Industry Research

Operator Survey Shows 1991 Buying Optimism

Posted on May 1, 1991 by LCT staff

The optimistic results of the recent Limousine & Chauffeur Buying Plans Survey show that two out of every three limousine operators plan to buy a stretch, sedan, van, or bus in 1991. Moreover, each company planning to purchase this year expects to pick up two stretch limousines.

Of the 904 respondents to the survey, 596 report that they plan to purchase a new or used limousine, sedan, bus or van this year. This buying confidence may be interpreted as a sign of an industry on the rebound. The respondents who plan to buy reported they will purchase 1,062 stretch limousines and 779 sedans this year, or about 1.7 limousines and 1.3 sedans per company. The figures show that operators plan to turnover about one-third of their fleet this year. Apparently, operators are sticking to their regular replacement cycles. Regarding larger vehicles, respondents intend to buy 208 vans and 84 buses during 1991.

The survey also asked operators if the current economic climate had affected their business. Responses ranged the spectrum from optimism to hesitancy to negativity; however, the common thread among all the replies is that operators are keeping a watchful eye on the economy. Many limousine services have decided to merely update their existing vehicles and have put growth on hold for the time being.

A common response was, “We are being cautious with a kind of wait-and-see attitude,” says Anjum Y. Dada of Fort Wayne Connection in Fort Wayne, IN. Most operators are wary of the recession, but still plan to purchase during 1991 in order to update their fleets. “There seems to be a trend for lenders to steer clear of the limousine industry,” cities Frank Shade, Jr. of Esquire Limousine Service in Safety Harbor, FL. “There is high risk, therefore, we’ve decided to stay with our existing equipment.”

“We intend to grow despite the promise of a sluggish economy,” says Jules Peter Nyiri, director of special services for the Manhattan International Limousine Network in New City. Some larger operators like Manhattan see this time as an opportunity for acquisition and absorption of smaller companies and a chance to gain a larger share of the market.

“Currently, things look rather gloomy now; however, with the predicted amount of limousine operators who will be going out of business in 1991, it will let the larger operators absorb extra business. This should result in good times for some,” notes Fred Visconti Jr. of Visconti Limousines in Newburgh NY. He plans on updating about 50 percent of his 26-vehicle fleet in 1991.

The survey was mailed out to 7,000 subscribers to L&C in late December. Since the end of the Persian Gulf War, it is safe to anticipate that operators are more even optimistic today.

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

More News

5 Ways To Sell Into The Luxury Travel Market

It’s not your father’s high-end market any more. These lessons apply to chauffeured transportation as well.

Trump Travel Ban Could Deter Business-Related Trips

Tech firms and multinational corporations have lashed out at the move, and some recalled employees traveling overseas.

Half Of Companies Allow TNC Use For Business Travel

A GBTA survey finds an increasing number of traveling employees using companies like Uber and Lyft.

Study Shows Jobs Rose In Taxi Industry Despite Uber

The authors believe this is the first serious look at the effects of the gig economy platforms such as Uber on jobs.

What Trump Means For Fleet-Based Businesses

Fleet expert: "If Trump eventually rolls back regulations in the automotive sector, he would likely stimulate growth."

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *



Connect

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

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

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