10 innovative - metro magazine · chicago sightseeing co. has moved people through the windy city...

JANUARY 2006 METRO MAGAZINE 59

1010This year’s crop of outstanding motorcoach operators

includes a full-service travel agency, a purveyor ofCanadian pride, a ski-trip charter operator, a tropical tour

provider and much, much more.We think these profileshave something for everyone to appreciate.

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METRO MAGAZINE JANUARY 200660

ness types while not losing sight of thecompany’s origin,” says Chris Ferrone,vice president of engineering.

During his time spent with the com-pany, Ferrone has attempted to ad-vance the safety, mechanical under-standing and the incorporation of newproducts and procedures for the mo-torcoach industry. “During this periodof time, our buses have been widelyused as a test platform for such pro-jects as an initial trial usage of biodieseland retro-reflective tape used for con-

spicuousness,” he says. “Additionally,we have developed a life extensionplan for Detroit Diesel Series 92 en-gines, implemented refrigerant retro-fits and tested the S-1 Pedestrian Guardfor transit buses and the Zonar elec-tronic pre-trip inspection system.”

Chicago Sightseeing also has a closeaffiliation with a consulting firm calledAmericoach Systems, which providesmechanical analysis and transportationtechnology to the industry. In the past,Americoach has developed an introduc-tion program for low-sulfur diesel fuel,repair programs for extreme mileage ve-hicles, vehicle remanufacturing guide-lines, prevention/repair methods for

panel corrosion and a lecture on how toprevent and understand motorcoachfires. Chicago Sightseeing has taken ad-vantage of all of these programs.

Ferrone credits much of the techni-cal successes developed in his garageto having a staff of experienced andskilled mechanics. “Their skills andunderstanding of the business give methe ability to periodically work onother engineering issues which benefitour firm and the industry long term.”

Ferrone further attributes some of

the company’s overall success to the or-ganizations of which it is a member.Gray Line, Trailways and the AmericanBus Association all contribute someform of synergy, he says. “Having na-tional groups you can reach out to en-ables us to broaden our business radius,”Ferrone adds.

Chicago Sightseeing, which will cele-brate its 100th anniversary in June of2007, has been a family-run businesssince Henry Ferrone purchased thestock in 1919. Through it all, the Fer-rone philosophy has been cut and dried.“We repair buses and advance technolo-gy, but we always keep in mind that it’sthe passengers who pay the bills.”

For nearly 100 years, theChicago Sightseeing Co.has moved people throughthe Windy City for sightsee-

ing, commuting and charter trans-portation purposes. The parent com-pany currently owns and operates fivesmaller businesses — American Sight-seeing, Gray Line of Chicago, PrairieTrailways, Chicago’s Original TrolleyLines and the O’Hare Express.

These companies operate a numberof important transportation services,

in some cases running 24 hours a day.For example, in recent years ChicagoSightseeing has become the officialcarrier of the White House when thePresident comes to Chicago. Beyondthat, the company also utilizes its re-sources to support organizationssuch as the Make-A-Wish Founda-tion by providing transportation forthe families and friends of terminallyill children.

The system utilizes luxury motor-coaches manufactured by MCI, a fleetof trolleys and three upper-deck busesmanufactured by Roman Chariot.“This diversified group of vehicles al-lows us to cover a wide range of busi-

At a Glance

Chicago Sightseeing provides multiple important and pres-tigious transportation jobs in Chicago, including being theoperator of choice when the President comes to town.

Motorcoaches: 23

Fleet mix: 10 MCIs, 10 trolleys, 3 upper-deck coaches

Employees: 45

Drivers: 30

Year started: 1907

Service area: Chicago and the Midwest

Services offered: Scheduled service, charter, tour

Average annual mileage: 750,000 to 900,000

VP of engineering: Chris Ferrone (pictured)

The Chicago Sightseeing Co.Chicago

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“It was a good acquisition for bothcompanies; the founder of Silveradostill works for the company today.”

