car rental | report


CHANGE driving


TRAVELERS WANT TO hit the ground running once their luggage is heaved off the carousel. And many of them aren’t interested in waiting for trains, subways or buses, which is why car rentals are increasingly being built into travel packages. In 2014, the car rental industry saw $24.9bn


in income. Although Enterprise Holdings, Hertz Global and Avis are seemingly the major players, the top tier standings appear to change with each travel advisor or agency preference. Some corporate advisors tout Hertz as their


favored player, even though financially, it ranks behind Enterprise, a conglomerate that includes National and Alamo. Others hail Enterprise’s services, with $12.8bn earned in the US in 2014 — around $950m more than the previous year. Avis rides with the big kids too, but has seen


smaller gains, going from $5bn in 2013 to $5.5bn in 2014. Hertz, meanwhile, garnered $6.3bn and $6.4bn in 2013 and 2014, respectively. However, profit spreadsheets don’t always give agents a clear picture of what’s down the road, nor does it predict where the industry is headed. “Tere are always changes and updates,” says


Dan Beschloss, executive director of industry relations at Valerie Williams Travel, a firm headquartered in New York City with 15 more locations throughout the US. “Some of these [changes] include: consolidation


of car companies, namely Budget with Avis, and Alamo and National with Enterprise; updating fleets with sustainability in mind; and a greater


emphasis on what the traveler is looking for, such as easy access with regard to on-airport locations bypassing counter locations,” adds Beschloss. “Business travel is also expected to increase over the next few years and a global network will be key in the success of the car rental industry.” Te industry is also moving into car or ride


sharing — not to be confused with Uber, Gett or Lyft, which are now defined as car or ride hailing. Avis purchased Boston-based Zipcar a few years ago for about $500m and has since seen a 10% increase in sales. Enterprise purchased car- sharing companies in New York, Washington DC and other locations, and has also created Enterprise Carshare and Rideshare for corporate clients. Te latter also works for locals who’d rather share a van and save gas. “Enterprise Carshare is available in more than


35 US states, on more than 100 university campuses, 40 government and business programs and hundreds of business accounts,” according to an Enterprise spokesperson. Zipcar offers the same. According to company


spokesperson Katelyn Chesley, the cars are sitting at more than 50 airport locations in North America,


including LaGuardia in New York,


Logan airport in Boston, and Philadelphia and Los Angeles, as well as sites in the UK. However, many agents


and advisors are


reluctant to speak about the car-sharing aspect of the industry as they aren’t yet sure where it fits into the rental spectrum. Tey understand u


From consolidations and fleet upgrades to a growing ride sharing market, Denise Dubé reports on the future of the car rental industry


SELLING TIPS


From Sharon Faulkner, executive director, American Car Rental Association


n IN CREDIT: These days some credit cards or personal car insurance policies have insurance that extends to car rentals. Ask the client to check those services before adding insurance. n PLAN AHEAD: Advise clients to choose whatever options they want before leaving the office. Yes, prepaid fuel is a must, but is a car seat rental needed or are they traveling solo? n LOCATION LOCATION: Are GPS systems necessary or does the client have cell phone map applications similar to MapQuest? If so, tell them to make sure they’re updated before leaving. If not, advise the client to purchase the GPS or upgrade to a car with built-in GPS. n SIZE MATTERS: Travelers sometimes believe a small standard car will work for just two people, but two or three hefty bags and a set of golf clubs can quickly change the scenario. Urge clients to choose the correct size car from the beginning. n CARD CONTROL: Rental cars won’t always take debit cards unless you have a fly in and fly out ticket from the same airport, so it’s best for clients to have a credit card.


fall 2015 | ASTAnetwork | 61


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