo in Kansas City? We hadn't until now. The operator just won an award through the
U.S. Local Business Association's "Best of Local Business" award program. A Girl's Night Out Limo is an NLA member and has a
glamorous website. Not only that, the company has been getting
rave reviews from clients. Pretty cool, huh?
BRITISH FLAIR: The Jaguar XJ Diesel once again ranks as the
greenest luxury vehicle in the United Kingdom. For a review of the Jaguar XJ Diesel,
click here.
Aside from a few
stretch limousines, Jaguar has yet to make many inroads into the U.S. livery and limousine industry.
The latest reports from the U.K. show a gallon of diesel costs about $9 a gallon. What takes the edge off that price, however, is the fact that diesel gets better mileage than gasoline.
As Americans fume about $4-$5 a gallon, the greening effect of pure black diesel looks increasingly like a viable alternative. Compared to the diesel vehicle wave of the late 1970s, current diesel engine models run quieter, burn cleaner, and accelerate without hesitation.
And while $5 a gallon gas seems unthinkable, Europeans survive -- and profit -- with much more expensive gas and diesel. -- M.R.
AMERICAN INVASION: What can be more inspiring than the sight of an American-style limousine in London?
Our British brethren appear to embrace American limousines with enthusiasm, so much so in fact, that 40 percent of stretch limousines on British roadways are considered illegal.
A recent article highlights the
industry woes amid encouraging signs that demand for stretch limousines remains strong.
Now the British face the vexing trade-offs that many industry associations contend with across the U.S.: How do you regulate the limousine industry enough to ensure fair competition and safety, but not so much that you stifle businesses and entrepreneurship?
Tiger Woods limped his way through to another U.S. Open victory on his surgically repaired left knee yesterday, in a final playoff round with Rocco Mediate at the Torrey Pines South Course in San Diego. While it certainly wasn't the first major tournament he's ever won, it was inspiring to watch him overcome such pain and up-and-down results (birdies then bogeys), and finally win when the odds were against him. Everyone trying to find success in life can relate to going through difficult, painful moments. Congratulations Tiger.
What a story!
Revising and updating websites matters a lot these days. Rose Chauffeured Transportation, based in Charlotte, N.C., just put out a press release announcing its website upgrade:
In another phase of strategic marketing that began this year with updated marketing and sales literature, Rose has launched a redesigned website created by the collaboration of LA Management and Asterisk Creative. The website is designed to provide the user with more helpful information about the products and services offered. By focusing on corporate business, group and events, and by featuring technological advances in dispatch and communications, Rose has given web browsers the information to select, and book transportation that meets their individual needs. The roll-out of the new web-site enhances the 24/7 availability of the company, and makes it convenient for consumers to choose how they want to communicate their transportation needs.
Also featured on the website is Rose's 2008 Operator of the Year award that was presented at the Limousine and Chauffeured Transportation Magazine's Annual Dinner in Las Vegas. Rose Chauffeured Transportation was founded in 1985 by HA Thompson and has been grown to become the largest chauffeured transportation company in the Carolinas.
Click here to visit the new site.
A-1 Limousine, based in Princeton, N.J., hosted a corporate get-together in the New York Yankee Club and Conference Center. And was part of a nice write-up in a New Jersey newspaper.
Click here to read and learn why you should consider publicizing your sponsorship deals.
RULES AND WAYS: A Business Travel News
article refers to new strategies and procedures operators must follow in order to secure contract business. It serves as another example of the effects of corporate belt-tightening and rising fuel costs.
CRIMINAL HISTORY? Operators would be required to check drivers' criminal records if recently filed legislation becomes law in Massachusetts. Once authorities found out a registered sex offender with a suspended license had driven kids to a prom,
Rep. William Lantigua, D-Lawrence, filed the bill. Click here to read the story.
A Minnesota city may ban neon-colored portable signs used on limousines. Maybe that's not so bad...
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HOPE ON THE HORIZON: Oil below $100 a barrel seems cheap, almost quaint, now that operators are afflicted with $4 a gallon gas costs. In a letter by the
Federal Reserve Bank of Dallas, analysts point to future new supplies as an antidote to sustained three-digit per barrel costs. This study underscores a reality of future energy markets; there are no either/or options, only ALL. Oil can never be eliminated as an energy source. To meet increased energy demands, the world will need more oil, more nuclear power, more green technologies, more conservation, and more fuel-efficient vehicles and behaviors.