In addition to operating tours andcharters, Silverado has a contract withAmtrak to operate a line run servicethat connects rural areas to establishedtrain routes. Silverado operates 21buses daily in various locations forthis service. Although it is not a bigmoneymaker, Galusha says it is a goodtool to retain drivers. “When our char-ter business is down, we can provide

the full-time drivers with workthrough these Amtrak contracts.”

Silverado will soon add airport shut-tle to its diverse list of services. After anearly two-year application process,the company was granted authorityby the California Public UtilitiesCommission to establish a shuttle ser-vice. The service will originate in SanLuis Obispo and run south to Los An-geles International Airport and thenservice the cruise ship terminals inSan Pedro and Long Beach. Galushahas ordered two new Setra S417s for

this account. Vehicle amenities willinclude satellite TV and radio, as wellas 12-volt connectors for laptops andaircraft-style food trays.

Keeping a stable of new vehicles isalso part of the company’s businessphilosophy to attract new customers aswell as possible new drivers. “We gener-ate a lot of applicants from people see-ing our newer, nicer equipment on theroad,” Galusha says.

More than half of the fleet is equippedwith GPS capability, which the company

can track via cell phone, Blackberry orthe Internet. “With the Amtrak con-tracts, using [GPS] has been critical be-cause we have to maintain tight controlover those buses,” Galusha says. Use ofthe technology has also been beneficialon the employee side, he adds, as the dri-vers know they are being monitored.

Looking to the future of his compa-ny, Galusha says growth is key. “Myphilosophy is there are really only twotypes of companies, those that aregrowing and those that are dying. So,we want to be on the growing side.”

Having a diverse revenuestream is the only way tosurvive in the bus businesstoday, says Jim Galusha,

CEO of Silverado Stages Inc., based inSan Luis Obispo, Calif. It is this diversi-ty, coupled with growth through acqui-sition that has been the key to successfor his company, which originally op-erated as Quest Transportation.

Galusha founded Quest in 1998, usinga 21-passenger cutaway to conduct winecountry tours. He gradually moved on to

offering other destinations and expand-ing his fleet with larger buses. In 1999Galusha began growing the company byacquiring a small Santa Barbara-based-operation with six buses. In 2001, he ac-quired a larger company with five busesand a fleet of limousines.

In 2002, Quest acquired Silverado, awell-established company with a largecustomer base. This same year, Galushaconverted Quest’s bus services to oper-ate solely under the Silverado Stagesname, while Quest would operate asthe service and maintenance company.

At a Glance

Through a set contract, Silverado motorcoaches connectwith Amtrak lines, creating a service that links ruralareas with established train routes.

Motorcoaches: 39

Fleet mix: 14 MCI, 11 Prevost, 7 Setra, 7 Van Hool

Employees: 120

Drivers: 80

Year started: 1987 (acquired by Quest in 1998)

Service area: California, Nevada, Arizona

Services offered: Scheduled service, charter, tour

Average annual mileage: 3 million

CEO/President: Jim Galusha (pictured)

Silverado Stages Inc.San Luis Obispo, Calif.

Diversified service paying off

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“Everyone’s got buses,” quipsCantrell, “but only some operatorsprovide a truly higher level of ser-vice.” This service-first attitude ex-plains why 99% of Daniel’s businesscomes from repeat customers.

Cantrell describes the company’simage as primarily a reflection of itsexceptional drivers. “We are fortunatebecause we’re located in a popular re-tirement spot for Atlanta business ex-ecutives,” he says. “We have driverswho are retired and working part time,and they are excellent people — CEOs,

judges and one who was a space pro-gram commander at Cape Canaveral.”

But Daniel’s Charters is more thanjust a smiling face. The company’s suc-cess is a direct result of shrewd busi-ness planning, equipment investmentsand inventive risk-taking. For exam-ple, several years ago, Cantrell says, thecompany correctly predicted that out-fitting all its buses with DVD players— at a time when VHS was still preva-lent — would become a huge passen-ger attraction. The same decision isbeing made now with regard to satel-

lite TV-equipped coaches for athleticteams, who are hungry for around-the-clock sports coverage.

