Wednesday, February 29, 2012

And The Beat Goes On...

Gas prices are on the rise again.  It has almost become an annual event, like the swallows returning to Capistrano, and almost as mysterious.

The market is awash in oil.  There is so much oil being produced that - in a normal "supply & demand" model, we should be paying half of what we are for gasoline.  Demand for the most part is down, as weak economies struggle to gain a firm footing, and overall consumer consumption is down.  So tell us again...why has the price of regular fuel in Chicago increased by $.36 since the beginning of February, and what condition would cause the price of gasoline to be $.31 higher than it was at the same time last year?

The simple answer is speculation, the process of "betting" on certain conditions or situations that will have a negative (or positive - depending on whose side you're on) effect on the supply of oil.  But nothing is ever simple, and it may be that the more complex answer is the failure of the government to put limitations on those speculators.

There is an interesting article dealing with this subject (http://www.mcclatchydc.com/2011/05/25/114759/wikileaks-saudis-often-warned.html#storylink=cpy#storylink=cpy) that sheds some light on the effects of speculation, as well as how speculators are allowed to continue operating without regulation.  This is not a new condition, nor is it the fault of a particular party or administration.  It is just something we as Americans have gotten used to.  It has literally become white noise to us, and there is little the average American can do to make an impact, since as we said earlier...reducing demand doesn't seem to make a difference.

Monday, February 27, 2012

Why Book Now?

Soon...very soon...one of the busiest travel periods of the year for O'Hare-Midway Limousine Service will be upon us.  No...it's not the Memorial Day weekend, or the Thanksgiving Holiday.  The period I speak of...is Spring Break.  Every year, the media tries to blow some other travel holiday into "the years busiest", but those of us with some experience know the truth.  Somehow, we need to get the word out.

Spring Break 2012 is (for most families in our area) the last week of March.  This means that the mad scramble for transportation will begin fairly soon.  Airline tickets and lodging have already been taken care of, but the transportation part can lay out there until the last minute, and it usually does.  The problem is that larger parties are finding it difficult to get limousines these days do to fleet "down-sizing".  Ten years ago, you could probably find a limousine for your family of six with relative ease.  Today however, there are far fewer large capacity vehicles out there, and they will be snatched up fairly quickly, leaving procrastinators to choose between splitting their group into smaller, more manageable pieces, or spending more than $100.00 to leave your family car at the airport.

Unfortunately for limousine companies, we usually take the heat for "not having enough limousines" to accommodate this rush. We frequently hear "you know this is a busy time of year, why don't you have more cars on the road?"  The types of comments may seem rational until you realize that most of the year, limousines are under-utilized. Weddings and special occasions will keep them busy on a seasonal basis, but one of the reasons out industry has gone to sedans over limousines is that - frankly - they are just getting too expensive to operate efficiently.  By default, sedans have become the norm.

So BOOK NOW!  by waiting, you run the risk of being treated like cattle, getting crammed into an undersized vehicle with your luggage piled on your lap...or not finding a ride at all.  And while you're at it, do your homework.  There are plenty of under insured or even uninsured "hustlers" out there prepared to make a fortune off of unsuspecting travelers who have run out of legitimate options and have resorted to calling that "friend of a friend" who happens to own a limo.  Don't put too much stock in little things like "800" numbers.  You don't have to be a real company to get an "800" number that rings on your cellphone or at your kitchen table. I have always warned anyone that would listen to make limousine reservations with a legitimate and verifiable service as soon as their flight is booked.  This way you are likely to get the vehicle type you need and the quality you deserve.

Friday, February 17, 2012

VIVA LAS VEGAS!