Detailed study here.
DISCOUNTED BUSING: Megabus.com is about as far as you can get from a luxury chauffeured transportation service, but the concept cannot be ignored. The $1-fare bus company launches new
East Coast service today.
As an increasing number of operators venture into the limousine bus and party bus markets, it becomes even more important to distinguish such quality service from the cattle call approach. In down economic times, consumers increasingly look for cheap bargains.
While the L&CT industry should never sell out to mass transit concepts, it pays to play up the overall value of the comfortable and convenient transportation this industry offers.
And $1 bus fares may not work too well, as
recent developments in Los Angeles show. -- M.R.
You thought rising gas prices was giving you a lot of headaches? Well, how about tire prices also shooting up, starting in June? That seems to be the case, according to the Tire Industry Association. Read what's happening and some tips for making tires last longer.
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OUR ROSY SPIN: The economy grew about
50 percent better in the first quarter than first reported. GDP growth still languishes under one percent, but at least it's not a worst case scenario.
Springfield, Mo. is the home of several limousine coach builders - S&R Coach, based nearby in Strafford, is no longer one of them.
Read all about how the coach builder shut its doors and has been going through financial/legal conflict with customers, including franchise operators from Racing Limos.
DON'T BLAME THE LIMOS: The main culprit for high gas prices isn't so much the fault of dwindling supply, China and India, the global market, ethanol, limousines, or SUVs, or other usual suspects, but more so the result of clueless and detached decision making, as
this commentary today explains.
New York City operators in the "luxury limousine" category have been very concerned that the 25 mpg rule will apply soon to their category. What does the New York City TLC have to say about it?
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RESPECTFULLY: This version of the obituary on NLA board member Julie Herring will appear in the July issue of LCT Magazine. LCT appreciates your past commemorative comments and condolences. Now, we ask that this obituary simply speak for itself.
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When the Pennsylvania PUC raised annual assessments by an average of 360%, the Philadelphia Regional Limousine Association had to get very busy, says Philip Jagiela of
Aries Limousine Service and PRLA president.
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MARKETING CONCEPT: This
Arizona company has found a way to network with hotels and concierges to provide chauffeured service to restaurants.
Article here.
EVERYBODY SCREAM: Be careful what you wish for: Global warming alarmism and green-envy could end up putting your financials into the fiery red. A recent study shows that cap-and-trade legislation could have catastrophic consequences for the motoring public, the transportation sector, and the wider economy. Not even hybrid vehicles would save enough to stanch the effects of such high gas prices.
And after all that trouble, guess what? China and India ignore any carbon limits and keep emitting as much carbon as they want anyway. Who knows, maybe their populous, ambitious middle classes may be a better future market for non-green limousines? -- M.R.
WSJ FRONT PAGE TODAY: Recession? Not So Fast, Say Some. It seems as if the dire warnings about recession resemble those about global warming: Both have hit a cooling trend, somehow. In fact, some economists heralding a recession are ending up with a little egg on the face, which is a shame given the high price of eggs.
At LCT Magazine, we of course remain cautiously concerned about how a recession would affect the limousine and chauffeured transportation industry. While we've heard reports of operators taking revenue hits of 10-30 percent, we've also talked to operators in Chicago, Charlotte, N.C., North Hollywood, Ca., and Richmond, Va., about how hard they're working just to handle increased business. And our own Jim Luff has experienced the same in Bakersfield, Ca. Our upcoming LCT Fact Book, which is about to go to press, reflects input from operators nationwide who say that their overall business was up through the end of 2007.
Bottom line? Some are hurting, some are gaining, and most will likely remain flat. That's not good news, but it's certainly not an economic crisis. Recessions are never as bad as predicted, and once over, quickly forgotten. No
hysteria needed. -- M.R.
Speaking of Avis Budget Group... the conglomerate now owns 45% of Carey International's common stock, and is looking at increasing that amount in the next year. Read a
BTN article about 1st quarter financials and how Carey did.
