Major international car rental companies this year have reported revenue growth and unveiled European services, including new tools designed to woo more corporate customers.
National Car Rental this month highlighted several new programs targeted to its international locations. "In the last year, we have made considerable investment in a series of initiatives that focus on driver safety and efficiency," Rebecca Madden, National's director of corporate marketing for Europe, the Middle East and Africa, said in a prepared statement.
One of those initiatives was the introduction of what National said was the first global electronic voucher program available for both corporate and leisure rentals in the car rental sector. It's one of several steps National has taken in speeding up the rental process, another of which is the expansion of its locker system in the United Kingdom. The lockers allow renters to skip the rental counter and get their car key and rental agreement in a locker accessible either by credit card swipe or a PIN number assigned at the time of booking. Following its trial run at Stansted Airport, National is expanding the program to other airports in the country, including Birmingham and Luton.
Some of National's international initiatives also have focused on safety. For example, National has added more countries to its international road safety information Web site, including Bulgaria, Lithuania and Jordan, bringing the list of countries it covers to more than 45.
Avis Europe Plc, Europe's largest car rental company, also rolled out a new Web site, and reported Internet reservations have increased to account for 31 percent of all reservations. In addition, the company recently announced expansion in Greece, Spain and Germany.
In its earnings report for the first half of 2007, Avis Europe said its revenues, excluding discontinued operations, were up 4.7 percent to E604 million. The company, however, reported a post-tax net loss of E12.8 million, with fleet and interest costs rising and rates down, largely from customers hiring vehicles on longer contracts.
"Overall pricing was lower, but with some improvement since Easter, partially driven by revenue-management actions," according to Murray Hennessy, Avis Europe's group chief executive.
Pullach, Germany-based Sixt AG also reported revenue growth in the first half of 2007, up 10.1 percent to E649 million. Sixt credited increased international business volumes and contract extensions with major customers for a 12.3 percent increase in rental volume in the six-month period.
This year, Sixt has been pushing its growth in Eastern Europe. The company announced in July that it expanded its Eastern Europe office network to include offices in Belarus, bringing it to a total of 100 offices in 16 countries.
The Eastern Europe presence is based partly on the need to provide additional services for business travelers and corporate customers, according to Sixt. The company said the economic growth rate in the region is expected to be about 5 percent, increasing the demand for mobility services particularly as Eastern Europe-based companies, as well as international interest in the region, expand. By the end of the year, Sixt's fleet in Eastern Europe is expected to reach about 10,000 vehicles, according to the company.
Hertz Global Holdings did not break out international car rental revenues in its latest earnings report, but worldwide, revenues were up 7.5 percent during the second quarter of 2007 to a record $1.74 billion
(BTN, Sept. 10). This summer, Hertz announced that it was expanding the ability of its navigation system, NeverLost, which initially was launched in Europe in November 2005. Hertz said it was adding 1,500 units, bringing the total number of tools available to 4,000, available at more than 240 Hertz locations in 16 European countries.