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
