What Ground Transportation Can Learn from the Toilet Paper Shortage

The pandemic brought to light a global conundrum. The shutdowns showed us all how vulnerable and ill prepared we’ve been for such an emergency. Today, there isn’t a company –or industry – that isn’t hyper focused on supply chain management. So, what is it exactly and how does it relate to transportation service?

In its simplest form, Supply Chain Management describes the “flows of goods and services downstream, flows of money upstream, and flows of information both ways. Supply chain management means taking charge of those flows in order to satisfy demand and increase efficiency,” according to Chris Nicholson, CEO of Pathmind.

Just like the toilet paper shortage, our services are reeling in a new reality of lack of human capital and vehicle supply, which has become our own supply chain dilemma. What to do? Well, here’s some researched advice for you that hopefully will be about some relief.

1. Focus your market approach. Stop being all things to all people. Concentrate on a specific market niche for now – whether it is retail business, delivers, contract shuttle or luxury, or if you all your work is overflow for another company (called a White Label business) pick your sweet spot and stay in that lane for now.

2. Keep your core customers an absolute focus! A customer, by the way, can be an end user of your services or a particular affiliate – the point is, make sure your top accounts come first in all you do. Don’t be afraid to turn down a random job if you have to in order to take care of your key clients. They were with you first, and if you take care of them in this shortage situation, they will be your longtime loyal customers in the future.

3. Keep your offerings and your pricing simple and straight forward. Keep your payment policies simple and straight forward too. Do not float money at this time because the cost to collect is more time/money and distraction you can’t afford.

4. Pool your regional resources. Partner up with other local transportation providers who do not compete directly with you. For example, if you specialize in bus wine tours, outsource your sedan work to a trusted luxury operator and visa versa. Those same non-competitive companies may be able to share staffing resources to.

5. Improved operational efficiency through automation is key. Outsource your customer service, your book keeping, maintenance, detailing and all other time-consuming tasks.

6. When short-staffed, your most valuable asset, your people, shouldn't be overworked trying to keep up with unrealistic expectations. Let your employees know what's a top priority and ask them to put their best into that rather than asking them to put their best into everything. Burning out your employees just exacerbates the staffing situation and increases the likelihood of losing more staff due to frustration.

7. Leverage technology. Technology is the great equalizer for most businesses. This is why software-as-a-service (SaaS) has been booming. No longer for the “big guys” technology for just about any price point is available – a whole topic of its own.

One of the biggest and best practices in dealing with low staffing levels is communication. Talking with your employees about the situation. Getting their strategies for coping with work demands is key. Your customers should also be kept in the loop. Keeping lines of communication open and being transparent makes it easier for everyone to understand the limitations and the timeline for resolving issues. Avoid the temptation to say nothing, hoping no one will notice: This strategy almost never works.

One for the History Books – The GCLA Live Spring Conference Is a Huge Success

It’s a wrap folks!  The spring conference, held this past Tuesday at the Hyatt Regency in Huntington Beach, was the “it” place to be for every serious-minded transportation professional from around the state of California and beyond and boy did it pack a punch!

The event was the first business convention to be held in California, which is a state that is still largely shut down and where the hospitality and travel industry has been the hardest hit in the U.S. I’d like to recognize the fearless leadership of Mo Garkani, owner of The COTS Group and the GCLA president.  He was the primary influencer to making this event happy.  Mark Stewart, principal of Ground Logistics International (GLi) and the Event Program Chair created the session content which included experts from the meetings and convention industry, the luxury and bespoke wedding industry, incentive travel and tourism world.  On behalf of the GCLA, I’d like to recognize and express our sincere gratitude to those experts who generously shared their advice (and precious time) in the spirit of helping the GCLA membership:

o   Lisa Meller, owner of Meller Performance Events Group

o   Alisa Walsh, president of EventWorks, Inc.

o   Lee Palmer Turner, president-elect of the Los Angeles GBTA/Travel Manager for MGM Studios

o   Victoria Zindell, owner of Luxury Ventures Travel

o   Katie Webb Brundige, owner of InterTwined Events

o   John Ehlenfeldt, Director of MPI/Executive VP of Visit Huntington Beach

In addition, our experts including Gregg Cook, GCLA Lobbyist, Matt Daus, managing partner at Wendels-Marx/president of the International Transportation Regulators Association along with the Electric Vehicle leadership team at Cadillac including Mark Leddy, Brad Beauchamp and James Hunter joined us for the State of the Industry presentation, hosted by ‘yours truly.’ 

Our sponsors are the ONLY reason we were able to put on this event.  We only charged GCLA members $50 to attend and we made this decision based on the hardship we know everyone is enduring due to the pandemic.  The rest of the event costs were totally funded by donations, so we wish to congratulate those fine companies and encourage our members to BUY from those who support YOU!

Cadillac – Leading the way with luxury vehicles (All Electric is on the way!)

Chosen Payments – Experts in Credit Card Processing, Check Processing, Financial Services

Amerifuel – All-in-one fuel management programs and discount solutions

Century Business Solutions – Experts in Credit Card Processing and Payment Integrations including EBiz.

Motor City GMC – NEW GCLA PARTNER!  4th largest GM dealership in the country, based in Bakersfield – ships to your door!

Limos 4 – The GCLA Zurich/European Transportation Partner who keeps us connected to the world.

