How To Make Your Bus Pay Off In Multiple Ways

Considering the sizable investment of buying a motorcoach and paying all the operational costs, generating revenue sources becomes a constant challenge for new and seasoned operators alike.

One of the best tips to promote your motorcoach business is to ensure you place your logos on the sides. “It’s free advertising and it’s the single most important thing operators can do to generate business,” said George Jacobs, president of Chicago-based Windy City Limousine & Bus. “In fact, we even have our website address on the roof of the bus because when we are operating in the city, people in high-rise offices and apartment buildings looking down from their windows can see our logo all the time — that’s free advertising.”

Jacobs was part of a panel discussion, “Capitalizing on Every Revenue Opportunity in Your Market,” held March 15 during the International LCT Show in Las Vegas. Moderated by Tom Holden, general manager at Rose Chauffeured Transportation of Charlotte, N.C., the other panelists included Dave Brown, president and CEO of Premier Transportation of Albany, N.Y, and Jennifer Buffo, chief operating officer of Pure Luxury Transportation in Petaluma, Calif.

Because operators have trouble finding qualified motorcoach chauffeurs, Jacobs said he places a help wanted decal on the rear of the bus as a free recruitment tool. “Because buses are always in the right lane, you place the help wanted signage on the left side of the bus so motorists can see it,” Jacobs said.

Free & Cheap Strategies
Operators new to the bus business can use a number of free or inexpensive tactics to market their services, Buffo said. “Promote your bus services to the local Chamber of Commerce, Visitors & Convention Bureau, wedding planners, and other organizations that can drive business to you.” Operators partnered with transportation providers in their regions can use them to promote bus service and selling points. “That’s all free marketing, especially if you have done sedan services, and now they are aware you have motorcoach service.”

A sure-fire way to increase your bus business is to market it to your customer base and let them know you can provide bus service for social outings (weddings, tours, etc.) as well as corporate events, Brown said. “Traditional bus companies are not as aggressive marketing their buses as we are, so market your buses though Facebook, Instagram, and your website using videos because people want to see the buses and the latest features, so capitalize on everything you can do to inexpensively promote your bus business.”

Promo Opps
New operators should not forget to promote their addition of buses and motorcoaches to wedding planners and wedding sites because the destination wedding market is hot. An operator could provide additional sedan airport transfers, SUVs, shuttles to pre- and post-wedding social events, and motorcoach outings, Buffo said. “All of that can tack on $10,000 to $20,000 for a large destination wedding.”

It’s also important to be creative and look for niche opportunities to provide packaged tours in your regions. Besides a bustling wine country tour business in the San Francisco Bay region, Buffo said she looks for trends such as “foodie tours” that pair wine and food, “and we even have a tour where people can sample organic vegetables at farms—just create it, sell it, and people will talk about it and spread the word. There’s always something in your city and region going on where you can package a tour.”

Bartering your bus service for marketing services is another alternative to promote your business. For example, Jacobs has traded free bus transportation with radio stations that ran contests for an event. “Your company name is mentioned all the time they promote their event on air — ‘transportation provided by Windy City Limousine’ — that’s great marketing every time they promote the event,” he said.

Some barter companies offer service exchanges, he said. “For example, I could give 10 hours of transportation service in exchange for, say, legal or marketing services. In slow months, bartering may pay off for you in trade for such services as legal or marketing time with firms in exchange for transportation services.”

Get In the Game
Servicing sports teams — high school, college, or professional — is not only a target market to increase revenue, but also a way to network with corporate sponsors, especially for pro-sports teams.

“Servicing sports teams brings special bragging rights and adds credibility to your company,” said Jacobs, who transports all Chicago professional teams and many colleges as well. Sports business also offers free advertising when the media photographs or records videos of your bus. For example, when the Chicago Cubs won the World Series last year, Jacobs’ buses (and his rooftop website address) were captured on video taken by a local news helicopter.

Although the sports transportation business may be low margin, the chance to network with major Fortune 500 advertisers can make it pay off, Jacobs said. “The professional and college teams all have sponsors, so if the team can make an introduction on your behalf, that costs them nothing and you can make business connections.”

The same holds true for introductions to organizers and sponsors who use professional sports facilities, such as concert promoters and religious groups that hold stadium-size events.

Brown does business with five colleges and several school districts in the Albany region. You have to be very competitive in pricing to win the business, but you can earn good money by matching the number of players and staff being transported to specific vehicles in your fleet, he said.

“You can, for example, use a mid-size bus rather than a motorcoach and lower your pricing because the cost of operation is lower,” Brown added. There is a demand for professional and reliable bus service because universities and school districts have trouble finding drivers, so they need to outsource.

Brown also creates sports tour packages to New York City and New England. “It could be the Giants, Jets, or Yankees in New York and we’re about three hours to New England, so we can put a package together: Buy 30 tickets, and price the tour per person,” he said. However, he cautioned: “Sporting event tickets are expensive, so you want to make sure you sell out.”

Seasons Go Round
A session attendee asked the panel how they deal with seasonality in the motorcoach business. Jacobs said he is non-stop busy from March through November, but slower in the cold winter months, save for some convention transportation business. He offered this creative solution during down times:

“I trade buses in the winter with a Florida company, and in the summer he provides me buses when I need more buses. He may ship me an extra 50 buses in the summer, so you are sharing buses which saves you money when they otherwise would sit idle.”

Keywords

charter and tour operators   George Jacobs   ILCT 2017   industry education   Jennifer Buffo   motorcoach operators   motorcoaches   Sales & Marketing   Tom Holden   

 

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Small Details That Keep Big Buses Moving

Seasoned bus and motorcoach operators with many miles under their belts understand adding bigger vehicles to a limousine fleet can be challenging for first timers.

