Emergency planning can help operators weather the storm

No one likes to think about worst-case scenarios. But if you do business where tornados can touch down, earthquakes may rumble, hurricanes blow or, for that matter, anywhere mother nature can take a wrong turn, you owe it to yourself, your company and your employees to at least think about what you might do if disaster were to strike.

Gulf Coast operators learned many of these lessons the hard way following Hurricane Katrina. Based on their experiences and others, we've put together a few tips to help you plan for what will hopefully never come.

Hope is not a plan.
No one is immune to the possibility of a natural or manmade catastrophe. "Disaster is something you don't want to think about," says Louis Sanders, vice president and general manager of Louisiana Coaches Trailways, a New Orleans-area operator. Yet Sanders, whose company is doing well two years after being hurt by Hurricane Katrina, obviously has thought about it a lot.

"If we had to relive Katrina, we'd probably do much of what we did," says Sanders. In the days following the hurricane and flood, that meant gathering up his employees, re-establishing communications, and making a satellite office in nearby Lafayette "command central." Since then, Sanders has made a few changes, including buying additional property in Lafayette, giving the company another spot to keep coaches and conduct business.

Callen Hotard, owner of New Orleans-based Calco Travel, went through a similar process of gathering his key people and coordinating operations from afar. Hotard has extra experience with evacuation issues, thanks to his ongoing contracts with energy companies that must periodically evacuate workers from offshore oil rigs; he maintains contracts with hotels in neighboring areas to provide rooms in the event of an evacuation. That way, he says, he can be sure that his key employees are safe and available to help run the company. He also has contingency plans for evacuating employees to other, more-distant areas where resources may be more readily available after a hurricane or the like. On an even more fundamental level, the company installed a new generator and made sure to install it where it would likely stay high and dry.

Consider high-tech solutions to get you through low-tech challenges.
When disaster strikes, it often brings with it power outages, downed phone lines, interruptions of fuel supply and more. But some upfront investments may help alleviate some stress. Louisiana Coaches is switching to Internet-based software so Sanders and his team can run the business from anywhere in the country, and the company has taken advantage of grants through the Trailways system to install GPS in many of its coaches. If another hurricane or other disaster were to strike, Sanders could move to a remote location and still know the exact location and status of his coaches, which would help with dispatch and recovery efforts. MCI is beginning to offer fleet-tracking equipment on its 2008 coaches as well.

Know an opportunity when you see it.
While it's hard to see silver linings in walls of water, that doesn't mean they're not there. Hurricane Katrina made Sanders and others look harder at FEMA and other government contract or subcontract work. Louisiana Coaches got through some hard months by ferrying relief workers and shuttling various companies' employees displaced by Hurricane Katrina. It's also been involved in stand-by contracts to provide coaches to other Gulf Coast cities and states in the event of a hurricane. Sanders points out that relief work isn't without risk, noting that some operators experienced trouble getting paid. But staying viable during the months that followed Katrina's wave has helped the company better position itself to serve more traditional charter customers as they return to the city.

Callen Hotard went in the other direction, essentially eschewing the kind of work created directly by Hurricane Katrina. Instead, he decided to build his business back up in a different way, negotiating with large corporate and other clients. "We wanted to be available to people who would be there after the government was gone." Hotard says it was extremely tough turning down the low-hanging fruit of disaster-relief work. "It was difficult," says Hotard. "But in hindsight, I know I made the right decision. Of course, I didn't know that at the time."

Calco has since aquired the operations of Hotard Coaches from Greyhound Lines. It was an ambitious move, giving Calco access to more markets along the Gulf as well as additional facilities in Biloxi and New Orleans.

Build strength and diversity in good times.
Both Louisiana Coaches and Calco were comparatively fortunate that their businesses were strong before the hurricane and that their equipment didn't take heavy, direct physical hits. But beyond that, what they both have in common is that they've worked hard to leverage their strengths and develop opportunities for many years.

Louisiana Coaches has a sister travel agency, Trips Unlimited, to attract traditional tour business. Both Louisiana Coaches and Calco have opened offices in other areas to expand their business base. Both have added equipment and raised pay or benefit levels as needed to keep drivers and other employees — a big challenge in a city where roughly half the previous population has left. And most importantly, both have stayed true to their roots. Sanders, whose company was honored by Metro Magazine as one of the top operators of 2006, stresses that Louisiana Coaches is dedicated to providing the kind of service that commands top dollar. "What we've been able to do is raise the level of the playing field and demand a higher price because of all the value and service we bring," says Sanders.

With the purchase of Hotard Coaches, Calco was able to stay its course of growth and build an even larger customer base that crosses as many business segments as possible.

Foster strong relationships.
Both Sanders and Hotard stress the importance of building strong relationships. Sanders notes that his company has had the same insurance company since inception and seldom changes vendors overall, which he believes helped when Louisiana Coaches needed support. Of MCI, he says they're "true blue", and he credits MCI with working with Louisiana Coaches in its time of need.

Hotard has found his relationships with other operators to be just as important. "It's extremely important to be involved in various organizations and to establish relationships with other operators who can assist you," says Hotard, who advises that operators join associations, attend seminars and take advantage of training and other industry opportunities. "You have to establish those relationships by being active. I think operators who don't participate are really missing out."

Sanders points out his company has strived to be a good community member, offering special prices to organizations like Habitat For Humanity. Both Hotard and Sanders work hard to let customers know they're committed to them. "We have customers for whom the word "no" doesn't exist," says Hotard.

Allow for optimism.
No operator can be expected to don rose-colored shades every minute of the day, especially when one's community as been as obviously damaged as New Orleans' has. Sanders and Hotard bemoan the loss of some big business segments, most notably the cruise ship companies that used to be more a part of the New Orleans motor coach scene. Still, the operators sound optimistic as their communities rebuild. Says Sanders, "You put one foot in front of the other. Every day is a new adventure."

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