Negotiating fixed-price fuel con-tracts far in advance, along with en-gineering a higher gear ratio on theback ends of its fleet of Prevost buses,saved countless dollars in diesel fuel.Other innovations include a rigorousparts-replacement program, intensepreventive maintenance and a 10-step driver-training program, whichrequires every new driver to spendhis first day on the job with a clean-

ing crew, learning how to clean thebuses. “Before they ever do anythingelse here, and this includes experi-enced drivers, they are going to learnwhat our buses are supposed to looklike,” says Cantrell.

But what ultimately drives the busi-ness, says Cantrell, is the fine line be-tween success and failure. “There aren’ta whole lot of mysteries in the motor-coach industry, so the only way to dis-tinguish yourself from the competitionis to understand your bottom line andto take your service to the next level.”

The story of Daniel’s Char-ters began like so manyother business success sto-ries — within a close-knit

family. Brothers Jimmy and RickeyCantrell discovered that they eachhad a special talent after loading theirfamilies into an old bus and takingthem on a 10-day vacation in the early1990s. Jimmy had a knack for conduct-ing business, while Rickey had a back-ground in maintenance and autobodywork. And through these skills, apartnership was born.

Since the establishment of the oper-ation with one used coach in 1998,Daniel’s Charters, named after the bib-lical story of Daniel and the lion’s den,has seen an explosion in tour and char-ter business over the past few years. Inless than a decade, the company hasbecome a full-service fleet operator,and in 2005 alone, Daniel’s increasedits gross sales by 62%. Yet through itall, says Jimmy Cantrell, the businesshas retained a small-town Southerncharm, emphasizing trust and cus-tomer relations over all else.

At a Glance

What ultimately drives business at Daniel’s Charters, saysowner Jimmy Cantrell, is the fine line between successand failure.

Motorcoaches: 12

Fleet mix: Prevost

Employees: 28

Year started: 1998

Service area: Georgia, U.S. and Canada

Services offered: 85% charter, 15% tour

Average annual mileage: 750,000

Average annual ridership: 160,000

Owners: Rickey and Jimmy Cantrell (pictured)

Daniel’s ChartersAtlanta

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imperative for other staff members.The company recently completed afour-day training program on com-plaint resolution. The new process en-tails that the initial contact personwho takes the call “owns” the call.Complaints are then investigated andresolved. “They are not allowed totransfer the call to someone else,”Dipert-Brown says. Complaint reso-lutions are now completed in one day,instead of a week.

In addition to the new customerservice strategy, the company institut-ed a new sales policy at the start of2005 to help boost business after itlost four of its top clients in a schooldistrict bid situation. “We were goingto start the year with a nearly 10%loss of business — and that’s a lot forus,” says Dipert.

A sign with the letters CUT hangs inthe sales office to remind sales staff ofthe new policy — callbacks, utilizationand tiered pricing. Dipert calls backany potential client who has been

quoted $2,000 or more. “I personallycall the contact the day after we givethem the quote to make sure every-thing went well, thank them for call-ing us and ask if they are ready to bookwith us,” he says.

Utilization of buses makes up thenext part of the philosophy. Dipert willdouble, triple and even quadruple bookbuses on Fridays and Saturdays — theirbusiest days — to get the most workfrom the vehicle. “That’s a real tribute

to our dispatch and our drivers becausethey are the ones that have to servicethat,” Dipert says.

Tiered pricing composes the lastpart of the new sales plan. “We priceourselves exactly like a hotel. Whenit’s busy, we’re expensive; when it’snot, we are not expensive,” Dipertsays. The sales staff has met very littleresistance to this new pricing strategy.Since the CUT program was installed,the company has seen a 24% increasein sales compared to the same time in 2004.

