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Month: September 2017

What Comes After Lincoln Towncar

For better or worse, production of the cornerstone of our industry, the venerable Lincoln Town Car, ended two years ago. And that means the luxury transportation industry is in a revolutionary phase of change, because our workhorse is slowly disappearing. As we move forward with new vehicle implementation, the industry is faced with the uncertainty of what to do next.

 

This phase is further complicated by outside factors, such as increasing Corporate Average Fuel Economy (CAFE) standards at the end of this decade, which will inevitably reshape the vehicles and choices we cautiously debate today. Internal factors are equally difficult to project regarding these future assets, as we must estimate reliability, earning potential, durability, and longevity with respect to the former standard, the Town Car. The method of acquiring a new vehicle is the simple part (you buy it), but the answer to the proper replacement is as varied and complex as the number of options available. Research and development (R&D), specifically project portfolios, will facilitate the transition if you plan properly.

When thinking about what will replace the Town Car in your fleet, the most important variable for consideration is your target demographic—specifically, your best clients. Keep in mind that as an industry, we spent roughly two decades lumping all of our clients into a one-size-fits-all sedan, and are now forced (or have the opportunity, depending on how you look at it) to make a decision about sedans on a company level, rather than industry-wide. It is true that there have always been other options, but the industry did not fully buy into them. Clients still refer to all black cars as “Town Cars”—the vehicle became a commodity, and now it is gone. This is the ideal time to get to know your clients better, and find out what your market will handle, as well as what your clients really want.

Look at your target demographic, and you will see that it has changed over the service life of the Town Car. Client expectations are changing as Baby Boomers are retiring and Generation X and Y are quickly becoming the corporate and leisure travelers in your vehicles. Now it is less of a competitive advantage than a necessity to appeal to the different preferences of your client base. Understanding your clients is paramount in maintaining relevancy in your market, and researching your key demographic will invariably show a wider range of viable options than a single vehicle replacement. The variety of available sedan offerings allows us to provide a diverse range of cars within a single fleet. However, there is a caveat. If you are not doing R&D and getting to really know your best clients, you are missing a chance to capture niches within your market during this revolutionary replacement change.

With all this talk about change, you may be wondering, “How do I get to know what my clients want?” Take this opportunity to build upon the relationships you already have with them. Look at your client list, and reach out to your best clients; do not forget your affiliate network. You will need to start your research evaluating potential vehicles. Don’t be afraid to look outside the box, especially when considering your local clients. The traditional manufacturers may not provide the best options for your specific fleet application, but you must consider your client expectations and preferences they have shared with you. For example, your national affiliates will likely buy into something different than your local leisure clients will, but you will only know what it is when you ask them.

Ultimately, you must do your due diligence prior to presenting them with options, e.g. read about consumer reviews, drive them yourself, and consult your employees’ and maintenance department’s views and concerns—and then present these options to your clients to gauge their thoughts on your research. Next, you will need to beta test the potential replacements (rent/borrow/short-term lease them to try them out in your fleet and introduce them to your clients and employees) prior to making a purchase decision. That is basic R&D. However, developing a project portfolio is a bit more comprehensive, as you can then use it to consider more segments of the demographic.

You may find, depending upon your responses and your resource pool for acquisition, that there are several different vehicles available to your fleet renewal project. With market uncertainties and new technologies, the strategic innovations you implement will vary according to your clients and the target demographics of your current and future growth area. For example, the Generation X and Y travelers are more concerned about environmentally friendly transportation, and although they may not be willing to pay more for it, the option may appeal more to them; brand equity will benefit from the goodwill effort of environmental responsibility. Therefore, capturing a first-mover competitive advantage with technologically advanced vehicles will set you ahead of the fast-following competition. During your research, you should come up with many questions and concerns that will fit into the project mix. You will need to factor in the level of technical and market risk you are willing to take with fleet renewal, and apply this to your decisions.

