Showing posts with label 2017 at 01:15PM. Show all posts
Showing posts with label 2017 at 01:15PM. Show all posts

Wednesday, June 14, 2017

Company Aims To Reach Peak Operating Performance

<p>The company's chauffeur team</p> TUCSON, Ariz. — Abdou and Hillary Louarti, co-owners of Diamond Transportation, have set out to provide chauffeured transportation service unlike any other in their area. They’ve grown a lot since they first took over the company, and it’s all thanks to becoming more involved in industry groups, associations, and trade shows.

Show Leads To Success

Originally an offshoot of Arizona Shuttle, Diamond Transportation broke away in 1996 to provide pre-scheduled sedan and SUV service for high-end local resorts. Abdou started working for the company in 2005 as a chauffeur, and was constantly suggesting new ideas to the owners to help improve service levels.

They liked how he was involved with the business, and eventually asked him to help manage the company. Hillary was brought on to help answer the phones from home since she was pregnant with their daughter. Abdou managed Diamond from 2008 to 2010, and then decided they had invested so much in the business it was time to buy it.

They continued to run vehicles as pre-scheduled, but didn’t like the business model they inherited. “We started to do a lot of research to figure out what we wanted and where we needed to be going in the industry,” Hillary says.

Abdou went to his first International LCT Show about five years ago and discovered the industry had more to offer than what they saw in Tucson. “My mind exploded with ideas, and I didn’t want to sit around and be complacent,” he says.<p>Hillary Louarti, affiliate manager of Diamond Transportation</p>

Hillary agrees the first Show was a huge eye opener for him; for a week after he came back, all he could say was, “Oh my gosh, you won’t believe this!” Their first move was purchasing a Mercedes-Benz Sprinter, which they didn’t have a market for at the time.

But after Abdou researched it, he noticed there was only one bus company in town that had silver, factory built Sprinters — but no one had a luxury offering. “I was a little nervous about it, but he knew what he was doing. That vehicle was booked all the time because it was the only one in town,” Hillary says.

Making A Difference

The couple wanted to be more involved on the local level, and Abdou recently received an offer to be a board member of the Arizona Limousine Association (ALA). “Tucson is a small town, and there’s work here, but people fight over it,” Hillary says. “As Maurice Brewster, one of our mentors, told us, it’s like crabs in a barrel: Everyone is trying to claw their way out instead of working together.” They want to help advocate for a different mentality that will enable operators to help each other succeed in a disrupted industry.

<p>Abdou Louarti, general manager of Diamond Transportation</p>They are also members of the Minority Limousine Operators of America (MLOA), and the only transportation company that’s a platinum sponsor. They’ve also been learning how other operators problem solve and address issues in Arthur Messina’s Wheels in Motion group, thanks in part to retired operator and LCT contributor Jim Luff. “He has been such a good mentor and friend to us,” Hillary says.

“We want to learn more about how to exceed in customer service and infuse that with our company culture,” Abdou says. At Diamond Transportation, they encourage a positive outlook and feature a word of the month to help staff realize the importance of being team players. May’s was respect, for example, and other months’ words included communication, attitude, and involvement.

Taking Care of Business

The couple believes they provide service to a niche market. They work with a lot of DMCs and handle the logistics of many group events. “We have clients who come in from big cities and say, ‘Wow, you have amazing vehicles. I live in Chicago and I haven’t seen anything as nice as what you have here,’” Hillary says.

“In Tucson, you’ll have drivers who show up to pick you up in an old Town Car wearing a polo shirt and cowboy boots. It’s a very Western-casual mentality, but we don’t believe in that; we believe in corporate business standards.”<p>A photo from a safety meeting recently hosted by Diamond Transportation</p>

To stay competitive, Hillary suggests establishing expectations: If your clients know what to expect and receive consistent quality service for a set price, it’s unlikely you’ll have issues. “If your service is inconsistent, it’ll destroy those expectations,” she says.

This goes for your staff as well. They have to know what you expect of them and what they can expect of you. “We expect them to clean vehicles, prep them, and provide great service, and they expect us to provide a great place to work and an interesting occupation,” Abdou says. The couple believes engaging your staff is the key to employee retention.