“There were unique requirements to overcome when we started out with one bus,” said David Glazier, president of Fleet Transportation in Alexandria, Va. “Things like, ‘Do I have room to park it? How do I wash it? How do I service it? How do I deal with onboard restrooms and wheelchair lifts?’ All of these things you don’t deal with in the sedan business. You have to understand what you are getting into and the scope of running buses and motorcoaches.”

Glazier was part of a panel discussion, “Mastering the Day-to-Day Challenges of the Bus Industry,” held March 14 during the International LCT Show in Las Vegas. Moderated by Tom Holden, general manager of Rose Chauffeured Transportation, Charlotte, N.C., the other panelists were Jeff Greene, president of Greene Worldwide Transportation of Atlanta, and Charlie Murray, vice president and COO of Total Luxury Limousine in St. Paul, Minn.

The panel offered attendees an array of practical tips, advice, and lessons learned for operators considering the motorcoach business, but also best practices for experienced operators. Maintenance is central to running a successful large-fleet operation on many fronts.

You quickly pick up simple practices, such as not taking a motorcoach to the same place you take your sedans for an oil change, as well as bigger issues like ensuring you have spare parts on hand and backup plans when a motorcoach breaks down on the road, Glazier said.

“It’s important to have a good diesel mechanic, and I’m also lucky to have an electrical technician to fix problems, but making sure you have spare parts in stock — and also on the bus — is critical to keep the buses running properly, and if there is a breakdown on the road, you’re able to make the repair quickly so as not to risk stranding passengers and losing money,” Greene added.

Murray said he’ll stock windshields as a way to quickly change damaged glass to keep a bus in service. “Staying on top of maintenance and doing what the manual recommends is the best way to catch things early.” He recommended operators need to focus on preventative maintenance to keep buses running and repair costs down.

“We’ll stock spare filters, light bulbs, belts, and hoses on buses and train drivers how to make the repairs and supply the tools if they can do it, or if road service is needed, we have the parts on board,” Murray advises.

Green emphasized Murray’s point. “You’re paying $450,000-plus for a bus, so you have to take care of it. You need to know things like fuel filters can get clogged on dirty roads, or bad fuel can put a bus down, and you need to know the companies that can tow a bus — because not all can — and negotiate with them rather than wait till the last minute when an incident happens.”

Plan B, C, And D
To succeed in the bus business, you must have contingency plans when a bus breaks down on the road or is put out of service and you need to fulfill a booking, Glazier stressed.

“You get an order for 40 people and it all sounds great, then BAM! The bus goes down. In the bus business we like to say we’re all friends because you’ll need to be able to call someone up who can help you out. It’s important to find like-minded operators you can trust who will drop what they’re doing to help you out because that allows you to grow your business because you can deliver the service no matter what happens.”

When he gets a call that a bus is broken down, “first you cry then you go into action,” Greene said. “It’s important to have contingency plans, especially when you are running through multiple states and destinations. We call ahead to make sure we have provisions in those locations in case something happens and their response time … in this industry fellow members have empathy for others when something goes wrong as we tend to help each other.”

Added Holden, “As soon as that phone rings, you need to put Plan B in motion, and if that doesn’t work, then you need a Plan C and D. A breakdown will happen and it will affect your bottom line because you’ll have to hire another company to complete the job and that will cost you more money. However, if you get enough work over the course of a year, that can make up for the times the buses go down.”

On long trips, Murray talks to his insurance company for recommendations on operators who can be trusted to pitch in if there is an incident.

Holden reiterated the panel’s emphasis on paying strict attention to preventative maintenance as a way to keep buses on the road. New operators should make sure drivers inspect the buses before bookings, which are also mandated by the U.S. Dept. of Transportation, “because that can save you a lot of time and money,” Greene added.

All panelists agreed taking the time to understand the nuances of how buses operate and sticking to the service manual will pay off in lowering downtime and boosting profits. Knowing if your bus is equipped with heater/air control valves or if the system is automatic can reduce the chances of an incident, Glazier said.

“Say the heater valve is turned off and it’s too cold, or the cold valve is off and the temperature spikes to 80 degrees, you need to know how to solve that if passengers are complaining about the cabin temperature. You have to know your vehicles backward and forward.”

Take Care of the Wrench
All panelists concurred that finding and keeping good mechanics is the best way to prevent breakdowns. Holden said industry hourly rates can range from $18 to $28 an hour plus benefits. Green said he pays mechanics the market rate of about $22.50 an hour in Atlanta, but also pays benefits and 100% of health insurance.

You want to do what you can to keep them because once a mechanic understands your buses, you don’t want to lose that knowledge. Sending mechanics for training pays off, he said. “I sent our mechanic to the Van Hool schools in Orlando for a week and when he came back, he said, ‘Wow! I learned so much’ and then he shares that knowledge with everybody else and that really pays off.”

Keywords

David Glazier   ILCT 2017   industry education   maintenance   motorcoach operators   motorcoaches   Tom Holden   vehicle maintenance   Virginia operators   

 

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How To Use Duty Of Care To Gain More Clients

NEW YORK — The term “duty of care” is often used by the National Limousine Association and state and regional industry groups as a key argument to convince corporate travel managers they should reconsider allowing their employees to use the freewheeling, poorly regulated, and sometimes dangerous TNCs.

Considering TNCs are now allowed by half of all corporate travel policies — up from 44% in June 2016, according to the Global Business Travel Association (GBTA) — the chauffeured transportation industry is trying hard to educate its corporate clients about potential legal consequences of disregarding duty of care.

