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.
Read full story
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.
Read full story
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.
Read full story
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. . .
Read full story
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.
Read full story
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. . .
Read full story
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. . .
Read full story
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. . .
Read full story
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. . .
Read full story
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. . .
Read full story
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.
Read full story
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. . .
Read full story
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?
Read full story
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. . .
Read full story
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. . .
Read full story
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.
Read full story
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. . .
Read full story
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. . . .
Read full story
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!!!
Read full story
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. . .
Read full story
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.
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