Are you thinking about starting a car rental company and don’t know where to start? Or do you have a pre-existing service and want to take it to the next step? While it can be a rewarding and profitable business, there are some critical factors that, if ignored, can inhibit success. Here are 5 tips for operating a successful car rental company:
1) Identify a niche market and build from there.
As a car rental company, you want to offer a diverse range of vehicles and services, but not so much that your customers are overwhelmed. Examine the specific needs in your community and identify the market you want to cater to. If you live in a vibrant, metropolitan city, you might choose to offer higher-end vehicles which would be suiting for upscale events. Once you’ve decided on your target market, you can begin building a fleet. Following this process will make fleet expansion significantly easier and allow you to focus on finding a good deal.
2) Organization is key.
Operating a car rental company comes with vast responsibilities that can be hard to stay on top of. Responsibilities range from tending to customer concerns, to maintaining your fleet, to taking care of accounting. Every successful company organizes the various aspects of their business in a car rental management software like Navotar. It allows businesses to track activities like daily check-outs/ins, fleet maintenance details, and management reporting all in one place. An all-in-one solution is critical to organizing your responsibilities, so you can focus on customer satisfaction.
3) Prioritize safety.
At the end of the day, your business is nothing if you cannot ensure customer safety to the best of your ability. A company with a reputation for renting out faulty vehicles is likely not to gain the trust of consumers. Maintaining your vehicles through regular inspections and scheduled maintenance like oil changes is part of your responsibility to your customers. Hertz’ 35-point inspection checklist is a testament to their diligence when it comes to vehicle cleanliness and safety. A car rental management system like Navotar can help you keep up with important maintenance appointments by providing reminders.
4) Make yourself easily accessible.
In today’s fast paced world, not all consumers have time to walk/call into a car rental company to rent a car. Sometimes it’s an emergency, sometimes they’re just busy. Providing a variety of platforms for people to rent from you, particularly online, benefits both you and your customers while increasing efficiency. An online reservation plugin or Chat bot like that of Navotar can facilitate the reservation process on your website or Facebook page can speed up the reservation process. One of the greatest benefits of conducting business online is that you can operate after-hours without a customer service representative present. An easily accessible business will always be a popular option.
5) Calculate your costs.
Vast responsibilities come with vast costs for car rental companies. Purchasing vehicles, maintaining your fleet, and fuel expenses are some of the many costs you will likely face. Remaining profitable is dependent on your ability to organize, track, and interpret your costs regularly, and to cut costs/spend money accordingly. Tracking how much each profit each of your vehicles is bringing you is especially important and is a function available within Navotar.