There are five types of R&D Projects, which will be explained with basic examples of replacements for our industry. Keep in mind that individual companies can apply between one and five of the options, concurrently, and examples are simply representative, as the list of options is exhaustive. The quantity and scope of deployment is directly related to the level of risk mitigation within an individual company, along with the amount of capital resources available for allocation in those projects. As previously mentioned, these examples serve as a basis for forming your own individual R&D Project Portfolios and not as a prescriptive analysis that can be universally applied to the industry; the options are highly variable with respect to each company.

As the graphic shows, there are several options from which one can choose when deciding which route to travel towards making a new vehicle purchasing decision.

Postitioning Options 

These are the options that will set the standard for an unclear future technological advantage due to research done now. The technology is uncertain, but there is a degree of confidence in the market and segments of the target demographic. Examples of positioning vehicles are gas/electric hybrids: Lincoln MKZ, Mercedes-Benz E400, and Toyota Avalon. Although the vehicles are familiar, the technology is more complex than in their gasoline-powered siblings, and the uncertainty is the concern about the electric components’ longevity in our industry. Furthermore, the electric technology is constantly evolving due to market pressures, so there is uncertainty regarding vehicle/technology obsolescence. These vehicles allow companies to venture into new market segments, and this positioning allows companies to satisfy new clients without betting on the wrong technology for the long-run.

Stepping-Stone Options

These vehicles are the highest risk options, due to technology and market uncertainty. They bring great potential for new growth opportunities into niche markets, but they also run the risk of not being accepted by your client base. Stepping-Stone options are the electric vehicles, such as the Nissan Leaf and Tesla Model S. These are specialty vehicles with regard to their capabilities in our industry; their high risks include purchase price, real-world range limitation, and charging time versus utilization. The electric vehicle is a very sacrificial product, at this point, as the true benefit to the company is the goodwill earned from “greening.” This investment can grow the knowledge base, absorptive capacity, and technological and maintenance understanding without catastrophic results, if it is properly managed. If you’re going to choose this option, it would be best to find a grant to supplement the cost.

Scouting Options

These are options that probe the market with tested technology. Scouting is best represented in our industry by diesel/biodiesel options. The technology is proven, and fuel is easily accessible, but the U.S. market has hesitantly accepted diesel after the debacle in the 1980s, which exemplifies the long-term effects of bad decisions during revolutionary change. Most diesel vehicle options in the U.S. have proven track records of longevity, durability, and better fuel economy than equivalent gasoline hybrids. Sedan examples range from the VW Passat TDI to the Mercedes-Benz S350 BlueTec. These options differ from positioning due to the potential growth in market opportunities, often at a lower cost in real-world use, even considering diesel costs.

New Platform

This launch is only moderately risky, as the market is familiar with the brands, and vehicle similarity does not typically hinder client buy-in. This will be the most popular option, and U.S. manufacturers have a historical advantage, although competitive advantages can exist. Examples of this option include the Cadillac XTS, Chrysler 300, Hyundai Genesis, Lincoln MKT, and Toyota Avalon. Platform launches, when executed correctly, can continue to build future business provided the target market responds favorably to the offering, which accentuates the need for client consultation and beta testing. During research for a platform launch, consider what will replace these vehicles and transition clients into the next vehicles during the next revolutionary industry change, which is only a decade away.

Incremental Improvements 

In present context, this option would be doing nothing, adding more Town Cars, or using vehicles that should not be used as substitutes, such as SUVs. In mid-term context, incremental improvements work concurrently with New Platforms, such as the Cadillac XTS to the larger, as yet unnamed variant, or Hyundai Genesis to the Equus. In long-term context, it will mean incorporating all the derivatives of a model, e.g. gas/electric hybrid, diesel, diesel/electric hybrid, and electric. The options of incremental improvements are low-risk, and require the least investment, but reap the lowest gains in fleet diversification.

When moving forward with your replacement decisions, follow this checklist:
• Determine your tolerable level of market and technology risk.
• Consult your clients, your maintenance department, your chauffeurs, and your affiliates.
• Do not be afraid to operate a diverse fleet; just because you cannot use a vehicle for your affiliates does not mean you cannot use if for your local clients.
• Adhere to a strict budget for the initiatives.
• Do not take on more risk than your company can comfortably handle.
• Regularly evaluate the project!
• Remember that each option is competing against the baseline, and not against the other options—i.e., everything is weighed against the Town Car and the specific role application of the vehicle.

