Airport Transfer Business
Airport Transfer Business
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LongCompton

Original Poster:

16 posts

91 months

Tuesday 4th June 2019
quotequote all
Hi All,

I'm in the process of setting up my own Airport Transfer Business. Long story short, I have left my career within the software industry and decided I wanted something that I would enjoy, ability to be in UK and home rather than travelling the world with work.

Done analysis, there is a gap in the market where I live and the area I want to cover.

Just applied for the licences etc.
Car has been purchased
Got all admin/marketing/social media ready to go

Has anyone else doing this kind of work? Any tips you can give?

Thanks

StevieBee

15,404 posts

285 months

Tuesday 4th June 2019
quotequote all
My business partner, until recently, had an executive ground transport business. I ended up getting involved in some of this so have a little insight.

Firstly, what's the level you're pitching at? Are we talking Mercedes E / S class / executive type offer or MPV / Families or glorified mini-cab. Just the one vehicle or several? Whereabouts in the UK are you...what airports will you serve?

Give us a little more insight and I may be able to give you a few more pointers.


LongCompton

Original Poster:

16 posts

91 months

Tuesday 4th June 2019
quotequote all
StevieBee said:
My business partner, until recently, had an executive ground transport business. I ended up getting involved in some of this so have a little insight.

Firstly, what's the level you're pitching at? Are we talking Mercedes E / S class / executive type offer or MPV / Families or glorified mini-cab. Just the one vehicle or several? Whereabouts in the UK are you...what airports will you serve?

Give us a little more insight and I may be able to give you a few more pointers.
Thanks Stevie.

Sure level is kinda mid level, I have a Merc E Class Estate - so nothing too fancy, but just ability to offer customers a nice relaxed comfortable journey. Long term is to get another vehicle, which would be an MPV (Tourneo or similar).

Based in Warwickshire/Cotswolds areas - serving Birmingham, Bristol, Cardiff, London (Gatwick, Heathrow and Stansted), East Midlands and Manchester Airports.

I also plan to offer general things like events - ascot races for example.

Cheers

GT03ROB

14,030 posts

251 months

Tuesday 4th June 2019
quotequote all
LongCompton said:
Hi All,

Any tips you can give?

Thanks
Always be on time, arrive at house 5 mins before scheduled pick up & always be waiting in arrivals for passengers.

LongCompton

Original Poster:

16 posts

91 months

Tuesday 4th June 2019
quotequote all
GT03ROB said:
Always be on time, arrive at house 5 mins before scheduled pick up & always be waiting in arrivals for passengers.
Basic stuff, but I agree.

Decided to already get a newspaper daily, with water bottles for the people I'll be taking.

I have also got a couple of deals with local businesses in the areas - hotels and travel agents.

Trevor555

5,520 posts

114 months

Tuesday 4th June 2019
quotequote all
LongCompton said:
I have also got a couple of deals with local businesses in the areas - hotels and travel agents.
Just be prepared to be chasing money if they want an account with you.

StevieBee

15,404 posts

285 months

Tuesday 4th June 2019
quotequote all
Right then...

My Business Partner's company operated owner-drivers; freelancers. The best drivers were raking in £80k a year but from this, they had to cover all motor costs, insurance, fuel and the like. Plus those guys were working seven days a week, 12 hours a day or more. We worked out that the average 'wage equivalent' across all drivers was in the region of £30 -£35k a year - that is the salary they would have been paid to do the job on a normal contract. So first thing to be aware of is to keep your earning expectations in check.

You need some contracts. A family takes one, maybe two holidays a year so you will need to get your marketing spot on to make yourself known to them at the time they need you or want to book you. A local company could, maybe, be sending executives overseas every week.

Hotels are a good shout. Most will probably be signed up to a company but no harm in pitching yourself to them.

Search for and have a look at a company called 'Rideways' and see what the deal is on signing up to them. You won't get full rate but I sense them to be a good company and could provide you a nice bit of regular work.

Use social media but use it properly, invest in creating the right content and run the right campaigns to reach the right people. Best to hire a digital agency if you can. And don't rely on Social Media. You still need to get out there with the biz-cards, flyers and adverts.

It's a very competitive market. There are also, sadly, some nasty elements too. You mention you've seen a gap in the market. Have you determined why that gap is there as it's sometimes the case that there's no market in the gap. The Addisson Lee's of the sector hoover up everything that's good business and the local cab companies tend to take the rest so explore that gap fully if you've not already done so.

You absolutely need a back-up guy - someone you can sub to when it's 3.30am and you need to collect a family for their early morning flight and your car won't start or has been nicked. Always have a back up to hand so if you have a crash or the car breaks down mid-job, your clients still get to where they need to be.

Car has to be in show-room condition all the time. Don't eat in it, fart in it, drink in it or smoke in it.

Have water bottles to hand for passengers - particularly returning passengers. Keep a couple of umbrella's in there too.

Dress nicely. Smell nice too.

If I can think of anything else, I'll post them here but hope that's of help - and good luck with it!