Dan Dipert Tours wasfounded by Dan Dipertin 1974 as a tour compa-ny. In 1980, Dan bought

his first bus and slowly started addingto the fleet. Today, the fleet numbers19 buses, and the company offerscharter and tour services. Dan hassince retired and has turned the reinsover to his son and daughter, Dan W.Dipert and Autumn Dipert-Brown.

Both agree that recruiting and train-

ing the right people has helped givethe company an edge in offering itscustomers outstanding customer ser-vice. Because drivers play a crucialrole in this strategy, the company cre-ated a profile of what a successful DanDipert driver should be — early re-tired, 52 to 57 years old, male or fe-male professional. “We are hiring peo-ple based on their personality and nottheir proficiency. I prefer that [appli-cants] don’t already have CDLs or anyprior experience,” says Dipert-Brown.

Customer service training is also

At a Glance

Dipert will double, triple and even quadruple book buseson Fridays and Saturdays — their busiest days — to getthe maximum work from a vehicle.

Motorcoaches: 19

Fleet mix: MCI, Prevost

Employees: 61

Drivers: 27

Year started: 1972

Service area: North America, Mexico

Services offered: Charter, tour

Operating partners: Autumn Dipert-Brown and

Dan Dipert (both pictured)

Dan Dipert ToursArlington,Texas

Customer service reigns supreme

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wholesaler of lift tickets to various re-sorts in Colorado, including WinterPark, Breckenridge, Copper and Key-stone,” says Bohn.

Furthermore, the company hascome up with an ideal ski package thattargets the Midwestern region withovernight “sleeper trips.” More thanhalf of the motorcoaches in the fleetcan be converted so that the seats be-come bunk beds, enabling as many as

40 passengers to sleep while the bus isoperating. According to Bohn, thisconfiguration is ideal for residents inthe area because a bus can leave KansasCity, for example, around 7 p.m. andarrive at a ski resort by 6 a.m. the fol-lowing morning. “I’ve heard we havethe largest conversion fleet in thecountry,” he adds.

Of course, another important consid-eration involved in ski trips is the condi-tion of the vehicles and the skill of thedrivers. “We take our drivers up into the

Rockies for a week and a half and teachthem how to drive in the mountains,”says Bohn. “It’s a totally different type ofdriving up in those valleys and passes.This training really makes them better.”Additionally, the coaches themselves arekept in tip-top shape through a season-al, interval-based preventive mainte-nance program.

The shift in Kincaid’s company focustoward full-service tour and travel

agency has fostered a concentrationon building long-term business rela-tionships, replete with multi-year con-tracts. “We are not going to give you alow price to get your business and thendown the road jack it up on you. Weare in it for the long haul,” says Bohn.“Typically, we work with a customerfor the first year and try to show themthat we provide great service, and if itworks well for them and works well forus, we want to become a business part-ner with that customer.”

There is a company maximoften repeated at KincaidCoach Lines: “A successfulteam beats with one heart.”

It might come off rather touchy-feely,but to Vice President Dale Bohn, it isan effective summary of Kincaid’s pre-vailing philosophy. From driver re-cruitment and retention to customerservice and safety, this philosophy re-inforces every action at the company.

“As long as we are all on the samepage and all working together, then weare going to feel pretty good aboutwhat we’re doing,” says Bohn.

What the company does best is spe-cialize in providing comprehensiveski-trip packages. Kincaid, which isalso a full-service travel agency li-censed to book anything from airlinesto cruises, has set up a ski division forthis purpose. “We outfit the coacheswith ski pegs, take care of lodging withour exclusive condo rights, and we’re a

At a Glance

Kincaid Coach Lines has a ski division that books lodging,sells lift tickets and provides overnight transportation toseveral popular resorts in Colorado.

