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Travel by road. Travel by Road. Learning Objectives :- Evolution of the car-rental industry Identify the major car-rental companies Explain the rental customers’ motivations. Evolution of the Car-Rental industry. Need a car to move around within a big country e.g. Malaysia, USA, Australia
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Travel by Road Learning Objectives :- • Evolution of the car-rental industry • Identify the major car-rental companies • Explain the rental customers’ motivations
Evolution of the Car-Rental industry • Need a car to move around within a big country e.g. Malaysia, USA, Australia • Other modes of transportation e.g. train, coach but automobiles are still the most convenient • 80% of vacation within a large country is by automobiles
Evolution of the Car-Rental Industry • Car-rental industry plays as an important role as other sectors e.g. air, lodging, travel agencies • Ownership :- Corporate owned or franchisees
Car Rental Motivations • Get around easily • Best navigate and/or experience a place • Save money
Car Rental Motivations • Do business • Replace your own car • Prefer driving vacations
Business of Car Rentals • Corporate owned or a franchise • Relies heavily on its relationship with other suppliers e.g. Wotif, AAS, Chan Brothers, AAA, Zuji • Car rental firms and air carriers’ relationships e.g. Krisflyer program, Royal Orchid Plus, Mileage Plus, Worldpeaks etc.
Car Rental Brands Some well-known companies :- • Hertz, Avis, Budget, National, Alamo, Thrifty, Dollar and Enterprise within USA • Some companies are well-known throughout the world e.g. Hertz, Avis, Budget
Cost of Car Rentals • Different categories :- Subcompact or economy, Compact, Mid-size or intermediate, full-size etc • Cost of car rentals :- Base Price (weekly or daily), insurance, additional driver, airport taxes etc.
Common forms of coverage 1) CDW (Collision damage waiver) no/some charge to the renter for repairs • LDW (Loss Damage Waiver) Vandalism relieves the renter of financial liability. Sometimes LDW is incorporated into CDW
Common forms of coverage • PAI (Personal Accident Insurance) covers bodily injury to the driver and passengers 4) Comprehensive : covers all aspects of car rental from damage to total loss
Basic Information • Require driver to be 25 years old • Largest car rental facilities are usually at or very near airports • Procedures and practices for renting cars in foreign countries vary • Some companies specialize in recreational vehicles (RVs)
Domestic Car Rentals • Regulation (SZ plate, then led to “normal” license plates) • Customer qualifications e.g. driver’s license, age, credit qualification, personal responsibility, driving record • Car Equipment :- GPSs, choosing a car, daytime running lights
Reservations • 1-800-toll free numbers, websites, travel agencies
Rates • Standard rates • Additional driver • Weekend discounts • Dropoff charges • Corporate rates • Taxes and fees
International Rental • European distances and roads • Leasing • Other international destinations • Which side of the road?
General Travel Information • Danger Signs • Prohibitory signs • Informative signs
Summary • Hertz and Avis were the pioneers of the auto rental industry. • All rental customers must meet the basic requirements that enable them to drive vehicles • International rentals ensure that drivers understand the various road signs, gas prices and parking challenges.