In the future, the couple is planning to provide service nationwide through its affiliate network, and hope to set up a satellite office in Phoenix — but they aren’t in any rush to do so. “One of our affiliates once said this isn’t a career; it’s a lifestyle. It’s important to do your best to fit the other parts of your life in and make sure you have as best a work life balance as possible,” Hillary says.

Keywords

Arizona Limousine Association   Arizona operators   business management   company culture   customer service   employee management   employee retention   limo associations   managing chauffeurs   Minority Limousine Operators of America   minority-owned businesses   staff management   WebXclusive   

 

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Survey Results Show Tougher Industry Roughing It Out

Each year LCT Magazine faces some of the same challenges of the businesspeople we write about: Keeping clients engaged and coming back.

With disruption and competition multiplied by technology, we doubled down on efforts to get you — our readers, subscribers, and supporters — to click into one more email to take our survey, or for those fed up with stuffed email boxes, the option to fill out a good old-fashioned print survey via snail mail.

This year, LCT deployed print and multiple digital survey versions that accurately fielded respondents of all fleet sizes, reflecting general industry ratios. More than 250 operators participated, providing a realistic picture of the industry relative to its overall size. The survey generated a 95% confidence level with a margin of error of +/- 5%.

Below are some highlights that should not be big news to anyone paying close attention to industry trends, for better or worse.

Positives
The industry has been disrupted and battered on many fronts this decade, such as in the areas of technology-driven competition, regulations, labor costs, hiring difficulties, and insurance, but remains resilient.

  • Almost half of operators saw revenues increase during the past year.
  • Almost half of operators plan to add staff this year.
  • The same percentage believe the economy is getting better, and only 13% think it’s getting worse. The rest say it’s performing about the same.
  • One-third of operators increased their rates during the past year, and 64% kept rates the same, despite all the pressures from transportation network companies.

Solvables
Since we don’t like to dwell on negatives, we’ll point out a few challenges that invite solutions:

  • Four in 10 operators say chauffeured transportation industry conditions are getting worse, with 22% saying better and 37% saying about the same.
  • 55% of operators say they have lost business to TNCs, up from 50% in 2016.
  • 77% of operators saw fleet vehicle insurance rates rise since last year.
  • 51% said they are “extremely concerned” about rising rates when asked about industry concerns.

LCT FACT BOOK HERE

Keywords

industry surveys   LCT Fact Book   research and trends   

 

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Uber Is Imploding, But Does Anyone Really Care?

<p><a href="http://ift.tt/2sbriXX">Photo via Flickr user OFFICIAL LEWEB PHOTOS</a></p>The real risks for Uber will happen internally with employee morale, recruiting, and partnerships — effects that won’t be seen for years to come. Investors and partners are the ones who will be affected most by the long-term prospects of this company, and right now the return on those investments appears to be headed in the wrong direction.

The Verge article here

Keywords

executive changes   Harassment   TNCs   Travis Kalanick   Uber   

 

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Tuesday, June 13, 2017

Tech-Savvy Affiliates In Demand

<p>Vince Schneider of JED Transportation</p>ST. LOUIS, Mo. — Technology has changed the affiliate business in so many profound ways it’s one of the first standards Vince Schneider of JED Transportation insists on when looking for an affiliate.

The dispatch area at JED Transportation includes a projector with four large flat screens that enable the team to monitor different portals for companies such as EmpireCLS, Dav El/Boston Coach, Commonwealth Worldwide, Leros Point To Point, Music Express, Broadway Elite, and Limo Link. Designated staff members are always updating and staying on top them, confirming work being farmed-in and out.

“I would say companies serious about affiliate work must have a dedicated affiliate manager. We spend a lot of time ensuring we have the right chauffeurs matched to the correct affiliate accounts, and hold 15-minute dispatch meetings every morning looking at the schedule for the next day,” he says.

About 30% of JED Transportation’s business is farm-in, and the company recently hired an affiliate manager from within to help increase farm-out business, at 2%.

