What is the biggest worry that every company has? Increasing profit margins. The car rental industry is no exception. The rental industry is also focused on increasing revenue. As we all know, as infrastructure projects and competition grow, more firms are opting to rent rather than buy the car they need. Renting a car rather than purchasing it outright allows businesses to save money on capital expenditures while still gaining access to the most up-to-date technologies.
While this development is positive for car rental providers, it also means that competition is increasing. Customers who rent cars frequently contact experts at RentCar for assistance on how to increase their revenue. We’ve been advising our customers on what measures to take and how to use RentCar, our entire car rental software solution, to increase revenues for years.
In this blog, we’ll look at how a car rental software may help you deal with some of the most typical issues faced by rental organizations. An effective car rental system will get you back on track, from car lifecycle management to accurate and timely billing. Here are a few ways a proficient car rental software like RentCar prevents revenue loss.
Mitigate Rental Car Non-Availability:
The fact that the car is not available for rent because it is being fixed or maintained is one of the factors that can affect revenue flow in the car rental business. Customers frequently complain about the car that has been rented by businesses. As a result, the vehicle will need to be serviced or repaired, delaying delivery to the next customer and hurting revenue projections.
From the moment a vehicle is purchased until it is scrapped, car rental software helps you to manage the asset’s life cycle. You can make the most of the car’s availability by using this option. You could, for example, plan repairs and maintenance during slow periods. Alternatively, you can schedule preventative maintenance by looking at the vehicle’s performance over time. Taking these steps will boost car availability and, as a result, increase revenue.
Scheduling:
Another significant impediment to increasing rental car revenue is the time it takes to pick up an asset from one customer and deliver it on time to the next. It is critical to arrange the vehicle’s rent without overlap or excessive downtime. Late pickups might cause deliveries to be delayed, causing you to lose revenue. Transport of a car is another cost issue that must be carefully considered in order for the rental asset to be viable.
A graphical planning board is included in many car rental solutions. A planning board will show you where each vehicle is located and how it is used. You can utilize this to make the availability of each vehicle more efficient. You can assure that you are not overscheduling, losing out on maintenance, and that the car is not idle by having a thorough picture of the operators, the asset position, and even the movement schedule.
Capitalizing on Car Rental Packages:
Upselling or cross-selling assets and amenities is a common strategy to make cash in various rental settings. You may, for example, lend a luggage rack to a customer who is renting a vehicle for a long trip because the two are frequently used together. Another example is providing modern amenities to a customer who is tech savvy. There are numerous instances where you can increase your earnings but are unable to do so because you lack the necessary information.
Missed Payments:
When you rent out cars to consumers, you must ensure that they are aware of and agree to the rental and usage terms. Some delicate materials, for example, must be handled with care owing to wear and tear or other damage, thus they must be limited. However, because the customer’s location of usage is usually to far away places, you have no way of tracking usage. Rough and overuse of your vehicle results in lost revenue as well as increased wear and tear on the vehicle.
Car rental software can help you maintain track of the movement of your vehicles from one location to another using technology like the internet of things (IoT). You can determine if the customer is utilizing the vehicle in accordance with the agreement by tracking its movement and usage.
Gain more Insights:
Due to a variety of macro factors, the vehicle that is in demand in the rental business is always changing. Increased vacation needs, for example, may raise demand for certain types of cars. Another element that influences the need for specific vehicles is technological advancements. There could be other variables as well, such as current trends, quality constraints, safety precautions, and so on.
Information has become the economy for decision-making in today’s world, and having business intelligence from within and across industries can be critical to your company’s success. By delivering business intelligence, your car rental software can assist you with this issue. You may use this data to gain insight into the assets and rates that are in higher demand, allowing you to maximize your revenue.
Updates:
From your back office to your warehouses, your field crew, your operations team, and other teams, the rental operation has multiple touchpoints. The personnel that are out in the field, delivering or picking up the cars, are frequently the ones who receive a lot of data and updates from the customer. However, because the field team may find it difficult to return and complete the documentation, these updates and modifications may not reach the back office in time for action to be taken.
Today’s car rental software lets the many teams participating in the rental process use their preferred mobile devices to access the solution. This means that, rather than relying on their recollections or scrawled notes, field teams may update changes in real time using their mobile device. Extra use billing, service requests, and any other changes that the client wants or has made can all be updated to the back office at the same time, allowing them to act quickly.
Conclusion:
Technology has had a big impact on how the equipment rental industry operates today. Many of these improvements can be used to boost revenue while lowering costs. Are you interested in learning more about how equipment rental software might assist you? Contact RentCar and we’ll provide you with the relevant details.
