Operations

Number of Limo Firms Shows Increase

Posted on February 26, 2004 by LCT Staff - Also by this author - About the author

LAS VEGAS – The number of limousine companies in the U.S. has shown a modest, but important increase in recent months, rising by several hundred businesses from last year to 11,328 this year and representing the first year-to-year increase since the events of Sept. 11, according to Bobit Publishing President Ty Bobit.

Bobit and LCT Publisher Sara McLean outlined the latest industry research findings in their State of the Industry address at the LCT Show here.

McLean noted that there are about 125,000 vehicles in use in the limousine and chauffeured transportation industry and that there are about 140,000 full-time, part-time and independent chauffeurs.

She also noted that the U.S. Bureau of Economic Analysis estimates that $29 billion was spent on all ground transportation services in 2002, the latest year figures that are available. The limousine and chauffeured transportation industry, with revenues of about $3.5 billion, accounted for 12% of that, she added.

Other data outlined by Bobit and McLean at the presentation included:

* About half of industry revenue comes from business travel and airport runs. Twenty-two percent comes from weddings and proms, 16% from nights out on the town, 6% from hotel/resort/casino contracts and 5% from tours.

* The average hourly rate for sedans went up in 2003 by $2 an hour to $48. Six-passenger limousines increased $1 an hour to $62; eight-passenger limos went up $2 an hour to $77; super-stretch limos decreased by $1 an hour to $103; stretched SUVs increased $4 an hour to $139 and vans/shuttles jumped by $12 an hour to $66.

* The percentage of operators using on-staff drivers rather than independent contractors has grown steadily in recent years. Last year, 58% of drivers were employees.

* The biggest concern for operators of all sizes was insurance. But another key concern affecting large fleets is worker’s comp. For small to medium fleets, collections from farm-outs is high on the list. For home-based businesses, gypsies are a major concern.

Passenger preferences, not surprisingly, vary based on what type of car they are using, Bobit and McLean concluded:

* For wedding clients, the vehicle of choice is typically a traditional limo. The most important features are timeliness and chauffeur personality. The least important features are the sound system and onboard electronics.

* For proms and nights out, the vehicle of choice is a black stretched SUV. The most important features are the sound system and interior esthetics such as lighting and DVD player. “The more bells and whistles the better,” McLean said. Least important is a chauffeur with personality.

* For corporate work, the vehicles of choice are sedans and non-stretch SUVs. The most important features are timeliness, vehicle cleanliness, and the chauffeur’s personality. The least important feature is a fancy sound system.

Bobit also outlined the results of a study his company conducted last year that gained national attention with business publishers. Hundreds of people in each of Bob Publishing’s magazine markets were asked about where they obtain information for doing their job.

Trade magazines were the sources most relied on for information and insight, cited by 84% of those surveyed. This was followed by Internet sites, cited by 56% of the respondents, and trade shows, cited by 53% of the respondents. Other sources of information included general business magazines (41%), professional organizations (35%), newspapers (18%), direct mail (14%), and sales reps (9%).

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

More News

Anti-Trump Protesters Block Uber Headquarters

The TNC's CEO Travis Kalanick is one of several technology executives who's part of the president's Strategic and Policy Forum.

Toronto Operator Emphasizes Occasions

WebXclusive: Ash Fadil works to provide experiences that will have his clients coming back for more than just one special event.

What Judges Look For In OOY Award Entries

Read up on what some contenders have already submitted in their running to become an Operator of the Year.

Atlanta Operator Supports Strength In Numbers

Chad Casey knows industry involvement is a must when discovering new affiliates.

Chauffeur Retention Made Easy: Show You Care

WEB-X-CLUSIVE: The key to happy employees is understanding what they mean to you and your business.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blogs

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 * *



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