Thursday, June 30, 2016

Industry Sees Growth Spurt

[Editor’s Note: For larger infographics, click each photo]

This year’s annual compilation of industry statistics and trends reinforces the growth of the private ground transportation industry since the downtrodden years of the Great Recession. Of course, pressing issues concern operators, notably higher insurance rates and illegal TNCs chipping away at chauffeured transportation market share. However, lower gas prices and a stronger economy have enhanced bottom lines.

Highlighting a healthier business climate, nearly two-thirds (63%) of respondents report gross revenue increased in 2015 compared to 2014, underscoring how industry maintains momentum since the depths of the Great Recession. By all
accounts, operators report 2015 growth has carried over to the first half of 2016, as the economic sectors intersecting with chauffeured transportation improve and employment grows.

Underscoring the increase in gross revenue, the average operator/limousine company reported gross profit margin in 2015 of 24%, up from an average of 21% in 2014.

This year’s breakdown of survey respondents divides almost to the exact percentage of 2015 respondents, providing an apples-to-apples and year-to-year comparison of data and trends. Reflecting the known overall size of the limousine industry, most respondents, about half, were small fleet operators (1-10 vehicles) followed by medium-sized fleets 40% (11-50 vehicles), and large fleets, 13% (51-plus vehicles).

When compiling the number of operators, LCT counts single owner/operators only, not the total number of limousine companies, or DBAs (doing business as). One operator, for example, could own three separately branded and named
transportation services. We count that operator as ONE, not THREE, which is more accurate from many standpoints, especially from a vendor/supplier one. That one operator likely makes purchasing and financial decisions for all three companies.

This year’s survey drew more than 345 total responses yielding a 99% confidence level.

Keywords

business growth   gas prices   industry education   industry surveys   industry trends   insurance rates   LCT Fact Book   research and trends   revenue growth   TNCs   

 

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Wednesday, June 29, 2016

Is Lyft For Sale?

<p>Rollin' with Lyft.</p>The same Silicon Valley dealmaker that helped piece together Microsoft’s recent acquisition of LinkedIn for $26 billion reportedly has a new client: Lyft. The $5.5 billion ride-sharing company has hired Qatalyst Partners, the Wall Street Journal reports, raising the possibility that Lyft, too, is looking to sell.

Vanity Fair article here

Keywords

business deals   Lyft   TNCs   

 

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Renovated Motorcoach Lives Up To Name ‘Cozy’

Homes come in many shapes and sizes, and Scottsdale-based interior designer Anita Lang of IMI Design has used her talents to create a truly unique one on wheels.

Dubbed Cozy, this 1971 MCI motorcoach is more or less Lang’s “heart project,” one that’s very dear to her.

When she and her best friend decided to buy a bus to renovate for their adventures, the Ducati-riding designer was more than ready to take on the challenge, having already designed some high-budget, customized coaches for clients, including a Prevost and a Newel coach that each topped out somewhere in the $1.5 million range.

AZ Central article here

Keywords

Arizona operators   community involvement   motorcoaches   party buses   proms   vehicle design   vehicle interiors   weddings   

 

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One Year After Limo Crash: Where Is The Green Arrow?

NORTH FORK, N.Y. — July will mark one year since the greatest tragedy the North Fork has arguably ever seen, when four young women were killed in a horrific limo crash at the site.

Today, residents are outraged that despite the fact that Suffolk County installed a new traffic light at the intersection this year, no green turning arrow was included.

In the days after an ABC7 Eyewitness News report last month showed that limos are continuing to make U- turns at the site, residents are demanding answers — and action.

Patch.com article here

Keywords

fatalities   limo crashes   New York operators   passenger safety   traffic assessment   

 

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Driverless Passenger Vs. Pedestrian(s): Who Lives, Who Dies?

A new study published in Science magazine asks how self-driving vehicles should act.

More than 75% of participants in one survey favor cars that would sacrifice one passenger rather than kill 10 pedestrians.