Contributed by Nathan Higdon

Free Wi-Fi is Coming to Houston Airports

In order to meet the ever increasing demand for free, fast and reliable Wi-Fi service, the Houston Airport System will soon be introducing a new Wi-Fi system for customers at both George Bush Intercontinental Airport (IAH) and William P. Hobby Airport (HOU)

The free Wi-Fi service will dramatically improve the overall customer experience by bringing faster and richer bandwidth to e-connected travelers.

Our new Wi-Fi improvements will allow customers to make the most of their travel experience by staying connected at HOU and IAH, including all 5 terminal areas and the Consolidated Rental Car Facility at Bush Intercontinental Airport.

In addition, expanded coverage will include parking garages and gate areas where travelers can connect while boarding and deplaning flights. Improvements will deliver higher bandwidth, fast and easy connection, and a complimentary service model that will not compromise the user experience.

Wi-Fi improvements are scheduled to begin at Hobby Airport in January 2014, with all facilities at IAH to come shortly after in the following months. The goal of the Houston Airport System is to have free, unlimited Wi-Fi service available at both airport facilities by the Fall of 2014.

It is the Houston Airports’ mission to connect the people, the businesses, the cultures and the economies of the world to Houston. Strong, dependable and free Wi-Fi service is a key part of our strategy in moving forward towards the accomplishment of this goal.

How to get to Galveston Cruise Port without a car

Flying into a Houston airport for your cruise? Or maybe you simply don’t feel like dealing with the hassles of driving and parking. No matter the reason, there are plenty of options for reaching Galveston without having to take your car.

Thousands of people every year fly into Houston-area airports (Houston Hobby or Bush Intercontinental) to cruise out of Galveston. So what’s the best way to get to the terminal? Luckily, there are plenty of options…

Cruise Line Transfers – Most cruise lines will offer some sort of transfer service from both Houston airports to the port. For example, Carnival offers round-trip service for $70 per person from Hobby Airport and $90 per person from Bush Intercontinental Airport.

However, cruise line transfers can be somewhat restrictive and expensive if paying for more than one person. Some don’t provide transfers except on cruising day. So if you fly in a day early, you will be without a ride. Meanwhile, they are also priced on a per person basis. So if a family of four is looking for a transfer, the costs can add up quickly. A $70 per-person round-trip ride from Houston’s Hobby Airport would cost $280… and that’s before you even step foot on the ship.

For that reason, we suggest other modes of transportation to Galveston, unless you are traveling in a small group.

If you still want to know about transfers from your cruise line, simply click on the name of your line to see their options:  Carnival | Royal Caribbean |Disney 

Independent Shuttles – There are other shuttle services to and from the airport, namely SuperShuttle – the big blue vans you always see around airports. Renting a van runs about $175 round-trip for up to 10 passengers if going from Houston Intercontinental. Rates are about $125 from Houston Hobby. If you don’t have as many passengers, you can also reserve a smaller car for up to 3 people at a slightly lower rate.

Galveston Limousine offers daily scheduled service from the Houston airports to the island as well. Rates run $100 round-trip per person from IAH ($70 for senior citizens) and $80 round-trip from HOU ($60 for seniors). The shuttles depart only three times daily, so you might be waiting for some time at the airport before leaving with this option.

Cool Tours offers a shuttle between Houston airports and the Galveston cruise terminal as well. Right now the rides are private shuttles, but may expand to offer scheduled shared service. Rides from Hobby airport cost $145 round-trip for the first passenger and $35 for each additional adult (kids under 12 are $15, seniors 55+ are $25). Rides from Bush Intercontinental to the cruise terminal are $255 round-trip for the first passenger and $35 for each additional adult (kids under 12 are $15, seniors 55+ are $25).

Private Car Services –Private car services can often be your best bet getting to and from the airport. These services can meet just about any budget and accommodation level.