BMW – Luxury Executive/All New Fleet Incentive Program

Ecko Transportation – San Francisco-based Luxury Transportation Provider, GCLA board director

Motev – Los Angeles-based Luxury Transportation Provider, GCLA board director

KLS Worldwide – Los Angeles-based Luxury Transportation Provider, GCLA board director

Windels/Marx - #1 Transportation Law Firm in the U.S.

First Class Customs – the Premiere Coach Builder + Sprinter Upfitter

Beau Wine Tours – Northern California-based Luxury Transportation Provider, GCLA board director

Best-VIP – Orange County-based Luxury Transportation Provider

MCI – Motor Coach Industries sells new and used buses; manufactured in the U.S. with offices in CA.

Davey Coach – Shuttle buses; recently acquired Nations Bus and now officing in Los Angeles.

TIB Insurance Brokers – Insurance brokerage firm specializing in commercial transportation.

Norton Medical Industries – Drug testing for employees in transportation

D.W. Ferguson & Associates – Insurance for business covering the Western United States

The COTS Group – Los Angeles-based Luxury Transportation Provider, GCLA President

Avalon Transportation – Los Angeles-based Luxury Transportation Provider, GCLA board director

Ground Logistics International – Orange County-based Luxury Transportation Provider, GCLA director

The LMC Group -

In close, I would like to offer a very special shout out to Chris Weiss, principal of Chauffeured Driven Media for making the huge trek across the country to spend the day with the GCLA members and help bolster our event and fundraiser.  I thank our board of directors who presented at the event and to those special people who played host to our attendees.  In particular, Mo Garkani, Robert Gaskill, Tom Buck, Adrian Davis, Chris Hundley, Alex Darbahani, Maurice Brewster, Harry Dhillon, Jack Nissim, Mark Stewart, Steven Wolfson and Sarah McKee.

And last but certainly not least, thanks to Tammy Carlisle owner of Action Limousine of Atlanta for spearheading our Volunteer Team and the Fundraising Committee.  Tammy is one of the most gracious people in this industry and is the epitome of “service with a smile.”  She went beyond the call of duty for all of us.  A special hug got out to all who came to the event.  I trust you got your money’s worth since the take home value was over the top.  We can’t wait for the September EXPO coming to the Portofino Hotel and Conference Center and are already hitting it hard on the planning front!

We Move California Live

For starters, the event is happening. It’s firmly set for Tuesday, March 30 at the Huntington Beach Hyatt Resort. We can thank (I guess) the recall momentum of Governor Gavin Newsom for ensuring that we can finally bring you a live gathering. In case you’re not following the state news these days, the needed signatures for the recall were obtained this week, meaning a vote is almost certainly going to take place this spring. Even though it’s broadly believed that he will survive the recall, Governor Newsom is getting the message loud and clear that residents have had it with the arbitrary lock downs and mixed messages that he, himself, has not adhered to. After his approval rating plummeted to below 40 percent last month, Newsom immediately opened up outdoor dining. Now he’s tackling school openings. Each week, Californians are being given back their freedoms while the state is working on overdrive to get the vaccine distributions out – ASAP. It’s time for us to get out there, meet with local businesses and sell transportation services!

The “We Move California Live” conference is a 1-day event, set in a TedTalks format. The speakers are experts in areas that matter to you including – weddings and special events, meetings and hotel events, tours and retail travel, luxury travel and business travel. I am also providing you with a state of the industry that is data-driven information to help navigate these coming months. A final note is our closing session, hosted by GCLA president Mo Garkani and our legislative committee chair Mark Stewart. This session addresses the GCLA members’ Top Concerns which include the life past Prop 22, government financial help, insurance and the fleet crisis that everyone is facing.

There will be time for networking and brainstorming. We will have chat groups that are able to be out by the pool and in the amazing courtyard spaces throughout the venue gardens.

Even though we are still tweaking the program, I urge you to sign up now. As of today, we can only host 200 people (the number may increase but don’t take that risk). The event is $50 for members. The bulk of the event is being subsidized by our generous sponsors. I’ll be sure to make noise about all of them in the coming weeks. We are just days away from launching our new website so make note: www.gcla.show will be live soon!

New Year’s Resolution: Targeting the Rich & Restless of California

We heard today that our state lockdowns are extended for two more weeks due to lack of capacity in hospitals – primarily in Southern California. While Covid-19 cases reports are on an uptick, the overwhelming majority of residents are healthy. It’s increasingly becoming a tough sell to ask California and its small businesses to “take one for the team.” How can we work together to create some social relief for the millions of people who are going stir crazy and the businesses that used to serve them their outlets while still being mindful that Covid-19 is a problem?

More than 50 percent of California residents are between the ages of 18 and 65 which is the demographic the CDC sites as being the lowest risk rate. There are more than 1 million millionaires in California — more than any other state. San Francisco has the highest density of billionaires of any city in the world. Over the past five years, California has attracted 162,000 more adults with at least a bachelor’s degree from other states than it has lost, according to the Public Policy Institute of California. The Golden State stands alone in this regard.

I think it would be very interesting to bring together folks from the GCLA and the California Restaurant Association to brainstorm on ways to create an experience involving small groups, a great vibe/ambiance like the inside of a limo, some food, good wine, some fun music.

