BostonCoach Debuts Point To Point Pricing For Vans

As corporate travel managers seek ways to save costs on ground transportation, one option that is growing in popularity is shared van service. In response to the demand, BostonCoach has introduced point to point pricing for its van services in Boston, Philadelphia and New York.

Executives at two of BostonCoach's competitors, Carey and Empire, said they also had noticed an uptick in the corporate use of vans and shared rides.

"Our customers asked for a point to point rate," said BostonCoach's Todd Stephens, senior vice president of the Everett, Mass.-based chauffeured transportation supplier. "It's almost like a private van shuttle, and it's gaining popularity quickly. For small corporate training groups, it's a great alternative," although he added that the service also was being used by corporate travelers booking a car for leisure trips.

The flat rate for a 14-passenger Ford E-Series van is about 50 percent more than the cost of a sedan. From downtown Boston to Logan airport the rate is $77.42; from New York JFK airport to downtown Manhattan the rate is $148.50; and from Bryn Mawr, Pa., to Philadelphia International Airport the rate is $106. Prices do not include service fees, tolls or parking. BostonCoach also plans to introduce point to point pricing for its limousines in New York City. Previously, point to point pricing was available only for sedans.

Michael Lyons, president of Global Events Partners Philadelphia, a destination management company that uses BostonCoach's sedans and vans to transport the corporate groups it oversees, said the new pricing is simpler and a great improvement over the hourly rates, which caused confusion among clients. Plus, "companies can save some money. Some companies are saying, 'If three or four people are arriving on US Airways within 10 minutes of each other, we'll put them in a van.' In the past, there'd be three sedans."

Lyons added that in some cases the policy included VIPs. "If VIPs are coming in on the same flight with the other guys, they'll throw them in a van. It's an example of great leadership, like having the general ride in the Jeep."

"We've certainly seen an increase in our van business," said Rick Anderson, executive vice president of the Carey Network, based in Washington, D.C. He added that the pricing structure for vans mirrored that of sedans and limousines, with flat rates available to and from the airport and hourly rates applied to other types of rides.

Carey also is seeing more interest in its shared ride service, which is available in Chicago—where the concept is big in general—and Indianapolis. In September of this year, the business was up 10 percent over September 2002, although Anderson noted that Carey's overall business for the same period was up 10 percent.

In Chicago, limousines are used for the shares, which generally consist of two or three people and allow for a 15-minute window before and after the pick-up time. In Indianapolis, both limos and sedans are used. In both markets, the rate is per customer, rather than by the car, and is "noticeably" cheaper than standard sedan service, Anderson said.

He added that two Carey licensees, in Milwaukee and Atlanta, offer "two-tiered" service, in which customers have the option of a lower-price car that is perhaps smaller than the standard sedan. "It's above black cars but below chauffeured service," he said.

Empire International, based in Norwood, N.J., always has offered point to point pricing for vans, according to Robert Van Ess, who is director of sales. "You can get a van for a $40 supplement, plus 20 percent gratuity rather than the usual 18 percent," he said. "We're doing a lot more ride-share programs than before. If a company has a large spend and if people are traveling within 15 minutes of each other, we'll do a shared-ride sedan or van." A stretch limo, offered at the same cost as a van, is yet another option.

Empire offers the program "in any market where we have corporate-owned locations," as well as in Chicago, where the airports and a few large companies have "limo area" facilities easing the pick-up and delivery process. Empire only offers shared rides for travelers working for the same company, with the exception of the Chicago market, and Van Ess said that, in many instances, the program is a tough sell: "A lot of times, people are not anxious to do a ride share because someone is inconvenienced," he said.

However, he noted that one large corporate client had implemented a shared-ride program successfully. Employees use the same airport, and "the company has a big campus, with a lot of people in one location." The CEO set the policy—with an exception list including some senior management—and the shares currently are limited to two people per car, he added. Also, there is a 15-minute window allowed for pick-up times.

In general, Van Ess said such a program "is a very difficult process to put in place, with a lot of resistance in the beginning." Very large volumes are required: He cited a $5 million annual spend as being "in the ballpark" of cost-saving opportunities.