There is plenty of ammunition to support the argument TNCs pose numerous risks to their employees and violate duty of care oversight by corporations. For example, “Who’s Driving You?” a website that tracks and categorizes TNC incidents, is chock full of crimes and bad behavior by TNC drivers: Deaths (28 from murders to crashes), sexual assaults (28), assaults (63), people posing as TNC drivers (58), and felons driving (19). There is even a category for alleged kidnappings, plus another frightening list of miscellaneous incidents no person should ever be subject to as a passenger in a for-hire vehicle.

Risk Management As A Competitive Edge
It’s not just TNCs that are top of mind with corporate travel managers. It’s also room-share services such as Airbnb.com and other non-traditional travel options not covered by typical travel policies.

At a June 20 New York City summit focused on global travel risk, sponsored by the Business Traven News (BTN) Group, various security, government, and travel risk experts spoke to corporate travel managers about keeping their employees safe and secure when traveling in the U.S. and worldwide.

Because of global unrest, terrorist attacks, and ransom kidnappings in certain places, travel professional were advised to be more vigilant about adopting duty of care policies and reviewing all aspects of employee travel to ensure employee safety and reduce risks.

Duty of care: A requirement a person act toward others and the public with the watchfulness, attention, caution, and prudence a reasonable person in the circumstances would use. If a person’s actions do not meet this standard of care, then the acts are considered negligent, and any damages resulting may be claimed in a lawsuit for negligence.
Source: dictionarylaw.com

Trust Through Standards
As the chauffeured transportation industry looks for ways to retain or gain corporate accounts, it should promote trust through high standards, reliability, accountability, chauffeur training, background checks, and passenger safety. Those are strong selling points to use with travel professionals who need to reduce employee travel risk.

Matthew Bradley, regional security director, Americas, with International SOS, told summit attendees that duty of care is really duty of loyalty to protect employees by putting in place security measures and an emergency response plan.

“If there is an incident in Paris and you have employees in Paris, what do you do? What are the practical steps you take to protect employees? What are their exposure and your response plans? How do you communicate that to take charge of their personal security? You have to look at the practical steps to take charge,” Bradley said.

That means travel managers must rely on trusted transportation services that can swing into action if needed, and be able to communicate when employees have been transported safely in an emergency.

“It’s not just international travel you have to be concerned with, but domestic as well,” said Bruce Mcindoe, CEO, iJET. “You have to have an integrated risk management plan throughout your company that breaks down barriers and silos because when an incident happens, you need all the talent you have at the table. You need to look at the people affected, their locations, the information coming, and all the assets coming in to form a precision response.”

Lauren Cell, an attorney with the Radnor, Pa. office of Fisher Phillips, noted employers must act in a prudent and cautious manner to avoid foreseeable employee injury. “It’s not just the potential for employees to file a negligence lawsuit costing possibly millions of dollars if they were sent to a high-risk region and an incident occurred, but also your company’s reputation can be [forever] tarnished.”

For private ground transportation companies, the chance to be part of what Mcindoe called the “response supply chain” to an incident can and should be part of your pitch to clients and prospects. Your services should enhance their risk aversion plans and be part of their corporate duty of care travel policies and procedures.

The NLA Position On Duty of Care
The NLA has a TNC position paper with a section on the industry’s stance on passenger safety and duty of care. The full statement can be found on the NLA website: limo.org under the “advocacy” tab. In part:

“The bona fide passenger transportation industry has historically been held to a duty of care toward the passenger and public. This duty of care requires a person to adhere to a standard of reasonable care while performing any act that might foreseeably cause harm to others if handled negligently.

“Unlike the bona fide passenger transportation industry, some TNCs attempt to suggest duty of care does not apply to them. While many TNCs profess they conduct a criminal background check, many do not independently verify the driver’s attestation relating to the currency of his operator’s license or the sufficiency of his auto insurance.

“In San Francisco, a TNC driver allegedly punched a pedestrian. A pedestrian child was struck and killed by a TNC driver. Another pedestrian was struck with an injury to her leg – thereafter, the TNC and the driver’s auto insurance denied responsibility. News agencies have published stories of passengers alleging they have been physically or sexually assaulted by TNC drivers in the metro areas of Seattle, Los Angeles, Washington, D.C., and Boston, among others. Concededly, these unfortunate events could have happened at bona fide transportation entities. However, the NLA believes the incidences described here are reported in higher proportion in TNCs than in regulated transportation industries such as taxi and chauffeured transportation.

“The NLA further believes that perhaps some of these events could have been avoided if TNCs faced the same regulations and duty of care as other regulated transportation industries. Perhaps most importantly, unlike bona fide passenger transportation operators, some TNCs may not accept responsibility for the conduct of their drivers on the pretense the TNC is merely providing an app, not the car and driver.”

Keywords

duty of care   National Limousine Association   passenger safety   Ride Responsibly   Safety   Taxi Limousine Paratransit & Association   TNCs   

 

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Risks Aside, More Business Travelers Using TNCs

BOSTON — Half of corporate travel policies now allow employees to use transportation network companies (TNCs), according to the latest Global Business Travel Association (GBTA) Business Traveler Sentiment Index.

Overall, TNCs have nine million users and raked in $3.3 billion in 2015. They are projected to grow to $6.5 billion in 2020 — much of that growth is expected to come from business travelers in North America, according to the GBTA report.

Those disquieting numbers for limousine operators landed just a few months before the annual GBTA Convention set for July 16-20 in Boston where 30-plus limousine companies are expected to exhibit.

Uber now accounts for 53% of business travelers’ transportation receipts and tops the list of most-expended brands, according to Q1 2017 Certify’s Business Travel Ground Transportation Report.

