Travel by roadTravel by road

Travel by RoadTravel by Road

Learning Objectives :-

• Evolution of the car-rental industry

• Identify the major car-rental companies

• Explain the rental customers’ motivations

Evolution of the Car-Rental Evolution of the Car-Rental industryindustry

• Need a car to move around within a big country e.g. Malaysia, USA, Australia

• Other modes of transportation e.g. train, coach but automobiles are still the most convenient

• 80% of vacation within a large country is by automobiles

Evolution of the Car-Rental Evolution of the Car-Rental IndustryIndustry

• Car-rental industry plays as an important role as other sectors e.g. air, lodging, travel agencies

• Ownership :- Corporate owned or franchisees

Car Rental MotivationsCar Rental Motivations

1) Get around easily

2) Best navigate and/or experience a place

3) Save money

Car Rental MotivationsCar Rental Motivations

4) Do business

5) Replace your own car

6) Prefer driving vacations

Business of Car RentalsBusiness of Car Rentals

• Corporate owned or a franchise

• Relies heavily on its relationship with other suppliers e.g. Wotif, AAS, Chan Brothers, AAA, Zuji

• Car rental firms and air carriers’ relationships e.g. Krisflyer program, Royal Orchid Plus, Mileage Plus, Worldpeaks etc.

Car Rental BrandsCar Rental Brands

Some well-known companies :-

• Hertz, Avis, Budget, National, Alamo, Thrifty, Dollar and Enterprise within USA

• Some companies are well-known throughout the world e.g. Hertz, Avis, Budget

Cost of Car RentalsCost of Car Rentals

• Different categories :- Subcompact or economy, Compact, Mid-size or intermediate, full-size etc

• Cost of car rentals :- Base Price (weekly or daily), insurance, additional driver, airport taxes etc.

Common forms of coverageCommon forms of coverage

1) CDW (Collision damage waiver) no/some charge to the renter for repairs

2) LDW (Loss Damage Waiver)

Vandalism relieves the renter of financial liability. Sometimes LDW is incorporated into CDW

Common forms of coverageCommon forms of coverage

3) PAI (Personal Accident Insurance)

covers bodily injury to the driver and passengers

4) Comprehensive : covers all aspects of car rental from damage to total loss

Basic InformationBasic Information

• Require driver to be 25 years old

• Largest car rental facilities are usually at or very near airports

• Procedures and practices for renting cars in foreign countries vary

• Some companies specialize in recreational vehicles (RVs)

Domestic Car RentalsDomestic Car Rentals

• Regulation (SZ plate, then led to “normal” license plates)

• Customer qualifications e.g. driver’s license, age, credit qualification, personal responsibility, driving record

• Car Equipment :- GPSs, choosing a car, daytime running lights

ReservationsReservations

• 1-800-toll free numbers, websites, travel agencies

RatesRates

1) Standard rates

2) Additional driver

3) Weekend discounts

4) Dropoff charges

5) Corporate rates

6) Taxes and fees

International RentalInternational Rental

• European distances and roads

• Leasing

• Other international destinations

• Which side of the road?

General Travel InformationGeneral Travel Information

1) Danger Signs

2) Prohibitory signs

3) Informative signs

SummarySummary

• Hertz and Avis were the pioneers of the auto rental industry.

• All rental customers must meet the basic requirements that enable them to drive vehicles

• International rentals ensure that drivers understand the various road signs, gas prices and parking challenges.