As blizzards ripped through the city of New York on 26th December, few anticipated the effects they would have on the road and transportation services. At the end of their rampage, it had been recorded as the 6th largest snow storm in the cities history and had deposited over 20 inches of pure white snow. As New York subsisted in a strange and unusual hush, numerous transport and courier companies began to count the cost of lost revenue as vehicles sat idle in garages and at the roadside. Aside from public and private hire taxi companies, the NYC Limousine service also suffered two days of enforced inactivity.
The role that limousines play in New York transportation can be easily forgotten, as service operators continue to market their vehicles towards more functional and everyday requirements. As the citizens of New York were advised to stay off the roads and remain at home where possible, so too airport transfer and corporate limousine requirements diminished and this had a significant effect on revenue and profit for the NYC Limousine service. Two days without generating revenue is a significant period of time for any company, but especially one that requires additional overhead and maintenance costs.
Limousines are becoming extremely popular and widely utilized for airports transfers in New York city, as their vehicles and services are well suited to group travel and relaxed transportation. If you consider the fact that the blizzards also affected airborne travel and the number of flights that were authorised to land at New York airports, then you begin to see the large amount of lucrative business that was lost in just a short space of time. As an example, a Lincoln 6 seater limousine (that can hold 6 passengers and 6 pieces of luggage in comfort and luxury) can be secured to transport a party of 6 from JFK airport to the city for a competitive rate of $150. With the amount of custom that is generated through airport transfers, this amounts to a significant sum of consistent revenue NYC limo services.
If this source of income is lost, even for a period of two days, it can have a damaging effect on monthly projections and profit generation. To understand this, it important to understand the vast costs involved in securing and maintaining limousine vehicles and keeping them licensed and road worthy on the streets of the USA. When considering individual limousine vehicles, insurance can cost a typical $6000 per year, with commissioning and registration fees and vehicle maintenance adding a further $2000 annually. These costs are still relevant even the car is off the road and idle for a period of time, so instances of adverse weather have a profound impact on the NYC Limousine services profitability.
For the NYC Limousine service, adverse weather such as heavy blizzards and snow storms can have a detrimental effect on revenue and profit. The effects of such conditions on limousine services may not receive as much exposure as other transportation modes, but in many ways the enforced lay off from such instances has a greater effect on limousine operators than standard taxi cab providers. This is caused chiefly by the popular nature of limousine services and the costs involved in keeping limousine vehicles maintained and compliant with New York regulations.