With limousine, charter and tour companies facing stiff competition from TNCs (Transportation Network Companies e.g. Uber’s rideshare service) it’s critical to look at ways to minimize fuel costs without lowering service standards.
According to the 2014/15 LCT (Limousine, Charter & Tour) Fact Book there are 115,600 limousines in service with over 11,000 operators around the country. With the average limo sedan doing over 50,000 miles a year and fuel representing at least 10% of a fleet’s total expenditure, driving smarter is the key to better profitability.
Telogis have published an ebook that looks at five key areas that limousine, charter and tour operators can focus on to reduce their fuel spend, and make themselves more competitive.
Driving smarter can also help improve the monthly revenue per vehicle, reduce maintenance costs, handle last-minute requests more effectively and improve driver utilization.
Technology can help limo fleets too
Competition from ride-share services such as Uber are a thorn in the side for many limo fleets however the location technology used by these companies is also available to limo drivers and dispatchers. Based around GPS tracking technology, modern fleet management solutions are helping limo operators manage their mobile workers more efficiently, reducing miles and fuel spend.
It’s time to start using technology to fight back and keep your limousine business profitable.
Reducing fuel costs – Even small changes can help
To lower your cost per mile, even small improvements can make a big difference. It’s covered in more detail on page 6 of our free ebook (download link below), but for a limo vehicle that travels 50,000 miles per year reducing mileage by 10% can save over $3,500 per vehicle per year (at the AAA’s current rate of $0.70 per mile).
Save on fuel, while solving other fleet management problems
The ebook is packed with tips on running a smarter limo fleet. But it doesn’t just end with saving up to 25% on fuel running costs. You can reduce more than just your gas bill with using Telogis fleet management software.
“With Telogis we were able to address a lot of our pain points.”
Bill Damron, VP, A-1 Limousine
With average limo fleet sizes at 19 vehicles, keeping all your drivers fully utilized can present a challenge.
Other pain points that Telogis can help you solve include:
- Responding quickly and efficiently to last-minute pick ups.
- Minimizing labor costs and overtime.
- Monitoring driver routes to make sure best routes are always taken.
- Manage or enforce company policies, such as after-hours vehicle use, speeding or side jobs.
- Streamline compliance with regulations that govern the limo industry including CARB (California’s Air Resource Board) mandates, Wage Order No. 9 and local airport requirements.
- Providing customers with accurate, real-time ETAs for pick ups.
- Knowing accurate route costs at all times to improve the competitiveness of surge pricing.
Limo fleets are facing a period of massive change and it will be vital to adapt to survive the rapid evolution of the business. With less than half of all limo fleets currently not using GPS fleet tracking solutions,* this is one area that can offer major benefits. With Telogis offering exclusive access to OEM telematics with major car makers such as Ford and GM, the hardware can come built-in, which means getting fleet tracking is as simple as activating an online account.
Take a look at just a few of the benefits of fleet management software by downloading this free ebook, or contact us directly if you have any questions.
* 2014/15 LCT (Limousine, Charter & Tour) Fact Book