Posts Tagged ‘Avis’

New research reveals lack of information given by car hire companies

Tuesday, January 26th, 2010

Those deciding to rent a car for their holidays have been advised to read and understand the terms and conditions outlined in the hire contract before committing their signature to the dotted line. Recent research by Which? Holiday has found that many car hire companies are severely lacking in the amount of information they offer up to customers before they hand over the keys. Researchers at Which? Holiday looked at eight car hire companies at Heathrow and Charles de Gaul and came up with some worrying results. When trying to examine the contractual terms and conditions on the websites of both Avis and Enterprise they could find nothing. Limited information was found on the websites of Budget, National and Alamo. A lack of information about the total cost of hiring a car from some of the companies meant that it was not possible to do an accurate price comparison because no information was given about the price of waivers or extra costs.

A spokesperson for Enterprise reportedly told the research team that their website was merely a tool for booking a vehicle and that the transaction as well as terms and conditions being made available would take place at the booking desk. National and Alamo also allegedly said that customers should not compare waivers and insurance cover on price alone because their levels can vary.

Hertz, Europcar and Enterprise all told Which? Holiday that the clause in their contracts making the hirer of a vehicle responsible for paying the full price of that vehicle in the event that they cannot produce the keys after the car has been stolen is a way of preventing fraud and negligence. They said that there were circumstances where exceptions would be made.

South African car hire firms focus on the World Cup

Friday, January 22nd, 2010

With the football World Cup just around the corner managers of car rental companies in South Africa are feeling upbeat about the future. As with everywhere else in the world South African car hire has been feeling the pinch of the global economic downturn. Many companies struggled to remain profitable as business and leisure customers disappeared and many who were denied the capital to maintain their fleets were forced to dramatically increase the rental price on their remaining vehicles just to stay afloat. However the Christmas period showed that customers were finally returning. CEO of car rental at Barloworld, Keith Rankin says that at Avis Rent A Car, owned by Barloworld, the demand for vehicles over the festive period was so high that for a couple of days they actually ran out of cars.

CEO of Europcar South Africa, Dawn Nathan-Jones said that compared to December 2008 tourism figures were up by 12 percent this Christmas. However Christmas is now over and car hire companies in South Africa will be firmly focused on one of the world’s biggest sporting events, the football World Cup. Many say that they intend to increase the size of their fleets to cope with anticipated demand. Nathan-Jones says that enquires and bookings of vehicles at Europcar for the event have shot up over the past few weeks. She says that Europcar could grow their fleet by as much as twenty percent.

The MD of Budget Rent A Car, Ray Booth says that they too intend to grow their fleet before the World Cup and that they too have experienced a surge in bookings over the last couple of weeks.

Online searches for car hire decline in third quarter

Wednesday, December 16th, 2009

Online searches for car hire related websites steadily declined throughout the year’s third quarter according to reports compiled by one of the U.K.’s leading internet search agencies. Greenlight announced in its Car Hire Sector Report - Q3 2009 that September searches were down 25% on August and 34% on July. Greenlight’s independent report also found that a number of the big players in the car rental sector had slid down the rankings of most searched for on the web by potential customers.

September’s report showed that the three most popular searches by people looking for car hire related sites were: Car hire, which made up 13%, Car rental making up 5% and Car hire UK taking 3%.

The Greenlight study also looked at the visibility of car hire firms on the web in terms of how many times a key word was used in a search and the respective positions they held on page one of Google. The three most visible car hire websites according to the Greenlight team were CarRentals (54%) Travelsupermarket (40%) and Easycar (32%). Falling down the rankings were AnyCarHire and EuropCar who both lost out to the more aggressive marketing tactics of both Hertz and Enterprise. Avis meanwhile stayed in it second quarter position being visible to only 21% of car hire related online searches in September.

Greenlight’s CEO, Warren Cowan said that achieving the top rankings in the car hire sector was incredibly difficult in such an aggressive market like car hire. He pointed out that it was a market where everyone was in direct competition with everybody else.

