AUTO EUROPE
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TRANSPORT
THE CUSTOMER IS KING Imad Khalidi, CEO of brokerage firm Auto Europe, examines the importance of a service-based approach and resiliency in the face of adversity
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Writer: Phoebe Harper | Project Manager: Tom Cullum
idely acknowledged as T‘ he iK ng of CareR ntals,’CEOofuA to uE rope m I ad hK alidi isew ll-ev rsed in the trials and tribulations of the travel induts ry. Having rst joined the travel es rvice es ctor in4ow 7 91 rking as an innkeeper of r the HolidaynI n, as aoy ung entrepreneur, hK alidi os on transitioned to car rentals, accepting a position astS ation Managerof r Hertzow rking inrF ance. Heew nt on toow rk in both Toulouse and iN ce, as iA rport Manager andiD ts rict Managerof r HertzeR nt-C- A ar.
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AUTO EUROPE “At the time, the car rental business in France had only just started, so it was very small when Hertz began to implement its systems across the country,” he comments. When French car rental company Europcar began recruiting for an International Franchisee Manager, Khalidi’s multi-lingual talents meant that he was well-suited for the role, as it involved launching the company’s franchisees across the Middle East, East of Africa, and Scandinavia. When Europcar subsequently
sought representation in the US, Khalidi was assigned the role of International Sales Manager, championing the burgeoning market of Americans travelling to Europe. “One of my clients at the time was Auto Europe, and when the owner of the company retired, he asked me to join them. So, in 1990, I came to Maine, and then grew the company from 10 to 15 employees to over 600 and 600 million dollars of sales,” he tells us. Khalidi’s ongoing tenure at the helm of Auto Europe surpasses over 31 years.
NORTH AMERICA OUTLOOK: IN O Y UR OPINION, WHAT GIVES AUTO EUROPE THE EDGE OVER MARKET COMPETITORS? Imad h K alidi, E C O:
“Nue bm r e no si e s rve ci ; e bmun r two si rp e ci .
“We ’nod t yub ram e k t rahs es dna e w ’nod ttnuo csid the rate sa gnol sa the e s rve ci si the rithg e s rve ci . 05 e p rcetn fo ruo e nisub s e mo c s rf mo trae v l e ga tn ,s dna trae v le ga tn s tna w a e p e ca fo dnim e s rve ci os thta the e ilc tn s ra en’t rigni them pu ta y natiop rud gni ro tfa er the rent.la “We ra e e v ry hcum e s rve ci -me dni ,d e w ra e e po ,n 7/ 4 2 dna e lba to e h pl the e ilc tn ta y natiop rf mo A to .Z From the e mo tn uo y ko b su to the e mo tn uo ye mo c .kcab If ruo e ilc tn sah a tsuc e mo r e s rve ci e us i , tiw h eite h r Avsi ro Hertz, e w ’nod t tell them to og to the,m e w e h pl them tuo , e cnis e h e ko b d ,su os e w ra e rese lbisnop rof sih e s rve ci “For exe lpma , y nam fo ruo Amerinac tsuc e mo rs ylno e ps ka e no e gau n l – fi uo y ra e na Amerinacg idnal i Chra e l se d Gae l u ria rop t, e l o c tc gni ruo y rac rf mo there dna then rb eagnik w od ta ten ’o kcol ta thgin e mos e hw re ni Frae cn , uo y nac l ac su 4 2 ruoh s ,a y ad e w l iw e g t uo y a tow rac , dn uo y tona e h r rac dna a toh el e n ra to e hw re uo y ra e. So, ruo e s rve ci e og s rf mo the e mo tn uo y ko b su to the e mo tn uo y rb gni kcab the rac ”.
AVIS Avis, one of the world’s largest car rental providers with its long term partnership with Auto Europe. The mobility landscape is rapidly changing, and Avis is driving towards the future, focusing on reinventing the car rental experience. Data-driven intelligence, company digitization and a global footprint are enabling connectivity, convenience and choice. With more than 11,000 rental locations worldwide and more than 600,000 vehicles, we are dedicated to expanding on-demand mobility solutions and personalizing the customer experience, so each travel will feel enjoyable in its own way. At Avis, we know the importance of taking some time away from our busy lives and getting away from our daily routines to spend much needed time with our loved ones without forgetting about the safety during your journey. Create your own memories with families and friends, enjoy every season across beautiful North America – whether it be a popular, much visited place in the US or a unique and a less-travelled city in Canada! International or local attractions, busy or quiet and relaxing vacation, no matter the occasion, the right car can take you there! At Avis you are care-free: we keep following the precautions and guidelines set out by the World Health Organization (WHO) and the Center for Disease Control (CDC), in order to slow the spread of this virus. Safe travels with Avis!
www.Auto Europe.ca
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LIFE IS BETTER ON THE ROAD
There is so much to enjoy, especially with a customized experience that fits all your needs. Choose from a wide variety of vehicles to make the best of your travel. And if you like to treat yourself and expedite the counter process, enroll for Avis Preferred. Enjoy a great experience and accelerate your rewards! Contact Auto Europe www.autoeurope.ca or 888-223-5555 to book your car rental.
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Hertz The time is right to see what Ireland is all about, from boutique hotels, castles and luxury resorts, to our rich culture and heritage, not forgetting our world-class golf, superb culinary scene, and for this there is no better way to drive Ireland than with Hertz. Visit the Wild Atlantic Way voted one of the world’s most iconic drives, visit vibrant Dublin city home of the Guinness Storehouse or just take you time and immerse yourself into what makes Ireland special. With over 60 years as #1 in Ireland with Hertz you can enjoy a safer, faster, easier experience whilst choosing from our full range of vehicles for whatever your needs. So whenever you want to visit, no matter what time of the year, you’ll find a warm welcome. Hertz, we’re here to get you there.