Red Leader

243 posts

153 months

Tuesday 4th June 2019
quotequote all
LongCompton said:
GT03ROB said:
Always be on time, arrive at house 5 mins before scheduled pick up & always be waiting in arrivals for passengers.
Basic stuff, but I agree.

Decided to already get a newspaper daily, with water bottles for the people I'll be taking.

I have also got a couple of deals with local businesses in the areas - hotels and travel agents.
I wouldn't bother with newspapers as everyone has their own preference...what about wifi?.

LongCompton

Original Poster:

16 posts

91 months

Tuesday 4th June 2019
quotequote all
StevieBee said:
Right then...

My Business Partner's company operated owner-drivers; freelancers. The best drivers were raking in £80k a year but from this, they had to cover all motor costs, insurance, fuel and the like. Plus those guys were working seven days a week, 12 hours a day or more. We worked out that the average 'wage equivalent' across all drivers was in the region of £30 -£35k a year - that is the salary they would have been paid to do the job on a normal contract. So first thing to be aware of is to keep your earning expectations in check.

You need some contracts. A family takes one, maybe two holidays a year so you will need to get your marketing spot on to make yourself known to them at the time they need you or want to book you. A local company could, maybe, be sending executives overseas every week.

Hotels are a good shout. Most will probably be signed up to a company but no harm in pitching yourself to them.

Search for and have a look at a company called 'Rideways' and see what the deal is on signing up to them. You won't get full rate but I sense them to be a good company and could provide you a nice bit of regular work.

Use social media but use it properly, invest in creating the right content and run the right campaigns to reach the right people. Best to hire a digital agency if you can. And don't rely on Social Media. You still need to get out there with the biz-cards, flyers and adverts.

It's a very competitive market. There are also, sadly, some nasty elements too. You mention you've seen a gap in the market. Have you determined why that gap is there as it's sometimes the case that there's no market in the gap. The Addisson Lee's of the sector hoover up everything that's good business and the local cab companies tend to take the rest so explore that gap fully if you've not already done so.

You absolutely need a back-up guy - someone you can sub to when it's 3.30am and you need to collect a family for their early morning flight and your car won't start or has been nicked. Always have a back up to hand so if you have a crash or the car breaks down mid-job, your clients still get to where they need to be.

Car has to be in show-room condition all the time. Don't eat in it, fart in it, drink in it or smoke in it.

Have water bottles to hand for passengers - particularly returning passengers. Keep a couple of umbrella's in there too.

Dress nicely. Smell nice too.

If I can think of anything else, I'll post them here but hope that's of help - and good luck with it!
Thank you for this, it is really useful.

The salary is where I expected to be honest, i was earning about £50k after tax in software but £30-35k would cover our bills so that is the main thing and all I am bothered about really. 12 hour days I guess were to be expected too.

Can I ask why your friend sold? (I am presuming)

I'd love to get involved with the local companies, i guess it is going in there and making my service unique, which is key.

Just messaged Rideways - thank you!

The gap is more where we live, there isn't as much around offering this service - coupled with local businesses, I reckon I can make a good business out of it I hope. In the quieter times, I'm hoping to maybe do a bit of this AmazonFLEX delivery service for extra bits of cash.



LongCompton

Original Poster:

16 posts

91 months

Tuesday 4th June 2019
quotequote all
Red Leader said:
I wouldn't bother with newspapers as everyone has their own preference...what about wifi?.
True yes, I wouldn't get The Sun for instance lol.

WiFi is on the list yes, just need to find right one.

I guess another question is - if you were having a 1hr30m journey to heathrow, what would you like to see in the car?

DuraAce

4,272 posts

190 months

Tuesday 4th June 2019
quotequote all
LongCompton said:
I guess another question is - if you were having a 1hr30m journey to heathrow, what would you like to see in the car?
Cold water would do me, especially on a return journey.

WiFi wouldn't interest me.... Almost everyone has big data allowances on their phone these days.

boxst

3,806 posts

175 months

Tuesday 4th June 2019
quotequote all
A friend of mine started one of these two years ago. I was his first customer as travel to the airport regularly for business. He doesn't just do airport runs, anything that is private hire over a certain distance (typically £100+ in fees).

He is priced and positioned above the run of the mill taxi service (20% or so) as he wanted to be a limo / exec type. He worked VERY hard getting his first set of clients, printed off 10,000 flyers and hand delivered them to the more affluent areas. The work is very erratic, being full one week and then nothing on the horizon for the next month. Usually work does come in at the last minute, it is just a little disconcerting seeing an empty diary. The hours are unsociable, with 4am pick ups and 10pm drop-offs but flexible to an extent in that you can go and play golf or whatever on your free days.

Overall, worth doing but not really the way to a fortune and IT would probably see you better in the long term.

LongCompton

Original Poster:

16 posts

91 months

Tuesday 4th June 2019
quotequote all
boxst said:
A friend of mine started one of these two years ago. I was his first customer as travel to the airport regularly for business. He doesn't just do airport runs, anything that is private hire over a certain distance (typically £100+ in fees).