We can’t list prices here because there are actually so many options. Many of these companies run regular shuttles from the Houston airports to Galveston on cruise days. They also have a range of services from shuttle vans to private limo rides.

While still a little pricey, private rides will offer a comfortable car, personal driver, and can pick you up/drop you off at nearly any time. You also don’t have to share a car with anyone you don’t want to.

There are dozens of services in Houston that provide private cars, and costs can range from $150 round-trip to several hundred dollars, depending on the car you wish to use. While the headline price may be higher, it is often cheaper to go this route when dealing with larger parties.

We can’t list all of the private services, but what follows are some of the more popular ones. If you search around, you might find others that have lower prices for the specific level of service you’re looking for.

Companies offering transfers from Houston airports to the Galveston terminal: Galveston Shuttle, Karr Limousine, Action Limousine (Note: All of these companies have “Limo” in the name, but offer more options than pulling up to the port in a stretch limousine!)

Always be sure to get a complete “out the door” price quote from any car service so that you aren’t hit with any unforeseen charges.

Taxi — Taxi fare round-trip from the airport to the Galveston cruise terminal can cost upwards of $250-300 from Bush Intercontinental Airport and $150-200 from Hobby Airport. (Rates vary depending on traffic.) That’s on the expensive side, but remembers that usually up to four or five passengers can ride for that price. That makes the cost cheaper per person than the cruise line shuttles. Plus, with a taxi you don’t have to reserve ahead and you can leave whenever you are ready, instead of waiting on a shuttle to fill up.

Tips for Traveling with Children

Traveling as a child can create lasting memories and experiences to appreciate for life. I remember my childhood vacations as fun, high-energy adventures, although I’m sure my parents don’t remember them as fondly at times. For parents, there is a lot more planning and entertaining involved. With our tips on how to travel with children, we’re sure your vacations will run just as smoothly as if you were traveling alone!

BEFORE YOU HEAD TO THE AIRPORT

Once you’re on the road, there’s no turning back, so it’s important to make sure everything is squared away while you’re still at home.

  • Double- and triple- check to make sure you have everything your child may need.
  • Pack something that reminds your child/children of home, such as a baby blanket or a favorite stuffed animal.
  • Talk things through with your child, and let them know what to expect throughout the travel process so they aren’t overwhelmed.
  • Do a “practice run” of the security process, including waiting patiently while Mom and Dad remove their own shoes.

Keep Them Entertained

A great way to keep children entertained on a trip is bringing new toys along  – ones they aren’t already familiar and bored with. Another attention grabber is a portable DVD player, laptop, tablet, iPad, or smartphone. Pre-load child-friendly games, movies, or television shows for longer trips to keep your children occupied for hours. Not only will you be thankful, but so will the travelers around you.

Don’t forget to pack your child’s favorite snacks since there may not be food at the airport that he or she likes, or can eat.

Keep Things Simple             

As a parent of young children, it’s easy to go overboard and pack things you’ll never even touch. Be sure not to pack too many items, since it is much easier to keep track to less baggage and a little one at the same time.

For more help with packing, check out our packing tips and luggage policy.

On Our Vehicles

When traveling in our vehicles, your family’s safety is our number one priority. If federal, state, or local law requires your child be secured in a child safety seat, we can provide you with one based on first come first served.

At the Airport

When you arrive at the airport, remind your child that the process is going to be fun, and try to remain stress free. If you look like you are calm and having fun, then your child will hopefully, too! When going through security checkpoint, TSA has set up a slightly different set of rules for parents and their children. To find out more about TSA’s children screening procedures, check out their traveling with children informational page.

Here Comes the Airplane!

You’ve prepared snacks, toys, and things to do for your child, so the plane ride should just be another form of play time. If tempers flare up, or the children get restless, just remember to breathe and remain attentive. Your focus on your child shows  surrounding passengers that you care about the impact your child is having and are doing your best to improve the situation. The calmer and kinder you remain, the more likely others will follow suit.

Even if traveling through the airport or on the plane proves rough for you and your little one, there is still the rest of your vacation to enjoy.

What are some of your favorite tips on traveling with children? Please share them in the comments below.

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