LCT CONNECT PROFILE HERE

The company strives to be the premier luxury transportation provider in St. Louis, and its diverse fleet of 80 vehicles reflects this. Its SUVs and sedans, including Cadillac Escalade, GMC Yukon XL, Mercedes-Benz S-Class, Cadillac XTS, Hyundai Equus, and soon-to-be-delivered Lincoln Continental vehicles — are turned over every 18 months.

JED also offers Sprinter vans and motorcoaches. “We can do any trip a client or affiliate might need,” Schneider says.

The company also has an account with the Four Seasons in St. Louis, and is sending 15 chauffeurs to go through its customer service training.

Schneider signed JED Transportation up for LCT Connect because he knew it would be a valuable resource. “I know a lot of companies use Facebook to try to get recommendations, but if we’ve got someone going to a market we haven’t been to before, LCT Connect is one of the first places our affiliate manager will go to see what companies in those markets have taken the time to build their profile, include their fleet, and provide other detailed information.”

Keywords

affiliate networks   Affiliate Report   farm-in farm-out   How To   LCTconnect.com   Missouri operators   St. Louis   technology   

 

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How Good Managers Give Bad Employees Feedback

<p><a href="http://ift.tt/2jdPzHe">Photo via PEXELS user energepic.com</a></p>The best managers employ a face-to-face discussion to deal with low performers, and employees with attitude problems in general. This conversation is best handled on the manager’s end when they’re well prepared and have a game plan. Here’s how they do it.

Inc. article here

Keywords

business management   employee issues   employee management   staff management   staff training   

 

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Why Customer Service Should Mimic Driverless Cars

<p><a href="http://ift.tt/2qLxHI0">Photo via PEXELS user MyStock.Photos</a></p>According to the Bureau of Labor Statistics, 2.7 million Americans are employed in the customer service space. From an economic and labor perspective, a similar set of levels can help highlight the jobs (or portions of jobs) that will be left for humans to do. From a startup and tech perspective, this will highlight obvious areas where we can increase efficiency and productivity.

So what customer service roles can AI take on?

Venture Beat article here

Keywords

autonomous vehicles   business management   customer service   driverless cars   

 

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Looking For The Fact Book Back Story

<p>Pexels.com photo by <a href="http://ift.tt/2ro0t5R" target="_blank">Stokpic</a> (CC0 License: Free for personal and commercial use; No attribution required)</p>

Our annual Fact Book presents a raft of useful business numbers our readers interpret, analyze, and crunch every which way. The stats can guide any operation in making decisions on every function.

While survey numbers recite bare facts, they have to be viewed against wider trends, and even more numbers, beyond the confines of a business and its industry. In other words: “In context.”

Service Squared
For chauffeured vehicle and bus services, client behavior provides valuable cues to how to plan ahead for a business. At LCT, we survey you, the operators, but not the people riding in your vehicles who can make or break your success. Taken together, clients and how they change their preferences and habits spur the motives for why, when, and if a service-oriented business must change in particular ways.

I recently came across some relevant client trends among luxury minded consumers. While industry clientele spans multiple demo groups, it’s generally the higher net worth business and leisure travelers from the upper-middle and wealthy classes who generate the core revenue sources for chauffeured operations. Paying attention to them helps round out the Fact Book.

According to Skift.com, a travel industry news, information, and research service, “service is the most important part of any hospitality business, but an even more significant differentiator in the luxury sector.”

Comparing the realm of service to five-star hotels, if every business or operation offers similar luxury amenities, then how a staff or provider behaves and the quality of the experiences they create sets them apart from competitors. Like hotels, so go luxury chauffeured services.

Money To Spend
Skift.com reports the big back story of how middle class incomes are gaining faster economically than the wealthy class, which should bring new opportunities for operators. It’s human nature to want to make more money and then aspire to the comforts people with more money enjoy. Just look at any Third World economy exploding and transitioning to a more capitalist orientation. As Skift.com reports:

• Middle class households with a disposable income of $100,000 or more will grow from 9.3% in 2017 to 21.1% in 2030.