Headquartered in Portland, the Auto Europe operations are spread across marketing and call centers in Lisbon, Munich, and Sydney, Australia, which takes care of the Asia Pacific side of the business for Australians travelling to Europe. Auto Europe also counts a few employees in the
AUTO EUROPE TRAVEL PARTNERS • Alamo • Avis • Budget • Dollar • Europcar • Hertz • National • Sixt
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UK, working with local travel agents. The company’s staff are roughly split with 40 percent in the US, 20 percent in Australia, and a further 40 percent located in Europe. “Our business is mostly Americans going to Europe, Europeans travelling intra-Europe and Australians travelling to Europe,” he explains. “We are a broker, we don’t have any cars or locations, we have agreements with Hertz, Avis, Budget, Enterprise even small companies like Easy Rent in the UK, where we sell and buy - we don’t pre-buy as a wholesaler.”
“OUR LOYALTY TO SUPPLIERS AND OUR SUPPLIER’S LOYALTY TO US, IS THE MAJOR FACTOR OF OUR SUCCESS” – IMAD KHALIDI, CEO, AUTO EUROPE
STRENGTH IN SUPPLY Without a reliable and robust network of suppliers, business would simply not be possible for Europcar. “No supply, no clients. That’s the rule of the game. Only with loyal suppliers can you have loyal, repeat excellent clients,” states Khalidi. “80 percent of what I do every day is based on my relationships with suppliers - how can I help them and how can they help me.” Having previously worked for both Hertz and Europcar, Khalidi benefits from a solid foundation of interpersonal relationships based on years of working together. For Auto Europe, the prevailing challenge facing the industry today is that of supply versus demand, as a shortage of cars pales in comparison to the demand for car rentals as travel begins to pick up pace again. “When the business started coming back as people got vaccinated and Americans and Europeans started
No matter what time of the year, you’ll find a warm welcome
So drive Ireland with Hertz.
Ireland’s #1 car rental company.
AUTO EUROPE
travelling again, there was a huge demand and no supply. “Add to that the fact that you couldn’t buy any new cars at all, because the microchips are lacking and the car manufacturers can’t deliver the new cars, and with the prices in the second-hand car market going up by 20-30 percent, there was a huge demand compared to supply,” he explains. With companies seeking to recoup their losses, this translates to higher rates for the customer. “The rate in 2019 of around €200 a week, went up to €800 a week to 8 | North America Outlook issue 05
make up for the loss of income plus the lack of cars. This is the state of the industry.” Nevertheless, Khalidi is confident that within the next couple of years, this temporary reaction will stabilise, as more microchips are delivered to car manufacturers enabling access to new vehicles. Another crucial link in the chain is Auto Europe’s invaluable workforce, as those responsible for delivering that all-important customer service. “First of all, the company is not based on a pyramid structure. I have three structures, I have the soldiers, the lieutenants, and me as the general. My door is always open, for a soldier to come in and contact me,” he tells us. Here, fostering longevity in relationships is equally important to partner relations, with Khalidi highlighting his assistant who has been with him for almost 30 years.
“I HOPE THAT COVID-19 TAUGHT US SOMETHING, THAT IT IS NOT ONLY ABOUT PRICE BUT ALSO SERVICE” – IMAD KHALIDI, CEO, AUTO EUROPE DRIVING THROUGH THE PANDEMIC The industry-wide disruption of the COVID-19 pandemic is unprecedented, especially within travel as nationwide lockdowns bought global mobility to a standstill. For Auto Europe in particular, the company’s number of suppliers fell from 250 pre-pandemic to just under 200 today, due to many having to close down. Regardless, adversity is nothing new for the travel industry, where resiliency is a necessity.
TRANSPORT
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“COVID-19 came in, but the company was (and is) resilient. It was resilient in 1990 with Saddam Hussein invading Kuwait, in 2001 with 9/11, with the bombs on the London buses and in the volcanoes of Iceland. It was a very tough year, but the company was remained strong despite a low income. “We kept our employees as much as we could, we didn’t have to lay off many of them and so we continue doing what we do.” After a tumultuous year, recovery is finally on the horizon. “Business is seemingly back now, and we are 50 percent off revenues in 2019, so things are better and better,” he states hopefully. “When you lock people away for two years at home, they save money, and as soon as lockdown is over they will be travelling again,” he quips confidently. Looking to the years ahead, Khalidi
will be continuously working with suppliers to guarantee vehicles for clients, with a particular emphasis on nurturing repeat clients. “When the high demand is there and the supply is low, first of all I have to guarantee that I have supply for clients in 2022. “So, number one is guaranteeing that my suppliers will be in place to provide me with the right car at the right time and at the right price,” he comments. Drawing to a close, Khalidi is keen to stress his aspirations for the future of the industry, as it reshapes itself in the
wake of the widespread disruption of the pandemic. “The travel industry pre-COVID-19 did not have great service for our clients. Airline companies, some car rental services, and hotels in particular did not really care about the service. “I hope that COVID-19 taught us something, that it is not only about price but also service – for instance taking care of someone in their flight has been cancelled. “I hope that all domains of the travel industry becomes more focussed on the client as king. This is my wish.”
Phone: US: 800 223 5555 UK: +44 123 3225 114 DE: +49 89 412 07 269 www.Auto Europe.com
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AUTO EUROPE 43 Northport Drive Portland, ME 04103 USA Phone: US: 800 223 5555 UK: +44 123 3225 114 DE: +49 89 412 07 269 www.Auto Europe.com
PRODUCED BY NORTH AMERICA OUTLOOK MAGAZINE