WHEN holidaymakers think about renting a car, their sole concern is not size, but to look for the cheapest deal.
That has made the leisure rental market a cut-throat business. But as companies are essentially selling the same product, they are attempting to offer added value to win sales rather than continue to reduce rates.
Suncars, Holiday Autos and Thrifty all offer retailers financial incentives worth up to ú7 a booking in addition to the usual commission. These and other companies are constantly looking to improve service and choice of extras to try to win more leisure business.
Avis head of UK travel sales Tom Knopek said:”Product differentiation is vital. For Avis I would say it is quality and service. I believe if you rent an Avis car there is a greater probability of quality and safety than if you hired a car from a random local operator.”
In Europe, Group A cars are traditionally the smallest and cheapest vehicles available, with the choice of car climbing up the alphabet as the standard rises. However, for certain destinations some operators feature cars below Group A, like the small Fiat Cinquecento. In the US, cars are graded by size – economy, compact and mid-size – not group.
The top-selling cars are groups A and B. Knopek reckons they account for 50% of Avis’ total leisure rental, while for Suncars the figure rises to 80%.
But rental operators warn that by choosing on price, clients are often not buying a car suitable to their needs.
Alamo marketing manager Sally Craythorne said: “We have had customers go to their car and then come back to the rental desk because they can’t all fit in.
“Reservations staff ask questions to try to ensure the client is getting a car to suit. We are not just renting a car, we have to give good service as well.”
Suncars general manager John Briggs added: “We put guidelines in the brochure, but customers go for the cheapest possible and then have to upgrade in resort, which is more expensive.”
Each company sets its own group standard according to various factors, including engine size, capacity, number of doors, whether they are automatic or manual, and have air-conditioning.
As a result, size and fittings vary between companies. For instance, Thrifty has air-conditioning across its entire US fleet but not in parts of Europe. Avis has air-conditioning in all group B cars in Spain. Also, all cars in the US are automatic.
Car-rental operators illustrate in their brochures typical cars in each group and indicate how many people and how much luggage they are suitable for.
Thrifty Car Rental UK sales and marketing director Andrew Burton said: “Generally speaking, for a couple staying in one place a group A car would be sufficient. A couple doing a great deal of touring may find a group B or C car more suitable. A group C car is more appropriate for a family.”
As important as whether the clients and their luggage will fit in the car is what they plan to do on holiday. A small-engined vehicle might be fine for cruising around a resort in the Canaries, but not for driving miles in the Alps or at speed along autobahns, when a group D car is more suitable.
“In our agent training sessions we suggest a good guide is to ask clients what they drive at home,” said Briggs. “If it is a Ford Mondeo, a Fiat Cinquecento is unlikely to suit them on holiday.”
Holiday Autos marketing manager Lindsey Pritchard added: “Travel agents benefit from asking questions to ensure the customer is hiring a car that is right for them as they do not earn extra commission on upgrades arranged in resort.”