Motorcoaches: 45, 6 other buses

Fleet mix: MCI

Employees: 125

Year started: 1977

Service area: Lincoln, Neb.;Wichita, Kan.;Tulsa, Okla.;

Kansas City, Mo.; Panama City, Fla.; U.S. and Canada

Services offered: Charter, tour, travel agency,

ski package broker

Average annual mileage: 3.2 million

Vice president: Dale Bohn

Kincaid Coach Lines Inc.Edwardsville, Kan.

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tem is to watch your following dis-tance. If a driver has a habit of follow-ing too closely, he will also tend tobrake hard, which will constitute arecordable event. During a feedbackmeeting, the videotapes are used for apoint-by-point self-assessment. “We’vefound that this makes drivers aware ofthings that they may not have other-wise paid attention to,” says Gillis. “Webelieve that whenever you can improvethe way people drive, it reflects well onthe company and on the industry. Andthat’s good for the bottom line.”

In the garage, too, employee ac-countability is aided by technology. Acomputerized shop-control system fo-cuses employees on the things thatneed to be done but are often over-looked. Many mechanics feel that ifthe buses are running smoothly, effi-ciently and safely, they’ve done theirjob. Few might consider a completeaudit of the entertainment system un-less a driver complains that it isn’tworking properly. With Starline’s shopcontrol system, the entertainment sys-tem is checked on a regular basis, there-by avoiding breakdowns.

“This way it’s delegated to someoneto get it done,” says Gillis. “It’s onething to say something should be done,it’s another thing to do somethingabout it, and it’s still another to keep iton the radar screen at all times. That’swhat our system does.”

Other hallmarks of Starline’s suc-cess include cross-training to ensurethat full-time drivers are kept busy,team building and idea sharing acrossdepartments, good benefits and goodpay, and a proactive approach to get-ting things done.

Treating employees well and allowingthem to share in the company’s successhave served Starline well, earning it aplace on the Puget Sound Business Jour-nal’s list of the 100 fastest-growing pri-vate businesses in Washington state. Thecompany’s rate of growth between 2002and 2004 was a phenomenal 80%.

Despite Starline’s impressive trackrecord, the company is not interestedin expanding beyond the Puget Soundarea. “Though we have the opportu-nity to grow all our profit centers,”says Gillis, “we’re pretty content inSeattle.” — HEIDI NYE

Forward- and aft-facing cam-eras mounted on the wind-shields of Starline LuxuryCoaches coaches in Seattle

eliminate frivolous lawsuits and en-courage drivers to focus on safety, saysCEO Gladys Gillis.

Though the DriveCams operate con-tinuously, they only save footagerecorded 10 seconds prior to or 10 sec-onds following a hard-breaking eventor a swerve. “It’s a real-time record ofthe interior bus environment and theexterior, but it only saves the data if

there is a significant change in the Gforce,” Gillis says.

“Rarely a year goes by without some-one saying that he or she was injuredby one of our drivers,” Gillis says.“Since we’ve installed cameras, threepeople have initially said they werehurt in an incident, but all three havewalked away when they found out wehad the event on videotape. They knewthey couldn’t win.”

Starline purchased the DriveCamsprimarily to serve as a foundation forits Smith System driver-training pro-gram. The first point in the Smith Sys-

At a Glance

Starline Luxury Coaches’ fleet of motorcoaches have beenequipped with DriveCam video recording systems, whichhave helped to stave off frivolous lawsuits.

Motorcoaches: 17

Fleet mix: 13 MCI, 4 Prevost,

Employees: 98

Drivers: 86

Service area: 90% of business in Puget Sound

area of Washington state

Average annual mileage: 981,469


Year started: 1998

CEO: Gladys Gillis (pictured)

Starline Luxury CoachesSeattle

Safety focus helps bottom line

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allows us to control our business so wedon’t have 100 buses out on one dayand zero out on another,” says Hartley.“This sets us apart. Our buses are busyevery day so our people don’t starveduring slow times.”

