first class customs

Transcription

first class customs
TO CAP OR NOT TO CAP: THAT IS THE REGULATORY QUESTION a" INSURANCE COVERAGE ISSUES AFFECTING OUR INDUSTRY
09.2015 chauffeurdriven.com
FIRST CLASS CUSTOMS
STAYS COMPETITIVE BY BEING
A BOUTIQUE BUILDER
GROWING
YOUR BUSINESS
WITHOUT A
SALES TEAM
GBTA CONVENTION
EXPLORES A CHANGING
TRAVEL INDUSTRY:
PLUS AN EXCLUSIVE
INTERVIEW WITH
DAVID SEELINGER AND
SCOTT SOLOMBRINO
FROM STEEL
TO TECH:
REGENCY GLOBAL
THRIVES DURING
PITTSBURGH’S
RENAISSANCE
MANAGING THE GENERATIONS
PART 3: GENERATION X
BENCHMARK & BEST PRACTICES:
ONLINE RESERVATIONS
TECHNOLOGIES CONVERGE ON
THE SANTACRUZ PLATFORM
IT’S SHOWTIME! THE CHAUFFEUR DRIVEN SHOW
LANDS IN BEAUTIFUL SOUTH BEACH
OCTOBER 11-14, 2015 w LOEWS MIAMI BEACH HOTEL
Pittsburgh skyline
From Steel to Tech:
REGENCY GLOBAL THRIVES
During Pittsburgh’s Renaissance
BY LIZ HUNTER
The
year was 1991. The day:
April 1. Tom Miller handed in his resignation
from Pittsburgh National Bank—a job he had
held since 1978. It was a shock to all of his
colleagues, but this was no April Fools’ Day
prank. He was going to turn his dream of running his own business into a reality.
However, it wasn’t just any type of
business Miller wanted to run: He specifically wanted to run a limousine service. As
a corporate banker, Miller traveled frequently
to New York City during the late ’80s and was
introduced to the world of black car service,
a concept that had not quite come to his
hometown of Pittsburgh.
“At that time, the only people who
owned limousine companies were either off-
38 09.2015 chauffeurdriven.com
Regency Global President Tom Miller
at PPG Plaza in Pittsburgh
shoots of funeral homes or doing weddings,
proms, and nights out,” says Miller. “When I
saw the black cars lined up outside of hotels
and banks in New York [City], it sparked an
idea in my head wondering if this could work
in Pittsburgh.”
As many know, the limousine industry
at the time was not exactly where you’d find
a college graduate with an MBA, like Miller.
The entrepreneurs running limousine companies likely started as chauffeurs themselves or were perhaps taking over the family-run business for the next generation. For a
person to leave a secure corporate bank job
to take a risk in the limousine industry was
unusual, a fact that Miller admits.
“I always had the dream of owning
my own business,” he says. “I’m not smart
Miller at his facility
enough to invent something, I’m not good with technology or manufacturing products, but I understood customer service.”
So Miller, who had lost his wife in 1987 and was raising a young daughter, went cold turkey and leaped into
the industry by purchasing a local company—Exter Limousine Service—mostly for its PUC license, Yellow Pages
ad, and phone number. Because he wanted to run a strictly corporate transportation company, Miller didn’t need
the company’s stretches and immediately purchased two sedans. Working alongside his father, a retired accountant, in a 20-by-20 office, Miller essentially started building his business from scratch.
“From day one, my vision was to build a business and not just have a job,” Miller says. “With those two cars,
my vision was to build a sustainable business [whether] I was there or not. A majority of small businesses die
when the owner dies. I wanted to build an asset.”
Nearly a quarter of a century has gone by and that
asset is now a well-established one. As president of Regency Global Transportation Group, Miller operates a fleet
of more than 40 vehicles and has an office staff of 15, two
mechanics, and 60 chauffeurs.
Miller found out quickly how labor intensive the limousine industry is and had to pound the pavement—so to
speak—to get business.
One of his first clients was the bank from which he
resigned—PNC Bank. “In 1991, I went in and talked to
some of my friends there about what I was doing,” Miller
says. “One friend—a mentor of mine—was the general
counsel and corporate secretary who managed the affairs
for the board of directors, which included arranging transSenior Vice President Linda Gasper by the
portation for their corporate aircraft division. We got that
Fort Pitt Bridge and Point State Park
business, then began doing airport transfers for other ex-
“
’’
From day one, my vision was to build a business and not just have a job.
