Car Rental Companies And Sound Decisions
The economy has been slow and as a result many companies in travel related businesses are feeling the pinch
. As soon as the economy began to decline however, the car rental companies made some really smart financial decisions. The changes they made have caused them to become the leader in the travel industry. Instead of reacting to the decline they were proactive and took steps with the first sign of trouble to get ahead of the curve. This is a shining example of good business sense and a move that many other businesses can learn from.Selling down, or downsizing their overall rental fleets was a good decision. This allowed them to keep the best and most preferred vehicle choices, while taking advantage of the leverage this created with the renting public. Two very important things emerged from this strategy: more capital to stay competitive and offer good customer service as well as being able to charge more per vehicle per rental. This gave a healthy boost to the business while other businesses were struggling to stay afloat.
Secondly, they also opted to close rental locations that were not producing much in the way of profits again, creating a leaner market and increasing demand. This adds up to a higher demand on vehicles and drives the price of a rental up. The more demand there is in the industry the better able they are to maintain a competitive price per rental. And this good business sense has potentially saved the entire industry.
Finally, they made the decision to hang onto their reliable vehicles longer and this is helping them to decrease their overhead which was being spent on replacing vehicles and since a vehicle's life is truly more than 30,000 miles they have been able to maintain the same fleet of vehicles by servicing them well and hanging onto them longer. This has greatly reduced their overhead.
As a result of these good business decisions, while other companies in the travel industry as slashing prices and going out of business, rental car companies are still thriving and rental prices are holding their own. If anyone knows who is running these companies with brilliant business building ideas such as these they should ask them to step up and see if they want to run the country. It would be wonderful if some of the politicians we currently have in office could learn from this stern example of good business sense.
by: Jason Hall Paul Young Cunde Zhongtian Auto: Honesty Wins Support (chart) How To Fix Autorun2.exe Error And Prevent It Easily Consumerinjurylawyers : Hip Replacements The Exceptional Shoes Can Cut Down The Risk Of Any Promise Injuries F458 Italia Injury Law Portland Tips To Avail Low Interest Auto Loan Dodge Used Auto Parts In The Uk The Truth About Kenworth Semi Trucks The Importance And Role Of Semi-trucks In Society Advanced Review Of The Martin Yale 1501x Auto Friction Paper Folder Martin Yale 1217a Auto Friction Paper Folder Now Shipping Martin Yale 1812 Variable Speed Autofolder Finally Released