Can we do wine tasting inside a vehicle? Can we offer a party-in-a-car? The demand is there for a huge California demographic to socialize. The demand is there for restaurants to create revenue streams.

Weddings are expected to huge in 2021 in the way of numbers but the trend is for smaller, outside events. Beach weddings will dominate into the New Year. We have plenty of beachfront. People movers for those in need of transport, such as Non-emergency medical and paratransit are viable options to explore but we’ll have to help you to understand how to secure contract jobs if that’s something you’ve never done before.

We can’t stop thinking of ways to make money using our ground transportation expertise. 2021 is the year we rebuild our industry.

“A need or problem encourages creative efforts to meet the need or solve the problem.” - Greek philosopher Plato.

California Replace Europe for Luxury Travel Next Year? Experts Weigh In

Virtuoso is a global membership-driven club for HTW (high net worth) travel advisors. 6,000 of them met for a 4-day Virtuoso “Virtual” Travel Week this past August to discuss, well, luxury travel and new trends shaped by the Covid-19 pandemic.

Visit California, the states’ tourism promotional arm, made a big splash at the event bringing many of our Golden State’s best luxury destination options. Highlighting our many alluring luxury amenities – both manmade and natural, was a play to lure luxury travel to California next year – and it worked.

Our state was exposed to 6,000 travel advisors to the well-heeled, comprising of 70% with domestic advisors and 30% international, a reversal from past years, where international comprised the majority of luxury travel trade. Team California also conducted a webinar leading up to Travel Week show that informed 115 advisors learning about the latest in California’s culinary scene.

It’s important to note that GCLA is a member of VISIT CALIFORNIA! After the Virtuoso event, our state PR sent thank you’ s and a one-sheet resource guide with links to trade tools, social channels, and other Visit California resources including the Visit California website, the Respect California page, Road Trips Hub, and video assets to all 6,000 decision makers.

Here are the key insights from the event and meetings:

1. Luxury sentiment: The luxury segment appears to be more open and ready to travel. Advisors shared that roughly 50% of their clients have already traveled or are planning to do so in the coming months.

2. Key areas of interest shared by luxury travel advisors: Road trips, wine country, national parks, home and villa rentals.

3. West coast advisors expressed interest in learning more about California’s hidden gems, as they were already familiar with most destinations.

COVID-19 concerns: Broadly, there remains some uncertainty about what tourism options will be available, luxury and otherwise, and how many restrictions are in place in California.
Agents inquired about the possibility of private dining, hotel buy-outs and other exclusive and private luxury experiences.
Agents appreciated the team’s on-the-ground updates.

Takeaways:

1. Domestic advisors need updated information as many have not focused on domestic front for years.

2. California is well positioned as an alternate to Europe and other global destinations due to our amenity offerings and weather.

3. The luxury market is resilient as they have the means — both time and money — and experience with travel to feel relatively at east with the pandemic.

4. Many clients have unused credits from canceled spring/summer trips they are ready to utilize.

The governor has been cautious with respect to opening up California but with the vaccines already in distribution phase, it’s widely believed that 2021 will loosen up. The luxury market is mostly attracted to unique experiences so big attractions like Disneyland are not as important as, say, Camping in Yosemite.

Luxury travel requires a white-glove service mentality and a polished image. Throughout the holidays and into the early part of 2021 (when it is seasonally slow) I encourage you to look at your storefront – your website, in particular, and compare it to other luxury sites like the Four Seasons. The same discriminating tastes that prefer “French Laundry” dining (you get the joke) will be looking for high-line mobility options as the state of California continues to court the global luxury travel market as an option to Europe and other countries into 2021.

What’s the News for December?

As the bulk of the United States hunkers down for cold days ahead, the state of California offers some of the best weather options and attractions in the world during winter season. For this reason, our state is doing its best to deter sun-seeking vacationers from coming here for fear of aggravating the Covid-19 spikes. There were 279 million tourists who traveled to California in 2019. Add that to the already crowded state by nearly 40 million residents and its easy to see why our government is concerned with potential problems. It’s 2021 we are waiting for and there are very positive signs ahead. For one, our political situation is sorting itself out. No matter what side of the aisle you’re on, we can all agree that politics leveled a hefty blow to our livelihood this year as we were basically suspended in time with respect to more relief and policy changes. We have a vaccine that has been touted as the linchpin for the Covid-19 massive recovery. We may be forever changed in the way we approach sanitation health risks, but like the Flu shot, the Covid-19 vaccine is a major breakthrough and will allow us to get moving again.

I will continue to extol the merits of www.safecleanridecert.com. This is a 1-hour training program that covers hygiene safety, endorsed by the GCLA. It includes a knowledge test that requires an 80% pass rate in order to be certificated. SCR meets the CDC and CAL/OSHA requirements for healthy working environments. It will be an invaluable risk management cogent evidence tool should your workers or clients make claims against you or your company. It satisfies the Duty-of-Care peace of mind that corporations are looking for when considering transportation contracts. And, it is a proactive response to a very serious crisis which will be seen favorably by all.

On GCLA specifics, here are some important updates that have recently transpired:

*OurWe MOVE California - LIVE,sponsored by Cadillac and SoCal Penske has been rescheduled to Tuesday, February 16th. All event details will be on gcla.org next week. This will be our first in-person meeting since December 2019 and we have quite a conference prepared!

