JANUARY/FEBRUARY 2018 • FOGHORN 17 FOGHORNFOCUS: SALES & MARKETING are looking for bulk pricing such as a ten-ride or monthly pass, tourist are looking for “one -off” pricing such as a one way ticket, family pass, or 24 hour pass. Water taxis should also talk to their regional transportation authority to inquire about accepting transit checks or transit cards that commuters can use to purchase water taxi tickets pre-tax. They can also discuss inclusion of the water taxi into the local city’s transit passes or metro cards for maximum convenience to commuters. In some cases private attractions or properties may be willing to subsidize some of their tenants, or patrons ticket costs. Are most water taxis used by tourists as a unique experience, or by locals and commuters? If it’s the latter, does it make sense to have an app to allow frequent users to buy tickets? It depends on the routes, some water taxis may be almost completely commuter taxis, and other almost com- pletely tourists. In Chicago, we have found the ratio of tourists to commuters varies heavily throughout the season, with obviously tourists making up the majority of ridership during the summer months. Apps can be very helpful for everyday commuters by allowing them to store their tickets directly on their phones, especially for tickets that are active for several days such as monthly passes or ten-ride Tickets. What other revenue streams are possible with water taxis? The most common ancillary revenue streams are concessions, tours and cruises, and advertising. Concessions and merchandise can be sold on the vessels or at the docking locations. Branded clothing, or “swag,” is very popular, especially with tourists. Water taxis can also include other program- ming such as a cruise or tour at night after rush hour. Tours and cruises can come with a higher ticket price due to the longer trip time and ex- perience offered. Advertising is also a great way to increase revenue and several operators take advantage of About the Author Andrew Sargis is Chief of Operations for Chicago Water Taxi, owned and operated by Wendella Sightseeing Company, Inc. He is the PVA Great Lakes Region Chair and Legislative Committee Chair. outside advertising as an easy way to bring in extra revenue. However, it is important for operators to ensure that local regulations allow for them to take advantage of ancillary revenue sources, especially advertising and alcohol. For example in Chicago, a city ordinance forbids exterior vessel advertising on the Chicago River. n