CBS News video here

Keywords

autonomous vehicles   business ethics   driverless cars   liability   passenger safety   safety   self-driving vehicles   vehicle safety   

 

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Limo, Taxi Leaders Make Last Stand On Uber Bill

<p>Scott Solombrino, spokesman for Ride Safe MA, spoke before a taxi industry rally at the State House June 28. (Photo by Patrick Whittemore/ Boston Herald)</p>Dozens of taxi drivers, cab owners and their advocates blanketed the State House yesterday in a last-ditch push for stronger rules for ride-hailing app services, while a senator acknowledged that former Attorney General Eric Holder influenced the pending bill with a letter calling for regulations without fingerprint background checks.

The Senate bill will be brought to the floor today, where senators will debate 54 amendments, including one requiring fingerprint checks — a measure that is not part of the bill as written. Other amendments would allow for cities to implement their own regulations, and remove a requirement that the companies offer a tipping option.

Boston Herald article here

Solombrino radio interview here

Keywords

background checks   Boston operators   driver behavior   duty of care   legislation   Lyft   Massachusetts operators   passenger safety   regulatory enforcement   Scott Solombrino   TNCs   Uber   

 

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NELA Calls On Members To Fight Mass. Uber Bill

<p>NELA urges members to fight Massachusetts Senate proposed TNC legislation.</p>

BOSTON — The New England Livery Association (NELA) is urging members to call or email two state senators to support fingerprint background checks for all TNC, taxi and livery drivers that is not included in a proposed bill that is up for debate Wednesday, June 29. In addition to adding fingerprint background checks into the bill, the NELA also is lobbying to require TNC vehicles  to have identification markers/decals and commercial insurance.

The NELA asks operators to contact Senate President  Stan Rosenberg  at 617-722-1500 (stan.rosenberg@masenate.gov) and Senate Chair of Ways & Means, Karen Spilka at 617-722-1640 (Karen.spilka@masenate.gov.)

“It is very disappointing to learn that as multiple cities across the country have implemented strong public safety measures to regulate TNCs, here in Massachusetts the legislature has not responded and has left the people of the state vulnerable and unprotected,” said Scott Solombrino, CEO, Dav El/Boston Coach. “The Senate language falls woefully short on so many levels. They are jeopardizing jobs, taxes and the very livelihoods of an entire industry. To cast a blind eye to the taxi and livery industry and allow TNC’s to operate with impunity borders on neglect.”

Solombrino said the NELA intends to “fight this language on the Senate floor and amend it to better reflect what scores of police chiefs, district attorneys and countless citizens have called for – stronger public safety measures and a more fair system for transportation professionals to operate in.”

 

 

 

Keywords

Boston operators   legislation   limo associations   MASSACHUSETTS   Massachusetts operators   NELA   New England operators   Scott Solombrino   state regulations   TNCs   

 

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Tuesday, June 28, 2016

Addison Lee Buys Tristar To Create Global Car Service Powerhouse

LONDON, U.K. — Addison Lee, Europe’s largest car service, has acquired London and Boston-based Tristar Worldwide Chauffeur Services, creating a major international operator of premium vehicle services.

“This is a major landmark for our business,” Addison Lee CEO Andy Boland said in a press release. “Our customers will benefit from access to the best chauffeured car service in the world. Coming together with Tristar means our shared ethos and commitment to quality, service and reliability can be expanded globally.”

With Tristar’s operations in the U.S., Asia, UK and continental Europe, Addison Lee is a significant global operator of chauffeured transportation services. Addison Lee, owned by Carlisle Group, is a British company that operates a premium car service in London, with 23,000 business clients including many Fortune 500/FTSE 100 companies. It has a fleet of over 4,500 vehicles and drivers, and 800 staff dedicated to customer service. Addison Lee’s vehicles are an iconic sight and trusted brand in London.

Tristar, which operates the largest premium car fleet in the U.K., also provides chauffeured transportation in the U.S., focusing on the meetings, events and road show markets. Together with its affiliate network, it has access to over 10,000 vehicles throughout the Americas. Tristar and Addison Lee’s combined fleet will have almost 1,000 company owned, premium vehicles worldwide, becoming a market leader in the chauffeured transportation market.

The acquisition fulfils both companies’ strategy to focus on the premium end of the market and increase the availability of high quality car services to customers. There is strong demand for executive car services, particularly on a trans-Atlantic basis, which means the combined business is well-positioned for growth.