Avis is certainly expanding its presence in the chauffeured transportation industry through its acquisition of Carey International, and other big steps. Both Avis and Hertz have been critical in Asian markets such as China and India.
Click here to read about the latest in the Indian market, where both companies are cutting deals with major airlines.
Boston-based operator ETS International was chosen to deliver an extremely rare, giant sea turtle to its mate at China’s Changsha Zoo.
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SUVs are gas guzzlers - popular with chauffeured transportation clients, but they're only willing to pay so much in fuel surcharges. So, the release of the Chevrolet Tahoe Hybrid is getting a lot of attention from operators. Here's a
product review that might be worth your attention.
WHERE LIMO TAXES GO: We at LCT certainly have heard of the old cliché about “limousine liberals,” but that’s such an outdated 1970s term. Three decades later, the American middle and aspiring wealthy classes have grown prosperous enough to routinely afford chauffeured transportation, whether it is for weddings, proms, bachelor parties, airport runs, children’s birthday parties, or special nights out on the town. Passengers of all political persuasions now ride around in limousines and chauffeured sedans in blue and red states. It’s no longer just a pampered celebrity thing.
But what do we make of the Canadian Conservative Party politician who liberally uses taxpayer funds for limousine service? Would she be a “limousine conservationist” since she helps conserve the limousine industry with her liberal spending? Or a conservative liberal user of limousines?
This has us a bit flummoxed, so we’ll just settle for the term “limousine leech.” Although her spending boosts limousine industry revenues, she leeches off taxpayer money so she can leech onto her limousines. And while we applaud liberal limousine patronage overall, by liberals and conservatives, we prefer that it comes from private sector funds and personal pockets -- not public purses. -- M.R.
NO NEED TO SPEED TO GREEN: Ford Motor Co.'s plans to use 6-speed transmissions proves you don't have to go green to run lean. Today's announcement shows how steadily advancing technologies can make engines run more efficiently and save fuel. All is not lost for fossil-fueled vehicles, as they undoubtedly will run smoother and cleaner in coming years. In fact, today's engines overall run far more efficiently than comparable ones during the last spike in gas prices during the late 1970s. Nearly all Ford vehicles will have the 6-speed transmissions by 2012.
Ford announcement here.
HAIL TO LIMO BOB: Many people inside and outside the limousine industry have heard of Limo Bob; some have even met him.
He's a colorful character and has been in business for years in Chicago, and might even be the focus of a cable TV reality show. He's got a new website full of photos and information.
He's been criticized, but is certainly a popular character; the room was packed at his International LCT Show seminar. Click here to visit the
revised website.
FUELING THE FACTS: Increased carbon emissions. Wasted taxpayer dollars. Soaring food prices. Hungry, angry consumers.
Congratulations to America’s energy white elephant and eco-myth. This will be the ethanol industry’s deplorable legacy that has cost millions of dollars and helped breed global misery. A recent editorial in the Wall Street Journal simply states the facts.
Any reasonable observer must conclude that ethanol vehicles, and most biofuel vehicles for that matter, are a never-ending boondoggle.
For the limousine and chauffeured transportation industry, the bottom line is simple: Don’t buy E-85 or biofuel vehicles; get rid of the ones in service; and boycott ethanol. There is nothing remotely “green” about it.
It’s time to admit a colossal mistake and put a stake into this subsidized impostor of an industry.
-- posted by Martin Romjue
GOOFIN' ON DISNEY: The Wall Street Journal reports today that Walt Disney Co. saw net income rise 22 percent for its second fiscal quarter despite the troubled economy. (WSJ article only available through subscription but L.A. Times version here). Disney’s hotels, resorts, and theme parks all performed above expectations. Bookings for the rest of the year are slightly ahead of those for 2007. Disney, of course, appeals to visitors and tourists of all economic strata. Disney knows all too well that just about anyone who has a child will eventually visit at least one of its theme parks.
So what Disney lessons can be adapted to the limousine and chauffeured transportation industry during tough economic times? Disney CEO Ron Iger told the WSJ:
1) 75 percent of Disney hotels are “moderately priced” or “value-priced,” compared to 55 percent of rooms that were “premium priced” during the economic downturn of 1991. That has positioned Disney to maintain its customer traffic despite the economic troubles.
