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Dayton, Ohio — The latest Association of Destination Management Executives International (ADMEI) business survey reveals that DMCs are enjoying stable and growing business.
According to the survey: 79 percent of DMCs say 1Q16 was better or the same compared to 1Q15, while 84 percent of DMCs say that their projections are stronger or the same for 2Q16 compared to 2Q15. Looking ahead, 56 percent of DMCs anticipate that, based on advanced bookings, business in 2017 will increase and 34 percent anticipate business will remain the same.
Other key findings include:
- Lead times increasing: The second quarter 2016 business survey reflects a continuing strong trend for DMC business throughout the world. The other side of the business survey is the time interval between when the DMC received the RFP and the actual event. There are 50 percent fewer DMCs reporting decreasing lead time between 4Q14 and 2Q16 while 30 percent DMCs are reporting no change in lead times. While this trend is encouraging, there are still times when this interval is too short for the DMC to effectively manage their time; 10 percent of the DMCs still ask, What interval? We are lucky to get an RFP two weeks before the event. One DMC notes: “We are seeing the trend continue that it is all within a year for the most part, however world events are shifting to also create some very last minute bookings as well.”
- Ethical clients: DMCs report that 81 percent of their clients are ethical all or most of the time. One DMC commented, “Client told us they were going with another DMC because of the venue they presented even though they liked us better overall. Not good for us, but figured if the tables were turned, I would be happy.”
- Healthy meeting industry: 54 percent of DMCs project 2016 to be more profitable than 2015, and 21 percent project as much profit in 2016 as they had in 2015. With 85 percent of the DMCs reporting project as good as or better profit over the previous year, the clear trend is that DMCs are reflecting the health of the meetings industry.
ADMEI is the premier international association for DMCs. Its mission is to define the DMC industry, uphold the highest level of professionalism, establish standard business and ethical practices, and promote the value of local destination management.
Visit admei.org for more information about ADMEI.
[CD0416]
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- Category: Industry News
L to R: Kevin Polite of Cul de Sac Chauffeured, Zulfi Abbasi of American Executive, Barry Gross of Reston Limousine, Afzal Iqbal of American Executive, and George Rains of ZBest Worldwide
Ashburn, Va. — The Virginia Limousine Association’s (VLA’s) April 4 meeting at the Topgolf sports entertainment complex had more than 50 people in attendance. The meeting, hosted by Reston Limousine, included members, operators, and supporters from the greater Virginia and Maryland areas as well as CD’s Publisher Chris Weiss and Industry & Brand Ambassador Philip Jagiela.
VLA President Paul Walsh of Superior Executive Transportation opened the meeting by welcoming the attendees and thanking Reston. Before giving the floor to Barry Gross, Reston’s director of business relations, Walsh expressed his desire to work closely with neighboring associations like the Virginia Motorcoach Association (VMA) and United Motorcoach Association (UMA), and then took some time to thank the VLA board for their hard work. Gross, who shared a brief history of Reston and the company’s services, invited attendees to tour their new motorcoach after the meeting.
Weiss was next to address the attendees with a “Sign of the Times” presentation that offered a detailed look on industry news and trends. First on his agenda was an update on the TNC situation: Based on recent developments, Weiss believes that there is a shift occurring that will require ride-sharing companies to conform to regulations around the country. The amount a bad press that TNCs are facing will likely level the playing field, forcing all drivers to undergo fingerprinting and background checks. Weiss also focused on the improving economy, evidenced by the sales stability and growth seen in recent months, as well as the rise of mergers and acquisitions in the industry. He also recognized the trend towards larger vehicles—including shuttles, minicoaches, and motorcoaches—noting that fleets with these vehicles are essentially “Uber-proof” the TNCs cannot compete with this type of work. He also provided details about CD’s upcoming events, with Art Miesemer of RMA Worldwide winning a pass to the October 9-12 Chauffeur Driven Show in Washington, D.C.
Members of the VLA board include (L to R): Executive Director and CD Industry & Brand Ambassador Philip Jagiela, President Paul Walsh of Superior Executive Transportation, Vice Presidents Barry Shapiro of James River Transportation and Andrea Saathoff of Albermarle Limousine, and Legislative Liaison/Immediate Past President Glenn Stafford of Love Limousine
Next, William Lanham, who manages the Metropolitan Washington Airports Authority (MWAA) landside contracts, discussed issues faced by operators at the regional airports. In addition to thanking attendees for their patience while a new AVI system was installed, Lanham informed the group that geofencing has been placed around the holding lot, which limits TNC service unless vehicles are within the region; however, he mentioned that 30-40 thousand vehicles are registered in the area. Lanham then offered information regarding the fines issued at the airport, and concluded by sharing that his agency has a strong interest in maintaining a close relationship with the VLA.
Lanham was followed by Ralph Buona of the Loudon County Commission and Barbara Arkwright, a special agent from the law enforcement division of the Virginia DMV. Buona provided a presentation about the benefits of living and working in Loudon County. Arkwright introduced two new field members, and discussed penalties for “off-app” activity by TNCs. She also expressed the DMV’s commitment to attend VLA meetings and work with the chauffeured ground transportation industry.
As many operators are expanding their fleets to include motorcoaches, Director of Regulatory Affairs for the American Bus Association Brandon Buchanan offered a comprehensive overview about what limousine operators need to know when entering the bus business. Among the topics he covered were the FAST Act (i.e., Highway Reauthorization Bill) and the importance of compliance, especially in regard to hours of service, equipment, and the Bus Lease and Interchange Rule.
Brian O’Neill of Wolfington Body Company brought one of Turtle Top’s new VT3s for a sneak peek preview after the meeting, and James Brown of the VMA reiterated his association’s desire to work closely with the VLA.
The meeting closed with a formal installation of Jagiela as the VLA’s new executive director. He discussed his plans for the association, which will begin with a redesigned website and increased social media presence.
The next VLA meeting is scheduled for June 6.
Visit virginialimousineassociation.org for more information.
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- Category: Industry News
Arlington, Texas — Tenney Group, industry merger and acquisition advisors, recently announced that transportation owners can now obtain a TransValuation knowing they will be able to secure a comprehensive updated annual report for approximately 35 percent of the original service cost. As with all of Tenney Group’s services, the TransValuation is specifically designed for transportation companies.
Senior Managing Partner Charles Tenney explained the reason why Tenney Group launched the new service: “Many transportation business owners have anywhere from 80-100 percent of their future retirement funds hinging on the future sale of their business. Many of these same operator business owners go 20 years without assessing what their business is actually worth. This creates tremendous exposure for business owners and severely limits their ability to build and protect wealth through their business. We made the decision to reengineer how we provide business valuations so owners in our industry can cost effectively monitor and protect their greatest financial investment—their transportation business.”
Tenney Group created this video for more information on its services: Separating from the M&A Advisory Pack.
Spencer and Charles TenneyTenney detailed some of the company’s most recent M&A services:
- Assessing the value of a potential acquisition target on behalf of an industry buyer
- Providing business sale advisory services for a NY chauffeured transportation company with $4.3M in sales
- Providing buy side advisory services for a $20M ambulance looking to diversify by investing in chauffeured transportation
- Providing exit-planning coaching for a $1.4M chauffeured transportation company on the West Coast
- Helping a $3M family-owned business protect wealth and avoid risk while determining if the next generation is going to take over the company
- Providing sale side advisory services to a $20M motorcoach company
Visit thetenneygroup.com for more information.
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