The ethic of “no down time” rulesthe garage too. If a bus breaks downand sits for five days, waiting for parts,“it’s a killer,” Hartley says. “Just thebank payment on the loan is $6,000 amonth per bus. So a bus that isn’t mov-

ing is a crusher. To keep that from hap-pening, we have a full inventory ofparts, as many parts as the supplierwho sells to us.”

Mechanics are scheduled to workwhen they’re most needed. Between 7a.m. and 4 p.m., the buses are out, somechanics can’t work on them. That’swhy Gold Coast mechanics come in at2 or 3 a.m. to make sure everything isready to go before the buses head out.

Rigorous inspections and in-servicetraining are conducted by an on-staffstate-certified Special Pupil Activity

Bus (SPAB) instructor, a program ad-ministered by the California High-way Patrol (CHP) and the CaliforniaDepartment of Education.

To encourage safety and profession-alism, drivers are awarded with tripgiveaways, TVs or a night on the townfor staying accident-free and arrivingto work on time.

“Turnover is a big problem in thisindustry,” Hartley says. “It’s a real painto train a new person who is not going

to stay.” Gold Coast’s philosophy of“pay them well, treat them well, andthey’ll stay” has paid off with long-term employees, 10 of whom have 200combined years with the company.

Gold Coast focuses on customer re-tention as well. “A lot of people feelthat if they’re a one-time customer,they won’t get the same treatment aslarge customers do. Well, that’s justnot true with us. We give the same ser-vice 365 days a year to our largest cus-tomers and our smallest.”

— HEIDI NYE

“We are our largest cus-tomer,” says JohnHartley, presidentof Gold Coast

Tours in Brea, Calif. “We sell the pack-ages we create rather than book a coachonly when someone calls us. We’re atour operator within a coach company.”

Hartley estimates that 25% of GoldCoast’s business is its own tours. Bybuying large blocks of rooms in LasVegas or tickets at the Hollywood Bowl

or Angel Stadium, and then sellingthese events as tour packages, GoldCoast keeps the revenue stream flow-ing during the typically slow monthsof July and November. “July is hot, sotourists don’t like to come to Califor-nia,” Hartley says. “And in November,fall sports are winding down and win-ter sports haven’t begun.”

Custom-designed software enablesGold Coast to pinpoint slow times,dispatch to work more efficiently andpreplan packages to keep buses mov-ing and drivers busy year-round. “This

At a Glance

Gold Coast Tours in Brea, Calif., has been able to stay busyduring traditionally slow periods by using schedulingsoftware to dispatch work more efficiently.

Motorcoaches: 46

Fleet mix: Van Hool, Prevost, MCI

Employees: 126

Service area: 75% in California, but services all

48 contiguous states

Drivers: 70



Year started: 1975

President: John Hartley (pictured)

Gold Coast ToursBrea, Calif.

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the on-staff airbrush artist, for theproject’s success.

To help promote the country’s histo-ry and its people, the company also de-veloped a specialized tour programcalled “The Fabric of Canada,” now inits sixth year. “When we travel acrossCanada, people enjoy the scenery andlove the areas we take them to, but theynever really understand the people inthose areas,” Hundt says.

These tours include organizedevents featuring entertainment pro-

vided by local people. The idea was togive travelers an opportunity to meetlocal people and learn about local cus-toms, Hundt says. “We wanted it sothat people could come back fromtheir vacations and say that they hada chance to meet a coal miner in NovaScotia, a fisherman in Newfoundlandand maybe a potato farmer from P.E.I.[Prince Edward Island].”

In addition to the specialized pro-grams, Great Canadian’s drivers arealso key components to the success ofthe tour. “Customers today want a

highly skilled professional who cantake them to a lot of tour destinations,know those areas really well and beable to impart valuable experiences andinformation rather than just drivethem from point A to point B,” Hundtsays. Additionally, having highly skilleddrivers serves as a selling point for thecompany when it offers its services tooutside tour companies.

