Under The Hood - 2000-07-31
<B>Under The Hood</B>
<B>Enterprise Tops J.D. Power Car rental study </B>
Enterprise Rent-A-Car, the largest U.S. car rental company, once again got the highest mark in J.D. Power and Associates' 2000 Domestic Airport Rental Car Customer Satisfaction Study. It received a score of 109—repeating its performance in last year's study, when it tied with Hertz Corp. The local replacement firm has been expanding its on-airport locations and currently serves 96 of the nation's top 100 airports. In contrast, the score of industry leader Hertz dipped to 103, below Avis and National, although still above the average industry score of 100. Avis came in second, with a score of 108, followed by National at 104. Alamo, Budget, Dollar and Thrifty all scored below the industry average (J.D. Power declined to reveal the exact scores). Satisfaction with the industry as a whole declined, with more than 30 percent of respondents reporting a problem in renting a car—a 15 percent increase over 1999.
Michael Taylor, J.D. Power and Associates' director of travel services, said the complaints mostly were related to the pick-up process and were attributable to the high volume of travelers at airports. In addition, "nobody likes the consolidated facilities"--a reference to the new shared car rental facilities that are located at a distance from the terminal and served by a common bus. "Travelers like being picked up by proprietary car rental company vans and delivered right to the facility"--a routine that is becoming less common as airports expand their terminals and close-in parking lots and move the car rental facilities farther from the terminal. The study found that failure on the car rental companies' part to correct a problem causes a 23 percent decline in overall satisfaction. Only 43 percent of problems actually are reported to rental car companies, and of these, 62 percent are resolved, according to the survey. The study also revealed that satisfaction drops significantly when customers must wait 20 minutes or more at any one point in the rental process. On average, customers wait 10 minutes to be picked up by a shuttle bus en route to the rental car counter, 13 minutes at the counter, six minutes to return a car and seven minutes for a shuttle bus back to the airport.
One surprising finding was that customers who use the Internet to research and book a rental are happier overall with the rental, said Taylor. "They may feel they are more in control of the process," he said. Enterprise's lead was due to satisfaction with the pick-up process and its high scores in pricing. In general, the single most important factor contributing to overall customer satisfaction was the pick-up process (contributing 39 percent to overall satisfaction), followed by the return process (22 percent), rates and value (21 percent), the condition of the rental car (15 percent), and the reservation process (7 percent). The findings were based on a survey of 3,068 randomly selected national rental car customers, who were asked to evaluate their most recent experience renting a car from an airport location.
<B>Hertz Loyalty Gets a Face Lift </B>
Hertz has revamped its loyalty service for its top members. Members of its free #1 Club service now receive an automatic invitation to join #1 Club Gold, which enables them to bypass the rental counter, after completing four rentals within a year. If they continue to rent at least four times annually, they can avoid paying the $50 yearly fee for #1 Club Gold membership. #1 Club Gold members who complete 10 or more rentals within a year are eligible for the Five Star level, which entitles them to complimentary one-car class upgrades, coupon offers with greatly reduced blackout dates and free rental day certificates after every 20 rentals. The top level, #1 Club Gold President's Circle, is open to renters who have made at least 40 rentals within a year. Membership privileges include guaranteed availability of the vehicle with a two-hour minimum advance reservation; a guaranteed upgrade (for midsize vehicle reservations and above); and a designated parking place closest to the vehicle pick-up location at the #1 Club Gold lot at the airport.
<B>Quick Takes </B>
ANC Rental Corp., consisting of National Car Rental, Alamo and Car Temps, is now an independent company. It was spun off from former parent company AutoNation Inc. in June. Budget Rent a Car launched Fastbreak, its express rental service, in the United Kingdom. The service debuted at London's Heathrow Airport and will be implemented at six other airports and five major downtown U.K. locations. Budget also plans to roll out Fastbreak in Austria, France, Germany and Switzerland this summer, followed later in the year by the Netherlands, Ireland and Spain. Thrifty Car Rental has upgraded its Web site, www.thrifty.com. Enhancements include a form enabling customers to sign up for e-mail notification of upcoming specials and discounts; greater search capabilities for locating a convenient Thrifty location; more detailed information about specific locations; and a more comprehensive FAQ section. Abrams Travel Data Services, the car rental market research firm, has relocated to 211 E. Ocean Blvd., Ste. 246, Long Beach, Calif., 90802, Tel: (562) 437-3700, Fax: (562) 437-3702.