• Affluent households with a disposable income of $300,000 or more will grow from 1.5% in 2017 to 3.1% by 2030.

• The population of high-net-worth individuals is expected to grow strongly until 2030 and then become small compared to households with smaller incomes but still sizable disposable incomes. (my emphasis)

• Traditional luxury travel providers who only appeal to high-net-worth individuals, described as adults with $1 million+ in net assets, are missing a much larger target market.

New Values
That’s where education and experiences matter most. Those middle class households growing into higher economic reaches need to know about the quality chauffeured experience beyond just tapping a TNC app or grabbing an airport shuttle. Consumers who gain more disposable income generally are open to trading up beyond products and services considered commonplace.  

As more newly minted upper-middle class and wealthy consumers embrace luxury, it will change the perceptions of the sector, according to Skift.com. It won’t just be about high price tags or showy brands and traits. “The more important aspects of luxury today touch upon time to relax and disconnect, open and well-designed spaces, authentic messaging, [creating] a community setting and the ability to connect, and the resources to improve health.”

Chauffeured vehicle, anyone? Now there’s a product and service, if done right, that can meet all of those demands: Simple, easy, relaxing, authenti, and attractive. All can be available riding in a Lincoln Continental or Mercedes-Benz S550. Certainly, it’s simpler and much healthier than wondering and worrying if a Lyft or UberX compact car will be clean with a non-criminal driver.

Gift Of Quiet Time
What I call the always-on, digitally-driven, informed, and street-smart consumers will pay more for “affordable” luxury if it provides the “time, connection, and mindfulness they miss in their everyday lives,” Skift reports.
I read with interest recently how the new bragging right among elite consumers is being able to get eight hours or more of sleep each night. And having the privilege to escape, disconnect, and linger off-grid. That contrasts with what we’ve oten heard in the boasting centered on hours worked, how little sleep one needs, and living a full life of hard-charging activities.

Luxury service providers could promote the big chill out; the craved unplug; the quality experiences of recharged and fuller attention spans. What better way to start those journeys than in a rolling, comfortable, luxury cocoon called a chauffeured car.

Keywords

business travel   client markets   customer service   economic outlook   industry trends   LCT editor   LCT Fact Book   leisure travel   Martin Romjue   research and trends   VIP service   wealthy clients   

 

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Monday, June 12, 2017

CT6, Escalade Help Lead Cadillac Sales Increases

<p>2017 Cadillac Escalade (LCT file photo)</p>

Cadillac continued its win-streak in the U.S. last month, posting a 9.2% year-over-year sales increase in delivering a total of 13,211 units. Retail sales were also up in May, rising 9.8% at 12,708 vehicles delivered.

The News Wheel article here

Keywords

Cadillac   Cadillac CT6   Cadillac Escalade   vehicle sales   

 

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What Are Top In-Car Gadgets For Chauffeurs And Clients?

<p>(LCT file illustration)</p>

Here, we’ve picked out a selection of eight handy items and gizmos that cover a wide spectrum of prices you may not previously have considered, but can all make a welcome little enhancement to both long and short journeys alike.

TheChauffeur.com article here

Keywords

chauffeur training   client markets   customer service   gadgets   interior vehicle care   onboard amenities   VIP service   

 

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Find Your Cool Factor: Stats Reveal Changes You Should Embrace

It brings me great pleasure to announce our 2017 industry statistics book. LCT conducts a comprehensive industrywide survey each year to provide you with a guide-by-numbers on how our industry is doing. Many thanks to those of you who completed this detailed survey. I know it’s a lot to ask in our frenetic world, but for the good of the whole, enough of you responded for valid results. LCT is proud to be the sole source of reliable industry statistics for more than 25 years. So let’s look at the landscape:

Nearly half of the market is reporting revenues up. That’s great news, except expenses are higher as well. The goal here is to boost bottom line growth. So we’ve got to focus on managing our expenses. I said this at the State of the Industry address during our International LCT Show in March. We must embrace technology to streamline our processes and scale back our headcount.

