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 rob@chauffeurdriven.com for next issue’s question.
TOPIC: With so much happening with the economy (local, national, and global), how is it impacting your business? How are you forecasting for the future?
As of April, imported vehicles are now subject to a 25% tariff, and beginning in May, that same tariff is projected to apply to imported auto parts. The immediate impact is significant: suppliers are already warning of a 10% increase in vehicle prices by summer, particularly for luxury SUVs like the Escalade.
These aren’t abstract numbers—they’re operational challenges. Every vehicle we add to the fleet now comes with a steeper price tag. And maintaining our current fleet is becoming more expensive by the day. For example, a recent transmission repair on one of our Mercedes models cost 15% more than it would have just a few months ago.
Compounding this pressure is the potential change in client behavior. With inflation and broader economic uncertainty, some clients may begin to cut back on premium transportation. While Miami’s luxury lifestyle is resilient, the ripple effects of these tariffs could impact everything from corporate bookings to seasonal surges.
In the meantime, we’re proactively adapting. We’re negotiating with suppliers to secure parts before the May tariffs take effect. We’re diversifying our service offerings, introducing shorter, high-impact rides that maintain our signature luxury feel at a more accessible price point. And we’re doubling down on Miami’s vibrant event calendar.
Oz Oguzhan Akgun, CEO
Limo Miami in Miami, Fla.
Despite a slight dip of about 10% in Q1—which is normal for us—we’re still trending ahead of 2024, so overall we feel confident heading into the busy season. Most of the slowdown came from regular clients simply taking time off, not budget cuts, which is reassuring. Operational costs like fuel and insurance continue to fluctuate, but we’ve planned for that in our pricing structure for years.
We’re not seeing major shifts in local competition, and we stay focused on what separates us—consistent, high-level service, and a personalized client experience. Forecasting-wise, we rely heavily on 10 years of historical data, which helps us make smart, confident decisions. We’re continuing to invest in automation to simplify the booking process without losing that personal touch and are expanding our reach through targeted marketing and our nationwide affiliate network. All signs point to a strong next quarter and a promising year overall.
Kirk Bagger, Corporate Travel Manager & CEO
Captains Car Service in Cleveland, Ohio
Whether you are a one-vehicle operator or 100-vehicle operator, you are affected by the ups and downs of the economy. I’m sure we are all hoping for economic growth going forward, which will stimulate the demand for our services. Based on where your business is located geographically, the economy can have a more significant impact. Fortunately, we are located in an area where business has been steady with minimal negative impact from the economy.
We are anticipating a strong 2025, however, with inflation as high as it is, we are trying to keep expenses as low as possible. Forecasting is tough for all businesses and none of us have a crystal ball to help with that, but paying attention to certain indicators like interest rates, unemployment rates, and inflation can help to assist in planning for the future.
Bryan Beale, General Manager
A&A Limousine Service in Northampton, Pa.
We are seeing some oddities with trip volume but are confident the busy season will be as it normally is. We’re looking at options for vehicles come the end of the year to get ahead of the current scenario with tariffs and fleet deals.
Nick Bocchio, General Manager
Buffalo Limousine in Buffalo, N.Y.
The current economic uncertainty has significantly impacted our marketplace, leading to considerable challenges for us. Recent reorganizations have resulted in major layoffs, prompting us to adjust our strategies accordingly. In response to these changes, we have intensified our marketing and sales efforts to compensate for lost revenue. We anticipate flat growth for 2025, with only a slim possibility of achieving a growth rate between 5% and 10%.
Maurice Brewster, Founder & CEO
Mosaic Global Transportation in San Jose, Calif.
The economy has been a bit all over the place lately, and like any business, we’ve felt some of that. But honestly, it’s also pushed us to get sharper and look at where we can be more efficient and how we can keep giving our clients a solid experience.
We’ve been lucky to have a loyal base of clients who still need safe, comfortable, and reliable transportation, whether it’s for work, travel, or big events. That’s helped us stay steady. Looking ahead, we’re staying flexible and trying to plan smart by growing in the right areas, keeping our team strong, and staying focused on what we do best: taking care of people.
Fernando Carlison, Jr., CEO
Mundi Worldwide in Deerfield Beach, Fla.
As soon as the tariffs were announced, we raised our rates 12% for April, May, June, and October. Those are the months we’re booking the most right now. So, why raise rates? The costs of doing business will go up, perhaps a lot, in the near future and we price on a cost-plus basis, not “the competition.”
Those costs may retreat in a few months, but we don’t choose to absorb the difference in the meantime.
Consumer expectations for inflation are currently very high. Just like when fuel prices are high, consumers are predisposed to accept higher prices when the reason is known. (They don’t know or care when our insurance spikes for instance.)
As far as forecasting revenue for the rest of the year, it’s hard to say. Right now, though, we are on pace for our third biggest year.
I lean towards forecasting a recession and possibly worse for 2026, and we will act when and if that comes.
Dan Goff, General Manager
A Goff Limousine & Bus in Ruckersville, Va.
Looking at the entire chess board is imperative when making decisions for the future of your company. Politics, geography, competition, your fleet, and myriad other high priority issues should assist in your decision making. Look at all the data that is pertinent to your company and the final decision you are tasked with making. Talk to the never-ending list of fellow operators, vendors, and associations that surround you and your organization. Many of these resources will not only assist you in making your decision, but also bring you comfort and confidence in delivering a final answer.
Len Joseph, President
On The Town Limousines in Frederick, Md.
