TOPIC: What percentage of your business is from inbound, outbound, local, and non-local affiliate work?
Our NYC/Connecticut office currently receives about 15 percent inbound affiliate work and we give out 40 percent outbound work. Our Phoenix metro office currently receives about 40 percent inbound affiliate work and 25 percent outbound.
Laurie A. Braxton, Global Affiliate Manager
Vitesse Worldwide in Stamford, Conn. & Phoenix, Ariz.
Forty-nine percent of Mosaic’s revenue is from farm-out work. Only 9 percent is farmed to us, and 40 percent is farmed-out through our affiliate network. Of our outbound work, 28 percent is local and 72 percent is sent nationally.
Maurice H. Brewster, Founder & Chief Executive Officer
Mosaic Global Transportation in Redwood City, Calif.
Our affiliate business is 12 percent inbound, 9 percent outbound, all outside my market.
Peter Browne, President and Owner
Carey Limousine of Wisconsin in Cudahy, Wis.
We are in a small but active market called the Historic Triangle (Williamsburg-Yorktown-Jamestown). Because we have service options ranging from a single passenger to conference-level groups, we have more farm-in jobs than farm-out. Our inbound work is about 35 percent of our revenue. For outbound work, about 80 percent is local and 20 percent is outside our market.
Claude Cristea, President
Williamsburg Chauffeur Service in Williamsburg, Va.
Roughly 7 percent of our work is from outside vendors; the rest is entirely in-house.
Gary Day, CEO
American Limousines in Baltimore, Md.
Our affiliate-related work has grown tremendously over the past five years. It has increased from less than 10 percent of our total revenue in 2011 to more than 30 percent last year. Inbound work makes up two-thirds of that. While we do serve some of the large networks, we are, thankfully, not overly dependent on any single affiliate partner and work with close to 200 companies. Most of our outbound work is local. As Orlando is a convention destination city, we do require the ability to supplement our fleet quickly when the need arises and we rely on our local affiliates for help.
Sami Elotmani, VP of Operations
Destination MCO in Orlando, Fla.
We believe that national affiliate work is a two-way street. We cultivate our local accounts so we can reciprocate work to our affiliate partners. Approximately 11 percent of our global revenue is requests that we outsource to companies outside our local market. We additionally outsource approximately 8 percent locally. Local outsourcing is usually reserved for vehicle requests we don’t typically inventory. Less than 2 percent is local farm-in and 8 percent of our global revenue is requests we accept from our affiliate partners.
Joe Gardi, Affiliate Manager
Signature Transportation Group in Chicago, Ill.
Approximately 4 percent of our work is farmed in from affiliates. Regarding farm-outs, the number I’d like to focus on is the $1.2M of motorcoach work we farmed out in each of the past few years, leading to our decision to purchase six new 2016 motorcoaches.
Barry Gross, Director of Business Relations
Reston Limousine in Sterling, Va.
As we are in Los Angeles, which is a major market, we take in more work than we send out. We take in approximately 25 percent of our work and farm out around 10 percent. At this time, we could take in more if we wanted, but we instead choose to be selective about who we represent, as it’s not my goal to be worldwide. Therefore, we do not send a larger volume outside our area.
Chris Hundley, CEO
Limousine Connection in Los Angeles, Calif.
Roughly 20 percent of our business is affiliate based. The majority comes from national and international companies as well as several networks, including our affiliates.
Mark Kini, Owner
Boston Chauffeur in Beverly, Mass.
My philosophy is “we can network or we cannot work,” especially in this age of TNCs. As we are located on a barrier island in a town that is only one mile long, our affiliate work has been a key to our success. Currently, this outbound work accounts for 40 percent of our business every day. Since we deal with a lot of corporate clients, the majority of our farm-outs are in the New York and Washington, D.C. areas.
Wendy Kleefisch, Owner
Brevard Executive Limousine in Indialantic, Fla.
We like a diversified revenue stream. Our inbound affiliate revenue is 35 percent; our outbound affiliate work is 45 percent, with 10 percent local, 35 percent out of market. We have always believed it’s important to not be too reliant on any one client or source of revenue. So we try to make sure we do not get too heavy on inbound affiliate work unless we have revenue from our clients to counterbalance it.
Jorge Sanchez, President
Hermes Worldwide in Denver, Colo.
Currently, our affiliate work breaks down to 16 percent farm-in, 12 percent farm-out, and 3 percent local farm-out. Our goal this year is to at least double our farm-out business with added national accounts.
Tricia Wilcoxen, Director of Affiliate Relations
Windy City Limousine & Bus Worldwide in Chicago, Ill.
In 2015, AmyExpress saw 18 percent of our chauffeured service business come through our global affiliate network. This year, we expect that affiliate growth will continue with a moderately faster pace than the overall business growth. Our base estimate would be that business through affiliate work would account for 25 percent of the book by end of this year.
Currently, inbound work remains a significant part of our affiliate business (roughly 80 percent), as we’re attracting more farm-outs from global partners. Our outbound business—100 percent nonlocal—is relatively stagnant, but this would be our business growth engine for the next three years.
Amy Yan, Co-Founder and Managing Partner
AmyExpress in Kowloon, Hong Kong
During the past 12 months (April 2015 through March 2016), 15.3 percent of our gross revenue has come from inbound affiliate work. About 20 percent of the inbound work has come from local affiliates, and approximately 80 percent is from affiliates outside our market.
Three percent of our gross revenue is for jobs we have farmed out locally. In the same 12-month period, we have increased our out-of-market farm-outs to about 5 percent of our total revenue. This is an increase from just 1.5 percent for the previous 12-month period (April 2014 through March 2015).
Jon Ziemba, President
American Comfort Limousines in Naples, Fla.
We’ve loved hearing your answers to our benchmarking questions since debuting this interactive section—but we always welcome suggestions for future topics, too!
Have you wondered how others in the industry have tackled a concern you’re currently facing, handled a delicate issue, implemented a certain policy, or do you simply want to propose a topic for our consideration?
Send an email to rob@chauffeurdriven.com and you just might see your query answered in a future issue. We look forward to your input!
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