–Tom Miller, president of Regency Global Transportation Group
ecutives and saw our ride count increase rapidly.”
In late 1994, Miller adopted a new name—Regency Limousine Service—after he purchased the local but
more established company, which had been operating since 1981. He made another acquisition in 1997. Business
grew steadily, Miller says, but it wasn’t until 2000 when the company reached $1 million in sales. “It took 10 years
to reach that hurdle, and that’s when I felt like I was running a big company,” he says.
Then 9/11 happened. “It was a huge setback for the industry, and we were no exception,” says Miller. “Business fell off the table.”
But Regency ultimately recovered. Miller says the 2000s
were a huge growth period for
the company, as the economy
boomed alongside Regency,
and sales ramped up from $1
million to $4 million. In 2007,
Regency handled its largest
event ever: the 2007 U.S. Open
in Oakmont, Pa. “We did more
business in that week than we
had ever done in a month,” Miller says.
Unfortunately, that high
didn’t last long. The 2008 financial crisis dealt a blow to
the country, the industry, and
Regency. “The difference with
this recession was that it lasted
for several years,” says Miller.
“For my company, we felt the
downturn from November 2008
to May 2010. There was a prolonged period of retraction. We
had to figure things out, downsize, cut costs, and find new
sources of revenue.”
Regency did just enough
to stay afloat, and after Pittsburgh hosted the G-20 Summit
in the fall of 2009, things took a
turn for the better. “That event
put Pittsburgh on the
international map and
helped make it a destination city. People
could see how Pittsburgh had evolved
into a diversified
economy—one of the
leading green cities in
the U.S.—and that resulted in a lot of international groups coming here for meetings
and events,” he says.
Familiar monikers for Pittsburgh include Steel City for its
roots in the steel industry, and
City of Bridges for its more than
400 bridges. It’s also where
the Monongahela and Allegheny meet to form the Ohio River,
with an abundance of natural
resources, which contributed
to its role as the center of the
manufacturing universe.
But since the decline of
the steel industry, Pittsburgh
has been reborn. Although U.S.
Steel still maintains its headquarters there, the region is
chauffeurdriven.com 09.2015 39
Pittsburgh is famous for its many
bridges over its three rivers
Chauffeur Dave Stumpf at
The Fairmont Pittsburgh hotel
L to R: Controller Jim Nelson, Affiliate Manager Stacey Schwartz,
Reservationist Geoff Critzer, Senior Reservationist Leann Smith,
Tom Miller, Linda Gasper, Dispatcher Maywood Carey, Reservationist
Stephanie Pauling, and Accounting Manager Jennifer Mitterer
populated by new industries, including technology, health care, engineering, finance, higher education, and even robotics. Google operates research
and technology offices in the former Nabisco factory. Other well-known companies with headquarters there include the old-line industrials such as PPG
Industries, H.J. Heinz, and Westinghouse; generic drug manufacturer Mylan
Pharmaceutical; major financial institutions such as PNC Bank, BNY Mellon,
and mutual fund giant Federated Investors; retailers such as Dick’s Sporting
Goods and GNC; and international law firms such as Reed Smith and K & L
Gates. In addition, the energy sector is an entirely new industry that has developed during the past several years with the Marcellus Shale boom.
Miller says there has been a population increase for the first time in decades, due in part to new job creation generated by these industries as well
as what he calls the “eds and meds” industries. “University of Pittsburgh and
Carnegie Mellon are two of the leading tech schools in the country,” he says.
“Carnegie Mellon, which has the top robotics center, has been in the news recently because Uber lured away several of its researchers to help develop its
driverless car technology in competition with Google.”
Aside from economics, Pittsburgh has a lot to offer culturally, too. One of
Frank Lloyd Wright’s most famous designs, Fallingwater, is located outside of
Pittsburgh and is a major attraction. There is also a long tradition of jazz and
blues in the city; the National Negro Opera Company, founded in Pittsburgh,
40 09.2015 chauffeurdriven.com
A Regency Global Sprinter at
PNC Park, home of the Pirates
was the first all African-American opera company in the United
States. Major tourist attractions are the Andy Warhol Museum, the
Carnegie Museum of Natural History, Phipps Conservatory, National
Aviary, and the ToonSeum—one of three museums in the U.S. dedicated to cartoon art.