2) International visitors are up 25 percent compared to last year because of the weak dollar.
3) U.S. visitors are looking for simpler, shorter trips closer to home, and are more likely to hit theme parks.
So here are three ways operators can handle tough times: Offer competitive, special pricing; market to foreign tourists and visitors who may prefer chauffeured services; target U.S. travelers and tourists who may want chauffeured limo day trips this summer instead of an expensive vacation. -- M.R.
DITCHING THE DIVAS OF THE ROAD: We posted
a report yesterday describing how many American consumers are getting fed up with their bulky, gas-bloated SUVs and pick-up trucks. This has led to a run on some dealerships where owners are unloading their vehicles, even at a loss. But there may be some silver linings for the chauffeured transportation industry.
If there is a glut of used and unsold SUVs, pick-ups, vans, and larger automobiles, it means operators and coachbuilders likely can get cheaper deals on vehicles. That will lower vehicle payments and overhead.
Just because American families get rid of bigger vehicles does not mean they lose their appetites for them. Switching from an Explorer to a Corolla may save money, but the transition likely is miserable, especially if you've gotten used to all that space. So who else but chauffeured transportation and limousine operators to provide luxury vehicles?
This downward market dynamic actually could yield a marketing opportunity for operators. What family wouldn't enjoy an occasional trip in a comfortable chauffeured sedan or SUV for a special outing, say to dinner and movies, a theme park, a day trip, etc.? It could be advertised as a hassle-free arrangement: no gas, no driving, no cleaning, no parking, no worries. That way many Americans can still enjoy the comforts and conveniences of SUVs and larger sedans without having to own, maintain, or fuel one. -- M.R.
SUVs GONE BAD: The article below explains how the SUV bubble follows the housing troubles. More Americans are ditching their SUVs -- even at a loss -- because of high gas costs. And many admit they don't need so much on-the-road largesse. So what does it mean for chauffeured transportation operators if American families are willing to trade in their hallowed SUVs and pick-ups for Corollas and Civics? We'll post some silver linings later.
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FUEL SAVING TIPS: The list below is targeted toward motorists, but can easily be adapted to operators, chauffeurs, and fleet vehicles. Most are common sense reminders that cannot be emphasized enough as average gas prices straddle the $4 threshold. Following these tips can help you avoid being fuelish.
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ANECDOTE: Trying to assess the pain of gas prices and the economic slowdown on operators remains a challenge given that economic conditions and customer demand varies among different parts of the country. At LCT, we are getting conflicting reports from operators experiencing the same or slightly more business so far this year, and quite a few who are seeing marginal declines in revenue and demand. So that leaves us with random anecdotes. The
Fort Worth Business Press quotes one owner of Continental Limousine in Fort Worth about the latest state of things.
CHAUFFEUR POSEURS ARE NOT ENTREPRENEURS: Prom season brings big demand for limousines, and plenty of opportunities for some off-the-books operators.
This article shows how a lack of enforcement in Maryland worsens the problem of illegal operators.
Another investigative
TV report reveals how an illegal operator was netted in Lynchburg, Va.
Both the
Virginia Limousine Association and
Maryland Limousine Association are examples of how associations nationwide can create awareness and enhance enforcement of the problem.
Legal operators should make available upon client request ample proof that they are registered either with the state's Public Utilities Commission, Public Service Commission, or comparable authorizing agency of operator licenses.
HIP HOP STAR OFFERS CHAUFFEURED CAR: Rapper/producer Sean "P.Diddy" Combs has brought his entrepreneurial flavor to the chauffeured transportation industry by starting a chauffeured car service for
drunk celebrities. (Stories
here and
here). In Hollywood, there is definite demand, ala
Lindsey, Paris, Mel,
Nick, etc.
While this is not a new concept -- smaller operators already have explored and experimented with such a service for non-celebs -- we at LCT applaud any constructive use of chauffeured vehicles. If every drunk driver called a limo or sedan for a ride home, the industry would see a drastic increase in revenue.
