Operations

Publisher's Page: Upscale Transportation In-Line with an Economy on the Move

Posted on May 1, 1996 by Sara Eastwood

With so many operators creating new profit centers by diversifying their fleets and with the recent influx of sedan use playing a more prominent role in livery operations, limousine services should at least not be hit as hard in the future by depressed economic times.  However, it does seem that the limousine industry is indirectly impacted by the health of the economy.  It seems as the economy goes, the limousines industry follows suit.

In recent years the economy has shown signs of a recovery.  The unemployment rate is going down, companies are experiencing increased revenues, and the stock market recently went over 5,000 for the first time in history.

The limousine industry has also cashed in on this positive upturn.  In 1994, 68 percent of the operators nationwide experienced an increase in revenues.  Of these operators, the average increase in income was 36 percent.

In 1995, 72 percent of the operators nationwide experienced an increase in revenues.  Of these operators, the average increase in income as 33 percent.

There are also positive signs from a manufacturing standpoint.  In 1992, base unit manufacturers Cadillac and Lincoln/Mercury supplied coachbuilders with 2,000 base units, the lowest figure reported since 1980.  In 1995, Cadillac and Lincoln/Mercury supplied coachbuilders with 3,800 units, an increase of 48 percent from 1992.

Additionally, operators are commanding more money per hour from their clients than in years past.  In 1987, the average sedan hourly rate was $31.  In 1995, the average sedan hourly rate was $38, a 19 percent increase.  In 1987, the average stretch limousine hourly rate was $44.  In 1995, the average stretch limousines hourly rate was $57, an increase of 33 percent.

In 1995, nearly one-third of the limousines purchased by operators were over 85 inches.  Operators purchased more limousines than sedans despite the higher cost of limousines and the proliferation of sedans.  This shows that operators are providing the availability of a desired product – a product desired from client input.  Now the client has more money to spend.

Operators have also geared up for this new demand.  In 1989, the average fleet size nationwide was 7.7 vehicles.  In 1994, the average fleet consisted of 3.6 stretch limousines.  In 1994 the average fleet consisted of 5 limousines, an increase of 28 percent.

All the aforementioned are hard indicators about the health of an industry that seems to mirror the state of the economy.  I am not saying that during the next economic hardship the industry will suffer the same.  The industry is, however, a beneficiary when there is more money to be spent by people in the marketplace.

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

More News

Windy City Limousine & Bus Wins "Best Of" Award

The company's diverse fleet and years of experience have earned it many achievements.

Fugitaboutit! Operators Deal With NYC Traffic Woes

Weather and mass transit delays always create additional problems, but 50,000 TNC vehicles ratchet up congestion.

Arkansas Operation Recognized As Small Business of the Year

Pinnacle Car Services, Inc. recieved the accolade from the Greater Bentonville Bella Vista Chamber of Commerce.

How To Make Your Buses Comply With The Latest Rules

eNews Exclusive: Joe Guinn guides operators on the best ways to prepare for the large leap from sedans and SUVs to buses and motorcoaches.

What Is The Future Of The New Luxury Traveler?

There is a growing demand for more human connectedness and meaningful experiences for both adults and children.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - May 2017 $12.95 Post International LCT Show Issue COVER STORY: * Best Operators of 2017: Their Winning Secrets Revealed * *



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