Of course, TNCs are not profitable, and Uber has come under fire for how it does business. Reports of a harassment culture, low driver pay, and criminal acts against passengers by poorly background checked drivers abound in the news media.

“There is no question the sharing economy will continue to alter how business travel is conducted,” GBTA executive director and CEO Mike McCormick told LCT.  “With the sharing economy rapidly changing the travel landscape, there are a number of considerations individual business travelers as well as corporate travel departments need to account for when approving use of sharing-economy options. Personal liability, security, or broader duty-of-care concerns top the list.”

McCormick explained business travelers and travel buyers “must be aware of these changes, their benefits and drawbacks, and consider all scenarios when updating, incorporating, sharing, and following a corporate travel policy.”

One of the problems in the corporate sector is employees do not know if their travel polices address TNCs.

“The sharing economy trends that have come to define personal travel are significantly influencing business travel as well,” said Susan Chapman Hughes, senior vice president of American Express Global Commercial Payments, in the index report. “However, nearly one in five travelers are still unsure whether their employer’s policies allow for sharing-economy services, making it especially important for companies to communicate clear details about the services and amenities their policy covers,” said Hughes, quoted in the GBTA index report.

Scott Solombrino, National Limousine Association board director and CEO of Dav El/Boston Coach Chauffeured Transportation Network, told LCT corporate travel policies are split on TNCs.

“We believe TNCs must meet the proper standards of duty of care systematically across the board and globally. We are pushing the message to elevate duty of care by requiring TNCs have full FBI database background checks, because the downside is if employees get injured in a TNC or are a victim of a crime, there is a liability and they can be held responsible,” said Solombrino, who also is President of the GBTA Allied Leadership Council. 

In 2016, fewer business travelers reported being required to follow a company travel policy — 44% compared to 50% in 2015, according to the GBTA Business Traveler Sentiment Index. Another 21% don’t have any travel policy restrictions versus 15% in 2015.

The index noted looser requirements could help explain why six in 10 business travelers say they are satisfied with their companies’ travel policies compared to 54% in 2015. And it’s not just about TNCs; the index reports 28% of companies allow employees to use homesharing services such as Airbnb or HomeAway.

GBTA Notes TNC Risks
Concerned corporate travel managers are not fully aware of the risks of allowing employees to use TNCs. The GBTA has alerted members of the following issues:

Business practices: TNCs certainly have room to grow and mature. Discriminatory, exploitative, and predatory business practices will not serve it well with corporations. However, TNCs have added some slick services around driver and vehicle identification, route planning, and car-tracking services that can help companies ensure passenger safety.

Insurance: Debate still exists whether insurance coverage for TNC drivers has been sorted out with regard to their passengers. Several of the larger TNCs’ company-provided insurance works while the app is on; supplemental insurance is sometimes offered by many major carriers, including Geico. There hasn’t been a real litmus test court case around the duty-of-care concerns with corporate travel policies and their incorporation of TNCs.

Safety/security: While violent incidents involving TNCs attract headlines, in sum these services appear to be at least as safe as taxis, especially in foreign countries.

The GBTA Convention will host a session addressing the pros and cons of TNCs on Wednesday, July 19. “To Ride or Not to Ride? Can Corporate Travel Programs Go Global and Stay Safe with Shared Economy Ground Transport Services?” will include four panelists representing various sides of the debate, including Tim Rose, CEO of North America Addison Lee Global.

Business Travel Growth Uncertain
The U.S. is projected to lose $1.3 billion in travel-related expenditures in 2017 due to the Trump administration’s travel ban, as well as the Department of Homeland Security barring passengers traveling from 10 airports in eight Middle Eastern and African countries from bringing laptops and large electronics into the cabin as carry-ons, according to the GBTA.

“Business travel remains strong despite ongoing geopolitical disruption,” said Mike McCormick, GBTA executive director & CEO. “Global business travel spending last year was forecast to hit $1.3 trillion and will reach $1.6 trillion by 2020. Our latest U.S. Business Travel Outlook, which was completed after the election, but before President Trump took office, projects a 4.4% increase in business travel spending in 2017 totaling $296.1 billion, following a 0.2% drop in 2016, he added.

However, McCormick pointed out projected growth is “very much in jeopardy due to policies from the Trump Administration creating uncertainty around travel.”

Business travel drives lasting business growth and is a leading indicator for jobs and the economy at large, he said. “Continuing to enact policies that discourage business travel will cause a rippling effect across the travel industry and the overall economy. We urge the Trump Administration to consider the important lasting impact of business travel and enact policies going forward that preserve both our national security AND our economy for the future.”

Keywords

business travel   corporate travel   GBTA   Global Business Travel Association   industry trends   research and trends   

 

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Virginia Operators Fight TNC Bill And Unfair Tax

CHESAPEAKE, Va. — More than 50 members, speakers, guests, and industry supplier vendors attended the June 15, meeting of the Virginia Limousine Association (VLA), winner of the 2017 LCT-NLA Association Award Of  Excellence. 

As this year’s winner, the VLA was awarded $1,000 to donate to the charity of its choice. The VLA board of directors granted the money to The Doorways, a Richmond-based organization that provides temporary lodging and non-medical services to patients and families who need to be close to nearby hospitals.

Meeting highlights included updates on legislative and regulatory issues, including a recently passed bill that removes the requirement a transportation network company (TNC) partner register his personal vehicle for use as a TNC partner vehicle with the Department of Motor Vehicles. The bill allows the Department of State Police to recognize another state’s annual motor vehicle safety inspection in lieu of a Virginia inspection, and clarifies a TNC partner can keep proof of inspection in or on the vehicle.

