Feature: Car Rental
Pictured left: Hitting the road with Avis
car rental companies,” says Adrian Woodward, director group supplier and industry relations for the Hogg Robinson Group (HRG). “While our customers are playing their part
➔Choice, and Thrifty’s FlexiFleet among the services not demanding a hefty, long-term fee upfront before they deliver the goods. That such measures are paying dividends
and point to the need for further innovation is reflected by the experiences of a number of car rental companies. Says Anthony Ainsworth, commercial director, Avis UK: “Our corporate volumes have grown in the year to date as the economy and business confidence slowly improves. There has also been strong volume growth from the new business we have won over the past 12 months. Our Avis Flex product is proving very popular.” Budget’s Stuart Liddle adds: “We have seen
TAILOR-MADE MOTORING
Avis As well as developing its booking tools, the renter is refining its key corporate service, Avis Flex, a flexible scheme for long-term rental, which offers customers a minimum commitment of 28 days, with no penalties if the contract is cancelled. Services specific to the SME market include the chance to save on credit card payments, tailor-made low business rates, and flexible solutions for longer rentals. In addition, Avis Business Plus offers a range of pricing options, designed around vehicle type, volume required, and when cars need to be collected. Over the next year, the company will roll out a new management reporting tool, giving a greater insight into how a car rental programme is performing.
Budget The company is expanding its network across the UK, and rolling out its main corporate product, Business Connections, countrywide. This is a no-contract, pay-as- you-go service giving customers a flexible solution to business travel needs. Introduced in response to feedback from small businesses looking for affordable corporate rates in a transparent and accessible package, it provides UK customers with a 12 per cent discount on rentals in Europe, the US, the Middle East and Africa.
Europcar UK Among products for the corporate client, Carhirebooker from Europcar is an online hire management solution which allows individuals or companies to log on to manage all their car hire needs. The company recently
introduced Business Choice to give SMEs a facility budget for their vehicle hire costs for one year. Rates can be further reduced with long-term and mini-lease options. Also available is the Privilege Loyalty Programme.
Hertz The company offers Hertz Business First Account, a flexible programme particularly suited to the SME market. Customers benefit from preferential rates on car and van hire, and a yearly fixed fee. Hertz 28+ is a monthly rental product providing the flexibility of daily rental but at discounted long-term rates. The minimum commitment is for 28 days, after which there are no early return or termination fees. Other corporate services include Connect by Hertz, a car-sharing scheme.
National Car Rental The company has enhanced several of its services this year and is working with a number of clients to help them operate more efficiently in the procurement process. Its SME product is the all-inclusive More4Less, with no minimum reservation levels and a 7.5 per cent discount on web rates. Customers are also offered free membership of Emerald Club, providing time-saving recognition at locations worldwide, including airport sites.
Nexus Vehicle Rental The Nexus online reservation system, IRIS, delivers advanced service propositions, with no transaction charges and cost benefits through substantial purchasing power. Every part of the rental process can be conducted
at the touch of a button, including the final invoice, while management information ensures cost and quality are controlled. The company was the first to offer a UK-wide
service enabling clients to select a vehicle by CO2 emissions. The Nexus Mileage versus Rental tool identifies whether it is more economical for SMEs to use a private car or to hire a vehicle for any given journey.
Sixt The Sixt card programme for the regular SME business traveller has entry levels dependent on the number of rentals made with the car hire company or customer status with its airline or hotel partners. The card offers up to 15 per cent discount on Sixt’ own best internet rates, with other benefits including upgrades, faster rentals linked to data storage, and the chance to collect air miles or points with associates. In June, Sixt launched DriveNow, a car sharing venture with BMW. Initially available in Munich and Berlin, the long-term plan is to roll out the scheme internationally.
Thrifty Car Rental To help SMEs address the financial challenges of the post-recessionary era, Thrifty has introduced FlexiFleet. This allows customers to lease cars on a pay-as-you-go basis, with no termination penalties if they decide to return vehicles before the end of the contract. This, says Thrifty, means users get the benefits and peace of mind of contract hire, but without long-term agreements, enabling them to adapt quickly to changing circumstances.
increased demand over the past two years in the retail market, having opened ten new airport locations. The focus now is to grow our B2B segments with the same enthusiasm. Over the next 14 months we will aggressively grow our corporate market share with our network expansion, product development and continued focus on account management.” That’s the sort of fighting talk that travel management companies, charged with steering their clients towards the best deals during the downturn, want to hear. “There is now a lot more sensible decision making by
“Suppliers have struggled to obtain vehicle stocks but have nevertheless put up their prices by only the rate of inflation”
by controlling car policy more strongly, the suppliers have struggled to obtain vehicle stocks but have nevertheless put up their prices by only the rate of inflation. As a result, we have seen corporate transactions growing ten per cent year on year, and are confident recovery in the car rental sector will continue,” says Woodward. But while moves towards keener pricing are creating some optimism, consumers are facing up to many other issues – not least the demise of car pools due to tougher legislation on tax and maintenance. Says the BVRLA’s John Lewis: “Rather than just leave an expensive asset depreciating in their company
car park, many organisations are now working with their rental operator to provide a much more cost-efficient, hassle-free, pay-as-you-go alternative to the car pool.” Of equal concern to the consumer is the pressure to adopt green as the colour of choice in the use of car rental, and again Lewis has witnessed a move in this direction. “Where size is not an issue, end users are definitely
➔
22 I THE BUSINESS TRAVEL MAGAZINE 18 I THE BUSINESS TRAVEL MAGAZINE
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76