[Editor's Note: For larger infographics, click each photo]
This year’s annual compilation of industry statistics and trends reinforces the growth of the private ground transportation industry since the downtrodden years of the Great Recession. Of course, pressing issues concern operators, notably higher insurance rates and illegal TNCs chipping away at chauffeured transportation market share. However, lower gas prices and a stronger economy have enhanced bottom lines.
Highlighting a healthier business climate, nearly two-thirds (63%) of respondents report gross revenue increased in 2015 compared to 2014, underscoring how industry maintains momentum since the depths of the Great Recession. By all
accounts, operators report 2015 growth has carried over to the first half of 2016, as the economic sectors intersecting with chauffeured transportation improve and employment grows.
Underscoring the increase in gross revenue, the average operator/limousine company reported gross profit margin in 2015 of 24%, up from an average of 21% in 2014.
This year’s breakdown of survey respondents divides almost to the exact percentage of 2015 respondents, providing an apples-to-apples and year-to-year comparison of data and trends. Reflecting the known overall size of the limousine industry, most respondents, about half, were small fleet operators (1-10 vehicles) followed by medium-sized fleets 40% (11-50 vehicles), and large fleets, 13% (51-plus vehicles).
When compiling the number of operators, LCT counts single owner/operators only, not the total number of limousine companies, or DBAs (doing business as). One operator, for example, could own three separately branded and named
transportation services. We count that operator as ONE, not THREE, which is more accurate from many standpoints, especially from a vendor/supplier one. That one operator likely makes purchasing and financial decisions for all three companies.
This year’s survey drew more than 345 total responses yielding a 99% confidence level.