Advantage Rent-A-Car this month named longtime industry executive George Gremse its new CEO, at a time when company is poised to expand its market presence.
Gremse has held numerous positions in the rental car industry, most recently as Alamo's president of North American operations, and several jobs in other industries, including banking, temporary staffing and travel. He now leads a company with a new infusion of capital following its acquirement by a private investment group.
ARC Venture Holding Inc., a group made up of investors including one of Advantage's fleet service providers, bought the San Antonio, Texas-based brand from holding company Walker Resources Inc. in a deal announced in February. Advantage is replacing its entire fleet with new vehicles from the DaimlerChrysler and GM lines, and Gremse said the fleet would be the freshest in the industry.
The infusion of capital from the acquisition has the firm, the smallest of the major car rental brands, moving to increase its footprint. Gremse said he wants Advantage to solidify its presence in the South and move eastward. It already has a strong presence in the Southwest, he said, with about 130 domestic locations and 127 international locations.
"The company reminds me of Southwest Airlines, with a strong focus on simplicity, value and performance that gives the traveler what he or she wants," Gremse said. "Along the lines of Southwest, we'll be expanding from a very strong core geography."
Advantage plans to move soon into five new airport markets, although Gremse would not specify which ones, citing continuing negotiations. Gremse said he also wants to continue growing in off-airport sites.
Gremse plans to emphasize the company's express services and a customer identification program that automatically issues a number to a customer when renting a vehicle and ties into Advantage's reward program. Advantage already has an alliance with Continental Airlines, and Gremse said the firm is in discussion with three other airlines. He also will cite the online tool that allows customers not only to make reservations but also view and manage statements and reports.
BTN's 2005 Business Travel Survey
(BTN, May 30) reported that about 35 percent of Advantage's revenue came from business travel. Gremse said he believes that number is higher, and he intends to court corporate travel clients. "We have a product line that's really geared toward the business travelers," he said.