Avis car hire warns that prices are set to rise

Wednesday, November 18th, 2009

Car hire firm Avis Europe has warned that it will be raising rental prices to both its leisure and business users in the near future. Avis says that it has had to push prices up to cope with the lack of demand for rental vehicles caused by the global economic downturn. Avis has already managed to reduce its rental fleet size by around a fifth in an attempt to cut costs. As well as a reduction in the numbers of vehicles available Avis says it will continue with its programme of redundancies and freezes of both staff pay levels and recruitment.

By reducing the numbers of vehicles in it fleet Avis say that it has managed to offset the decline in passenger numbers whilst increasing rates of usage and decreasing costs. Avis says that cost cutting measures will not help a decline in revenue but will help to make the companies staff more productive.

The company also said that it was aiming to optimize the relationship between Avis and Budget not just in the U.K. but throughout Europe in countries such as France, Austria and Switzerland.

When talking about the future and the economic climate as a whole Avis said that it was being very cautious about making any predictions concerning both business and leisure spending.

It is hoped that cost cutting initiatives at Avis will result in a second-half restructuring charge in the region of €11 million according to a management statement.

Travel industry makes strides in going greener

Wednesday, November 11th, 2009

As it becomes more and more necessary for the individual to play their part in looking after the environment, so to is the travel industry taking greater steps to play its part. Car hire firms along with hotel chains and airlines are now making going greener a major part of their company policies. Car rental outlets throughout the world are now offering customers the opportunity to do their bit by providing fleets of hybrid cars as a way of saving fuel along with reducing emissions that damage the environment. Enterprise, Budget, Avis and Hertz already hire out a large range of vehicles especially designed to reduce a driver’s impact on the planet. Although at present they may cost a little more to run it is expected that over time as these vehicles become standard prices will drop.

Major aircraft manufacturers are also realizing that by producing planes that are more efficient they are helping to reduce the impact on both the environment and the wallets of the airline companies. Boeing has already shown that its new 787 is more efficient than most other large aircraft by around twenty percent. This added to initiatives by companies such as British Airways, Southwest, Continental and Singapore Air to recycle more materials and use more efficient bio-fuels is already having a more positive impact on the environment.

Greener designs, recycling programs, water and energy saving initiatives along with the use of electricity saving light bulbs are now measures that have become standard across many major hotel chains. Customers who wish to do their part in reducing their impact on the planet’s environment now have few excuses not to do so.

World Travel Awards recognises Avis

Thursday, October 1st, 2009

Major player in the US car hire industry, Avis Rent-A-Car has been distinguished by more than 160,000 travel industry professionals as the Leading Car Hire Company in North America at the World Travel Awards.

The awards, held in Orlando Florida, were established in 1993 to acknowledge and recognise excellence in the world tourism and travel industry.

The executive vice president of sales and marketing for Avis Budget Group was delighted over the award, saying that the company appreciated the recognition of the international travel community as North America’s leading car hire firm.

He went on to say that the award honours the many employees who try harder every day for their clients as well as uphold Avis’ commitment to travel professionals and educational development in the sector.

He also said that the company’s Club Red travel rewards program as well as their Avis Agent training program gave travel agents all the resources and tools required to be successful at their jobs.

President and founder of the World Travel Awards, Graham Cooke, said that the thousands of votes were cast by travel industry professionals from around the globe, and the awards were regarded as the highest achievement in the travel industry, proving Avis’ place as a leading car rental company.

In addition to providing travel professionals with the right tools to give the customer a better experience, Avis also offer an extensive range of products and services to help save time and to maximise productivity.

Dollar Thrifty to close more outlets this year

Thursday, September 17th, 2009

US Car hire giant Dollar Thrifty has announced plans to close a further ten outlets in the rest of this year, as part of a plan to cut under-performing and unprofitable locations.

The company said it did not anticipate any restructuring charges related to the closure of the outlets, and did not incur any major restructuring charges linked with previous closures.

The car hire firm has already closed about 115 corporate-owned locations in the US and Canada since October last year and has said that the locations represented 4 percent of the 2008 rental revenue.