He is priced and positioned above the run of the mill taxi service (20% or so) as he wanted to be a limo / exec type. He worked VERY hard getting his first set of clients, printed off 10,000 flyers and hand delivered them to the more affluent areas. The work is very erratic, being full one week and then nothing on the horizon for the next month. Usually work does come in at the last minute, it is just a little disconcerting seeing an empty diary. The hours are unsociable, with 4am pick ups and 10pm drop-offs but flexible to an extent in that you can go and play golf or whatever on your free days.

Overall, worth doing but not really the way to a fortune and IT would probably see you better in the long term.
Just out of interest, how does he manage to pitch for the over £100+ fees? Where we live in very out in the sticks so taxis are few and far between, although I bet there will be the odd bit of work here i could pick up.

I'm glad he is doing well though, what car does he drive? Does he ferry anyone famous?

I agree with the money, but after earning a lot in software and travelling the world, I'd rather be home every night and my own boss.

DuraAce said:
Cold water would do me, especially on a return journey.

WiFi wouldn't interest me.... Almost everyone has big data allowances on their phone these days.
Fair point, thank you.

48k

17,537 posts

178 months

Wednesday 5th June 2019
quotequote all
LongCompton said:
I guess another question is - if you were having a 1hr30m journey to heathrow, what would you like to see in the car?
Bottles of water, mints, phone charging points.
Goes without saying but make sure you know the customers flight number, which terminal to drop them, any delays, what time check in closes etc.

steveo3002

11,219 posts

204 months

Wednesday 5th June 2019
quotequote all
just want a clean car /driver that turns up on time , water would be nice

im put off many local firms as they behave like scum locally , you know bad/rude driving , folk see this and remember it

egor110

17,684 posts

233 months

Wednesday 5th June 2019
quotequote all
Before setting up on your own surely it’s worth getting a job as a driver to see if you actually like the constant driving and unsociable hours ?

Parsnip

3,279 posts

218 months

Wednesday 5th June 2019
quotequote all
Know when to talk and when not to - at 3am I want a few hours shuteye in the back of the car before flying somewhere. At 5pm returning, I am happy to have a chat.

As above, clean, presentable and don't drive or act like a scumbag - not hard, but the number of taxis I have been in that have been badly driven by angry little people who I would not chose to travel with if I was booking by name....

Be there on time and have a tablet with a company logo displaying my name (spelled correctly!) at arrivals - a scruffy clipboard will never look as good, plus the tablet will be handy for all the hanging about you need to do.

Water is a nice touch. Agree on not bothering with wifi - wouldn't bother unless it is easy, quick and reliable - I have bags of 4G data to burn through - a sign up wifi where I need to give an email address and a life story just to get slow internet would just annoy me.

Have a selection of phone charger cables in the car, ready to use. Maybe a cheapo tablet hooked up to spotify and the stereo so the punter can pick their own music?

StevieBee

15,404 posts

285 months

Wednesday 5th June 2019
quotequote all
LongCompton said:
Can I ask why your friend sold? (I am presuming)
Probably more interesting was the acquisition!

Our accountant at the time (2007) was looking after a smallish but growing executive transport business in London; family owned. The family wanted to sell up and our accountant saw an investment opportunity so he and my business partner raised £250k cash with another £250k paid to the family over 4 years from profits. It was supposed to be a pure investment as the company on the surface was fairly self-sufficient, had a decent team in place and good regular business.

The accountant went bankrupt (an entirely different and painful story) without raising the full amount leaving my partner with the obligation to raise the balance. This coincided with the banking crisis (most of the company's contracts were with city banks who cut their transport budgets overnight) meaning his was left with a bigger stake in a shrinking company that he has no interest in running - nor any sector knowledge.

Despite this, he took over the day-to-day running of it. They started to tender for bigger contracts and won some nice ones with a couple of the big airlines; ferrying around business and first class passengers, TV companies and won back some big city institutional clients. They went from 120 drivers when he took it over to around 350 when he eventually sold it.

The reason for selling was that he never intended to run the business and didn't particularly enjoy running it (his principal business was in Advertising and Marketing).

He did very well out of it. I don't know exactly how much he made but was a good wedge - but one that was certainly earned. He would have made a great deal more as they had a buyer three years earlier willing to pay a very high price. However, the shortfall in investment funding as a result of the Accountant's bankruptcy was taken up by RBS who secured the investment by taking a share in the business. Despite the price returning more than double their money, they refused to sell. That's yet another story!




GT03ROB

14,030 posts

251 months

Wednesday 5th June 2019
quotequote all
LongCompton said:
I guess another question is - if you were having a 1hr30m journey to heathrow, what would you like to see in the car?
Which as that's what I have every few weeks, a driver that doesn't want to talk. But then I'm an antisocial sod.

GT03ROB

14,030 posts

251 months

Wednesday 5th June 2019
quotequote all
LongCompton said:
I agree with the money, but after earning a lot in software and travelling the world, I'd rather be home every night and my own boss.
Except you probably won't be.... think an early morning pick up from heathrow or Gatwick or late night drop off. Check out last departures & 1st arrivals!!

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