VLA President Paul Walsh (Superior Executive Transportation, Virginia Beach) said the bill was quickly pushed through the Legislature during its final 2016 session in December and put into effect in April.

“We’re going to fight to have it repealed because this bill was rammed through the legislature with very little discussion. Now, TNCs, which are having a hard time finding drivers, can hire anybody from another state because they don’t have to register in Virginia.”

Further, Walsh said the association is also fighting for relief from the state’s annual business personal property tax on vehicles  because the TNCs only have to pay 20%, while private transportation companies have to pay 100%. “We’re paying 80% more per vehicle than the TNCs and that’s not fair,” Walsh said.

The meeting’s keynote speaker was NLA President Gary Buffo, who updated members on the annual Day On Hhe Hill events that took place June 13-14 in Washington, D.C., and also explained the various initiatives the NLA was working on, as well as new products and services offered to NLA members.

Keywords

Gary Buffo   limo associations   Lyft   Paul Walsh   regulatory enforcement   state regulations   TNCs   Uber   Virginia Limousine Association   Virginia operators   VLA   

 

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Operators Take to Capitol Hill Advocating For Industry

WASHINGTON, D.C. — Operators from across the country are meeting with their respective house and senate legislators to advocate for the industry during the National Limousine Association’s annual Day On The Hill event, June 13-14.  

Addressing concerns and issues on the state and national level, operators are out in full force on Capitol Hill to address the ongoing issues with TNCs, infrastructure spending, regulations, and to advocate for the entire luxury ground transportation industry.

“The National Limousine Association is calling for the U.S. Department of Labor to enforce the Fair Labor Standards act against Uber and Lyft. The misclassification of over 1 million drivers is unfair and illegal. Our industry deserves a fair and level playing field,” commented NLA Board of Director Scott Solombrino, President and CEO,Dav El Chauffeured Transportation Network.

The two-day event features a variety of education sessions, strategy and legislative updates, and networking events attended by NLA board members and staff. Industry association presidents, boards of directors, and operators of all sizes came to Washington to let their collective voices be heard on behalf of the industry.

This year’s event is especially important due to a new administration that will have to tackle pressing issues to deal with the nation’s crumbling infrastructure, the tax code, and regulatory issues. On the state level, a new crop of senators and representatives will have to deal with the industry’s fight against illegal TNCs and goal to establish a level playing field for private transportation.

Keywords

Day On the Hill   industry politics   legislation   National Limousine Association   special events   Washington DC   

 

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NLA, Jobs With Justice Partner To Protect TNC Workers’ Rights

NEW YORK—The National Limousine Association’s Ride Responsibly initiative and Jobs With Justice  have joined forces in the fight for workers’ rights. 

This partnership’s efforts will specifically focus on the lapses in legal protections that have proliferated as the nation’s ground transportation industry evolves.

Both organizations share the belief men and women are entitled to a voice in their workplaces, and the economy and their wellbeing is intrinsically connected to the country’s economic wellbeing. However, within today’s ground transportation industry, as the profit model has changed and new technology has come into play, working people have become an ancillary concern.

“In a society that increasingly values convenience over safety and responsibility, it is the obligation of the NLA to raise awareness about how ride-hailing services, for financial gain, are circumventing fair labor laws and are not adhering to the same safety standards and regulations that are often applicable to taxis and limousines,” said Gary Buffo, President of the NLA.

“Our partnership with Jobs With Justice is a vital step towards bringing these urgent matters to the forefront of conversation here in the United States. Ride-hailing services are misleading passengers, exploiting drivers, and putting our economy at risk.”

“Americans are united in the desire to work hard for our families and futures,” said Jobs With Justice Executive Director Sarita Gupta. “Unfortunately, many ride-hailing services rig the rules to prevent working people from leading a good life. When ride-hailing firms misclassify employees as independent contractors, they avoid taking responsibility for the safety and security of the people who make their businesses run. Our partnership with the National Limousine Association’s Ride Responsibly initiative will help shed light on how transportation networking companies undermine drivers, consumers, and our communities.”

Source: Press Release

Keywords

Gary Buffo   labor laws   Lyft   National Limousine Association   Ride Responsibly   TNCs   Uber   

 

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Chinese Motorcoach Builder Enters U.S. Market

Chinese motorcoach manufacturer CHTC USA has entered the U.S. market offering two motorcoaches, the 56-seat model HT45 and the 40-seat model HT35. 

According to a May 24 press release, the company, based in Chino, Calif., and Orlando, Fla., is “growing our network of sales and service facilities throughout the U.S. and will be entering the Canadian market in the near future.”

Read Bus & Motorcoach News article

Related: How To Finance Bigger Revenue-Generating Buses

Keywords

buses   motorcoaches   new vehicles   

 

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Minority Operators Making Their Mark With B2B Benefits

The Minority Limousine Operators of America (MLOA) is focusing on recruiting new members by expanding its membership committee to reach out to the growing number of minority operators in the industry.

During MLOA’s bi-monthly member conference call meeting Tuesday, May 24, membership board second vice president and committee chair Reggie Tymus (Capital City Limousine, Washington, D.C.) said the organization — now in its sixth year — is stepping-up initiatives to sign-up more members to become part of the growing association.

MLOA President Maurice Brewster (Mosaic Global Transportation, Redwood City, Calif., emphasized that benefits of membership include education offerings such as minority certification classes to become eligible to compete for government and private sector contracts, and a series of web seminars to help operators grow their business.  Two web seminars are schedule this summer: A June 28 session, “Strategic Sales Skills Training” and Aug. 23 session, “Corporate Marketing Done The Right Way.”