Tristar has global revenues of $75million, more than 200 staff, and over 450 chauffeurs. It has operated for more than 35 years and has a reputation for being one of the most trusted brands in the industry. The Tristar brand will continue to be bolstered by Addison Lee’s substantial fleet, 23,000 business customers, and market leading technology.

“There will be significant growth in the executive car market following the 15% jump in volumes we saw in 2015,” Boland said. “With Tristar, we will be able to take our service to the next level and into new markets around the world. For the customers of both companies, this means a better and more efficient experience and a global service.”

Mike Fogarty, CEO, Tristar Worldwide/Americans, said in a press release: “Both Addison Lee and Tristar are market leaders in their respective sectors with long standing reputations for service, quality and reliability. When we set out to look for a partner with whom we can grow and take our business to the next level, Addison Lee was the obvious choice.”

Jane Vinson of Octopus Ventures, who backed Tristar Worldwide in 2008, said in a statement: “Having worked with Dean and the wider Tristar team since 2008, we are delighted that today they have been acquired by Addison Lee, and combined they now make up the largest executive car service in Europe. The team have achieved impressive international growth and customer contracts in the time we’ve worked together, so today marks an exciting next step. We wish them every success.”

Source: Addison Lee press release

Related WSJ news article: Addison Lee Buys Rival Tristar

Keywords

Addison Lee   Boston operators   British limousine companies   business deals   business travel   Dean De Beer   Global operators   international   international business   mergers & acquisitions   Michael Fogarty   Tristar Worldwide Chauffeur Services   United Kingdom   

 

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Monday, June 27, 2016

First Class Customs Sprinter Van Comes Loaded

<p>Anybody wana party down tonight?</p>SPRINGFIELD, Mo. — First Class Customs, a boutique builder of custom Sprinters, CEO SUVs and buses, is selling a Mercedes-Benz Sprinter Van all loaded up and decked out for retail runs. The used van scores a perfect “10” on mechancial, interior and exterior conditions.

The 2015 MY 12-passenger van is available on Limoforsale.com for $75,900 at 22,433 miles, and comes with the remainder of the manufacturer’s warranty.

SPECS, PHOTOS & SELLER INFO HERE.

The seller, First Class founder and CEO Jay Glick, writes the Sprinter is “right out of my personal fleet, like new with remainder of coachbuilder warranty as I built it.” Among its abundant amenities are five doors, a luggage compartment, premium suspension, custom wheels, dual battery, custom runner boards, Alpine audio and black walnut trim.

Keywords

custom coachbuilders   First Class Customs   Jay Glick   Limoforsale.com   luxury vans   Mercedes-Benz   online vehicle sales   Sprinter   upfitters   used vehicles   vehicle sales   

 

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2016 Lincoln MKT Achieves Practical Luxury

<p>File photo of the 2013 Lincoln MKT Town Car.</p>Offering customers a real choice in the full-size luxury crossover segment, the Lincoln MKT three-row premium utility features modern design, infotainment and versatile flexibility.

The full-size Lincoln crossover features the automaker’s current signature design language along with a subtly curved weight-saving magnesium liftgate that adds visual character while protecting generous rear cargo space.

Post-Crescent/USA Today article here

Related article here: What’s New On The 2017 MKT?

Keywords

Crossovers   lincoln   Lincoln MKT   Lincoln Motor Company   new vehicles   Vehicle Reviews   

 

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Lux Mag Names Three Best SUV Models

Robb Report details three SUV models destined to please an ultra-high net worth clientele.

Slide show and videos here

Keywords

Bentley   Lexus   Mercedes-Benz   new vehicles   SUV   

 

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Maserati Quattroporte Sedan More Beautiful Than Ever

As with any supermodel receiving a makeover, the 2017 Maserati Quattroporte did not seem to need any enhancements to its beauty and yet the results are stunning.

Robb Report article here

Keywords

Maserati   new sedans   onboard amenities   premium luxury sedans   Vehicle Reviews   vehicle technology   

 

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Cadillac CT6 Scores Award For Clever Use Of Tech

Digital Trends recently held its 2016 Digital Trends Car Awards with a plethora of categories, one of them being luxury sedans.