*We have elected our new board of directors and are pleased to welcome back Selim Aslim, director-at-large, Darren Croasdale/San Diego, Mark Stewart/Orange County, Robert Gaskill/Los Angeles, Don Mahnke and Tom Buck/Northern Cal seats. New to our board is Alex Darbahani/Los Angeles and Alaric Sales, McCoy Auto/vendor seat. Congratulations to all!* We have launched the Pat O’Brien Grant Program. Mr. O’Brien, who serves as council board of director to the GCLA has pledged $5,000 towards this newly formed member benefit, created to help current members who wish to renew their membership but are suffering a financial hardship. Contact our offices directly for details. Sara@gcla.org

Hoping everyone had a nice Thanksgiving break. Stay optimistic – we are in this to win this!

Sara Eastwood-Richardson

GCLA Hosts First Town Hall on the Subject of Insurance in Today’s COVID-19 State

This past Tuesday, our association held a ZOOM Town Hall to a PACKED crowd. Selim Aslan, GCLA board of director and owner of MIB in San Diego and Harry Dhillon, GCLA VP and owner of Ecko Worldwide were duel moderators.

The big question of, “What is the state of affairs in CA regarding for-hire transportation regarding changes brought on by the Covid-19 crisis?” was the cornerstone issue. It was addressed by Ken Bruno, the California Public Utilities Commission Program Manager for Transportation Enforcement and Don Wise, Licensing Supervisor for the CPUC. Mark Freeark with TIB Insurance got deep into insurance challenges we all face and Patrick O’Brien, attorney at O’Brien Law and GCLA board of director weighed in on legalities and workers comp issues. Also, Ashley Richmond joined us from AK&A Labs to address drug testing.

Selim asked a great question of the panel to start the session off. “What can we do to improve our relationship with all of you in the spirit of working together while we strive to get through these tough times?” Mark Freeark spoke on behalf of the panel and said the answer is, consistent and clear communication. Staff changes, remote challenges, and new rule have upended our world and what this panel wanted us to know is that they only win if we do. We are in uncharted waters but they are on our side and stand ready to help us.

The question of why insurance costs are rising was also addressed. Transportation insurance has grown to be so costly for insurers they are pulling out of the market. Why? Because litigation expenses have supersized over the last decade and reform laws are needed. For instance, what was a minor accident 10 years ago with a payout of say, $20,000 to $50,000, now settles for $1 million or worse. Even if an operator has a perfect incident record, their premium must help subsidize those humungous claim settlements - which irks a lot of people. In the state of California, the panel noted that only two primary insurance companies – Lancer and Philadelphia are left. Atlas was an example of an insurer that jumped into the transportation market only to file for bankruptcy. Northland Insurance pulled out of the state last month.

The group tackled the idea of the GCLA creating an insurance captive only to determine the costs were too high and the risks too great. The best thing we can do is work together on collective purchasing – meaning group buys on safety equipment that helps lower insurance costs such as vehicle cameras.

Ken and Don from the CPUC helped to clarify confusion about requirements involving Transportation Charter Permits. They also touched on the TNC matter regarding Prop 22 by stating it was too early to know how or what enforcement policies will change. That subject is unfolding. The GCLA was tasked with spearheading a task force to address all things involving the new outcome to which our legislative team has already met on. Stay tuned.

Sara Eastwood-Richardson

And Now A Word from Our Airlines….

Just today, the CEO of Delta Air Line, Ed Bastian, gave his viewpoint on the return of flight. “In [my] 20 years dealing with crisis, business travel has always come back stronger than anticipated despite what critics say.” Delta’s president, Glen Hauenstein confirmed the worst is over and said the company believes the pandemic's impact on business travel would be behind them in two years or more. “With a slow and steady build in demand, we are restoring flying to meet our customers’ needs, while staying nimble with our capacity in light of COVID-19.”

Hauenstein concedes that, “While it may be two years or more until we see a normalized revenue environment, by restoring customer confidence in travel and building customer loyalty now, we are creating the foundation for sustainable future revenue growth.”

Let me repeat Mr. Hauenstein’ s key point here. We must RESTORE consumer confidence. But how? By working alongside the airline and hotel efforts. We must be singing from the same sheet of music and since we have a program that is earning praise from the White House to the School House, I urge you to do your research (www.SafeCleanRidecert.com). This is the only frontline training and testing program available to the transportation industry – including school, commuter, luxury, taxi, trucking, military/government, hospitality and corporate fleets. And, the GCLA recently endorsed it which is exciting news in and of itself.

Today I participated on a strategy panel with Scott Calhoun, P.E., PMP, USDOT Policy Advisor to the Secretary of Transportation, Dr. Jonathan Yoder, Lead of the Water, Sanitation, and Hygiene (WASH) team and COVID-19 Response at the Centers for Disease Control and Prevention (joined by his team) and two of the SafeCleanRide advisory panelists, Dr. Amesh Adalja, Ph.D., Senior Scholar at the Johns Hopkins University Center for Health Security, Dr. Dennis Harp, Ph.D., Chief Scientist and Vice President of Food Safety and Quality Assurance. They are all extremely enthusiastic about SCR and its mission to help mitigate risks associated with infectious and contagious disease through education.