However, we do recommend that the vehicles used to pick-up drunk celebrities do not have any onboard bars -- either dry or wet.
So, we hope if P.Diddy offers the usual palette of black, comfortable sedans and stretches, that the
limo bars be replaced with
limo beds, or at least a good greasy
breakfast buffet table. -- M.R.
Have you ever heard of LCT Canada? If the answer is no, that might be because it's brand new. LCT Canada's first-ever conference is coming up July 20-21, 2008, at Toronto Hilton. This 2-day conference will feature educational seminars with topics such as Canada's governmental incentives for the industry, business basics, marketing, green fleets, and more. Toronto-based Rosedale Livery Ltd. is an official sponsor. LCT's event department has started a new website for the conference -
click here to visit.
STELLAR SAFETY RECORD: Vintage Limousine Service Inc. of Yorkville, N.Y. recently received a safety award from
Lancer Insurance, one of the leading insurers in the limousine and chauffeured transportation industry. Read a
local media report.
Allaire Worldwide Chauffeured Transportation, based in Farmingdale, N.J., and led by president Mike Renehan, is providing a good example to the industry. The company is adding more hybrids to its fleet and using this new logo to get the word out to clients and the community. This lively image should make Allaire stand out more in people's minds, especially those concerned about "green" transportation options, which is definitely a growing trend.
PEAKS AND VALLEYS: With the ongoing national obsession with recession, and everyone in a hurry to worry, we thought we'd post some surprisingly
positive economic news -- even if it may just last for a day. Limousine and chauffeured transportation operators should avoid being negative, and instead focus on the creative and the innovative. This industry offers both the practical and the pleasurable, and should never shrink from marketing its flexible services as such. Maybe our flummoxed Fed Chairman could use some
tender-lovin livery to relax and work on an economic chill pill.
As LCT Magazine has learned since starting LimoLicious, blogs are becoming a more important source of online information -- for reading news, opinion pieces, and rumors, viewing lively photos, and enticing readers to return. It's good to get pointers on making blogs work for your company, which a growing number of limousine companies are doing.
Click here to read an article in Entrepreneur that just might help.
Economic conditions are tough these days, as the chauffeured transportation industry has clearly learned this year. BusinessWeek profiled large corporations going through financial crises -
click here to read the story and check out whether any of these are your corporate accounts. Also click on the link for "View Slide Show" at the beginning of the feature, which breaks out each company and its financial numbers.
FROM JIM LUFF: "Whether you’re at a private FBO, a commercial airport or even the AmTrak station, missing a passenger sets off major panic and alarms."
What's it like to go through this type of panic attack?
Read full story
DUMPSTER DIVING: The economic scare-talk has reached a fever-pitch the last few months, with many industries, including chauffeured transportation, bracing for a recession. Pols and pundits have us all heading into a blighted dumpster.
Well the numbers are in. The verdict: technically, not a recession. Growth may be scant, but a recession happens when you have TWO QUARTERS of negative growth -- not one quarter, two months or five months -- but six full months. So the earliest we'll know for sure is when numbers are crunched by early October. That's a lot of time for things to change for the better.
In speaking with operators around the country this week and last, we at LCT have found several who are hurting, with revenues down 10-15 percent. But just as many are seeing increased demand and growth, showing that even economic slowdowns vary widely among all the 50 states. In fact, our own Jim Luff, an operator in Bakersfield, Ca., reports his company has been inundated these last few weeks with a demand exceeding 30 percent over last year.
Once the Fed starts raising rates again, food and gas prices will likely decline. So limousine operators may want to encourage current and potential clients to spend their stimulus checks on . . .
what else?
-- posted by Martin Romjue
RED, WHITE, BLUE & GREEN: Pictured is the most popular
chauffeured vehicle in the United Kingdom.
There are many reasons why, but the most encouraging sign is that no luxury, no amenity, and no creature comfort has been sacrificed in this green vehicle.
If
Toyota can do it, why not everyone else? We're curious if the technology and economics would support a stretch version some day.
Even cutting fuel costs by a third could be the key to survival for many smaller operators.
