How to Make More Money in the Car Rental Business?
If you are a car rental business owner, the 21st century has been both the best boon as well as the worst hell at the same time. The car rental business is booming with the rise in popularity of peer-to-peer sharing taxi apps such as Uber, Lyft, Ola Cabs, and more. These taxi giants have enabled entrepreneurs to realize how accessible and easy the automobile industry can be if done right. Coupled with this, we have reached a point in time where the whole world is becoming more and more accessible, the infrastructure, as well as road conditions, are improving worldwide and, most importantly, an increasing number of middle-class population is able to afford a vacation.
While, this is a great time for the car rental business, there are many startups that are targeting the car rental business. With a rise in opportunity, there has also been a detrimental effect of more competitors entering the fray for the same meat pie. So, how do you take advantage of the digital and economic trends and make more money in the car rental business.
Acquire a car rental software and start your own app
If you are an existing car rental business, then your first and foremost task is to have a car rental software. Nowadays, it has become close to mandatory for all businesses to have an online presence. There is an increasing trend of people flocking to the web to share customer reviews of businesses, learn more about a product and acquire information about the company that they wish to purchase product/service from. Everyone is going digital and expect services to be available through online payment. Having a solid digital presence coupled with an efficient and sturdy online transaction channel is vital to success for most businesses.
Find your Niche
Ultimately, every business aims to earn a great profit and this can only be done by paying emphasis on sales and marketing. To be able to market your car rental business, you will need to define what makes you different from other car rental businesses. Find your niche and market your business so that everyone knows what distinguishes your car rental business from others. You will naturally draw in customers who are willing to pay more to rent a car from your business. Do not forget to invest in digital marketing.
Enter into a Marketing Alliance
The other means to make more money by increasing your sales is to enter into a marketing alliance with neighbor business. Is there a hotel nearby? Make a deal with them and have them promote your car rental service for all customers while you promote their hotel at your car rental service. Further, have your posters at the hotel and have their posters at your car rental business. Be the rental car service provider that the local hotels or business owners recommend.
Adjust your revenues and prices to the real-time
For apps like Uber, Lyft, and Ola Cabs, the means that most drivers use to earn the most amount of money is to use their surge charging fee. In areas of excessive demands, drivers can earn up to 2.5 times the normal taxi fee. Use the same concept for your car rental business. Is your competitors out of cars for the weekend? Increase your prices by 10% and make more money in your car rental business. Adjust your pricing to the real-time based upon availability and utilization.
Find your great employees and reward them
Every business owner knows the true value of an excellent employee. Make sure that you are spending the time to find the gem hidden in the rough and reward them accordingly. Exceptional employees will pay for themselves many times over. Take the time to know your employees and weed out the workers from freeloaders. Do not be fooled by sweet talkers.
Have a solid contract in place
When your customers sign the rental agreement, they should be explicitly informed of all conditions in the contract. Penalties should be clear to the customers and make sure you mention any special or unique clauses in your car rental agreement contract. In the end, it is your words against the customer’s and having solid contract will limit your liabilities.
So, there you have it. My tips and methodologies to make more money in the car rental industry. I have employed these techniques myself and have found an overall increase to my brand image as well as my sales and conversion rates. Try out these tactics and let me know in the comment what you think.