The objective of our meeting was to review the best path forward in getting the SafeCleanRide program adopted by states and within all markets. The great news for transportation – that includes YOU – is that this program exists. I am personally involved. From the inception of SCR in April, I worked with the Advisory panel and the training/testing company’s teams along with dozens of other health groups and focus groups to bring this program to life and deliver it to you. We now must educate our employees, our affiliates, our customers, our communities, our airports and municipalities. Importantly, I encourage you to expose SCR to your insurers since training and certificated testing programs can help lower business liability expenses.

The airlines and the hotels are making the same efforts here. They too are working on certificated program, albeit they are much more complex and thus taking much longer. That just means transportation is ahead of the curve and we will be that much more prepared as travel continues to come back. Delta's CEO Ed Bastian stated that, “Roughly 90% of its primary corporate customers have business travelers who are traveling in small numbers, but are getting their own sense for what the new travel experiences is." The recovery has begun.

Stay Safe,
Sara Eastwood Richardson

GCLA - Year in Review

"Never Doubt That A Small Group of Thoughtful, Committed Citizens Can Change the World; Indeed, It's the Only Thing That Ever Has.”
—Margaret Mead

This was a very busy and very exciting week here at the Greater California Livery Association. The board of directors met Tuesday for nearly three hours to hammer out strategies ranging from Prop 22 to ending the year with a face-to-face meeting for our entire membership.

Here’s an update that I know you’ll find enlightening:

On Government Assistance: The HEROS Act was revised to $2.2 trillion. Democratic lawmakers introduced the measure on Monday with Treasury Secretary Steven Mnuchin. It is unlikely to pass before the November 3 election. Operators wanting information on the PPP loan forgiveness program must first apply for that at https://www.sba.gov/document/sba-form-paycheck-protection-program-loan-forgiveness-application.

On the Financial Fitness of the GCLA: The association hit a yearly low in reserves this past July only to rebound thanks to new members, a surge in sponsorships and a $8,500 grant from the National Limousine Association.

On Industry Recover Efforts: The GCLA endorsed the SafeCleanRide sanitation training, testing and certification program. This project was 5 months in the making and we feel strongly that it will play a vital role in business recovery for the state of California and beyond. Go to the www.GCLA.org for more information.

On Board Seats: Our association election efforts for board seats kicks off next week. If you are interested in running for the board and/or participating on committees please reach out to me at sara@gcla.org. I have applications ready to email you right away. The deadline for board applications is closed of business on Monday, October 26th.

On Legislative Work: Vote NO on Prop 22 is our #1 focus. We have retained the Marketing/PR firm of Curtis Gabriel to handle social media strategies. We are part of the www.NOonCAPROP22.com coalition. As of now, the No’s are essentially tied with the Yes’s with 25% of likely voters’ undecided. We set up a GoFundMe campaign to raise money to support the Coalition, who’s set to raise $10 million. Our industry is expected to do our part to support the NO efforts so if you haven’t given yet, please do so! The Coalition is not expecting a huge check from us, they know we are suffering. Our goal is to raise $10,000 for the cause. https://charity.gofundme.com/o/en/campaign/gcla-campaign-vote-no-on-prop-221.

Watch your inbox! Coming this weekend in a GCLA – TV exclusive interview with Assembly person Lorena Gonzalez, the author of AB 5 and champion of the Vote No initiative. This program is facilitated by Mo Garkani, GCLA president along with Mark Stewart, GCLA Legislative Chair. Assembly Member Lorena Gonzalez unpacks the details of this landmark legislation. It is a must see!

On Uniting Our Membership in a Face-to-Face Event: The discussion with the board on whether or not to plan for a 1-2 event that includes business strategy meetings, a state of the industry, awards event and a holiday dinner was met with mixed feelings. Many of us are craving the comradery and human interaction that live events afford us. Some directors are concerned about the optics in light of so much pain and suffering this year. We have dates on hold at the Portofino Hotel and Conference Center, Redondo Beach on December 14-15 just in case but we need a consensus. Directors are reaching out to members by email to get feedback. Feel free to contact me as well and let us know if this is something you want to see happen this year.

In close, I must say how proud I am to be a part of such a fighting and spirited group. This industry represents the best of the true American Entrepreneur. These are extremely difficult times for the travel and hospitality industry but still we forge ahead. We are constantly thinking about ways to get mobility “unstuck” and our efforts are paying off…slowly BUT surely. It is an awesome thing to see backyard competitors who are coming together to support one another in the most unselfish of ways. Together we are better and remember, we are In this to WIN this!

Stay strong!

—Sara Eastwood-Richardson

GCLA Launches New Membership Directory

Big News!
The Greater California Livery Association Gears Up to Launch its ALL-NEW Digital Members Directory – A Major Step Forward in Connecting the Recovering Marketplace with Our People

California, with its 40 million residents, was the first to decree a state of emergency and order shelter-in-place restrictions and by all accounts, it’s likely to be one of the last to remove them.

With travel, tourism, live events, and all of hospitality at a standstill, which has forced our mobility world to screech to a halt, your team at the GCLA could have saved a lot of money, let everyone in the office go, furlough our lobbyist and suspend board meetings and just taken a hiatus until things got better.
Abandoning our people was never an option. On the contrary we are leading by example and we are on the frontlines and at the front steps of the state Capital on a regular basis. We are in this to win this. Over the course of this shut down, the GCLA has dramatically beefed up our outreach to include this weekly e-newsletter PACKED with useful information to help you navigate these rough waters. The GCLA e-news now has a following of more than 5,000 operators.