And the 2016 Cadillac CT6 took home the win, beating out the BMW 7-Series and Jaguar XF.

GM Authority blog article here

Related vehicle review: Cadillac CT6 Brings 21st Century Luxury

Keywords

Cadillac   Cadillac CT6   honors and awards   new sedans   vehicle technology   

 

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Friday, June 24, 2016

Verizon-Telogis Deal Creates Top Telematics Unit

Verizon’s acquisition of Telogis would create the second-largest telematics company in the U.S. in a deal that brings together complementary businesses, a leading telematics consultant said.

Automotive Fleet article here

Related news article: Verizon Acquires Telogis

Keywords

fleet management   fleet tracking   Fleet Vehicles   GPS Fleet Tracking   Telematics   vehicle technology   Verizon   

 

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Ohio Operators Gear Up For The Quadrennial GOP Convention

[This piece is the first in a two-part series. LCT will be postng an article on the operators providing transportation for the DNC shortly.]

CLEVELAND, Ohio — This coming election is bound to be one of the most interesting (and controversial) in recent history. Whether you plan to vote Trump, Clinton, or a third-party, there are still plenty of opportunities for each candidate to sway new voters to their side.

One of these opportunities, the Republican National Convention (RNC), will bring thousands of people together in Cleveland, Ohio at the Quicken Loans Arena July 18-21.

Politics aside, this event also provides an opportunity for luxury ground transportation operators to see red, white, and green. Members of the media, delegates, and corporate sponsors attending the event will need to move around on the ground, and for more than just a few hours at a time. Larry Chrystal, president of A1 Mr. Limo in Wickliffe, says, “In this five day period, a lot of the customers are looking for 12 to 24 hour a day service.” That being said, an incredible amount of planning is needed for companies to prepare their vehicles, chauffeurs, and clients.

Reaching Across The Aisle

While there are still quite a few weeks before the event, operators are doing everything they can to prepare, which, because of strict security measures, isn’t much.

“So much of the actual planning can’t happen until the secret service, the committee on arrangements, and Destination Cleveland [the city’s convention and visitor’s bureau] part out information,” says Steve Qua, president of Company Car and Limousine in Cleveland.

“They haven’t announced the actual perimeter, what it will take to get inside it, whether or not we can take people to a designated area, or what we do if we have credentials to get in. They’re giving the information out very last minute.” This is out of necessity for everyone’s safety, of course, but it certainly makes things more difficult.

Mary Jo and Tony Mazzarella, director of sales and general manager for American Limousine Service, are longtime members of Destination Cleveland, which gave them a bit of an upper hand. Early on in the process, when Cleveland was one of the cities being considered, they were contracted to handle the selection committee.<p>Mary Jo and Tony Mazzarella, director of sales and general manager for&nbsp;<a href="http://ift.tt/28TDxzv">American Limousine Service</a></p>

“We are fortunate we had that experience because it helped us get in the inner ring. It allowed us to forge relationships that will help us operate a lot more smoothly,” Mary Jo says. But this doesn’t necessarily mean they were given any extra information regarding specific logistics.

“I don’t think we’ll get a lot of the logistics until about 10 days prior to the convention, so it’s been really difficult to figure out how we’ll navigate the city,” Tony says. “We’ve obviously ramped up our reservations department and our chauffeur pool. We’ve been working on that for six months as far as staffing it appropriately.” He reached out to school bus drivers who are off in the summer, and has received a huge response over the last two weeks. “We are just trying to gather as much information as possible, which is not an easy thing to do with this event,” he adds.

Qua is also trying to ensure he has enough staff on hand: “Although we’d like to do more concrete planning, it’s had to be a bit more abstract due to lack of official information. We can do financial planning and logistics planning. We know we’re going to have to bring chauffeurs and vehicles to Cleveland, but when it comes down to who’s going to go where, it’s going to have to happen closer to the event.”

Chrystal, a medium sized fleet operator, sought out advice from an affiliate who handled the RNC convention in Tampa, Fla. in 2012. “The convention in Tampa was kind of all over the place. Cleveland is pretty well centralized. All the events going on are located downtown,” he says. “The challenge here as we go along is trying to anticipate how much we are actually going to do and then trying to staff for that.”

