Moving beyond your comfort zone to build your business

We've probably all uttered the phrase, "If it ain't broke, don't fix it," at some point in our lives. Thankfully, it's not the philosophy you apply to fleet maintenance. Why should you be any less proactive when it comes to building your business?

The motor coach industry can take businesses in all sorts of directions, literally and figuratively. By expanding your vision for your company, you may find surprisingly lucrative new paths to success. So if you feel like you're looking at the same old horizon over and over again, we've come up with a few ideas to give you some new perspective.

1. Joint ventures. Travel agencies are just the start. Coach operators might want to consider partnering with resorts and local attractions, or working with a trusted ticket-broker to create premium-priced tours around in-demand acts and events (Colorado's Ramblin Express has this business down to a science). Or maybe consider partnering with another type of transportation company. Cruise companies have generally been the first choice, but they're not the only game in town. Pennsylvania-based Auto-Bus Tours uses its own coaches and semi-trailer trucks to offer customers the ability to ride to Florida and have their cars waiting. Operators wanting to try a similar concept to other snowbird destinations might even partner with a local trucking firms to make it happen.
2. Be more creative with your tour and charter. Delaware Express, a company owner Gerry Frenze says got serious about diversification after seeing business fall off following the September 11 terrorist attacks, is today known for innovative tours such as the Chincoteague Pony Swim. Stage Coach West Tours, South Dakota, went so far as to buy the "Dances With Wolves" movie set and now stages chuckwagon events there. Good promotion never hurts either. As most people have noticed by now, Coach USA's megabus.com is doing very well with its highly touted dollar fares.
3. Look beyond tour and charter. Many transit authorities seek out tour and charter operators to run express commuter routes — Miller Transportation was recently able to pick up an Indianapolis transit contract because it was able to quickly obtain several new MCI® J4500s. Large corporations are often open to the idea of providing employees with new transportation options and are worth a shot. Universities regularly use motor coaches, and large schools with multiple campuses may be in need of comfortable shuttle coaches. And don't forget the federal government, which is the world's largest buyer of goods and services. You could benefit richly from a contract, or even a well-timed subcontract.
4. Create special events. Every year, Great Canadian Holidays and Coaches runs mystery reunion tours, which attract groups of loyal passengers eager to take a vacation to a destination that is not revealed until the moment of arrival. The popular January tours boost business during an otherwise slow month, and the owners work hard to find good partner hotels and entertainment venues — which likely generates additional goodwill and business synergy. Not all special events require tour planning. Stout's Charter Service, New Jersey, hosts an annual charity golf outing for its good customers and friends.
5. Be a part of special events. Operators like International Stage Lines are looking forward to the 2010 Olympics in Vancouver. Organizations like Motor Coach Canada have been holding events to help operators get in on the ground floor. It's expected that more than 1,000 coaches will be needed for the games. Even if the Olympics aren't coming to your city, some other big event might. The U.S. celebrates its 250th birthday in 2026. Maybe it's time to start thinking ahead.
6. Consider loyalty programs. Airlines offer frequent passenger miles — why can't you?  Whether you take the American Airlines model, giving points on dollars spent, or the Southwest Airlines approach, giving free or discounted trips after a set number of paid ones, you may be able to foster greater loyalty — especially in a competitive market. You might also consider rewarding customers for their referrals.
7. Offer related products and services. Many operators do some of this already, keeping limo, school bus and shuttle fleets to meet a wide array of transportation needs, or running a travel agency to offer more full service for passengers. But the opportunities don't stop there. Consultant Terry Dean suggests business owners do a little brainstorming. His website, terrydean.com, suggests starting by writing your business name in the middle of a blank sheet of paper and doing some "mind mapping" by drawing lines and ideas — and then branching out from there — for all the different things your business might do. You might be surprised at your ability to draw a path from your company's core business to a pot of gold.
8. Leave no niche unturned. Untapped markets can gush great rewards. Have a large Latino population that isn't riding with you? Some targeted advertising or marketing and a bilingual tour guide might be your ticket. Or give that wheelchair lift a real workout: ADA.gov cites a statistic from The New York Times that spending by travelers with disabilities exceeds $13.6 billion annually.
9. Become a (recognized) expert in your field. Know a lot about travel in your region? Of course you do. Consider speaking at local events (if you're good, people may eventually pay you to do this); join organizations and try to keep a high profile; and make yourself available to local reporters covering travel or business trends. You may trigger a snowball effect and gain a high profile and added profits for you and your company. You may even be able to leverage your now-recognized expertise into a book, DVD or other profitable media project.
10. If a page on your website can attract a larger audience, you may be able to take advantage of ad sharing revenue. Websites that are likely to draw traffic — and revenue — include travel resource pages and other informative fare.
11. Consider buying another business. Competitors are the obvious choice, but you might want to consider owning your own hotel or tourist attraction, if you have the means. Following Hurricane Katrina, Callen Hotard was able to purchase some businesses, including Hotard Coach, to strengthen his footing in the entire Gulf region. Cherrey Bus Lines owns three travel agencies. Many companies have grown greatly through acquisition. Yours could too.
12. Don't be afraid to make big changes to pursue opportunity. In 2005, Ayr Coach decided to get out of the school bus business it ran for some 40 years and focus exclusively on tour and charter business. It wasn't long before the Ontario company was able to double its coach fleet.

The FYI from MCI editorial staff values your feedback. Please e-mail any suggestions, comments, or ideas for future articles to fyi@mcicoach.com.