Next up, GCLA (your association of operators in CA) is producing a promotional video making the case for booking more for-hire transportation. It’s called the WE MOVE CALIFORNIA campaign and will feature GCLA members and spotlight the associations new online MEMBER DIRECTORY which roles out next week!

Operators and vendors listed in our directory will have a competitive advantage in the rebounding market. Why? Because the GCLA intends to sell the merits of its members to travel buyers and global affiliates – to also tout our new Code of Standards & Ethics that all members must abide by. We believe the traveling public will come looking for such reassurances and will come to the GCLA for the best references.

Check out a quick screen grab to get an idea of what our new digital directory looks like this: https://my.communitybox.co/gcla

The GCLA members directory will legitimize our association – and our members – in a time where peace of mind to the consumer really counts. Furthermore, our digital directory makes it SIMPLE for all of our members to reach out to one another. I can’t tell you how many people contact me to ask who is still operating and who is not. Confusing times likes these make it that much more important for you to show your brand is alive and well!

Here’s the catch…you have to be a current member of the GCLA to be listed in our directory. The good news, the cost of our membership is less than $7 per month for operators to join and only $300 for vendors/suppliers. We established a new membership category as well call the VENUE MEMBER so that destinations like wineries, event centers, restaurants, clubs and resorts can also become a part of our community.

If you need to update your membership or want to join for the first time, it is super easy. Go to www.GCLA.org and click the JOIN tab. Even though our directory will debut next week, it is updated in real time so as soon as your membership is processed, your company will be added to our online members directory (not to mention you will have access to many other membership benefits).
This is probably the least expensive and easiest way to get your company out in front of travel buyers and global affiliates so I urge you to make it a priority to sign up as a GCLA member if you haven’t already. If you are a current member, watch your inbox next week for your directory “update” link.

Stay Safe,
Sara Eastwood-Richardson

Repossessions: Why Banks Should Not

This Is Why Financial Institutes Should Avoid Repossessions at All Costs!

We all saw this coming - the end of vehicle loan deferments is looming and people are bracing for things to get “bloody.” Here is why it is imperative that lending institutes and YOU work together NOW on a long-term strategy to avoid involuntary repos at all costs.

Without awareness, history repeats itself. That said, we want to avoid the mistakes of the past and instead learn what not to do. Let’s look at what happened in the height of the recession years of the 2007-2009. The first mistake we made is that we panicked. Transportation loans, of which more than half are originated by non-bank finance companies, rely on short-term funding markets for their own financing. In those years, they panicked and acted swiftly to reclaim their collateral. The side-effects to doing that, however, exacerbated the long and very painful transportation recovery of the Great Recession.

It created a glut on the market of used equipment which drove values down. Repos created so much inventory that NEW vehicle sales stalled out for years. Further, repossessions ruined consumer credit, which in turn negatively impacted NEW vehicle sales by a lot. If people are not credit worthy and cannot buy, funding companies dry up. It’s that simple. Such was the case during the Recession. In 2017, there were 16 million new car sales. By 2009, sales crumpled to only 7.9 million sales and caused the collapse of major automakers in Detroit.

It only takes a spark to get a fire going. The consequence of repossessing equipment was a market recovery that took five years when it should have recovered in two. This is why it is so critical for us to avoid the mistakes of the past. We need to have a meeting of the minds with our financial institutions on this matter. Non-voluntary repossessions of vehicles are disastrous for both owners of transportation companies and their financial organizations and must be avoided at all costs.

The GCLA hand delivered a letter to Congressman Kevin McCarthy early this month to ask that the federal government place a moratorium on for-hire transportation vehicles repos (much like the Covid-19 Eviction Defense Project) backed by evidence that anything short of doing so is prolonging the recovery of not just luxury, but all transportation vertical markets AND gravely impacting new vehicle sales and the health of major corporations for years to come. We also asked every operator in the state of California to share a version of the letter with their local legislators. But this is just not enough. You need to do your part. You must meet under friendly terms and then re-negotiate your loans with your financial institute from a point of logic, not emotion. If this industry can revise loans to add to the backend with a longer frontend reprieve – and base that on history and a “case-for” (that means you have to have a plan of action for your business) we could avoid a lengthy recovery.

We have the historical data. We all can agree that a speedy recovery is in EVERYONE’S BEST INTEREST, with the financial institutions at the top of the list. A massive siege of equipment will force us into a very dark hole that will add many more years to restoring our livelihoods.

“Those who cannot remember the past are condemned to repeat it.”
-George Santayana, philosopher,1863 –1952

Stay Safe and Stay Strong,
Sara Eastwood-Richardson

Getting Back to Normal

When Will Things Get Back To Normal?
I’m Tired

That is the $3.8 trillion dollar travel question and one I am going to answer with the best data I could find. As I’ve said before, our industry moves when travel moves. We need to make our plans for our future based on sound facts. On July 16, the USTA released their U.S travel forecast report which spans the next three years. The USTA worked in cooperation with the Tourism Economics, Department of Labor and the Department of Commerce to compile this information. It’s the best insight for our future that’s available.

