2. This is 1st of 2 meetings about limousine rates

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Victoria Wilkerson
5 years ago
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1 1. Thank you for coming 2. This is 1st of 2 meetings about limousine rates 3. Intros: a) Board b) Limousine companies 1

Purpose: To hear directly from you about the pilot project and other limo rates issues History & Status: 1. Minimum / maximum rates were in place for 2 years 2. There was no feedback, good or bad. 3.

2 Purpose: To hear directly from you about the pilot project and other limo rates issues History & Status: 1. Minimum / maximum rates were in place for 2 years 2. There was no feedback, good or bad. 3. Last June, we used an online survey to get stakeholder feedback 4. Your feedback and our response is summarized in a discussion paper 5. We posted the paper in December 6. Min/max rates are generally accepted, although some adjustments are warranted 7. If we missed something important, we want to hear it today. 8. This is the last chance for feedback 2

For the Pilot Project evaluation We are seeking final input on what should happen after pilot project ends April 30 The discussion paper sets out 7 directions the Board intends to go.

3 For the Pilot Project evaluation We are seeking final input on what should happen after pilot project ends April 30 The discussion paper sets out 7 directions the Board intends to go. We will start the meeting by recapping these 7 directions and hearing from you. In the 2 nd half of our meeting We will have an open discussion on emerging rates issues We want to get an idea of what you see as future trends and opportunities in limousine rates 3

4 7 directions from discussion paper 1 slide for each item Please feel to ask questions any time 4

5 July 2013 survey: ~20% response rate (good) Overall: Good support for the minimum / maximum rates 55% are satisfied or very satisfied / 33% neutral No request to return to company specific rates Direction: End pilot project but keep min. / max. rates system 5

6 Board Decision 52% are satisfied or very satisfied & 30% are neutral (Q. 18) 80% said standard rules should continue (Q. 15) The Board will keep the standard rules The Board intention is to keep rules close to what they are. TECHNICAL REFERENCES Q. 13: What should the maximum discount be? 15% / status quo 54% (12) 10% 21% (5) 20% 17% (4) Q. 14: What should discounts for familiarization trips 100% / status quo 60% (15) No discount 20% (5) Reduction (10 25%) 20% (5) Q. 15: Should standard rules for limousine rates continue? Yes 80% (20) Yes with change 4% (1) if minimum rates are lowered No 16% (4) Potential Minor Adjustments clarify that Board approved flat rates must be charged if they are in effect Clarify that taxi companies may set vehicle clean up charges (as it does in standard taxi rules) 6

7 Board noticed that antique sedan limousine operators: 1. have a minimum rate < mid size limousines 2. Want a minimum rate > mid size limousines. Board decided: 1. Rates are close enough to replace two bands with one 2. New band for both: $90 min. & $160 max. TECHNICAL REFERENCE: Preferred Minimums (July 2013 Survey): Mid Size: 60 low. 93 median. 100 high. Antique Sedan: 80 low. 103 med. 125 high. 7

8 Survey 60% were satisfied (52%) or very satisfied (8%) with minimum rates 12% were dissatisfied (4%) or very dissatisfied (8%) The survey asked respondents to indicate the minimums they preferred Board Direction The Board is keeping minimum rates Increases of $5 or $10 are planned for all rate categories except sedans based on survey preferences TECHNICAL REFERENCE: Discussion Paper comments: Increased minimum rates favour big companies 8

9 Survey 46% were satisfied (33%) or very satisfied (13%) with maximum rates 16% were dissatisfied (8%) or very dissatisfied (8%) The survey asked respondents to indicate the maximums they preferred; as the minimum increased, the % spread between minimum and maximum got smaller Board Direction The Board is keeping maximum rates because they (1) legitimize rates above the minimum and (2) prevent gouging The Board intends to replace the 100% spread across the board with a spread that declines from 100% to 60%. 9

Survey: 48% use surcharge sometimes (Q16) and 12% use it whenever a surcharge is allowed (Q16) 32% do not use it (Q16) 76% say keep it as is (Q17) Purpose Fuel price protection in long term contracts

10 Survey: 48% use surcharge sometimes (Q16) and 12% use it whenever a surcharge is allowed (Q16) 32% do not use it (Q16) 76% say keep it as is (Q17) Purpose Fuel price protection in long term contracts Fuel spike protection Board Direction Maintain optional surcharge Make 2 Adjustments Reset the baseline fuel price every Spring Change surcharge increments from 0.5% to 1.0% (still starting at 2%) 10

11 Survey (Q20): 80% support general rates review every 2 years (48%) or every year (32%). Board Direction Board will develop an objective rate review mechanism The Board has not started to design a rate review mechanism Any thoughts on how this should be done? 11

12 Last Call Before we switch to part 2 of this meeting, is there anything more we need to discuss? Next Steps We will post a revised rule and rates in March The new rule and rates will take effect May 1, Thank you for talking with us about the pilot project 12

Emerging Issues Let s turn to discuss some emerging issues The limousine industry in 2014 is not the same as it was in 2004 We put some issues and ideas on the table to prompt discussion We want to

13 Emerging Issues Let s turn to discuss some emerging issues The limousine industry in 2014 is not the same as it was in 2004 We put some issues and ideas on the table to prompt discussion We want to invite a forward looking discussion that is separate from the pilot project Focus Question: What types of rate structures do you want to see in the future? This slide show 3 Issues that affect Limo Rates 1. Un level rates regulation for GAs and SAs and enforcement Old, legislative issue only Ministry can change PTA & Regs Board raised industry concerns as recently as October 2013 Our advice: Industry has responsibility for organizing and communicating with Minister / Ministry 2. New technology and changing markets (e.g. changing expectations) 3 slides prompt discussion Min./Max. flat rates on the YVR Vancouver Whistler corridor ½ hour minimum rate Other changes in the market 13

Survey (Q23): ½ see benefits. ¼ see harm Results = inconclusive QUESTION: Would limousine companies benefit from min/max flat fares on the YVR. What are the pros? What are the cons?

14 Survey (Q23): ½ see benefits. ¼ see harm Results = inconclusive QUESTION: Would limousine companies benefit from min/max flat fares on the YVR. What are the pros? What are the cons? 2011 Meetings: Board floated specific transfer rates that did not fly ($35 downtown transfer rates $50/$60 YVR Vancouver) Costs too high: [1] hourly wages for drivers [2] waits at terminals, etc. Flagging = potential problem What is different now? 2.5 years experience with min/max rates Market & technology shifts We are discussing the concept, not specific rates TECHNICAL REFERENCE: Transfere w/i Vancouver = more harm than good 14

15 Questions What do you think about an optional ½ hour minimum for limousines? What are the pros and cons? Option: Minimum for ½ hour trips could be 60% of the hourly rate 15

16 Last Slide: We are interested in your current thoughts about other changes in the limousine industry 16

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Rates Application Decision (Limousine)

Rates Application Decision (Limousine) Application # T110-12 Applicant 632226 BC Ltd. Trade Name (s) High End Limousine / Aerocar Service Principals SINGH, Clarence Address 223 757 West Hastings St, Vancouver