GCLA Goes to Vegas, Prepares for Relocations at LAX

GCLA President David Kinney of API Global Transportation More than 75 attendees came out to support the Greater California Livery Association (GCLA) hen it met up in Las Vegas March 14. CD Industry & Brand Ambassador Philip Jagiela was among those present for the evening meeting.

With President David Kinney of API Global Transportation at the helm, the meeting kicked off with a summary of the association’s January Day on the Hill in Sacramento. Kinney also thanked those who participated in the legislative event for their support and encouraged more members to attend in the future.

Amendments to SB-109, a bill pertaining to emergency exits in party-carrying vehicles, were considered a “significant victory” for GCLA and the industry alike, as it changed the financially onerous original mandate of adding a fifth door to one that more realistically required an exit hatch in limousines. Members were reminded that January 1, 2018, is the new date for enforcement for adding pop-out windows or a roof hatch to limousines that required modification.

The meeting’s keynote speakers were Charles and Spencer Tenney of Tenney Group, which specializes in the acquisitions and mergers of transportation companies. The father and son, respectively, discussed the industrywide trends they’ve seen emerge, such as the acceleration of retirements, concerns over regulation, rising interest rates, and high valuations.

The Tenneys went on to emphasize the importance of educating potential buyers. After explaining why having—and being familiar with—a business plan can help tell your story, they covered topics that help owners become better sellers, such as taking a proactive role in the sales process, offering confidentiality protection, and doing credit checks on those who express interest in doing business with you. From a buyer perspective, the two stressed the importance of authentic empathy, humility, and kindness in approaching a deal with a seller who might be coming to the deal reluctantly, and cautioned against walking away from negotiations too soon, as there is a shared risk in virtually every transaction.

In terms of regional news, beginning May 11, all operators dropping off passengers at Los Angeles International Airport will have to ask their passengers which terminal they’re heading to, due to increased congestion during the Delta relocation from terminals 5 and 6 to 2 and 3—the largest airline relocation in LAX history, which will affect 21 airlines. For pickups, GCLA suggests checking with airlines and flightstats.com to ensure passengers are met at the correct terminal. Visit goo.gl/72Wf1Y to learn more about the relocation.

Next up for the GCLA is its May 16 meeting in San Diego. Visit gcla.org for more information. [CD0517]

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Push To Close Long Island TNC Sex Offender Loophole Begins

Under the recently approved New York State law regarding TNCs, level one sex offenders who committed their crimes more than seven years ago are eligible to be drivers for services like Uber and Lyft.

ABC 7 article here

Keywords

criminal incidents   Lyft   regulatory enforcement   Sexual Assault   state regulations   TNCs   Uber   

 

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Operators Share Top Concerns In A Changing Industry (Part Two)

Mike & Marlo Denning

“What we believe is the biggest problem in the industry is too many companies are worried about what others are doing or not doing. For example: We do not care if the operator down the street has a two-hour minimum and is the cheapest in town, or that Uber has put a dent in our airport transportation. What we care about most is what WE are doing to stand out above the rest. We offer our clients the consistency they expect from a professional service. It is easy to get tunnel vision by worrying about what your competition is doing, when in reality you should be focusing on what YOU are doing!”

— Mike and Marlo Denning, owners, Elegant Limousines & Wedding Services, Daytona Beach, Fla.

Moe Ahmed

“I believe a major issue in our industry is many operators have “follow-me” eyes. A few years ago, the bus market was seemingly dominated by large companies that had the means to purchase and run these vehicles. But once the smaller operators such as myself saw the massive potential in group services, we began buying one, then two, and you know how it goes from there.

The issue is now, at least in our large market of the Bay Area, we have already in a few short years seen undercutting, underpricing, and under delivering on quality becoming just as prevalent as it was with smaller vehicles. Except these are not small vehicles — they are much more expensive to purchase, insure, staff, and maintain, yet we are seeing the same issue of competition stifling our ability to maintain a profit margin that makes sense to continue operating these vehicles. I believe we need to continue to maintain our standards of service, as well as pricing, where we are able to make a profit so as to flourish in this business for years to come.