The burning questions:

Where were we before the pandemic? Total travel spending in 2019 was up 3.5% from 2018. There were 462 million business trips and 1.86 billion leisure trips taken last year.

Where are we now? Total travel spending this year fell by almost 45%. The total number of business trips is expected to be 300 million and leisure trips to land at 1.33 billion by the end of this year, a massive drop year over year as we all know.

How about next year? Total travel spending in the U.S. for 2021 is expected to increase by 37.5%. That a BIG recovery but it’s still 7.5% short of breaking even with pre-pandemic figures. Business trips are expected to come in close to 400 million, a substantial gain year over year. Leisure trips in 2021 are projected at nearly 1.7 billion.

And beyond? 2022 travel revenue is forecasted to increase by more than 14% from 2021, which will mean a 7% gain in revenues compared to pre-pandemic levels (2019). The number of business trips is expected to grow to 387 million and leisure trips will increase year over year by 173 million personal trips.

More helpful information:

• Overnight trips make a full recovery by next year.

• Day trips recover by 23% next year.

• Air travel, down 57% this year, will make a full recovery in 2021.

• Total international visitors to the US this year fell by 63% but will fully rebound in 2021 +6%.

Next week on GCLA – TV I invite you to watch a 15-minute interview with Neil Hammond, partner at GoldSpring Consulting, a premiere data-driven firm specializing in business travel strategy. Neil’s insights are worthwhile and very helpful to planning for your business recovery.

I know you’re tired but just look in the rearview mirror and you will see that you have survived 5 months. You can do cross this finish line! As our expert will tell you next week, the worst is over. We are inching forward and the GCLA leadership team is doing everything in its power to pave the way of recovery for you. If you have not yet joined our GCLA community, please go to www.gcla.org and support us. The cost of membership is less than a Dunkin Donut snack and a coffee! We depend totally on donations, sponsorships and membership revenue and need YOU to help us continue to help YOU.
Stay Safe and Strong,

Sara Eastwood-Richardson

Standing By Your California Business Clients

WHY ITS TIME WE STAND BY OUR CLIENTS
IS CALIFORNIA AT IT WITS END?

The counties surrounding San Francisco were the very first in the country to enact the stay-at-home orders. That was March 16, what seems like a million years ago. At that time, the bay area set itself apart as being the model of coordinated action against the spread of Covid-19. Soon the entire state of California followed suit. We did everything we were told to do by our county supervisors and our Governor. This was all supposed to be temporary. In late June we finally began to feel the ease of tensions as slowly we were able to resume some semblance of normalcy.

This week, things spiraled downward as the Governor reinstated shut down orders amid mixed messages. My phones have rung off the hook by demoralized operators wanting to know what is going on! I mean that literally. Conflicting rules from county to county and city to city are leaving business owners outraged. For example, as reported by the Mercury News just yesterday, “Outdoor dining, for weeks allowed in all of the Bay Area, is now banned in Alameda County, while indoor dining can continue in San Mateo County. In Contra Costa County, which has allowed hair salons since mid-June, outdoor diners will have to wear a mask at all times except when they have a fork or spoon in their mouths. Santa Clara County, which last week had to temporarily stop outdoor dining, is now poised to open gyms and barbershops. And in San Francisco, the zoo is reopening next week while the Oakland Zoo less than 30 miles away stays closed, teetering on bankruptcy. For Union City Mayor Carol Dutra-Vernaci, the inconsistency in rules county to county is a reflection of the unequal response nationwide, where some states have refused to issue mask ordinances that have been commonplace in California for weeks. That poses a challenge for city officials in the Bay Area, where people regularly cross county lines to work, shop and visit friends and relatives. I can’t help feeling sometimes that our residents wonder what in the world we’re doing.”

What we can do is this. We can ban together. There are nearly 6,000 transportation operators in California and only a sliver of them are members of the GCLA (which is terrible). If we do not have the consensus of the entire group, we do not have the influence we need to be heard. All of you reading this should make sure you are a current member and if you are, you should be evangelizing our great organization that is trying to fight for you. We are supporting the efforts of YOUR key clients – the meeting planners, the hotels, the travel management industry, California’s tourism industry and more! If you chose to sit this one out, the GCLA just lost a critical voice in a locale that needs a VOTE. If you are not part of our solution, you are part of the problem and the big one facing us is the health of the industries that BUY transportation.

We must stand behind our clients. We must help them recover and resume operations so we in mobility can resume ours. We do that by supporting the GCLA who in turn backs organizations like Visit California!

The icing on the cake is that by the end of August, the GCLA will have developed a promotional video to distribute to all state organizations that book travel – members will get a free copy. And, we will have completed our all-new OPERATOR DIRECTORY (in digital and mobile formats) that we intend to push out to the world of travel, tourism and affiliates.

Stay Tuned, Stay Strong and Stay Safe,
Sara Eastwood-Richardson

State of the Industry Today

WHAT IS THE STATE OF THE INDUSTRY TODAY?

Mobility depends on movement. As things have been slowly opening up, demand for our services has felt that. It’s not a lot, but there are positive signs. I pay close attention to what is happening in the larger travel and meetings/events/convention industries. I go by the old saying, “follow the money.”

