14 JANUARY/FEBRUARY 2018 • FOGHORN FOGHORNFOCUS: SALES & MARKETING water taxis may need a less extensive route, more seasonal route, or higher ticket prices to be successful. What are the pros and cons of water taxi service? For operators? And, for consumers? For operators, the pros are attracting local patrons, along with tourists and visitors. Most often passenger vessel attractions are going after the tourist and visitor markets. Water taxis capture local commuter markets, as well as tourist and visitor markets. Capturing local commuter business allows for an -offseason market during typically slow tourist seasons. Water taxi op- erations also make for amazing public relations on behalf of the municipality, city, or private company that operates them, and further connects an operator to the city and population they operate in. The cons of operating water taxis are slimmer margins. Water taxis are competing with uber, land-taxis, buses, subways etc so the price point must be low enough to be a feasible trans- portation option. The low-ticket price may be a turn off to prospective water taxi operators, especially in smaller markets. To combat this operators must look for revenue beyond the fare box such as offering concessions, advertis- ing, or even tours and cruises in off peak hours. If someone, or a municipality, is consider- ing launching water taxi service, what are the steps toward making it a reality? And, what about seasonal changes? If passen- gers begin to rely on water taxi service during warm weather, what happens when winter arrives in cold climates? Should operators be concerned that they could lose those customers even when the weather warms up? A municipality needs to consider the relationship between the operator and the public entity overseeing it. For example, most municipalities find it advantageous to contract operation of the routes to a private company that is more familiar with passenger vessel operations and regulations. In order to make a particular contract attractive it must consider what type of subsidy the operator will receive, or consider allowing an operator to keep all farebox and other revenue from the route. If a city or municipality wants a water taxi service, but does not want to provide any subsidies, they can encourage private operators to start a transit service by offering river or lake-side public land for use with no cost to the operator, allowing said land to be used for tours and cruises other than trans- portation, and allowing the operator to keep farebox revenue. The idea is that the water taxis is a public amenity and use of public land and dock space is in WINDOWS DOORS HATCHES CEILING & WALL PANELS ACOUSTIC FIRE RATED WEATHERTIGHT WATERTIGHT WOOD & METAL HONEYCOMB VINYL & RESIN FLOORS MARINE FLOORING SYSTEMS CABIN & GALLEY FURNITURE Pointing to Perfection Director: Steve Hadik (207) 841-5083 shadik@psmaritime.com | www.psmaritime.com