The 2012 International LCT Show - one of the major events of the limousine industry year - took place this week (February 12-15) at The MGM Grand in Las Vegas.  In recent years, the show has become an opportunity to network, to set up and develop affiliate relationships, and to see and spend time with friends in the industry.  However, this year many operators were openly curious as to what surprise might be waiting for them on the show floor when the doors were opened to the masses on Monday afternoon.  After all, with the discontinuation of the current incarnation of the Lincoln Town Car, the majority of limousine operators who have come to depend on the it as the flagship vehicle of their fleet are still up in the air when it comes to deciding on its replacement.  Unfortunately, curiosity and anticipation quickly turned to disappointment, as it seems none of the car makers are anxious to take the lead in this race.
Lincoln is still pushing the MKT model, even referring to it as the new Town Car.  It is being called much less flattering things by operators across the board, although some seem willing to take a chance on it.  The reality is  that it looks somewhat like a 21st century station wagon, and most certainly won't help people forget the current Town Car.
Cadillac touted the XTS as its livery solution, and while it does have the classy look you'd expect from a Cadillac, the trunk space - an important feature for a livery vehicle - leaves a lot to be desired.
Mercedes makes a beautiful sedan for our industry, and they should considering the cost.  Maintenance alone makes it a risky option.  We have two S-Class sedans in our fleet now, and I get very little sleep because of it.
The Hyundai Genesis and Toyota Avalon both received positive reviews, but they face  major obstacles in gaining a foothold in the industry, mostly because they aren't on the same luxury level as Lincoln, Cadillac, or Mercedes, but there are also durability concerns.  Not that a Toyota or Hyundai won't run for 300,000 miles.  It more about what will be left of the rest of the car after taking the beating livery vehicles are subject to over their three to five year life cycle.
So as the show ended, there were more questions than answers, and several disappointed attendees.  Not that the seminars, meetings, and sponsored events weren't productive.  It's just that auto makers don't seem interested in making this decision easy for any of us.

Friday, February 10, 2012

How Can Your Competition Also Be Your Customer?


The limousine industry has undergone a major transformation in the last 5 years or so.  Simply stated, almost every limousine service has now become a nationwide or global concern due to a proliferation of affiliate networks that currently thread nearly all limousine and ground transportation companies together, either directly or indirectly.  These relationships link services in differing markets together, offering potential sales opportunities that might not have been recognized prior to the transformation, but they have also created a situation that seems counter-intuitive...when your "competition" becomes your client.  I'm sure it has been happening all along, but it's taking place on a much larger scale now.
For example, O'Hare-Midway Limousine Service has been operating in the Chicagoland area for over 55 years.  If a client were to call us in the 1990's and ask if we could help them with a limousine in New York, we would have scrolled through our Limousine Industry Directory and used a scientific method called "eenie-meenie-miney-moe" to select a company for them to call.  If that same question is asked now, we would reference our partner network to arrange their transportation, handling everything for the traveler, and even processing their payment.  The best part is that the work is done for the traveler.  The company has been researched, they are properly insured, and are similar in method and philosophy to ours.   However, due to a shrinking of the landscape, we are now in direct competition with that New York company.  What makes this ironic (sort of) is that...while we're in competition...we've also become a client, since our client will be transported by the New York  service, who in turn will be paid by O'Hare-Midway.  Simple...right?
The principle works both ways.  A company in New York can now advertise that it provides transportation in the Chicagoland area as well.
 The "globalization" of our industry has been a good thing, especially for the traveling public. It has made finding transportation solutions easier, safer, and more reliable for our clients.  A happy and satisfied customer is likely to be a repeat customer, which is better for us, even if that customer is our competition.
A New Website is in the Works

O'Hare-Midway Limousine Service and OML WORLDWIDE Transportation & Events will be launching a new website in early March, 2012.  Make sure to check www.ohare-midway.com to witness the long-awaited improvements.

Wednesday, February 8, 2012

Rebranding: The creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated (new) position in the mind of stakeholders and competitors. (Wikipedia)


O'Hare-Midway Limousine Service, Inc. has been a mainstay in Chicagoland ground transportation for over 50 years.  Since 1956, we have been taking corporate and leisure travelers to O'Hare and Midway Airports, downtown Chicago,  Milwaukee...basically anywhere a car can go.  Then, about five years ago, in response to changes in our industry, we began developing an nationwide affiliate network to help our local clients with transportation options at their destination.  That, coupled with years of tedious legal wranglings with the dozens of copycat companies that tried to capitalize on our success by creating enterprises with names similar to ours, caused us to examine the possibility of changing our name.  We decided to look at something simple that might keep people from confusing us with those copycat companies, and might better reflect the global nature of our business.  And OML WORLDWIDE was born.
Along the way, we felt that we needed to add services for our clients.  While it sounds simple, we had to make sure whatever service we added would be something of value to our existing client base.  We were fortunate enough to find an event planner with experience, energy and vision, and she has already made an impact on our company. This made the transition to OML WORLDWIDE Transportation & Events a no-brainer.
This will be an exciting your for us.  We relocated in November to a much bigger space, and are in the process or designing our own dispatch/reservation/accounting software package.  We've added people, and now we're rebranding.  Look for an updated website as well. 
The rebranding process will most likely take place slowly, so as not to diminish the well known and trusted name of O'Hare-Midway Limousine Service in any way.  As a matter of fact, we will keep O'Hare-Midway visible in most of our literature and correspondence.  But look for OML WORLDWIDE Transportation & Events to become the more prominent identity as time goes on.