In addition, Brewster announced that MLOA will launch a “Success Group” for minority operators that will serve as a venue for face-to-face education, networking, and sharing best business practices. The group will be led by Arthur Messina, founder/president of Create-A-Card, who said the initiative is in the planning stages and expects to launch its first meeting early next year.

Brewster also announced that MLOA will be meeting at the annual LCT-NLA Show East at Harrah’s Resort, Atlantic City, Nov. 5-7.

Keywords

Arthur Messina   continuing education   Create-A-Card   LCT-NLA Show East   Maurice Brewster   minority business contracting   Minority Limousine Operators of America   minority-owned businesses   MLOA   Mosaic Global Transportation LLC   Reggie Tymus   

 

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Fugitaboutit! Operators Deal With New York City Traffic Woes

NEW YORK —Traffic congestion in Manhattan, surrounding boroughs and bordering states has always been a struggle for limousine operators to get from point A to Point B on time.  In terms of the worst traffic among U.S. big cities, New York ranks second behind Los Angeles. However,  LA’s renowned traffic congestion is more spread out via its extensive freeway systems compared to the compact city streets, tunnels, and bridges of Manhattan and the outer boroughs.

Compounding the situation, there are an estimated 50,000 licensed TNC cars that now prowl city streets. To put New York’s TNCs impact into perspective, over the last three years, those additional TNC vehicles have racked up over half a billion miles of driving throughout the city, adding to traffic woes and contributing to frequent  gridlock situation ,according to a  Feb 27, 2017 report, “Unsustainable? The Growth of App-Based Ride Services and Traffic, Travel and the Future of New York City,” conducted by Schaller Consulting, Brooklyn, N.Y. In fact, the survey points out that TNCs transported 15 million passengers per month in 2016 — nearly as many trips as served by the city’s 43,000 yellow cabs.

Further, the situation could get worse due to legislation signed into law April 10 that now allows TNCs to operate legally and freely throughout the state. Previously, only New York City allowed registered TNCs to operate within city limits.

In addition, TNCs have become the leading source of growth in non-(personal) auto travel in the city displacing the transit-oriented growth of the 1990’s through 2014. In short, people are opting to take a TNC rather than the subway or bus., creating a trifecta of increased congestion, more vehicle emissions and traffic safety…the side effects that the city and other major urban areas will have to deal with the surge of TNCs.

Operators who work Manhattan and the region are resigned to the fact that clogged highways, streets, bridges and tunnels are a way of life. “I can’t say I notice a difference one way or the other with additional TNC cars, but in this region, weather and public transportation disruptions cause the most problems,” commented Scott Greenwald, general manager and partner, AAA Worldwide Transportation, Clifton, N.J.

Rail delays have become commonplace for commuters, forcing them to drive as Amtrak, New Jersey Transit and the Long Island Rail Road are constantly trying to maintain an aging rail system that is in need of major repairs and upgrades. “You can feel the pain on the highways when Amtrak’s Northeast Corridor line is having issues,” noted Greenwald.

Always resourceful to make sure their serve their clients regardless of traffic, New York regional operators always have a Plan B in place. “The obvious is to  allow  plenty of time for a pick up and if there is a problem you need to rely on a strong network of partners that can help you out in a pinch,” explained Greenwald.  He added that during peak times he may stage chauffeurs at various locations during as backups.

Of course, wheeling and dealing with traffic has always been part of the deal for New York City regional operators. “Traffic is traffic,” said Charlie Gandolfo, president of Long Island-based Dynasty Limousine. “Some days it can take an hour to get to Manhattan and other days two to three hours,” he said, adding that dispatchers and chauffeurs always look to cut down on time by taking a different route or a tunnel that maybe knocks off 5 to 10 minutes, but “It is what it is—you just have to deal with it.”

Keywords

new jersey   New Jersey operators   NEW YORK   New York City   New York operators   regulatory enforcement   TNCs   traffic assessment   traffic jams   

 

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Is Your Employee A ‘Dirty Towel’?

Rusty Goodwill, senior operations trainer with MGM Resorts International, uses the “dirty towel” example to reinforce to hotel staff the individual and collective effects on customer service.

“When a guest checks into a room, everything is immaculate and there are three towels in the bathroom, but the next day, the guest returns to the room and notices there are only two clean towels and a dirty towel on the floor. So now the guest’s perception is the entire room is dirty. The point is an employee can’t be the ‘dirty towel’ the guest remembers.”

Goodwill knows some employees think they are only cogs in the wheel, “but if five employees do a great job and one doesn’t, that’s the one a guest will remember about their experience.”

Goodwill commented during a panel discussion, “Strengthening the Relationship with Your Clients,” held March 15. Moderated by Diane Forgy of Overland Chauffeured Services, Kansas City, Mo., the panel also included Bob Beutel, ALLSTAR Chauffeured Services, Detroit, Mich., and Tyrone Gale, Atlantic Transportation Services, southern Delaware.

Leading By Example
The panel’s overall message to conference attendees was it’s not just about handing staff standard operating procedures, but management leading by example to reinforce the importance of ensuring every member of your staff is committed to exceptional client services every day and every trip.

“I’ll personally go to the airport and greet a new client and my chauffeurs will see me shining a limo because you have to create a culture of service by leading by example,” Gale said. “You have to display your commitment to client service so your staff takes it seriously as well as the responsibility for engaging and taking care of clients.”

Beutel added, “You have to engage all employees at every level about the importance of client service, from reservationists and chauffeurs to the back-end support staff and accounting, and you have to look at your procedures and manuals as ‘living’ documents that reinforce service as your company culture.”
“Client service starts at the top,” Forgy said. “We think of ourselves as being in the transportation business, but we have to think of ourselves as being in the hospitality business because we want to raise our value to clients — the way they look at us and value our service.”

