Preparing For The Perfect Storm

Posted on October 31, 2012 by - Also by this author

A recipe for financial disaster
With the remnants of Sandy drifting away, financial disasters of all sorts exist. When the public stops traveling, it clearly sends a pinch to the bank account.

Natural disasters or terrorist made disasters in the case of 9/11 tend to bring the public to a halt. As I listened to news reports about political campaign travel being suspended as a result of this so-called “perfect storm,” I knew that business travelers around the world were going to stay put.
Every day, we deliver people to various airports with their final destination being New York. That doesn’t count people traveling to other eastern seaboard cities. With no air service flying in our out of New York on Monday and Tuesday, I knew that business travelers would be calling and canceling their orders.

It puts us in a weird predicament. Normally, if someone canceled on the same day of the trip, the entire price of the arrangement would be due. That is our policy for trips from Bakersfield to LAX. The entire trip takes us five hours to make. If I tie a car up on your word, I don’t want to lose five hours of service/revenue just because you got wishy-washy.

However, in this case, there are two options we can follow. We can offer the client a complete refund, even though it kills us to do so. Or, we can hold the money on account until the trip is rebooked. Even if we perform the latter, we still end up with tumbling revenue while bookings get canceled left and right.

I want to applaud the folks over at Exclusive Sedan Service for being proactive and sending out email blasts advising their clients to check their destinations, check their flights, and expect delays in service on the East Coast.

Being a West Coast/Central California guy, I am enjoying sunny weather in the 80s as I write this blog. It is hard to believe the loss in revenue due to “bad weather” when I look outside and it is so bright and sunny. I send my prayers and concern to my fellow operators on the East Coast that you may ride this thing out, both the physical damage and the financial damage.

— Jim Luff, LCT contributing editor

View comments or post a comment on this story. (0 Comments)

More Shop Talk Blog Posts

January 18, 2017

10 Invaluable Tips For Your Chauffeurs

These eternal chestnuts of knowledge work for new and veteran chauffeurs alike.

January 18, 2017

How You Resolve Complaints Defines Your Business

There may be two sides, but you better listen to the customer and diffuse the situation to their benefit.

January 4, 2017

Your Slate Has Been Wiped Clean

A new year is always considered a fresh start. What will you do with it?

December 21, 2016

Tis’ The Season To Be Tapped Out!

Time-consuming, pricey holiday parties leave me thankful for free time with family.

December 21, 2016

You May Know These, But Do You Remember Them?

Driving Gem: Safe driving rules need to be repeated because deaths and accidents still occur.

See More

Facebook Comments ()

Comments (0)

Post a Comment



See More

See More

See More

See More

LCT Store

LCT Magazine - January 2017 $12.95 THE MONEY ISSUE COVER STORY: * Dashboard Helps Steer Company Finances * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment


Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close