The No. 1 cost center in this business is human capital. I mentioned how artificial intelligence and bot technology are becoming mainstream in major customer service industries. As crazy as it sounds, just around the corner a refined version of Siri is waiting to be the voice behind your call centers, your customer service department, and dispatching. I am excited to see that 85% of chauffeur communications are done with smartphones. Mobile technology is the primary reason why our global economy is undergoing such a paradigm shift in how we do virtually everything. Insurance rent rates went up nearly 80%. That is a major jump. Insurance costs are your second biggest line item expense.

I’m a bit concerned about the mood in our industry. Four out of 10 respondents said market conditions are getting worse due to TNCs. More than half report losing some business to Uber and Lyft. This will bring morale down unless we sit down and carve out a plan. Your plan has to involve giving what the consumer wants and live up to their new expectations. You need to spend more time talking to your customers and involve them in refining your services. One size does not fit all, so what works in one market may not in another market. To understand how to reposition your company or create new divisions for your services, you need to know what your specific market wants and values for their money.

Finding and retaining chauffeurs is your top business concern. First, you must keep the ones you have happy and stop turnover. Invest in training and more importantly retraining. Spend more time with your chauffeurs and create a community. Use your iPads to send messages out personally to chauffeurs on the road every day. Believe it or not, money is not the motivator for staying with a company. Employees stay with managers they feel value their work, involve them in the business, talk to them regularly, and cultivate relationships. The only way to breed loyalty is through connection at the human level. We are challenged in a world where people are flocking to work for cool, hip companies. We’re considered old school by the new workforce looking to participate in start-ups or exciting new companies. I think this is something easily overcome.

<p>Bobit Business Media open workspace plan (file shot)</p>

My parent company has been around for more than 55 years. It recently renovated its offices; down with the wood paneling and up with the bright colors in conversation pods complete with beanbag chairs and flat screen TVs, and great new workstations. Look at your businesses from the lens of a Millennial employee, and when in doubt, ask and look around. Go on Pinterest and type in cool office spaces. We should make our business attractive from a staff and a culture standpoint. We need the cool factor!

This industry has been spending a lot of money on equipment which will put pressure on the P&L. That’s normal for businesses growing or changing. But don’t forget about bottom line growth. You need to get out there and sell. Look closely at your top 10 accounts and find ways to increase their spending by 10%. Imagine how much revenue growth you would enjoy! Look for ways to streamline and reduce costs. Get sticky with your customers and find out how they perceive customer service in today’s marketplace, and then provide it for them. Fall in love with technology. It won’t hurt you!

Keywords

industry surveys   industry trends   LCT Fact Book   LCT Publisher   research and trends   Sara Eastwood-Richardson   state of industry   

 

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Turtle Top Transit Kicks Shuttle Service Up A Notch

OREGON, Ohio — Shuttle work is a great way to bring in a steady revenue stream and gain new clients who will fall in love with the look and feel of your vehicles.

This new 2016 Ford Transit mini bus built by Turtle Top, now for sale on limoforsale.com, will provide your customers with an unforgettable touring experience at only 200 miles for $78,900.

SELLER INFO, SPECS & PHOTOS HERE

The shuttle seats 14 passengers in reclining  leather seats and features tinted windows, fiber optic lighting, premium sound, iPod aux integration, A/C power outlets, mood lighting, window shades, and TV/DVD playing capabilities.

The seller says, “The new VT3, a third generation Van Terra, represents the state-of-the-art future for the shuttle bus industry. The Turtle Top VT3 is constructed on Ford’s new Transit cutaway with gas or diesel options for its power train. Lightweight materials such as 6360 aluminum (aircraft grade) are used exclusively for the cage structure which provide superior strength. They also conserve enough weight necessary to remain under 10,350 GVWR for the chassis. This patented, extruded cage structure sets the standard for the future designs of Turtle Top products. The aerodynamic exterior and comfortable interior has also been redesigned featuring great driving visibility and sophisticated automotive styling.”

Keywords

Ford   Ford Transit Van   Limoforsale.com   online vehicle sales   shuttle vans   Turtle Top   vehicle sales   

 

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