mandeep is favourite blogs: The Car Rental Industry

Car rental industry is a multi-billion dollar sector of the economy. U.S. industry average of about $ 18.5 billion a year in revenue section. Today, there are approximately 1.9 million rental vehicles that are serving the American market segment. In addition, the total revenue of the industry leaders, the Dollar Thrifty, Budget and Vanguard section are in addition to rental agencies.In addition, the benefits of the Enterprise, including Hertz and Avis are generated by some firms. For the 2004 fiscal year, generated $ 7.4 billion in total revenue of the enterprise. Hz with about $ 5.2 billion in the second item and came up with $ 2.97 in revenue.

Integration Level

Business News, according to the vehicle until they have accumulated 20,000 to 30,000 miles until they are gone for the used car industry, the profit turn-around 15,000 miles from 12,000 five years ago to rent are being used. Slow industry growth and narrow profit margins caused by a backward integration within the industry there is an imminent threat. In fact, the only players in the industry through Ford's vertically integrated Hz.

Scope of competition

There are many factors that shape the competitive landscape of the car rental industry are. Comes from two main sources over the competition chain.has established a network of leisure section. Corporate section on the other hand, competition is very strong at airports since the tight supervision by Hertz under that section. In recent years the industry has taken a massive economic collapse, most companies that survive the competition within this scale has been upgraded. Competitively speaking, the rental car industry, Enterprise, Hertz and Avis of the fittest among the major players, including the rental agencies to engage in war is a war zone.

Development

In the past five years, most companies have been working towards increasing the fleet size and increase the level of profitability.Hertz, on the other hand, added 25,000 vehicles and 150 140 as opposed to the county in 2002 broadened its international presence. Also, despite the recent economic adversities commodity has increased its fleet in 2002, 220,000 to 210,000.For example, annual sales of $ 2001 6.3 in 2002, $ 6.5, $ 6.9 and $ 7.4 billion in 2003, the last four years in 2004 to 7.2 percent a year growth rate reached in the translation. Since 2002, as to their level in the field of industry sales in 2003 increased from 17.9 billion to $ 18.2 billion is started. According to industry analysts, the rental car industry now for better days to come.

Distribution

Rental car industry in the last few years a great deal of progress has made it to facilitate delivery processes. Today, there are approximately 19,000 rental rental cars in America to produce about 1.9 million are places.Distribution takes place in two interrelated areas. Company in the market, cars are distributed around airports and hotels. In the leisure segment, on the other hand, cars owned facilities of the agency that is easily and most major roads are located within metropolitan areas are distributed.

. With that method, it was very difficult balance that will satisfy consumer demand and the desired level of profitability to maintain a level. Industry throughout the delivery process is fairly simple. To begin with, managers list of cars that should be on a daily basis to determine the number. A very important problem arises because so many are available or not enough cars, the car rental companies, Hertz, Enterprise and object, including a "pool" vehicles that facilitate the free rental of a Originally part of a group of fleet use. Well in place, pool, rental locations and work more efficiently because they are less at risk of inventory reduction, if not all car rental.

Market Segmentation

Most companies that rent cars in the series are based on the type to make profits. Economy rental cars, compact, intermediate, premium and luxury are classified. In five categories, the highest yields in the field of economy. For example, by self-economy segment of the total market revenues in 2004 accounted for 37.7 percent. In addition, the compact segment accounted for 32.3 per cent of total revenue. Other categories include the remaining 30 per cent for the rest of America.

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Monday, August 15, 2011

The Car Rental Industry

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