Operations

Global Snapshots: Operators In Emerging Chauffeured Markets

Posted on December 20, 2012
Sedans in Brazil and Latin America range from Toyota Corollas, Ford Fusions and Citroen C4 Pallas to Jaguars and Mercedes.

Sedans in Brazil and Latin America range from Toyota Corollas, Ford Fusions and Citroen C4 Pallas to Jaguars and Mercedes.

Sedans in Brazil and Latin America range from Toyota Corollas, Ford Fusions and Citroen C4 Pallas to Jaguars and Mercedes.
Sedans in Brazil and Latin America range from Toyota Corollas, Ford Fusions and Citroen C4 Pallas to Jaguars and Mercedes.

ViaLandauto, São Paulo, Brazil

What industries are driving business demands for chauffeured services in your region?
Traveling executives in Brazil have been increasing significantly due to the international economic scenario. The most professionals who are demanding more of our services nowadays are the pharmaceutical industry and banking sector. Brazil, specifically the city of São Paulo, ranks fourth among the cities that received foreign investment in 2011.

What is your expected rate of growth for chauffeured service?
With the proximity of events such as the Olympic Games in 2016 and the FIFA World Cup in 2014, we have seen a considerable increase in demand for services in several markets, higher than 20% and reaching 45% in the case of Rio de Janeiro. Our planning and budget for 2013 see a growth of 25% in operating nationally and 37% internationally, for passengers coming to Latin America.

What vehicles are in demand from your clientele?
The foreigner businessman client visiting Brazil or Latin America prefers larger, more comfortable cars. Brazilians care more for simple cars with attractive prices. Models range from the Toyota Corolla, Ford Fusion and Citroen C4 Pallas to luxury Jaguars and Mercedes E-Class. Some clients request motorcoaches and others require armored vehicles.

What are common client demands and requests?
There has been an increase in requests for services like rental helicopters, jets and yachts for one or two days, as well as city tours, restaurant reservations for groups, tropical fruits available in some exclusive transfers, etc. Executives are seriously evaluating the high performance and stress associated with a lifetime of travel around the world and are enhancing their quality of life [with these amenities].

What are growth-related challenges that the chauffeured transportation industry faces in your country?
In Brazil, the chauffeured companies do not share information. The absence of an [industry] association shows how difficult it is for members of the sector to talk to each other. We have a culture in Brazil that still favors taxis, so our challenge is to convince our domestic public that for just 20% more, the cab can be replaced by personalized service that is more comfortable and efficient.

How much has your company grown in recent years?
Grew at a rate of 38% in the last five years, and nearly 400% in the last 10 years.

The majority of chauffeured movements in Latin America are for individual travelers, but group vehicles also are commonly requested.
The majority of chauffeured movements in Latin America are for individual travelers, but group vehicles also are commonly requested.

TRASLADA, Buenos Aires, Argentina

What industries are driving business demand for chauffeured services in your region?
Latin America was the region that had sustained economic growth in recent years; statistics show a 3.2% GDP growth in 2012 for the area. We’ve found that in recent years, the increase in the transportation sector in executive and standard cars, as well as in group vehicles, has determined a sustained growth of the transfer service in the region.

What is your expected rate of growth for chauffeured service?
We expect our growth for the year 2013 to be 25%. So we are looking into a good and steady increase for the next five years.

What vehicles are in demand from your clientele?
The first options for transfers are standard and executive sedans, minivans between others. 80% of the movements we make are individual corporate travelers. Then follow requests for buses, minibuses and finally executive vans. Our busy season is from March to December.

What are common client demands and requests?
Undoubtedly the main requirements are punctuality, quality of service, presentation of the driver, vehicle in excellent condition and a modern fleet of less than three years of use. Good telephone support and deep knowledge of the route to be performed by the vehicle are also important.

What are growth-related challenges that the chauffeured transportation industry faces in your country?
The main challenges are undeniably human; one can have different policies regarding the standard quality of service, customer service, quality audit, etc. But everything comes down to the experience between the driver and the passenger at the time the service is produced.

How much has your company grown in recent years?
In the last five years we have had an average of an annual growth rate in the order of 22%. Service requests that have higher demands are:
• Executive sedans: 32% in the last year.
• Standard sedans: 26% in the last year.

Most of 24 Limousine’s business comes from airport transfers, but they are steadily expanding their Tokyo City Tour service.
Most of 24 Limousine’s business comes from airport transfers, but they are steadily expanding their Tokyo City Tour service.

24 Limousine, Tokyo, Japan

What industries are driving business demands for chauffeured services in your region?
The three main industries driving business demand are foreign companies and foreign-invested companies, hotels, and travel agencies. We receive many requests from foreigners who work in Japan, usually for airport transfers.

What is your expected rate of growth for chauffeured service?
We are looking at a 120% rate of growth for 2013.

What vehicles are in demand from your clientele?
The most demanded types of cars are standard sedans. We offer a choice between a Toyota Crown or a Mercedes S550. After sedans would be SUVs.

What are common client demands and requests?
We receive a lot of requests for airport transfers. They are usually to/from Narirta/Haneda Airport to/from hotels. We are trying to expand our service of a Tokyo City Tour which runs in the day and night and allows clients to enjoy different scenes of the city, from historic places to the best night spots.

How much has your company grown in recent years.
We started in 2008 and have had a 120% sales increase during the last four years.



Royal American Limousines, São Paulo, Brazil

What industries are driving business demands for chauffeured services in your region?
Most of the business in South America for major limousine companies and affiliates from the U.S. and Europe is driven by the banking sector, government travelers, investors and high-end pleasure tourism.

What is your expected rate of growth for chauffeured service?
We expect an increase of 25%-35% in South America over the next three years. Royal American Limousines expects to increase in revenue by 150%.

What vehicles are in demand from your clientele?
Armored vehicles in countries like Brazil, Argentina, Colombia and Venezuela are always in demand. Sometimes it’s hard to make a client from the U.S. understand the type of vehicles that we consider “executive transportation.” The size of vehicles is smaller. Clients prefer to have a bigger vehicle like a Mercedes Sprinter. We are very concerned with security and we educate our clients. Sometimes they ask for an armored Mercedes, which we provide, but we also suggest that it’s much safer to be in a less flashy vehicle, like an armored Ford Fusion.

What are common client demands and requests?
Corporate travelers are the most common clients and the most common service are as-directed trips with knowledgeable, English-speaking drivers to assist with small translations. Group transportation is a big slice of our business as well, as we deal with the pharmaceutical industry and sometimes manage groups of up to 2,000 people. Armored vehicles and security services make up 40% of our revenues.

What are growth-related challenges that the chauffeured transportation industry faces in your country?
The local laws are a big challenge, no doubt. The limo business is lacking in regulations in the major cities, and in most places someone can buy one vehicle and become an owner/operator with no permits or insurance. For those that look for limo companies on the Internet, I would advise them to be very careful with whom they are sending their valuable clients.

How much has your company grown in recent years?
In terms of revenue, Royal American Limousines grew about 300% in the last three years since we started with the affiliate business in South America. We have been more aggressive with marketing and always target the major companies in the area. Part of this growth was based on the demand for high-end tourism to South America.

Related Topics: affiliate networks, business travel, client markets, Global operators, international, international business

Comments ( 1 )
  • philippe

     | about 4 years ago

    Vialandauto got bankrupt recently.

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