Great Canadian is also focused onexpanding its customer base by devel-oping more tour products for a

younger audience. Its newest pro-gram, developed with NASCAR Cana-da, includes weekend getaways tai-lored around racing events. Otherbenefits from the partnership includepromotional opportunities for thecompany at various racing events andbeing named the official carrier forthe racing association. “We take themaway for the weekend and give themsome independence, so they don’thave the same structured itinerary asthe regular schedule tours or seniorgroups do,” Hundt says.

Great Canadian Trailways,originally called TravelVentures, was founded in1984 as a tour company by

Larry Hundt and his wife Lorna. Thename change came about in 1998 tocomplement the company’s newfoundcommitment to promoting Canadaand its rich history.

This commitment originated froma 1995 referendum vote nearly passedthat would have separated theprovince of Quebec from Canada.

From that moment on, Hundt and hiswife were “committed to doing some-thing as a company to help promoteCanadian pride.” Thus was born theidea of painting the company’s fleetof buses to commemorate Canadianhistorical themes. The first bus, paint-ed in 1995, features scenery spanningboth coasts. Coaches were also givena number signifying an historicalevent. Hundt said the coaches are realcrowd pleasers, with certain groupsidentifying with particular themes.He credits the talent of Dave Sopha,

At a Glance

To help promote the diverse history, geography and peo-ple of Canada, Great Canadian has developed a tour pro-gram called “The Fabric of Canada.”

Motorcoaches: 32

Fleet mix: 28 Prevost, 2 MCI, 2 Setra

Employees: 120

Drivers: 75

Year started: 1984

Service area: Southern Ontario

Services offered: Tour, charter



Owner: Larry Hundt (pictured)

Great Canadian TrailwaysKitchener, Ontario

Running on Canadian pride

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tours, as well as a 120-mile daily com-muter run to Harrisburg.

“We want to stay where we’re at,”Newswanger says, explaining thatthe company’s relatively small size allows him to remain a hands-on influence.

“I do tours and clean up the bus

myself,” Newswanger says. “You haveto stay hands-on in all aspects of the company.”

The company’s greatest strengths,Newswanger says, are its driver corpsand its equipment. The drivers arecompensated well enough thatturnover is not a problem.

Newswanger says he has been loyalto MCI, which he says stood behindhim during his early struggles. He re-cently took delivery of one of MCI’s Emodels that’s adorned by an eagle andU.S. flag. “It’s the only one like it onthe East Coast,” he says.

One of the key challenges latelyhas been rising fuel prices. To counterthe additional expense, Newswangerinstituted a 4% fuel surcharge, whichhe says was accepted by nearly all of

his customers. “They realized whatwas going on in regard to our addi-tional overhead,” he says. “Plus, wesell our service, we don’t sell price.”

To maintain his customer base,Newswanger uses a combination ofnewspaper and radio advertising. Healso has uses the company’s Website to

promote the wide range of tour offer-ings. “We did over 250 retail tours lastyear,” he says. “That’s a lot for a com-pany our size.”

Most of his business, however,comes from word of mouth, which isenhanced by a billboard on companyproperty that is changed frequentlyto reflect current tours. “Sometimeswe change it every day,” he says. “Inour area, it doesn’t take long forsomething to sell out quickly becauseof word of mouth.” R&J’s most popu-lar destinations are New York Cityand Washington, D.C., especially forstudent groups.

In addition to its tour and charterbusiness, R&J also operates 53 schoolbuses to service two school districtsand a private school.

R&J Transportation Inc.celebrated its 25th year inbusiness last April, quitean achievement for a com-

pany that struggled through hardtimes in the 1980s.

“Times keep getting tougher, butyou have to keep up with the

changes,” says Jay L. Newswanger,president of R&J, located in Pottsville,Pa., about 60 miles northeast of Har-risburg. Newswanger’s brother, Ken,is the shop foreman.

Jay and his father, Raymond,launched the company in 1980. Lessthan a year later, Jay’s father died,leaving him alone to run the fledg-ling business. He persevered.