We’ve seen a slowdown in business travel and corporate events, especially in Chicago’s competitive market. Rising costs have pushed major conferences from McCormick Place to cities like Vegas and Miami.
That said, we remain cautiously optimistic. While schools are more price-sensitive and corporate spending is down, we’ve seen steady growth in multi-day out-of-town tours, which drive much of our revenue. Asian tour groups, especially from China, have pulled back for now, but I hope the market rebounds soon.
We’re slightly ahead of last year’s revenue, which feels like a win. Our focus remains on expanding long-distance tours as local charter demand softens. We’re adapting and staying ready for when global travel picks back up.
Stefan Kisiov, President
K&G Coach Line in Park Ridge, Ill.
The economy—both local and national—is definitely impacting my business, across both leisure and corporate segments. I can’t rely solely on inbound demand anymore. I’ve had to lean into more outbound prospecting to generate new business and keep things moving.
On the operations side, I’ve made some tough but necessary calls—cutting back on overhead like advertising, outsourcing more of our agent work, and reevaluating our internal structure. For the first time in a while, I don’t fully trust my forecasts. We’re in uncharted territory, and there’s no clear model for what’s ahead. So I’m staying lean, staying nimble, and keeping a close eye on every part of the business. Flexibility is the strategy right now.
Modaser Nazir, Founder & CEO
Stay Classy Transportation in San Diego, Calif.
While many transportation providers are leaning into automation and scaling back human interaction, we’re taking the opposite approach. We’re doubling down on high-touch experiences—building trust, nurturing relationships, and creating memorable moments for our passengers. In uncertain times, people crave connection and reliability, and that’s exactly what we deliver.
Forecasting the future means investing in people, not just platforms. We’re focused on service consistency, long-term partnerships, and staying adaptable to our clients’ evolving needs. Technology has its place, but in our world, the personal touch will always be what drives repeat business and growth.
Gus Ortis, CEO
Executive Transportation in Eden Prairie, Minn.
We are seeing increased apprehension from corporate clients regarding travel expenditures. Many travelers are adopting a wait-and-see approach for Q2 and Q3 before committing to major projects or travel-related spending beyond essential transient travel.
As a company, we are adapting by exploring innovative spending strategies focused on cost savings and maintaining agility. We continue to leverage new technology and AI in our business processes to enhance customer experience while controlling costs.
Looking ahead, by focusing on innovation, staying lean, and maintaining high standards of luxury and safety, limousine businesses can remain resilient and poised for growth despite economic uncertainties.
Mike Rose, President
My Limousine Service in Budd Lake, N.J.
Business has been down about 8.5% for 2025 compared to 2024. I think most of us are down. Our charter and bus division is about the same as last year, although we did institute a 10% price increase. I think people are spending elsewhere in 2025 and have tightened the belt.
My forecast is what goes down has to go up—so, I definitely will invest more revenue in the larger class category.
Jess Sandhu, Director of Operations
A&A Limousine & Bus Service in Kenmore, Wash.
I’m very happy to report that, so far, we are on par with our workload and revenues. The on again/off again tariffs, as well as concern on parts, etc., prompted us to go ahead and purchase new equipment now, rather than later. Yet another small company here is shutting down, and we are acquiring some of their clients. This should increase revenue, and if things slow down, those new clients should offset (fingers crossed).
Quentin Shackelford, Owner
AllClassLimo.com in Wichita, Kan.
We do see an impact in our business. I find that clients hold back with their budgets when it comes to groups and meetings, but since they are planned in advance, we won’t see much of an impact there. As a company, we plan and budget ahead, but perhaps more importantly, we look at all expenses and make sure we are not overbuying, overspending, and staying on track. With the rising cost of insurance, we are not quick to buy vehicles unless there is a purpose such as a contract need. Overall, we keep our pulse on the client spend as well as our own.
Nancy Vargas, CEO
DH2 Transportation in Jamaica, N.Y.
Even though our fares went up about 3% in January, our March trip count grew by over 4%. However, we are watching for a business-travel pullback as we are due to replace five vehicles.
And while the price of cars is still unchanged, we expect increases and will adjust our fare accordingly. We only get about 2,800 trips out of a new car before it must be replaced. Therefore, if the cost of a car goes up $6,000, then, rounding up for the extra interest, the cost of the ride from LaGuardia goes up $3.
We also expect tariffs to cause autobody parts costs to go way up soon, which will affect us directly and eventually drive insurance premiums up significantly.
Remember, folks: Know your break-even and charge enough for a responsible profit margin.
Charles Wisniewski, President & CEO
Teddy’s Transportation System in Norwalk, Conn.
We are proactively navigating a complex landscape marked by economic volatility and geopolitical shifts. While business demand for chauffeured services in mainland China has softened, we are capitalizing on dynamic growth opportunities across Asia and beyond to offset these challenges. For instance, demand has risen by 15% in Japan and 5% in India YTD, fueled by expanding intra-Asian business collaborations and supply chain diversification efforts. Furthermore, in Singapore/Hong Kong, and the Middle East, cross-regional demand has surged 22% YTD, reflecting evolving corporate travel patterns as businesses deepen ties between Asian hubs and Gulf Cooperation Council (GCC) markets.
Hence, our revised strategy prioritizes three high-potential regions: Japan, India, and the GCC countries (Saudi Arabia, UAE, etc.). Despite a cautious stance on global economic recovery, we expect to deliver 10% projected revenue growth in 2025.
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 rob@chauffeurdriven.com you just might see your query answered in our next e-News.
[05.25]