If you’ve never been to the city, Miller says that coming into
it is truly dramatic. “As you drive through the Fort Pitt Tunnel from
the airport you see some amazing hills, but as you emerge from the
tunnel, you’re suddenly in the city. It’s the point where the three rivers meet and the skyline is right in front of you.”
He says it’s a view that sports fans might recognize from TV,
as networks covering games traditionally show aerial footage of the
city. One can’t talk about Pittsburgh without also mentioning its major teams: the Steelers, Penguins, and Pirates. Miller says Regency
is the official transportation provider for the Penguins and is active
with the Steelers, although not in an official capacity.
“We do quite a bit for the teams,” says Miller. “The Steelers have been a
“
’’
The more people I bring on, the more my role has
evolved into a strategic one, where I am able to
focus on the big picture. –Tom Miller
long-time client and football has become a year-round business. We do a lot in
the off-season and when they make it to the playoffs, it’s good for everyone.”
Providing for this wide range of industries has helped Regency achieve
so much. Miller says Regency does a large share of corporate work in Pittsburgh, and if there’s an event going on, the company is probably involved in
some way, shape, or form.
He caters to this diverse clientele that ranges from football players to
banking executives with a well-equipped fleet, complete with 20 sedans—
Mercedes S550s, E350s, and diesel E250s; Chrysler 300s; and a couple of
2011 Town Cars—as well as SUVs, minibuses, vans, and two stretch limou-
erly,” Miller says. “She works with groups, as well as reservations and dispatch. She can fill any office role.”
Managing the fleet is Sean Connelly, who has been with
the company for nearly seven years. “He coordinates everything with the vehicles, including working with the mechanics,
the buying and selling, and maintenance details. He makes
sure everything gets the attention it needs,” says Miller.
Chauffeur Manager Will Dengler has been with Miller for
more than eight years. A retired firefighter, Dengler started
out as a chauffeur and evolved into the manager. Miller says
Chauffeur John Hankey, a 20-year veteran,
at Heinz Field, home of the Steelers
“
’’
I think any time you can get together
and share best practices is
worthwhile. –Tom Miller
hiring chauffeurs is a constant struggle for the company—a
sines. His fleet is housed in 15,000 square Fleet Manager Sean Conley
common theme in chauffeured transportation—and he feels
feet of garage space, attached to his
fortunate to have some who have been with him for 20 years.
5,000-square-foot office. Outside he has a
“One of our chauffeurs who started with me in 1991
10,000-square-foot parking lot, and across
just retired last year,” he says. “We’ve been fortunate to
the street he owns another 27,000-squarehave some great ones, and we are always looking for new,
foot building in which he operates an autoquality people.”
motive shop where two full-time mechanController Jim Nelson joined Regency in 2010. Although
ics work on Regency’s fleet and regular
Miller says his background in banking helps him understand
customers’ vehicles. Miller rents out the
the numbers, he thinks it’s necessary for a company to have
other half of the building.
someone doing the accounting internally. “As we grow bigAs any smart entrepreneur does,
Miller has surrounded himself with quality people who help Regency run smoothly
on a daily basis. Of course, learning to relinquish some control to staff was a hard
lesson to learn, as many business owners
say, but it reminded him that his goal was
to own a sustainable business that wasn’t
reliant completely upon him.
“Early on in the company, I did all of
the functions, including the on-call dispatching,” says Miller. “Hiring my first dispatcher was a big transition for me. But the
more people I bring on, the more my role
has evolved into a strategic one, where I Affiliate Manager Stacey Schwartz
am able to focus on the big picture, involving things like the financial, technological,
and legal aspects of the business as well as industry issues.”
He still reviews the schedule daily, keeping an eye on ride counts or any- Chauffeur Tyrone Allen at Consol
Energy Center, home of the Penguins
thing that doesn’t look quite right. But for the most part, he is able to work on
his business thanks to those he has around him.
ger it’s important to have timely information and get it on a
Industry veteran and Regency’s Senior Vice President Linda Gasper has been with the
monthly basis,” he says.
company since 2002, and Miller is quick to identify her as a key employee. He says that the
Jennifer Mitterder recently became accounting manager
two enjoy a great partnership—in fact, they spend so much time together at local business
after being hired in 2008 as a reservationist. She has since
or industry events that many people mistake them for a married couple.
helped to both train others and handle group work.
