Monday 17 September 2012

BLOG COMMENT - Car Hire - Pardon?

Who truly understands car hire except those who are in the business of hiring out cars? On one side you have the 'premium' companies such as Avis and Hertz and then, well, everyone else! Unlike airlines the car hire companies offer the same directly comparable means of transport but at different prices. Why? How? After many years in the TMC business I still haven't a clue. Well not really! I expect the bigger companies are global and have a bigger inventory but should they cost so much? OK, so they can (or could) afford to pay middle men incentives to promote them. And they could always leverage their coverage and reputation but even so the price gap is simply too high. So what are they doing about it? I guess they are doing what everyone else is doing i.e. reducing their overheads and becoming more competitive. Or are they? Who knows? Car Hire has started to shift away from travel procurement anyway. Good job too if everyone else understands as little as me.
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23 comments:

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    1. car hire in singapore12 October 2012 at 06:01

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  5. Taxis to Gatwick7 November 2012 at 16:11

    Branding plays a huge role in the car hire business. You literally have to 'glitterise' your brand to get noticed and at the to; and then you can charge what you like!... I just don't understand anymore...

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  12. Rental Car4 January 2013 at 14:28

    Am not getting your point Mike.

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  13. Mike Platt4 January 2013 at 17:40

    Hi Rental Car
    To me one of the joys of blogging is you can ask questions that puzzle you as well as trying to answer others. If I was making a point at all it was why is car hire so mysterious? Why are there so many different price bands and extra costs? What makes some companies who seem to charge so much become so successful. Where is the customer value in the different types of supplier? Unlike most other markets almost anyone can compete anywhere but why is so little visible on who adds value?
    Many times I have a point to make when blogging but this time it the point as such was why is the car hire market so 'grey'?!

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