The main objective of a car rental company is to get you to pay them money in return for using their cars. Simple enough, but when other companies are out there with the same objective, a customer base cannot be grown and thus profits cannot be increased without differentiating oneself from the competition. Different people have different needs and one company will not be able to meet all of them simultaneously. Some companies will try to differentiate themselves somewhat. But it must be said that altogether, car companies have two separate customer types: the frequent user and the casual user. The frequent user is the one who looks for differences. The casual user looks for price. Coronado Cars – Panama City
The future of car rentals
Most industries will change as companies and their competitors grow to meet ever changing demands in their respective markets. Strengths of a particular company at a particular time may very well turn to weaknesses if the leaders of a company do not change with the times. The business of car rentals is no different. Once a market dominated by just a couple of companies has grown to include many more competitors that offer a variety of new services. Those who will survive and prosper will look at the future, correctly predict developing demands of consumers, and adjust accordingly.
Reliability of the new car smell
Rental agencies realize that discerning customers have choices and these choices are only going to continue to grow. If your competition is going to offer more reliable, newer cars with more options in the future so must your company.
The market for environmentally friendly products is getting stronger every day. Many people are looking for ways to reduce their carbon foot print and seek to decrease greenhouse gases any way they can. Look for more car rentals to be hybrids in the years to come. Look also for electric car technology to make its way to rental agencies.
We have already seen the advent of the GPS in most if not all rental vehicles. Many cars are also currently equipped with iPod ports and DVD players. Look for the business of car rentals to position itself in the future as a method of introduction for vehicle technology. This is not just to keep pace with rivals but perhaps to open new markets aimed at individuals who wish to try a new technology out (via renting a car equipped with it) before they purchase it as an option on their own new car.
Easy in easy out
Rental agencies are going to continue serving their biggest base of customers: people who need a car while at the airport. Technology for renting, locating and paying for the car will continue to improve.
Smaller rental agencies have created a niche market for people who want to rent a vehicle for less than a day. Many of these companies charge customers by the hour. In the future look for the bigger companies to offer car rentals in more flexible rental formats, specifically a broadening of the hourly rate along with a bigger focus on metropolitan customers.
An old tactic to thwart competition in many a market place is to partner up with companies that offer services or products which can interact or be integrated with the product or service your company offers. Rental companies may use this tactic to align themselves with certain gas stations or certain restaurants or hotels in exchange for their customers receiving a discount at these locations. Again, this is not a new technique but it may play well in future of rising gas and lodging prices. All in all the future of the automobile rental agencies looks bright and exciting.