But she’s especially well-known in Pittsburgh, having previously owned a limousine
Miller says senior dispatcher Tim Glackens is extremely
company. “Everyone knows her. She is great talking to people, but also strong on operations.
conscientious in his job. “He’s been with me since 2004. It’s
Day to day, she is a point person dealing with groups, acting as an on-site coordinator,” Miller
important for a dispatcher to understand both chauffeurs and
says. “I am more behind the scenes but she is very hands-on. I joke that I own the company
clients, and he’s always wanting to get it right. Dispatchers
but I work for Linda.”
Stacy Schwartz is the affiliate manager and joined Regency with Gasper in 2002. “She are key to any organization, making sure all the information
gets from reservations to the chauffeurs.”
sets up all of the affiliates we work with and makes sure rides are being dispatched prop-
42 09.2015 chauffeurdriven.com
City Cadillac-Buick-GMC, Inc.
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Miller (back row, third from right), daughter Caitlin Rooney Miller (center front),
and the Rooney family at the 26th Annual Lupus Challenge, which is held in
honor of his late wife, Kathleen, who succumbed to the disease in 1987
Of his employees, Miller says, “I think it’s important to treat employees like
family. Customers are your bread and butter, but employees are your lifeblood,
and as a company owner I have to be responsible to all of them for the sake of the
community and the business.”
Miller is not above continuing to learn and grow as a business owner.
For the past 10 years, he has been a member of the Limousine Entrepreneurs
Group (LEG). Originally started by Tom Mazza, the group includes 12 companies. “I think any time you can get together and share best practices is worthwhile,” he says. “You need to be open to new ideas, and changes are happening
so fast in this industry, this kind of group helps you be prepared for whatever
those changes are.”
He has developed some strong friendships in the industry—friendships that have helped him through some
“
’’
Everything will find equilibrium. Know your
niche. Whatever it is you’re pursuing, do it
better than the competition. –Tom Miller
tough times. In 2012, Miller was diagnosed with throat
cancer and underwent two months of radiation. “It was
a difficult journey, the hardest thing I ever had to do,” he
says. “But I had the support of some amazing friends and employees.”
He says Jon Epstein of Royal Coachman stayed with him after treatment was done, when he was barely
strong enough to do anything, and Rick Brown of La Costa Limousine called or texted daily. His employees also
stepped up. “I went to the office every day during treatment, and in the final weeks when I was too weak to
drive, our chauffeur manager would pick me up and bring me in,” he says.
“Point of View” sculpture, which depicts the meeting between George Washington and Seneca leader Guyasuta
L to R: Miller, Joe Ironi of Global Alliance, and Jon Epstein
of Royal Coachman at Oakmont Country Club
44 09.2015 chauffeurdriven.com
“Recovery was longer than expected. It’s a
life-changing experience
and having done it puts
you into a club you don’t
want to be a member of,
but I can’t say enough
about the support I received along the way.”
Two weeks after completing his treatment, Miller was able to return
to one of his true passions: golfing. He’s a member of Oakmont Country
Club, where another U.S. Open will be held in 2016. He is also the founder
“
’’
people have helped support this cause.”
When he thinks about the future of Regency, Miller says the biggest question for him—and the industry—is figuring out an exit strategy. He has three
children: Caitlin, who works in philanthropy and grant writing; Lindsay, who is
a senior at Penn State; and Michael, who is finishing high school—but he never
intended for his family to be involved in his business.
“I never wanted a generational business,” he says. “As I think about the next
Miller is also the founder and chairman of the
Lupus Challenge, a charity golf tournament …
Now in its 26th year.
and chairman of the Lupus Challenge Golf Tournament, an annual charity
event in memory of his first wife, Kathleen Rooney Miller, whom he lost
to lupus.
Now in its 26th year, the tournament has raised more than $2 million for research, education, and public awareness of lupus. “When you
go through a situation like that, losing someone to a disease, it creates
passion to do something to create awareness,” Miller says. “The Lupus
Foundation has a great staff that helps pull it all together, and so many
46 09.2015 chauffeurdriven.com
Miller, overlooking Pittsburgh
decade or so, it will be time to determine what is best for me and the business. Is
there a viable exit strategy that provides value for the business?”
For the industry as a whole, Miller says he only wishes he knew what it would
look like in five to 10 years. “I believe it will be more tech-based, more demandbased to please the instant gratification of Millennials. How that translates into our
industry I don’t know,” he says. “Everything will find equilibrium. Know your niche.
Whatever it is you’re pursuing, do it better than the competition.” [CD]