PROM AND GRADUATION SEASON: Showing proof of a legal operator license is good for business. Prospective clients are increasingly being made aware of the importance of doing business with limousine operators that are licensed and legal. In many states, consumers can verify an operator's status by contacting the Public Utilities Commission. A good public relations tactic for an operator is to become an authority in the local media on the subject of doing business with certified, legal chauffeured transportation providers. Operators should consider sponsoring public service announcements in high school publications and on school websites, as well as local homeowner association newsletters and websites.
According to Business Travel News, "
Two major chauffeured transportation companies are reducing or eliminating fuel surcharges on hybrid vehicles as an incentive to travelers." Click here to read the article.
BEWARE OF BIOFUELS: As food prices soar, a global backlash is growing against biofuels. Secretary of State Condoleezza Rice is the latest high-profile government official to concede that using vaster amounts of croplands for ethanol contributes to
escalating food prices. One U.N. official recently called biofuels a "
crime against humanity." The biofuel industry cannot sustain itself on the free energy market with normal supply and demand ratios. That's why the industry requires constant subsidies and incentives from governments and taxpayers. Third World countries, which deal with food inflation and shortages unthinkable in the U.S., suffer the most from the diversion of agricultural production to ethanol and biofuels.
EATING PAINS: Chauffeured transportation operators should take a long, critical look at biofuel vehicles. More sensible options, such has hybrid, propane, natural gas, and fuel cell engines, are in aggressive development. Remember, your average American struggling with high-food costs now pays far more for such basic staples as cereal and milk. Unfortunately, hysteria over global warming has prompted the political zealotry behind biofuel that constricts food supplies and drives up prices. Food banks in the U.S. are being inundated with people unable to cope with rising food bills. Since so many crops are now being used for fuels that really don't reduce carbon emissions when you factor in the energy needed to produce them in the first place, maybe biofuel advocates can try some ethanol on a bowl of cereal or some switchgrass on a morning muffin. That certainly would be comparable to the unpleasant tastes and choices forced upon many consumers worldwide.
SOLUTION: Chauffeured transportation companies and their clients should boycott biofuel vehicles and insist on either fossil-fueled cars or hybrids until more usable fuel-cell, propane, electric, and natural gas vehicles are developed and adapted for mass transportation uses.
ASK YOURSELF: Is a hungry child worth an elitist, ill-informed, preening eco-statement?
-- posted by Martin Romjue
The Pennsylvania Public Utility Commission (PUC) is urging consumers to check the backgrounds of limousine carriers to verify that they are authorized and properly insured. Most state agencies want transportation companies properly certified - this is a growing trend for the industry.
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GLOBAL OPERATORS: LCT Magazine is thrilled with the fact that 10 percent of all participants at our ILCT Show in Las Vegas last month hailed from other nations. Such diversity is crucial to growing this industry and capitalizing on new insights and trends. This International Herald Tribune
blog post about a
Belgian operator shows some of the sophisticated traits of a European chauffeured vehicle company: green vehicles, multi-lingual chauffeurs, and a thorough knowledge of tourism and travel. We must not forget that European operators succeed in a business, economic, and regulatory climate much tougher than the one in the U.S. For example, operators in the U.K. typically pay more than $8 for a gallon of diesel fuel. LCT hopes more U.S. and foreign operators interact and form alliances, not just in operations, but in knowledge as well.
Edmunds.com offers fuel saving advice. While rolling down limousine windows and turning off the air conditioning may not work for you, the suggestions are worth reading.
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DIVINE TOUCH: With Pope Benedict XVI visiting the U.S., it recalls memories of the famous 1979 visit by Pope John Paul II. Pope John Paul II's visit was especially memorable for Richard Kane, president/CEO of International Limousine Service, Inc. of Washington, D.C., and the new NLA president, as well as for his brothers and sisters. The Kane family has been featured in several news stories on Washington, D.C.-based TV stations. Click
here to see one of the reports where you can watch Kane, as a 9-year old boy, present an honorary gift to Pope John Paul, which he might have dropped if his father wasn't carefully watching over him.
MONEY WORRIES? Gas prices may be taking a nasty bite, and a box of cereal certainly costs a lot more than it did a year ago, but the
latest report shows inflation is not rampant and we're not time traveling back to the 1970s. So many of your customers likely are not getting hit as hard as believed. Everyone, please calm down.