Almost all major car hire firms such as Dollar Thrifty, Hertz and Avis Budget have been affected by the slowing economy as customers, especially business travellers, cutting costs which means lower rental volumes.

Chief Executive of Dollar Thrifty, Scott Thompson, said that he did not anticipate any further closures in the future period.

Avis streamlines car rental model

Monday, August 31st, 2009

Travellers returning from their holidays with tans and souvenirs are also returning with stories of incredibly high car rental prices, Avis has announced a plan to streamline its operations as to cope with the downturn in the travel industry.

As overall travel volume declined by 9.4 percent in the six month period to June 30, car hire companies have also taken a hit by the global recession.

Avis have reported a drop of 6.8 percent over the six months, but performance was stronger, with a drop of only 2.9 percent, because of the holiday season.

The company has also predominately been affected by the worldwide downturn specifically of corporate travel, as business car rental is one of Avis’ key markets.

Despite the declines, the car hire industry has benefited from raising their prices which has led to greater profit margins, as most companies have been forced to charge higher and sell vehicles as credit has been difficult to obtain.

Avis have been fighting the downturn by reducing its fleet by 16%, which has led to an increase in utilisation by 5 percent.

The company has also set out a plan streamline the management of its fleet by cutting back the number of new vehicles purchased by 30 percent, and has reduced its £1.1 billion debt by closing poor performing outlets and slashing jobs.

Following a rather optimistic peak season, Avis plan to expand into Asia and boost its UK operations, however the company forecasts a weak winter season.

Thanks to The Times.  For more information on this article visit their website.

Surge in late bookings increase car hire costs

Monday, August 17th, 2009

Last-minute holidaymakers are pushing up the price for rental cars this summer, mostly in Spain and Portugal.

The price increase is primarily due to a shortfall in fleets, as companies have not been able to obtain credit to buy new cars this season, and due to a forecasted drop in demand.

The situation has forced some tourists to cancel their holiday plans rather than go ahead with plans without car hire.

“Every summer there is a seasonal shortage of rental cars,” Michael Taride, President of Hertz Europe, told Sky News.

“We are buying additional fleet and keeping and maintaining cars for a longer period of time to accommodate the increase in demand.”

Span has been worst affected by the crisis with some holidaymakers paying twice the amount to higher a car compared to the same period last year.

Italy, France and parts of the UK are also experiencing car hire difficulties.

£365 is the cheapest weekly car rental in the Spanish resort of Malaga, and a small van such as the Volkswagen Touran will be about£850 per week.

Back in May we announced that demand was down so we would reduce our fleets to give us more flexibility,” Avis spokeswoman Hilary White said.

Car hire companies predicted a slowdown in demand due to the recession and had chosen not to upgrade cars or fleets.

Thanks to Sky News for the above quotes.  For more information on this article visit skynews.com

Avis report half yearly loss, stabilisation in the car hire market

Friday, August 14th, 2009

Avis Budget Group has slipped into the red this year with a further $6 million loss for the quarter, compared with a profit of $15 million in the same period last year, but says that they have seen a stabilisation in the market.

For the first six months of this year Avis have recorded results reaching $55 million. “While we continued to face sharply reduced demand for vehicle rentals in the second quarter, rental volumes did stabilize,” said Ronald Nelson, Avis Budget Group Chairman and CEO.

“We also made significant progress in several other areas. Our cost saving initiatives continued to deliver substantial benefits.”

Total revenue for the second quarter dropped to $1.3 billion, 17% down from the same period last year, with half-year revenue down to $2.5 billion, 17% down on last year.

Number of rental days for the company dropped by 21% to 22.7 million, from 28.6 million for the April to June period.  Overseas markets held up better compared with the US, recording only a drop of 10% and 22% respectively.

“Demand for car rental seems to have stabilized in the second quarter,” said Avis about the results.

“Third quarter demand, especially in the leisure segment, appears to be modestly stronger than recent trends, allowing some upward pressure on pricing to continue as our fleet levels remain in line with demand.”

Avis still hesitated to predict results for the full year saying that conditions were challenging.

Thanks to e-travel blackboard for the above quotes.  For more information visit their website.