The car rental business is swarming with opportunities for growth as it includes several business verticals such as tourism, cab aggregators, office travel service, airport shuttle service, etc. As the opportunities for growth increase, it becomes all the more daunting to run and maintain the car rental business owing to the increase in the fleet, staff, vehicle maintenance requirements, and several other parameters.
Having said that, car rental business enterprises have not restrained from growing or evolving, rather they have resorted to technological innovations to overcome the problems that come with growth. Car rental software is one of the best technological innovations that is being widely used across all car rental business enterprises.
Why the Sudden Growth Spurt?
Allied Market Research estimated the car rental market to reach USD 164,335 million by 2022 at a growth rate of 11.6% since 2016. One of the main reasons for this kind of growth spurt is the increase in population. As the population increases, the need for travel also increases and at least about 50% of the population do not want to drive as it is a costly affair and leads to fatigue.
Another important reason for the rapid growth of the car rental market is the increase in pollution. More number of vehicles means more pollution, which leads to several health and environmental problems. People have grown conscious toward being environment-friendly to provide a better tomorrow, which is why an increasing number of people have started using car rental service.
Why Car Rental Service is Preferred?
While the reasons for people to prefer using car rental service are completely subjective, there are a few common that can be generalized to the common population.
- Cost-effective – Driving your own vehicle can be a costly affair. Not all vehicles give more miles per liter and daily commute can lead to frequent visits to the fuel station, which can poke a hole in your wallet.
- Less Cumbersome – Routine long-distance travel can be taxing and lead to several health problems as well. If there is a long-distance journey scheduled right after work it can be all the more tiresome and a car rental service is one of the best alternatives that can be less cumbersome.
- Convenient – Nipping in and out of traffic during peak hours is a nightmare, especially if you need to do it on a daily basis. The car rental business provides a convenient way to tackle this issue.
The profoundness of the car rental market has attracted several players of various sizes to invest in it and the prolific car rental software has helped the car rental business enterprises to outlast the constant changes. In the past few years, the car rental business has branched out several variations with innovative ideas and features, and there are several similarities and differences between each of them.
Not all car rental business enterprises have succeeded, only those that have integrated effective methods in the usage of car rental software have been able to crack the business model.
Effective Methods:
- Effortless Bookings – Car rental business enterprises must play to customers’ convenience and it begins with the booking process. Booking a ride is the primary reason for a customer to use your services; therefore, it must be as easy and straightforward as possible. Having a complicated or unnecessarily extensive booking process will only result in the loss of clients.
- Crisp Communication Lines – Driver-passenger communication is an important aspect of the car rental business and more care should be given to optimizing this feature. Many car rental business enterprises provide one-way communication from the driver to the passenger; however, the passenger cannot contact the driver and can only contact the customer care center. Encrypted two-way communication is a must-have feature to enhance the customer experience.
- Efficient Fleet Management – This is probably one of the most problematic aspects of running and managing a car rental business. Good car rental software must allow for efficient fleet management since it can be a huge deal-breaker. A car rental business must know, monitor, moderate the flow of vehicles to the right location based on the need.
- Efficient Inventory Management – Car rental business enterprises must have and maintain a proper inventory. The vastness of the business demands more efficient management of inventory as it helps keep track of the number of vehicles and their availability in order to lessen the confusion and provide seamless service to the customers.
These are some of the effective methodologies that innovative companies use in car rental software. By adopting effective methods like these you can not only grow your business but also endure the changes and difficulties that come along with growth and market shifts. RentCar is proficient in market trends and the changing needs of the customers and we can provide the best car rental software that can deliver highly effective features.