CHAUFFEURED CARS GROW IN CHINA: One of the key issues facing the chauffeured transportation industry is the advance of rental car companies into the chauffeured sector. Avis entered the competitive landscape last October when it bought a $120 million stake in Carey International. Now, it has grown its chauffeured car services to 14 major cities in China, which is emerging as a major market for all types of vehicles.
Scott Solombrino, CEO of Dav El Chauffeured Transportation in Boston, told the opening session of the International LCT Show last month that rental car companies and their economies of scale loom as the biggest competitive challenge to the chauffeured vehicle industry. As Avis tries harder, chauffeured operators need to work smarter.
For another example of such competition, see
story here.
HAVING HYBRIDS: Cars.com recently ranked American cities based on how many people search online for hybrid new cars. This could provide some insights to operators who are considering green fleet additions, since areas heavy on green cars also might produce more clients intent on renting green chauffeured vehicles.
Study and rankings.
SENSIBLY GREEN: The elites who gather each year at the World Economic Forum in Davos, Switzerland will be chauffeured in a car that hopefully will gather market share in America. It's efficient, classy, comfortable, and a bit less "carbony." Check it out
here.
DONE WITH DIAPERS: Our blog has finally made it beyond the toddler stage. We’ve figured out a few more things and added some features:
1) We didn’t realize that your feedback comments were not posting properly. We took care of the blockage, and now you can instantly respond to any post. Whatever you sent before is now posted.
2) We’ve added some relevant links down the right side of the blog that provide a one-stop hub of industry information, advice, and business news. Check out some of the sites and blogs that can help keep you up to date. We are now worth at least a bookmark.
3) If you are interested in any past posts, they are listed in our archives in reverse chronological order. This blog program does not allow "Previous/Next" functions .
4) To see our ongoing gallery of LOONY LIMOS, click on "Loony Limos" category. Most should be listed there.
Thanks for all your patience. Now it’s on to our cyber-adolescence.
-- The editor-bloggers
Tony Brennan, LCW Automotive's director of research and development, is featured in an interesting story from the Boston Globe newspaper that also focuses on other production line staff. It's rare that coachbuilders receive this much focus in a major newspaper, so give it a read by clicking here.
Daimler may be eyeballing the limousine market, which of course would heat up competition for American limousine and black sedan manufacturers. At least such a foray by Daimler confirms that chauffeured transportation remains an attractive investment and service opportunity. See Automotive News
article here.
ILCT Show 2008: A Big Power Boost
By Martin Romjue
The bustling ILCT Show at Mandalay Bay March 16-19 certainly lacked the appearance of a recession. While the R word passed the lips of some participants, the Show floor was packed with vendors and coachbuilders as registration reached peak levels. Several coachbuilders told me they had closed some good sales deals on limousines. And the diversity of vehicles was a testament to this industry’s creativity and ability to satisfy all market ta
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Here are some of the memorable moments from today, Day One of the International LCT Show at Mandalay Bay, Las Vegas:
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Oh, I know that the two words clearly don't belong together. Unless of course you were thinking of healthy limousines and who doesn't love a healthy limousine? I am talking about my health and your health.
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With all the economic scare talk in the media, one of the things we'll try to do at LimoLicious is find sources of information that cut through the hype. Nothing spooks our industry more than a recession, since the implication is that clients will cut back on chauffeured services. The jury is still out on a full-blow recession, given today's UCLA Anderson School of Economics forecast. For a much-needed silver lining, and an island of sanity, click here for the Los Angeles Times
story.
Is the economy really headed out for a prolonged recess? Or did it just have a big, brutal lunch and is snoozing off the bloated effects?
Amid all the tumult — emotional political rhetoric, doomsday forecasts and hysterical handwringing — we can conclude that the economy is not doing one thing yet: Taking a deep breath.
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Mayor Bloomberg’s speech last week on “green” regulations being implemented in New York City has intensely caught the attention of the chauffeured transportation industry. It’s not clear to the major companies whether they have to comply with these new rules and when that will happen. As for now, this is what we’re hearing about the proposed rules:
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