— Moe Ahmed, president and CEO, MA Limousine & Transportation Worldwide, San Jose, Calif.

Sami Elotmani

“One less obvious challenge is how reactionary our industry has been over the years. We always seem to be surprised by change. Whether it’s a changing regulatory framework, competitive forces, or consumer tastes, our collective reaction has been shock in one form or another. The root causes behind this challenge are many, but the fragmented nature of the industry plays a big role as it often makes it hard for us to come to a consensus until it is too late. One way we can change that is already in play — many of us are thinking more strategically about the future of our industry and what segments are most likely to thrive long-term; hence why you see so many operators embracing the bus business. As for how this will affect our industry, I think with even more drastic changes in our future, only those operators who are able to pivot in an effective and timely manner will survive and even thrive in the long-term.”

— Sami Elotmani, VP of operations, director of global affiliate partnerships, Destination MCO, Orlando, Fla.

Hillary Louarti

“Because chauffeurs are the face of our company, they are our most important asset. Consistent, quality service is delivered by chauffeurs who have been through the same training program and are team players with positive attitudes. We’ve all experienced the difficulty of hiring professional chauffeurs, but keeping good team members is just as hard. Employee engagement in the form of team-building, training, and company events has helped build our team into a ‘family’ with better retention.”

— Hillary Louarti, corporate/group services manager, Diamond Transportation, Tucson, Ariz.

Ebonee Brown

“There are many trials and tribulations operators face throughout the industry. Some may say it’s finding qualified and professional chauffeurs, the surge of transportation services such as Uber and Lyft, and/or declined prices to accommodate customers’ expectations due to economic climate. These are all great concerns, but as someone from a younger generation, I see a bigger issue: The lack of old fashioned customer service, forgetting the value of our services, and the limitations/stipulations placed on customers. For example, I’ve heard companies explain they don’t do transfers or airport arrival/departure, and minimum hours must be booked because otherwise the money they make is not worth it. Companies need to go back to Customer Service 101, remembering every customer connection is important, and accommodating the customers’ needs completely without limitations/stipulations.”

— Ebonee Brown, office manager, Alamo City Limousine Service, San Antonio, Texas

Jay Erlich

“The biggest industry concern I see is the lowering of rate structure. Due to the low costs the TNCs charge, the customer now identifies these costs with all operators. The consumer does not see the actual cost of running vehicles/staff and overhead. It’s best to educate the consumer, but at the same time we still have to find a way to be competitive in the market as, unfortunately, TNCs are a big part of it.”

— Jay Erlich, CEO, Europe Limousine Service, Paramus, N.J.

Harry Atamian

“Ridesharing providers are growing in popularity and they’re changing customer expectations. Thus, last minute reservation changes and new reservations are growing by the day, which not only raises our operating cost on one end but we’re losing customers on the other. Moreover, apps are brainwashing younger businessmen and women to the point where they might never experience the difference between a quality black car service and a TNC. The industry needs to and should come together to overcome these obstacles before it’s too late. We started and shaped this industry; we can surely overcome this obstacle by continuing to provide an exceptional service while being as high-tech as possible.

— Harry Atamian, owner, LVMGT Groupe, Montreal, Canada

Related: Operators Share Top Concerns In A Changing Industry (Part One)

Keywords

employee retention   industry regulations   LCT Fact Book   LCTFast40   Lyft   Millennials   service pricing   TNCs   Uber   

 

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Uber Seeking Up To $2 Billion In High-Risk Loans

Today, The Wall Street Journal reported Uber, the world’s wealthiest startup, is seeking up to $2 billion in loans from institutional investors, as it continues to bleed cash in most of its markets outside the US. The money would come from the leveraged-loan market, which is an untraditional place for startups like Uber to seek cash.

