HireEzy – Hire and Rental Software

Rental cars Competitiveness to Increase

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• Rental Marketing
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• vehicle hire software
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• vehicle rental software

This post discusses if there are opportunities for the smaller vehicle hire or smaller mixed hire and rental business, that has a small vehicle fleet?

Current Situation

One of the many flow on effects of the downturn is that major Rental Car companies are holding on to their vehicle stock longer. Car rental companies have previously relied on the credit provided by the Automotive Car giants. Such credit lines are no longer available or at least until such time as funds are provided from Government resources.

Compounding the problem is a decline in car rentals, particularly in the corporate and tourism markets.
Corporates are not only cutting back staff but also on travel. This cut back has flow on effects accross the hire and rental industry. As Corporates cut back – not only the Car rental, but also the taxi and limousine markets feel the effects. All three are related suppliers of transport services to the corporate sector. As the market shrinks, all three will begin to discount fares or hire charges to maintain cash flow.   Car rental companies with older stock may have greater room to move on discounting rental fees.  But such discounts may need to keep pace with the discount rates being given by the alternatives – taxi’s and limousines.  Limousines drivers are slashing their charges, in some cases being only marginally more than the cost of a taxi for the same trip.

The tourism sector is also declining. This will further reduce car rentals. Whilst domestic tourism may increase it is unlikely to provide a significant boost to the car rental market.

So where is the opportunity for the smaller vehicle rental operator and/or mixed rental hire business?

Those rental businesses with a good local clientele may be best positioned to survive the downturn. Whilst longer term rentals may decline, the demand for short term rentals of specialist vehicles (trucks, utilities etc) may increase. See post on growth in home repair market – Construction, Tool etc. Specialist vehicle rental companies such as wedding limousines etc may also suffer increased competition.

Pro-active marketing to your clientele with not only specials but examples of use would be effective.  For example – Time to clear up the garden? Then make it easier to take the waste to the disposal site with our weekend gardeners special – a 1 tonne truck or ute for $x per weekend.

With HireEzy creating marketing material such as this is easy.  And it is even easy to email it to your clients.  HireEzy has all your vehicle hire needs in one software package.  Go even further and use HireEzy to manage your on -line vehicle bookings all from the one package.

HireEzy is a product of Making Life Ezy, a company committed to positive ideas for our clients no matter what the economic conditions.