Everything runs in cycles, and the limousine industry is no exception.Over the past two decades, helped in part by an economy that appears to be coming back at a frustratingly leisurely pace, our industry has turned its lonely eyes to ways to adapt to the customer’s ever-changing needs. From a world that has seen everything from superstretches and flashy exotics to understated sedans and SUVs now comes a trend to move as many people as possible with that level of comfort.

Whether you refer to them as mini-coaches, limocoaches, or limo buses (though I’ve heard some shy away from this, lest people think the executive staff of P&G is heading to a company meeting in a yellow school bus), they are the newest vehicles in many company’s inventory, spurred on in part by what is anticipated to be a surge in the meetings and events industry (which we will discuss in more detail below). Operators have found that adding one or a few of these larger people-movers to their fleet was a good way to complement their services.

Business clients don’t need to pay some high-priced accounting firm to see that it makes no economic sense to transport 30 employees in five sedans at an average hourly rate (according to recent Limo Digest industry statistics) of $62 for each car, when they can spend $140 for one mini-coach and be on their way to the next meeting. Corporate travelers are much more educated than they were 10 or 15 years ago, thanks to the Internet and the ability to comparison shop easily. Factor in the recession, and operators are forced to adapt to the client’s request—and that means having fleet options. In short, the CEO might jump in a sedan, but for the rest of the staff it’s everyone on the bus.

“Despite any advantages that buses—big and small— may have on a fleet, there are still operators who deem them the do-all, be-all that will put their business over the top, like some motorized golden goose.”

If there’s such a need, why haven’t all operators hopped on board? Because it just may not be for everyone, depending upon financial makeup. No two ways around it, limocoaches, mini-coaches, and all their siblings are a large investment. For some companies, investing around $40,000 for a Town Car is palpable, but to layout six figures for something bigger may not be in their economic interests. It’s a significant chunk of money and one that should not be taken lightly. So unless you are pretty certain you are going to send the coaches out on enough jobs to return with $8,000 to $10,000 in revenue per month, then you may need to rethink the whole scenario. And there are other factors involved, particularly as it pertains to driver education and transportation regulations.

But if you can take the leap, it’s an investment worth making. The vehicle might make less trips but the revenue is higher per trip. You could also test the waters by partnering with a company that specializes in motorcoaches or mini-coaches in order to gauge the demand and see if it’s a good fit for your company.

There are even advantages in mini-coaches over traditional motorcoaches, which can carry upwards of 50 people. Think about it: If you have a motorcoach going out for $900 per day, and a mini-coach going out for $140 per hour, it won’t take long for the mini-coach to be profitable.

But despite any advantages that buses—big and small—may have on a fleet, there are still operators who deem them the do-all, be-all that will put their businesses over the top, like some motorized golden goose. After all, it seems logical doesn’t it? If you have a vehicle able to haul more people a further distance, it would make sense that you would make more money. But it isn’t that cut and dry. When considering adding buses to your fleet, there’s a whole checklist of pros and cons that need to be carefully weighed.

Owning and operating a fleet of buses can produce all sorts of new challenges that you may not have thought about. Do you have the space on property or do you have to rent space off-site in order to safely park vehicles in excess of 30 or 40 feet? You may have a maintenance person on staff who can give a quick lube, oil, and filter to a sedan, but can that same guy figure out the complex mechanical inner-workings of a motorcoach? Buses require more frequent maintenance. If it takes one guy a half-hour to clean a sedan in between runs, how many people will it take to make a quick turnaround when a bus returns to the garage after 30 partiers whooped it up on the way to the nearest casino (that’s only if there isn’t a restroom onboard)? And have you seen the price of gas lately, particularly diesel? Just some added expenses to think about.

But perhaps no aspect of the business is more impacted by motorcoaches than the driver, whose level of importance suddenly elevates (to that end, make sure your driver dresses like a chauffeur and not like The Honeymooners’ Ralph Kramden). There’s a whole new level of training that bus chauffeurs have to undertake, including being FMCSA regulated, obtaining a commercial driver’s license, and having to undertake random drug testing, among other things. Your chauffeur is also spending more time with more people, which could be good or bad for your company. More eyes will be watching his behavior for a longer period of time, so you have to make sure that he is consistently acting as an ambassador for your company. Word of mouth is a powerful medium.

However, if you realize that motorcoaches or smaller buses can be a complement to your existing fleet, and not necessarily the light at the end of a tunnel, there are definite advantages. Overall, they’re just more comfortable. Passengers can walk around, stretch their legs, and there are more options for amenities (i.e., video screens, larger chairs, more workspace, restrooms, etc.). Buses are made to be run consistently so they will last a long time if maintained properly, maybe even up to 500,000 miles, while offering more ancillary uses than sedans and even mini-coaches, such as use by schools, sports teams, tourism bureaus, and municipalities, to name a few. One bus can often be dressed up or down to suit the purpose.

Finally, remember how 30 ticked-off passengers can be the kiss of death? Well, it works both ways. Impress the pants off your guests with a clean vehicle and a courteous, well-informed chauffeur, and not only will they spread great cheer, but at least a few in the seats will think to themselves, “Hmm, if the company treats 30 people this well, how great will their service be if I book them for my daughter’s wedding or the next corporate road trip?” And when that happens, a lot of the “cons” about adding buses suddenly don’t seem so bad.

But whatever size buses you are considering, you won’t want to miss—ahem, the bus—now that the signs are there that things are starting to perk up in the business travel and meetings arena as we head into 2012. And when they do, you need to be ready to have the means to move large groups of people.

Meetings & Convention magazine recently polled the experts who keep a close watch on the various business segments that make up the meetings industry, and found many were singing the same tune: overall, 2011 was pretty good, and 2012 should prove to be a little bit better. This is music to the ears of those in our industry, especially with 40 percent of decision-makers polled stating they expect to increase their travel budget this year. Closer to home, where we operate our company, The Boston Globe recently reported, “In another sign that Boston is shaking off the economic downturn, the Massachusetts Convention Center Authority said that 2012 will be its best year since 2007.” The frosting on this double-layer of economic optimism is Global Business Travel Association (GBTA) noting that business travel volume and spending is recovering at a stronger-than-expected rate. At least the projections are looking good for the first time in years.

Travel spending might be on the rise, but so is the corporate traveler’s demand for quality and value. And if this is the direction your clients are heading in, you better make sure you are able to take them there in a vehicle that can best serve their needs. If you don’t get your clients in some variation of a bus, you may be ultimately throwing your company under one. LD02/12