Stronger Client Bonds
Strengthening client relationships also means being accountable, Beutel explained. “Three trips out of 1,000 may go wrong, and you have to make it right. For example, if you know a chauffeur will be late, inform the client so you can handle it before it becomes an incident report. And then tell the client it won’t happen again. That’s what we call service recovery and helps everyone create a culture of service.”

Goodwill added, “At MGM, it’s all about what we can do to engage our guests and create loyalty. All of our competitors have nice beds, rooms, casinos, and restaurants, but nobody returns because of our nice pillows. They return because our employees created a personal and memorable experience for them.”

Keywords

client feedback   customer service   Diane Forgy   employee management   How To   ILCT 2017   industry education   staff training   

 

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European Court May Derail Uber

Uber suffered a setback to its global expansion plans on Thursday, May 10 when a senior adviser to Europe’s highest court recommended the ride-hailing company comply with the region’s tough transportation rules, potentially hobbling growth of its service across the Continent.

Read New York Times article.

Keywords

Europe   European operators   regulations   TNCs   Uber   

 

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Philly Operators Maintain Opposition To Vehicle Fee

CHESTER SPRINGS, Pa.—Although the Philadelphia Regional Limousine Association (PRLA) won a partial victory when a federal judge mediator in March negotiated a settlement between the PRLA and the  Philadelphia Parking Authority (PPA)  to reduce a  vehicle registration  fee from $856 to $500, the PRLA, which filed the lawsuit against the PPA, ultimately wants the burdensome assessment fee eliminated.

During the Tuesday, May 10 meeting of the PRLA, hosted by Wolfington Body Co., PRLA President Steve Rhoads (Rhoads Limousine) urged members to continue to financially support lobbying efforts to repeal the assessment, as well as propose new ideas to bring on new members and host fundraising activities to pay for a lobbyist to represent the PRLA.

Several members collectively pledged about $9,000 dollars to jump-start the financing, but more money is needed to secure a viable lobbyist to represent the PRLA at the state level.

The assessment is unfair because taxi companies pay 1% of gross revenues and “we should be the same,” Rhoads said. Rhoads told members the 2017-2018 PPA per vehicle fee will be capped at $550, but the goal is to eliminate the burdensome assessment.

The TNCs operating in Philadelphia — now legally — must pay a 1.4% tax on each ride. The special tax was implemented to help fund the city’s school system, which gets two-thirds of the tax, while the PPA received one-third of the tax.

Keywords

city regulations   legislation   Pennsylvania operators   philadelphia   Philadelphia Regional Limousine Association   prla   Steve Rhoads   Wolfington Body Company   

 

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How To Protect Your Fleet From Common Accidents

More people are dying on our nation’s highway than ever before. In a preliminary report released in February, National Safety Council (NSC) data estimates up to 40,000 people died in motor vehicle crashes in 2016. That marks a 6% increase compared to 2015, and a 14% increase over 2014.

The findings are shocking in that the 2014-2016 statistics signal the “most dramatic two-year escalation since 1964 — 53 years,” notes the NSC report.

Further, the National Highway Traffic Safety Administration (NHTSA) reports from 2014 to 2015 police-reported crashes rose by 4%. Not only is the latest data alarming, reversing a 10-year downward trend, but operators also have another problem dealing with more highway accidents: Fewer police respond to minor fender benders.

Percentage of young people who say they have sent a text while driving: 71
Source: Distraction Gov

“Police are no longer dispatched in Philadelphia for non-fatal, non-injury accidents,” says Michael Barreto, chief operating officer of Eagle Chauffeured Services in Upland, Penn. “In major cities, police have so many other priorities where manpower is needed instead of dealing with minor fender benders. You can still call or go to the local police precinct to file a report, but they don’t get in the middle of it anymore and chase down both parties to get their versions of a minor accident.”

He notes state police and local municipality police still respond to the scene of minor accidents to aid drivers and control traffic and cleanup, but when it comes to large cities, “they have higher priorities to deal with, and I understand that.”

Drivers involved in a minor accident still can call 911 where a dispatcher will determine whether or not police should be dispatched based on circumstances. But Barreto knows from experience chauffeurs must follow policy and procedures when a fender bender occurs to gather appropriate information for the insurance company and protect the company on the question of fault.

Of course operators have accident policies in place and train chauffeurs on procedures to follow when an accident occurs. However, considering traffic fatalities and accidents have spiked, it’s prudent to refresh your policies, procedures, and training, and use technology as a necessity to aid in accident information gathering. (See sidebar)

Rear-Enders
“The most common limousine company claims are rear-end accidents accounting for over 26% of the total number of claims,” says Bob Crescenzo, vice president of Safety & Loss Control at Lancer Insurance Company. Sideswipes are the second most common type of limousine company claims, he adds.

Five seconds is the average time your eyes are off the road while texting.
Source: NHTSA

“It’s important to break that 26% down, because our insured vehicle hitting another vehicle in the rear accounts for 12%, and the other vehicle hitting our insured vehicle in the rear accounts for 14%,” he says. “It’s interesting because our insured vehicle hitting another vehicle accounts for more than 6% of claim costs, while another vehicle hitting our insured vehicle accounts for only 1% of claim costs.

Crescenzo stresses rear-end claims are costly and often interrupt delivery of service to customers. “When you consider the repair cost, plus the cost of lost business, these claims are alarmingly expensive for both the short- and long-term to your business.”

To minimize risks, chauffeurs have to be on their game every trip due to the rise in distracted drivers causing an increasing number of traffic fatalities and accidents. The NHTSA reports in 2014 more than 3,000 people were killed and 431,000 injured due to distracted driving.

