MARCH/APRIL 2013
Car rental
EFFICIENCIES DRIVING
72
CAR RENTAL DOESN’T OFTEN grab the corporate travel policy headlines – but maybe it should. Guild of Travel Management Companies transaction figures for 2012 saw a 7 per cent year-on-year increase for car rental, compared to an all-sector increase of just 4 per cent. Meanwhile, Carlson Wagonlit Travel’s (CWT) report, Mastering the Maze: A Practical Guide to Air and Ground Savings, cites a global corporate spend of US$13-14 billion on car rental (for 2011). Business analyst firm Datamonitor says last year’s UK corporate spend on car rental was up around 2.5-3 per cent on the £1.3 billion the previous year. And CWT’s research reveals that car rental accounts for an average of 7 per cent of overall travel budgets and “deserves more attention”.
The car rental sector is racing ahead, while offering a complex range of options. Catherine Chetwynd takes a look under the bonnet to see what makes it tick
Corporate contracts can be confusing and complicated: the daily rental rate can be constructed in a number of ways, including unlimited free mileage, or free up to, say, 250 miles followed by a mileage charge; and then there is the minefield of ancillary charges. In addition, billing often does not produce sufficient management information (MI). “A good place for companies to start when looking at ways to maximise savings on car rental is to conduct a thorough analysis of current spend,” says American Express Global
Business Travel director Sebastien Marchon. “Gaining visibility of how much is spent with existing suppliers can be used as leverage during renegotiation of supplier contracts. It can also help your organisation understand areas in which cost savings might be achieved. He adds: “Ancillary services, like delivery and collection, GPS technology, airport fees and excess damage administration charges, are all negotiable and tend to make up 30 to 40 per cent of car rental spend, so try to achieve savings on these items
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