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LCT Magazine Fast <40 Panel

LCT Show EastCaesars Atlantic City

Oct. 29, 2013

Insights From The New Limo Generation

LCT Fast <40 Panel Sponsored By

• A think tank

• An idea lab

• A trendsetter

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• Gather information

• Find new solutions

• Develop rising leaders

• Promote best practices

Matt Assolin

Nikko’s Worldwide

Houston /Austin, Texas

Danny Bacher

Topper Worldwide

Atlanta, Ga.

Sami Elotmani

Destination MCO

Orlando, Fla.

Kyara Kahakauwila

L.A. Limousines

Victoria, B.C.

Jorge Sanchez

Hermes Worldwide

Denver, Col.

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Summary findings:Summary findings:Summary findings:Summary findings:

� It’s not that Millennials are lazy; they are really trying to push working smarter, not harder. They grew up with technology, which changes quickly. They are using technology to be more efficient in business.

� Double-edged sword: Trying to get the younger generation to adapt to committed good service, while the older ones need to fully embrace technology. Younger ones are good with technology but don’t necessarily attend to the details. Older employees tend to get the repeat clients.

� Use technology as a platform for training, so someone doesn’t have to sit and train. Given turnover, tech-based training such as webinars bring employees up to speed quicker and streamline the training process.

� The trend in corporate America is toward more work/life balance. The limo industry has not been kind to that. You have to make sure to manage expectations; to make sure employees are getting what they need.

� It is better to invest upfront in employees than finding new people, training and hiring. Be willing to get more people who are qualified and willing to stay.

Pricing $$Strategies

Q2: How can operators make dynamic, real-time, flexible pricing work for their businesses?

Summary findingsSummary findingsSummary findingsSummary findings:

� Look closely at profit margins. As a business owner, get granular with spreadsheets and reporting. See where you spend money and how. Put a number to your ROI.

� Challenge: How do you convince everyone in a fragmented industry about dynamic pricing? The industry has to come together and figure it out, just like Uber and Limos.com have done.

� You do not need to operate alike when it comes to rates. Rates, whether fixed or flexible, should vary among markets and vehicle availability.

� Lessons from airlines: They are more unified with Star Alliance and One World. Individual airlines operate on one platform to act as partners and on pricing but still run as independent airlines.

� A key challenge is to adapt small-scale dynamic pricing to the corporate business travel world which runs on contracts for service.

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Q3: What are market opportunities beyond VIP/

luxury/corporate and should operators pursue

them?

Summary findings:

� Never downgrade your brand. Luxury brands/pricing integrity must be protected.

� Separate tiers of service into distinct brands: A black car company could open a limo company with the same name, but a limo company cannot open black car service with same name.

� New technology has come into the market that makes segmenting service, automation, reservations, billing and processing, and fleet management much easier.

� Make sure your services are complementary and not competing.

� Challenge: How would you scale a lower-cost service worldwide with affiliates, i.e., [Limo Brand] “X”?

� Key Question: Do you split up tiers of service under the same brand, like airline cabins; OR do you create distinct brands/products like Hilton Hotel chains group?

Bonus Q: How will driverless vehicles

affect chauffeured transportation?

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Summary findings:Summary findings:Summary findings:Summary findings:

� “Driverless cars are a bit of joke… Especially with the high-maintenance passengers we carry.”

� “It will take a long time for corporate clients to accept this.”

� “Fifty years ago, they said we would have flying cars in only 10 years.”

� “Driverless cars can’t load and unload your luggage.”

� But if it happens. . . You may still need chauffeurs aboard to act as mobile concierges at your service.

MGM Grand, Las Vegas, Nev., Feb. 16-18, 2014

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