According to the Journal, Uber is tapping two banks, Barclays and Morgan Stanley, to sell a leveraged loan of $1 billion to $2 billion, although there is no guarantee the deal will take place. Uber is also planning on issuing debt in the coming weeks, but no word on how much. The move comes on the heels of the ride-hailing company’s sale of $3.5 billion in equity from Saudi Arabia’s Public Investment Fund.

The Verge article here

Keywords

banks   business loans   money   Uber   

 

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25 Top Business Travel Destinations For 2016

Small Business Trends researched 25 of the world’s top business travel destinations for 2016 and produced this list. Did one of the cities you operate in make it?

Small Business Trends article here

Keywords

best cities for business   business travel   business trends   corporate travel   Global operators   industry trends   research and trends   

 

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Leisure Travel Spending to Reach Record Levels In Next 12 Months

MMGY Global, an integrated travel and hospitality marketing firm in the U.S., has released findings from its annual Portrait of American Travelers (POAT) survey that highlights a record year for the leisure travel industry.

According to the 26th annual POAT, Americans’ intent to travel is up 14 percentage points over 2015, with intent to spend on transportation, lodging and entertainment to increase by nine points.

These findings show travel intentions have not only recovered from the Great Recession, but have soared above pre-recessionary levels. The report also reveals the importance of micro-segmentation in lieu of defining travel audiences by broad generational groups, as well as the role reversal between travel suppliers and online travel agents in consumers’ preferences for travel purchase.

Hotel News Resource article here

Keywords

client markets   industry trends   leisure travel   luxury market trends   research and trends   

 

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Badger Bus In Business For Nearly A Century

Imagine having to help push the bus you’re riding in up a hill because the roads aren’t paved or plowed. That’s what some passengers of Southern Wisconsin Transportation Co., the predecessor of Badger Bus Transportation Group, had to do in the 1920s.

What Herman E. Meier founded as a one-vehicle bus company has evolved to own 65 motor coaches, 140 school buses, 125 vans and other vehicles and two related real estate companies. While the primary base of business continues to be Madison and Milwaukee, northern Chicago is growing into an important market.

Wisconsin State Journal article here

Keywords

buses   charter and tour operators   family businesses   group transportation   motorcoaches   Wisconsin operators   

 

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TNCs Face Legislative Obstacles In New York

Efforts to bring Uber and other ridesharing apps to New York state have speed bumps to clear in the final days of session in Albany.

With the session ending Thursday, state lawmakers need to hash out bills to give motorists insurance coverage to haul passengers booking trips on apps around the state.

Opponents of the bills — traditional cab companies and the disability advocacy community — said comprehensive legislation addressing major policies such as fingerprint background checks and wheelchair accessibility is needed to keep a level playing field between apps and taxis.

New York Daily News article here

Keywords

background checks   law enforcement   New York state regulations   regulatory enforcement   Safety & Insurance   state regulations   TNCs   Uber   

 

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Make-A-Wish Sends Boy To Disney World In Limo

Five-year-old Max Huber received a royal sendoff June 11 to his seven-day, six-night stay at Disney World in Orlando, Florida.

Not only did the Mount Carmel boy receive a limousine ride to Harrisburg Airport in Pennsylvania, but he was escorted from the borough by fire trucks and police cars blaring their sirens, a practice often reserved for parades or dignitaries.

Neighbors in the first block of East Avenue took pictures of the “celebrity” admiring the fire trucks and police cruisers and entering the limousine with his mother, Stephanie Huber. They have supported the child in his battle against systemic juvenile idiopathic arthritis and wanted to give him and his family a hearty sendoff.

Unique Limousine Inc. of Harrisburg provided the black limousine and its driver, Mike Meck.

News Item article here

Keywords

charity   community involvement   industry charity   Make-a-Wish   Pennsylvania operators   

 

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