Total travel output in the US alone is $2.5 trillion with 26% of that in the business travel space and 74% in leisure travel. As for live events, the total annual economic contribution of the meetings and convention industry is $907 billion, which generates $64 billion in federal tax revenue and $46 billion in state and local tax revenue. Additionally, live concerts and sporting events account for $35 billion a year. Those are very big numbers so you can bet those industries are working tirelessly to get things unstuck and when that happens, it’s pretty clear, we will be moving people again.

What can you do to bring business back in the “now”? Before people begin to travel by air, before people to go gatherings, they will first return to their offices and work space. Those people will be looking for transportation. Home-to-work transportation will be the first piece of mobility that comes back and perhaps some retail business. My friend called me last week to ask about a limo for her 50th birthday. She and friends are heading to Santa Barbara county from San Diego for wine tasting and fun. She said she was tired of being cut off from society and wanted to enjoy life again. That is a positive sign.

Chauffeured services that were squeezed by Uber and Lyft for the last 5 years have a chance to regain lost market share in commuter work. For now, the health and safety of people is on everyone’s mind. Corporations are willing to go the extra mile to make sure their employees are comfortable and with the state of public transport in this time of social distancing, we are a great option. I understand from speaking to operations, they are experiencing an uptick in long-distance rides. This is because people still don’t want to or simply can’t fly. Until the airlines and airports find their grove, people will travel longer distances by ground. People are afraid of buses and trains and opting to take cars. As time goes on, buses and trains too will defeat these fears and people will go back to mass transport. But for the time being, it’s too scary.

Speaking of fears, I caution you about overdoing it in an effort to be taken seriously with hygiene protocols. It’s important that we do everything in our power to work against those fears while interacting with clients in person. For starters, until your clients get close to your chauffeurs, they should not have a mask on, rather a big friendly smile. People must be able to read body language to be made comfortable. The masks – especially the black ones – are scary and people are fearful enough. If I had a luxury car company I would have masks that were as subtle as possible – or even whimsical like the ones offered on Vistaprint ( https://www.vistaprint.com/masks/.) Black is the sign of death and while you might think it looks cool, trust me, it’s a very ominous look and that is the last thing you want people to feel about your service in these frightening times. We must work creatively around service levels to lessen fears and the best way is to be happy. Drivers should text upon their arrival with a happy thought of the day and a cheery salutation. Think the opposite of serious and come up with your own unique first impression. Chauffeurs are your store front. You don’t want them to look intimidating but rather friendly. They are hired to help people relax and lift their spirits while bringing a sense of peace-of-mind. Drivers in situations requiring a mask at all times can use technology to help with that pleasant first impression. An iPad with a happy emoji is a very simple added touch and a memorable one that’s sure to make yor client smile.

Parting shot? To the operators of California and beyond, I remind you to limit the time you spend watching the news and stay focused on positive steps forward that ARE happening. Keep your prospective. This is an election year and the hysteria coming from the media is distracting. We need logic to drive us, not emotion. We will resolve this matter…we are resolving this. We know a heck of a lot more today than we did 4 months ago. In March, California Governor Newsom stated that there would be 2 million dead in California by June 1. There are a reported 6,000 out of 40 million residents who have reportedly died by complications exacerbated by Covid 19. This is GREAT information (not the death toll of course, just the stats).

Enjoy your weekend,
Sara Eastwood-Richardson

Sticks & Stones

Sticks and Stones Will (not) Break Our Bones…

As far back as humanity can be traced, impassioned people have acted out in violence to make their frustrations heard. There are not a single “people” on this planet with clean hands on the matter. Our country’s famed quotes like, “Give Me Liberty or Give Me Death,” are at the epicenter of our very being. When the masses get riled up, riots are predictable. History tells us this story over and over and over again. I don’t condone this behavior. History has also shown us how destructive it is to society. Whatever the angst, it does not matter. Violent behavior masks the message. In plane speak, it distracts from the truth and solves not a thing, including making looters feel better. On the converse, acts of violence make negative emotions escalate not de-escalate.

I am sorry to see our country burdened with more trauma when we are all so ready for “something” positive to happen in our lives. I want to remind you that we are in a dignified industry. Luxury transportation is a means of servicing the needs of high net worth individuals, their families, their companies and more. Take your eyes off the nonsense and focus on the main goal you have before you which is moving forward in a positive direction, driving your businesses. Shake the news off and get back to what matters to you. The pundits say business will not return for another year. Based on what? No one - hear me - no one knows what they are talking about factually because this is new territory. Everyone is speculating and frankly throwing sticks and stones. There is another side of this coin, the one that says pent up people are excited to get back to work, travelers are chomping at the bit to break free to find another adventure, sales people and business road warriors are counting the minutes to get back to their routines, and the beat goes on. Suffice to say, I think the market is going to come back fast and furious.

I also contend that there are some strange things a foot this election year that are hard to ignore. There are plenty of sticks and stones being thrown at the cogs in the US machinery – we all can see that. My advice to you is to steer clear of the media as much as you can. Focus on your business. Focus on your comeback. Focus on your money situation (1/3 of the PPP money from round 2 went untouched). Focus on your community. There is strength in numbers and that’s what the GCLA is for and there’s no mistake that we are making positive things happen for you.

Let’s keep our eye on the prize,
Sara Eastwood-Richardson