Average revenue was down, reflecting the troubles of corporate/business oriented operators. But the median revenue held firm, indicating smaller operators adapted to the challenges and either took over other operators or diversified their client base. Fleet size held steady, despite the economic headwinds. Look for operators to buy more on fleet vehicles in 2010 compared to 2009.
Going forward, technology will be the primary engine of productivity and efficiency in the chauffeured transportation industry. The selections of computer software, GPS services, wireless communication devices, and fleet and flight tracking software programs are growing as operators reap the savings and efficiencies from instant information.
2010 will be the year of the online consumer, as this area of the virtual economy has grown despite recessionary forces. Getting to them in a dense media environment requires a savvy approach to online marketing and messaging. Operators who tap the Internet through the explosive growth of social networking understand that a business must be virtual and viral to succeed.
In the chauffeured transportation industry, runs, reservations, and referrals determine the flow of business. On the expense side, as customer demand decreased, employment in the industry fell. It led to lower labor costs and a drop in employee raises. This coincides with year-over-year revenue declines ranging mostly from 10% to 40%.
The dismal 2009 industry numbers show the low point of the recession. It should be mostly up from here.
This will be the year of the online consumer, as this area of the virtual economy has grown despite recessionary forces.
The second annual LCT Motorcoach Operator Survey supplies a non-scientific snapshot of the charter and tour industry.
The Ultimate Land Yacht, which debuted on the show floor of the 2010 International LCT Show, is a nightclub on wheels.
Information must go hand in hand with a positive attitude for any of it to be useful in your business.