Magazine for the professional limousine, charter and tour industry.
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28 LIMOUSINE, CHARTER & TOUR JANUARY 2017 WWW.LCTMAG.COM Leasing is Bright TITUS LEASING COMPANY - THE BRIGHT CHOICE Partner with Titus Leasing Company and experience the brightest ideas when it comes to leasing. Call us today to find out how we can help you improve your bottom line. 800-227-3965 I www.titusleasing.com MONEY: RATES port fees inside of the base rate instead of making it a line item charge. One of the things consumers enjoy about TNCs is the simplicity in pricing. They are made up of a base fare, a time fare, and a mile- age charge. The fees you must charge to remain profitable can easily be included in your base fare whether a flat transfer rate or an hourly rate. People don't want to be nickled and dimed anymore. Surge Pricing Vs. Special Pricing While TNCs implement "surge pricing" or hike their rates up at peak demand times, our industry seems to battle with decisions such as hiking up rates on New Year's Eve. The demand for service on New Year's Eve is certainly higher than almost any other night of the year. Some operators hold their hourly rates but im- pose minimum charters of five to eight hours. Others simply raise the rate like TNCs but don't impose minimums, and some operators do both. Many other holi- days such as Thanksgiving and Christmas warrant special pricing. Clients know their chauffeur is giving up a personal holiday to work and expect an increase in rates that would most likely be used to com- fee. Uber begins charging a wait time af- ter two minutes, and if you make stops along the way to your destination, the clock keeps ticking by the minute. That allows us to easily add a reasonable fee since the playing field is leveled. Charging For Incidentals Certain charges for things such as tolls, port fees, greeter fees, and airport fees can still be added to the total fee charged since these are legitimate expenses re- lated to a specific trip. If you cross a toll bridge, the passenger knows you passed through the toll and seldom will balk at such a charge. However, you might want to consider including airport and cruise plete quoted fare if not canceled within a range of two to 24 hours in advance of the reservation start time. Compare this to Uber's charge of $5 to $10 if you can- cel a ride more than two minutes after placing an order. High cancellation fees are no longer acceptable. What Can We Add On? Operators can use many ways to increase their bottom line profits during this time of shrinking profits. Tech savvy passen- gers enjoy Wi-Fi. These same travelers never blink at paying up to $19 for Wi- Fi during a flight. Even an hour of Wi-Fi on an aircraft is $8. The same holds true with hotels. Many hotels charge as much as $15-$20 to use their Wi-Fi systems. On the flip side of that argument, it is un- likely a TNC vehicle is Wi-Fi equipped. You could charge for it or tout this as a free benefit to luxury transportation. Child safety seats represent another source of revenue. Car rental companies don't provide them for free. They have an expiration date and must be replaced. They require cleaning and storage. Why not charge for them? Extra stops can be another tolerable PHOTO: ©DREAMSTIME.COM / ANATOLIY BABIYCHUK