Smaller operators such as John Petrus, owner of Petrus Limousine in Brunswick, are more frustrated with the lack of communication and consideration. “We are getting no guidance at all. We’ve received one email and one phone call for the RNC. I know a lot of other small company owners, and they’ve not received many calls either,” he says. “I would have to assume the RNC planned for this a year ago, and they probably contacted a national company to book all of their vehicles. That’s probably why us little guys are not getting the call.”

As the RNC gets closer, all operators are planning to beef up their fleets with the help of affiliates or other branches in their companies. The most popular vehicle choices so far are sedans, SUVs, and vans.[PAGEBREAK]<p>The Quicken Loans Arena in downtown Cleveland,OH</p>

No Client Left Behind

These operators do know one thing for sure: They will not be leaving their regular clients to fend for themselves. While new customers pour in, the Mazzarellas know consistency is important. “We still want to live up to the expectations of the services we provide,” Tony says. Mary Jo adds, “It’s a delicate balance: you never want to water down your product by adding on more than you can handle.”

The two have contacted existing clients by letter well in advance and have talked to them. “We wanted to reassure them their service would not be downgraded in any way,” Mary Jo says. “They are our priority. We created a pool of chauffeurs who are going to be dedicated to our existing clients. They won’t be getting someone who is unfamiliar with their procedures.”

Qua also started reaching out to his clients via email about a month ago to remind them the convention was coming and explained to them how it would affect their travel. He also says the next two correspondences are going to say something along the lines of, “We will run out of vehicles, but we want to look after you first. Please make your reservations now.” While he doesn’t normally take reservations himself, the ones he does are very appreciative of the reminders.

Luckily for Chrystal, who does mostly weekend retail business, most convention goers are only going to be there from Sunday through Thursday. While this means he’ll probably be getting the stragglers who are still looking for last minute rides, it actually works out flawlessly. “It’s perfect for us because we can get all of our weddings and night outs on Friday night in without having to really worry about scheduling conflicts.”

Navigating Disruptions

The First Amendment provides many freedoms, including the right to peacefully assemble. Unfortunately, not all protestors understand this means staying in a designated area to make their point. Luckily, operators who have spoken with members of the security team for the event say there won’t be too much to worry about when it comes to navigating around those chanting and holding up signs.

“I’ve been to some of the security meetings and I get the feeling they will have a very good handle on the protestor situation,” Chrystal says. “You know how Trump was saying there would be riots if they don’t put the popular person in? Well, now he’s in.”

That’s not to say operators aren’t preparing for the possibility, however. Mary Jo has attended protest meetings to get an idea of what they are saying and what their plans are. “This way, we aren’t just getting second hand news. We actually know where they are gathering and where they are going to march from.”

And Tony makes a good point: “All we deal with in this business are disruptions. Flights and plans change all the time for our clients. It’s going to be business as usual — just adapting and changing the schedules as needed and communication between dispatch and chauffeurs making sure they know the open routes and where to navigate. It really is the nature of our industry.”

Another newer disruptive element luxury ground transportation companies must deal with are TNCs. The Republican Party has been quite vocal in praising the sharing economy due to its free-market innovation, so it will be interesting to see how companies like Uber and Lyft are able to conduct business in an environment where permits are absolutely mandatory to enter specific areas.

“I think the answer is going to lie specifically on how comfortable people are 10 days out that they will be able to get on-demand transportation. I don’t think those who are used to getting a ride at a moment’s notice are going to think ahead enough,” Qua says. “I think it’s going to be big business, but I don’t think it’s going to be as big as it was in Denver or in Charlotte. If you think about potentially having a million dollar week, it isn’t here anymore because of the TNCs.”

The Mazzarellas don’t worry too much about the TNC situation, saying those who want premium service know better than to look for it in the arms of Uber. “We just want this to be a great thing for the city of Cleveland and hopefully promote to the world what a great town we have and be able to capitalize off this event to bring other large conventions to this town.”

Keywords

group transportation   Ohio operators   special events   Steven Qua   WebXclusive   

 

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