The recession has hit the rental market as hard as it’s hitting car makers and leasing firms. BusinessCar talks to several big brands to see how it is affecting their business and how they’re shaping up for the rest of 2009
Avis UK – Anthony Ainsworth, sales director
What will happen to the cost of daily rental in 2009?
The cost was depressed for many years, but over the past 12-18 months prices have risen as the cost of many elements of providing a quality service have risen.
By what green criteria can fleets book vehicles?
Customers can book efficient and low-emissions vehicles but the general consensus has been that fleets aren’t prepared to pay extra for this technology. Diesels are available in all the key volume rental sectors, while we have worked hard over the past 12 months to reduce our average emissions across the fleet.
What will be your key new development in the next 6-12 months?
This year Avis has improved its processing technology with an initiative called Asterix that will improve delivery and collection times for corporate customers.
What impact has the recession had upon fleet’s focus on risk management?
Fleet focus on risk management hasn’t changed, it’s simply that many companies are reducing their fleet and car rental needs. Most companies who opted for rental instead of running their own pool car fleets have kept this strategy in place.
What is your key message for 2009?
All round flexibility.
Budget Rent-a-Car – Andy Lewis, head of marketing & e-commerce
What will happen to the cost of daily rental in 2009?
The rental industry is currently experiencing tough supply conditions, particularly in terms of rising fleet costs. This is having, and will continue to have, an upward pressure on rental prices.
By what green criteria can fleets book vehicles?
In the UK we have been running a small number of hybrid vehicles on an extended trial to test customer acceptance. Additionally, we regularly renew our core fleet to ensure we are providing the latest, most environmentally sensitive models. Over 60% of our UK fleet falls below the 160g/km CO2 threshold.
What will be your key new development in the next 6-12 months?
There is nothing that we can announce at this time.
What impact has the recession had upon fleet’s focus on risk management?
It has not actually impacted the way we do business. In a wider context we do see many businesses turning to daily rental as a means of containing cost risk.
What is your key message for 2009?
In today’s market customers naturally demand even better value for money. Equally they are understandably reluctant to compromise on service and we believe they shouldn’t have to.
Enterprise Rent-A-Car – Rob Ingram, UK business development manager
What will happen to the cost of daily rental in 2009?
There’s little doubt that the industry average will likely go up. It’s difficult to put an exact figure on it, but rental rates have been kept at an artificially low level for some time. It’s likely that the market will correct itself over the coming months.
By what green criteria can fleets book vehicles?
We offer hybrids, making the most of the latest commercial hybrid technology. We also put a lot of effort into ensuring that all classes of vehicles are as efficient as possible. We keep a close eye on the average emissions in each of our bands to ensure they are as clean and fuel efficient as we can make them.
What will be your key new development in the next 6-12 months?
We have just released an alternative to credit hire – Direct Hire. It’s a way to provide customers in non-fault accidents with their rights, including mobility, but with a considerably lower cost of rental and shorter repair times.
What impact has the recession had upon fleet’s focus on risk management?
We’re still seeing a strong commitment to risk management. Most fleets realise that managing risk also helps to manage costs – the two are inextricably linked.
What is your key message for 2009?
Stability needs to be the focus for 2009.
Europcar UK Group – Lorraine Farnon, UK sales director
What will happen to the cost of daily rental in 2009?
It is difficult to say how much rates will go up by, as this is heavily dependent on the client-specific profile and mix of business and whether there is any behavioural change. It is inevitable that rental rates need to rise.
By what green criteria can fleets book vehicles?
Europcar provides the average CO2 information for each car group. We also offer hybrid vehicles. Our management information reports on CO2 emissions, helping fleets determine any changes that need to be made to travel or fleet policies.
What will be your key new development in the next 6-12 months?
We continue to invest in the provision of on-line reservation and rental management systems and on securing fleet and strengthening our network.
What impact has the recession had upon fleet’s focus on risk management?
In times of economic stress, businesses look for areas where they can save costs. While managers of larger fleets understand the implications of poor risk management, it is perhaps smaller businesses that are more vulnerable. Fleet is often the responsibility of the office manager/owner and in the daily priorities, health and safety practices may feature low on the list.
What is your key message for 2009?
Being flexible to meet customer demands is critical.