What procedures chauffeurs execute following a fender-bender is crucial to determine fault, especially if police don’t respond to the scene.

[PAGEBREAK]

Protect You Rear

The fact more vehicles are on the road, due to the improving economy coupled with distracted driving responsible for more accidents, means operators should take any and all steps possible to train chauffeurs to help reduce accidents.

Here are tips from the National Highway Traffic Safety Administration (NHTSA) chauffeurs should follow to avoid rear-enders. Some are obvious, but reminding all drivers (especially new and part-time staff) of the basics establishes the foundation for chauffeurs to follow all safety procedures on every trip.

Bob Crescenzo of Lancer Insurance Company stresses chauffeurs should avoid distractions, such as using tablets or phones while driving, as well as carefully timing and planning routes and trips. “They need to pay attention to what’s behind them and be sure to adjust the rear-view mirrors so you can see what’s going on around you.”

Other tips include:
• Avoid sudden mergers and lane changes.
• Always signal changing lanes.
• Keep up with traffic flow.
• Get away from tailgaters as soon as possible.
• Try to avoid driver’s blind spots.
• Always brake early.
• Keep safe distance from the vehicle in front of you.
• In adverse weather, increase the distance between your car and the one in front.
• Pay close attention to traffic flow.

[PAGEBREAK]

Who’s At Fault? Crash Apps Help Make Your Case
Michael Barreto recalls when chauffeurs would carry a disposable camera in their vehicles to snap photos in the event of an accident to help determine who hit who. Fortunately today, technology and phone apps can help substantiate fault.

Not only are more limousine companies outfitting vehicles with dash cameras that record accidents and traffic conditions at the time of the incident, but new phone “crash apps” are being used to gather data and information to help insurance companies determine fault and speed up the reporting process among all parties.

“There are apps available chauffeurs can use on their phones and tablets to collect data and photographs that can immediately be sent to your claims or fleet manager and insurance company that provide a record of all the information following an accident,” Barreto says.

He notes such apps (many are free) collect GPS data at the time of the accident and incorporate photographs the chauffeur takes, as well as other pertinent data and information bundled together and sent to the appropriate parties.

For example, one app, Car Accident Report (supplied by OutSystems), allows you to pre-load vehicle information, emergencies, and insurance contact information that simplifies the claims process. The app allows one to:

• Automatically access all policy information to quickly submit an accident claim.
• Take photos with the mobile device and add them to the claim to document all details of the accident.
• Capture the geolocation of the accident directly from your mobile device for tow truck and medical assistance request, as well as for documentation.
• Receive push notifications with updates and estimated times of arrival of towing truck, replacement car, and other services that may apply.

Keywords

accident reduction   accidents   distracted driving   limo crashes   Mike Barreto   passenger safety   safety   Safety & Insurance   text messaging   vehicle safety   

 

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New York Operators Dismayed Over New TNC Law

ALBANY, N.Y. — TNCs can now legally operator throughout New York thanks to a law that was included in the 2018 state budget signed by Gov. Andrew Cuomo Monday, April 10. The new law gives the green light for TNCs to operate especially in upstate New York cities such as Syracuse, Buffalo, Albany and Rochester. TNCs operate legally in New York City under the licensing authority of the city’s taxi commission. Although the new law allows TNCs to expand throughout the state, municipalities still retain an “opt-out” provision that allows them to outlaw TNCs within their boundaries.

The new TNC law requires higher insurance as well as background checks, but not fingerprinting.

“We’re not happy that they didn’t address fingerprinting or ADA (Americans with Disabilities Act) issues,” said Kevin Barwell (Giorgio’s Limousine Service, Park Place Transportation, and Chautauqua Limousine Service, serving upstate New York), president of the Limousine, Bus & Taxi Operators of Upstate New York (LBTOUNY). “New York State fails at being proactive and protecting its citizens …always a double standard in this state that make it very difficult to operate successfully,” he added

Barwell said the association will continue to work with upstate cities and towns to strengthen TNC regulations as well as stricter background checks that include fingerprinting.

Added Bill Goerl, (Clique Limousine Service, Oakdale, Long Island), president of the Long Island Limousine Association), “As expected Albany addressed the concerns of Nassau, Suffolk and Westchester Counties which already have a Taxi and Limousine Commission in place to opt out of  Governor Cuomo’s new TNC law. The unexpected turn is that it’s not quite that easy to ‘opt out’ because each county of more than 100,000 residents decides to “kick out” TNC’s must pass a local law to do so.”

Goerl noted that the law “clearly gives TNC’s the upper hand” because TNC drivers will only need one state license which covers them through every county except New York City.

“Even in New York City, they can still drop off, just not pick-up. We need to pay $250 per vehicle for a TLC (Taxi Limousine Commission) license for each county we do business in; TNC’s will be exempt from these TLC fees,” Goerl said. “They will also have a pricing advantage as they only collect 4% state sales tax, and we collect 8.65% sales tax. The TNC drivers will also not need to be fingerprinted as our chauffeurs do,” he added.

Goerl expects many new TNC operators to get the state license and “flood our counties,” adding, “Our local legislators and the TLC are working on passing the law to opt out, but how quickly they can accomplish this, and if they can get the public backing to accomplish this, is the next unanswered question.”

LILA Board of Director and National Limousine Association Board of Director Doug Schwartz (Executive Limousine, Bellmore, Long Island) said, “We are disappointed that New York State does not see the value of thorough and complete background checks. There is nothing more important than safety of our passengers.”

Keywords

Bill Goerl   doug Schwartz   Kevin Barwell   LBTOUNY   LILA   long island limousine association   NEW YORK   New York City   New York operators   regulatory enforcement   state regulations   TNCs   

 

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