You asked for it and we listened. In this column, we ask operators of all sizes and from all walks of the industry a question about their business and report their answers so you can assess how your own company compares to your peers. If you would like to participate, please email Rob Smentek at
TOPIC: How are the recent macroeconomic trends (e.g., uncertainty, tariffs) impacting your operations, pricing strategies, or revenue?
Like most operators, we are keeping a close eye on the economy and things like tariffs that can affect vehicle costs, maintenance, and insurance. Demand for quality chauffeured service has stayed fairly steady, but costs across the board have gone up, which means we have had to be more thoughtful about how we price and operate day to day. Because we use dynamic pricing, our rates naturally move up and down throughout the year, so when we do pass along some of those added costs, it does not feel like a sudden or big jump to the client. Instead of raising prices, we focus on running smarter, using our fleet more efficiently, and continuing to deliver the level of service our clients expect.
Kirk Bagger, Corporate Travel Manager & CEO
Captains Car Service in Cleveland, Ohio
I believe that macroeconomic trends are more significantly impactful by regional buyer demographics. Operating in major cities across the country, the buyer's persona is not going to atrophy and decline due to current regional market infrastructure. But in cities that do not support large amounts in regional domestic product (corporate hubs, strong tourism demand, manufacturing), those markets will see significant pinch in revenue and demand. The Philadelphia market in 2026 will have so many huge earmark events in the spring and summer, that our tourism/visitor/events (e.g., US Open, FIFA, semiquincentennial, MLB All-Star Game) in the region will allow for larger-than-normal revenue generation where other macroeconomic trends would normally show a decline in buyer demand, especially during summer months where our revenue usually slows.
Michael Barreto, President & Founder
Metropolis Passenger Logistics in Essington, Pa.
The ever-changing economic landscape is making all entrepreneurs become extremely aware of their marketplace and the future of business climate. Government decision-making is unfortunately creating pullback in business decision execution as well. Trickle-down economics is a huge factor with our constantly changing world. Eyes open wide while every decision requires a 360-degree look.
Len Joseph, President
On The Town Limousines in Frederick, Md.
I am lucky to operate in Coastal South Carolina and Georgia, which have been booming because of the tariffs. The Port of Savannah (25 miles away) is the largest container port on the East Coast and number two port in the United States. They have had tremendous growth in every quarter since the pandemic, which is good for every area business including my own. Unemployment is around 2.4% locally, with gas prices dropping. I am predicting that 2026 will be a great year for the economy.
Kevin Mullane, Owner
Silver Oak Transportation in Hilton Head Island, S.C.
Recent uncertainty has made clients more price-conscious and more cautious with advance bookings, especially for corporate and discretionary travel. While demand for special events remains steady, we’re seeing shorter booking windows and increased sensitivity to value, which requires us to stay flexible and responsive. Rising costs tied to tariffs, fuel, insurance, and vehicle maintenance have put pressure on margins, so we’ve focused on smarter pricing, tighter cost controls, and maximizing fleet utilization rather than passing along large price increases to customers.
Gus Ortis, CEO
Executive Transportation in Eden Prairie, Minn.
Concerns over vehicle and parts prices increasing prompted me to make a couple of vehicle purchases I wasn’t quite ready for. Unfortunately, I wish I had been able to buy a couple more, because vehicle pricing has already gone up. Nothing official, but I believe my pricing will have some minor tweaks.
Quentin Shackelford, Owner
AllClassLimo.com in Wichita, Kan.
While inflation, supply-chain constraints, and tariffs affect many operating inputs, the rapid and sustained increase in insurance has become the single most disruptive variable in our cost structure. These increases are not short-term market corrections; they represent a fundamental reset of underwriting standards across the transportation and logistics sectors. Insurance now rivals or exceeds labor as the largest operating expense.
Unlike fuel, insurance costs cannot be easily indexed or adjusted monthly, yet they materially affect every trip we operate. As a result, we’ve seen the TNCs advocating and getting lower insurance limits in certain markets. We need to take their lead and seek ways to decrease the limits required for our industry. The FDOT requirement of $1.5 million for sedans to pick up at the airport is just one of those examples. Pushing back when RFPs require unrealistic limits is another way we can hold the line on expenses. We need to squeeze every penny in order to maintain our profit margins. We are also having more candid conversations with corporate travel buyers about the distinction between premium, professionally insured operators and lower-cost alternatives that may not carry adequate coverage. DMCs are starting to use TNCs for arrivals and departures while expecting us to give them a rock-bottom price on the bigger vehicles for their events, so we have developed a two-tier pricing model for all arrivals and departures or only if we do the larger vehicles.
Insurance economics are directly influencing fleet composition, utilization, and growth strategies. Vehicle replacement cycles are being extended, expansion into new markets is more deliberate, and some operators are exiting higher-risk service segments altogether. In parallel, we’re investing heavily in safety programs, telematics, driver training, and loss-control protocols—not just to reduce incidents, but to remain insurable at sustainable rates.
The insurance crisis is accelerating consolidation within the industry. Well-capitalized operators with strong safety records, scale, and data transparency are better positioned to absorb insurance increases and negotiate favorable terms. Smaller or under-capitalized operators, by contrast, are facing existential pressure, which is reshaping competitive dynamics and affiliate networks across the country.
In response, our long-term strategy centers on treating insurance carriers as strategic partners rather than adversaries. The goal is to create a clearer, more defensible risk profile for premium ground transportation as its own category.
Bottom Line: Macroeconomic uncertainty has made cost discipline essential, but insurance inflation has made risk management mission critical. Pricing, operations, and growth decisions in our industry are now inseparable from insurance economics. Operators that proactively manage risk, invest in safety, and educate buyers on the true cost of professional transportation will be best positioned to sustain revenue and profitability in this environment.
Rick Versace, President & CEO
A1A Global Ground in Boca Raton, Fla.
As a premium chauffeured car service provider, we cater to non-Asian clients traveling to Asia as well as Asian clients on business trips across the rest of the world. Our core strength lies in our cross-regional, global service network. However, the escalating deglobalization trend has posed significant constraints on our growth, and this challenge is expected to remain formidable in the foreseeable future. To mitigate this headwind, we have prioritized two operational initiatives: strengthening our service coverage in the Middle East and expanding our event ground transportation solution business. A notable achievement in the latter initiative was our successful bid to provide exclusive chauffeured services for one participating team and one official sponsor of the NBA Games Macau 2025. These two strategic focuses have contributed substantially to our 2025 business performance, enabling us to achieve a 6% year-on-year growth in total orders and an over 10% year-on-year growth in total revenue.
Looking ahead to the first half of 2026, global macroeconomic conditions will remain fraught with high uncertainties. Meanwhile, inflation in Asia remains muted, with some regions even showing clear signs of deflation. Against this backdrop, we will adopt a cautious, defensive pricing strategy, keeping our service prices essentially unchanged for three consecutive years, maintaining the 2023 price level.
Amy Yan, Co-Founder & Managing Partner
AmyExpress in Hong Kong, China
We’ve loved hearing your answers to our benchmarking questions—but we always welcome suggestions for future topics, too!
Send an email to
[01.26]