“I didn’t have any choice,”Newswanger says. “I just dug in.” Hismain concern was ensuring that thecompany provided top-notch service.“My father always said: ‘Quality ser-vice speaks for itself,’” he says.

Today, Jay and Ken are content tomaintain the business at its currentsize, relying on 10 coaches to serviceits charters and retail and wholesale

At a Glance

R&J Transportation’s newest MCI coach features a patri-otic theme. The Pennsylvania-based tour and charter op-erator recently celebrated its 25th anniversary.

Motorcoaches: 10

Fleet mix: MCI

Employees: 93

Service area: East Coast

Drivers: 20

Year started: 1980

Services: charter, tour, commuter, school

transportation

Annual mileage: 350,000

Annual ridership: 160,000

Website: www.rjtours.com

President: Jay Newswanger (pictured)

R&J Transportation Inc.,Pottsville, Pa.

Hands-on strategy is a success10

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drivers are Hawaii natives and areused to navigating the congestedstreets of Waikiki, as well as the wind-ing mountain road up to the 10,000-foot summit of Mount Haleakala onthe island of Maui.

Business has been strong for Polyad.To keep up with the demand, the tourand charter company is in the processof expanding its fleet once again. Santi-ago says the company is moving to-ward standardization of its motor-

coaches and will add more Van Hoolcoaches and ElDorado minibuses tothe line-up.

Early in 2005, Polyad entered into alicensing agreement for all of Hawaiiwith Gray Line that it hopes will in-crease its marketing reach.

“With Gray Line being a globally rec-ognized brand, it’s a good move for us,”Santiago says. The company is now co-branded Gray Line Hawaii.

Polyad has, for many years, enjoyed astrong relationship with NorwegianCruise Lines (NCL), which has three

ships that ply Hawaiian waters year-round.

In November 2004, NCL acquiredPolyad. NCL’s cruise passengers are anatural fit for Polyad’s full roster oftour offerings, which on Oahu rangefrom a visit to Pearl Harbor to a deluxecircle-the-island tour.

Polyad has maintenance facilities atfive terminals that provide preventiveand corrective services, with the excep-tion of major overhauls.

To stay on top of maintenance is-sues, the company recently broadenedits staffing structure to operate more ef-ficiently.

One of the challenges that Polyadfaces in expanding its business is a tightlabor market. Santiago says the unem-ployment rate in Hawaii is downaround 2%, making it a challenge tofind new tour and charter drivers.

However, Polyad’s business mix,business model and favorable benefitspackage make the company attractiveto prospective employees.

In 1977, Polynesian AdventureTours (Polyad) got its start as an op-erator of van sightseeing tours inWaikiki, relying on its driver narra-

tors to keep the customers entertainedand satisfied. Since then, the companyhas grown, with operations on Oahu,Maui, Kauai and the Big Island, and thefleet has been upgraded to motorcoachesand minibuses, but the emphasis onhigh-quality tour narration remains.

“Because we have our roots in sight-

seeing tours, our drivers/guides set usapart from the competition,” says Glen-da Santiago, Polyad’s customer servicemanager. “All of our tours require narra-tion.”

Veteran drivers train new hires in howto properly narrate a trip. “It’s a compre-hensive program that is also supplement-ed by training from community collegesand other professional resources,” Santi-ago says.

Safety is a key concern. A safety of-ficer oversees the operator training inthis area. Santiago says most of the

At a Glance

Polynesian Adventure Tours got its start nearly 30 yearsago with sightseeing tours using vans. It now operatesmore than 150 buses and has five maintenance facilities.

Motorcoaches: 153

Fleet mix: Van Hool, MCI

Employees: 250

Service area: Oahu, Maui, Kauai, Hawaii

Drivers: 174

Year started: 1977

Services: charter, narrated sightseeing tours

Annual ridership: 360,000

Website: www.polyad.com

President: Jon Savitz

POLYNESIAN ADVENTURE TOURSHonolulu

Island tours in full bloom

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