National Limousine Association highlights four key trends in chauffeured transport: expanding to buses, AI-driven efficiencies, strong post-pandemic recovery, and rising insurance costs.
The National Limousine Association (NLA) share the top four trends in chauffeured transportation, during its show in National Harbor, Md. last week, attended by over 1,200 industry professionals.
Chauffeured Transportation: 2025 Road Ahead
- Chauffeurs are the New Bus Drivers: Since the pandemic, NLA operators have increasingly added buses, shuttles and motorcoaches to their fleets, going beyond the traditional lineup of sedans and SUVs. These companies provide a higher level of service than traditional bus companies with professionally trained chauffeurs and top-of-the-line vehicles. According to a recent GBTA and NLA report, travel managers have a narrow view of chauffeured transportation, with only 39% associating it with shuttle/van service and 31% associating it with motorcoaches/buses. This will continue to be a huge growth area for the limo industry.
- AI is Increasing Efficiencies & Safety: Today’s leading limo technology platforms like Limo Anywhere, Onroute and GroundWidgets provide services ranging from automated dispatching, which increases efficiency and reduces fuel costs, to chatbots, which seamlessly coordinate both group or individual reservations for customers with just a few taps. Meanwhile, operators are leveraging telematics to detect potential safety risks like a chauffeur looking away from the road.
- With Travel Back, Limo Business is Steady: With US travel volumes surpassing pre-pandemic levels this year according to Skift, limo business is also strong. Based on data from Driving Transactions, the majority of medium ($3-5M) and large (>$5M) limo operators achieved revenue that was greater than or equal to 2023 levels this year. Conversely, most small operators ($1-3M) reported less revenue this year compared to last year.
- Insurance Increases Are a Major Hurdle: Many of the small businesses throughout the limo industry are experiencing an insurance crisis, with rates for some operators increasing by double-digit percentages, with no link to performance. Tackling this issue head-on will be a priority for the NLA next year, and they will be releasing a report in collaboration with the University Transportation Research (UTRC) in the coming months outlining the issue and potential solutions.
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