The market statistics of the car rental industry How profitable will the car rental company be in this current era; what are the pros and cons to consider before venturing out?
It is quite surprising to see how famous the car rental industry has grown to be. In the US alone, it is a big business, close to being a multi-billion dollar industry; in-fact the number of car rental vehicles have increased to a whopping 1.9 million in number. All across the world, the car rental service business is up for a different environment than it faced few years ago. A number of car agencies have mushroomed up recently, all leading to a stiff competition. While in the earlier years, the taxi agencies have devoted their business to increasing the number of sales and profitability, the current trend is to innovating variety packages to attract the customer fleet. The highest turnout rate for the car rental service is in the form of airport car rentals. Apart from establishing locally, many companies have expanded their services to other countries now provide added bonus services at the destination countries. Among the many packages they offer, these taxi services have realised the benefit of partnering with travel packages and tour organisers as their travel agency at different locations. The car agencies have divided their service based on an interesting concept. To upkeep their demand and maintain a regular supply of services, the number of cars they own have been divided into different zone areas. This assures a convenient system for daily passengers as well as stand-by ready cars at different locations. GPRS and other safety measures have been installed in the cars thus assuring the passenger of a safe ride. To cater to the economy of several passengers, these car services are now available according to the monetary standards of the passenger, and can choose their cars from economy to luxury class. The success of this business depends on a few factors. While the regular office going customer is a constant income for the business, the airport car rental is a profitable venture. The rest of the business depends on the tourism in the area. With local car agencies turning touristic partners,
the services now boast of a tour package depending on the budget. Recession hitting the employeeâ€™s monetary status has a direct influence on the downturn of the business. And what differentiates the rental service from another? While technological advancement is the deciding factor in a few agencies, enhanced services and better online facilities may work for the remaining. Companies must come up inventive ideas to keep their customer base intact and find new opportunities to attract newer fleet. The competition is so fierce that newer agencies will have a tough time proving their stand, and adding attractive tour packages. With fuel prices always heading uphill, itâ€™s time the companies decide on ingenious ideas, perhaps providing free Wi-Fi service to customers might help.