Monday, February 23, 2009
By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
RISING fuel costs remain a major concern for taxi and tour operators, one telling Tribune Business yesterday that he was forced to increase his fares to offset the increase.
Legendary limousine and taxi operator, Romeo s, owner of Romeo's Executive Limousine and Taxi Service, told Tribune Business that as a result of rising fuel costs he was forced to make the decision to increase his fares.
When contacted by this newspaper yesterday, Mr Farrington said he was in the process of drafting a letter informing the clients of his decision, one he said he was reluctant to make.
"I'm in the process of drafting a letter to my clients to let them know I want to increase my fares. I want to let my clients know, because some of them have been doing business with me for more than 40 years," Mr Farrington said.
The Cacique Award transportation winner added: "It's not want I wanted to do, but I have to do it. I have to raise my fares to stay afloat. I must do it to stay in business. It's ridiculous to go to the gas station, spend $50 and not get a half tank of gas. It's hard to make a decent living with the price of gas what it is."
Lambert Rahming, president of Reliable Tours, told Tribune Business: "Fuel is one of the major costs for operating tour businesses and transport in general. Fuel is one of those necessities and you have very little control over it as an end consumer, and you have to look at ways to cut back other expenses because its an essential product.
"It impacts our business operations and our ability to stay profitable. Fuel and employees' salaries are basically two of the biggest costs impacting our operations.
"There are things you have to do to try and adjust so as to minimise, where possible, the use of your vehicles outside of actual jobs. You have to be more efficient in the routes you take, and communicate on the routes you take because you don't want to be sitting in traffic burning fuel and keeping the vehicles properly maintained."
Another taxi operator told Tribune Business: "Rising oil prices is definitely not good news for us. We use a lot of fuel in the transport business. We are basically on the road in our vehicles all day. We have to spend money to be able to stay on the road and still make a profit. With fuel prices continuing to rise it's certainly going to be more difficult."
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