Friday, June 2, 2023

Car rental companies should look to longer term rentals

Car rental companies are seen as the convenient option for those who wish to use a car for a short period of time, but the car rental industry is missing out on those car rentals that require the use of the vehicle for a longer term period. This market is especially prevalent in cities and towns where public transport is not the most efficient or reliable. Catering to this market will see car rental businesses cater more specifically to the needs of the consumer.

A car rental seems such an arbitrary thing for those who have the luxury of a public transport system that caters to their needs at an affordable rate. To these individuals renting a car is reserved for the financially well heeled who can afford a pricier mode of transport. But simple economics tells us that things are priced out of reach mostly because the market catered for is niche or in other words there is little demand for that product or service. But in parts where public transport is not the most efficient the need for one’s own car or at least a car rental that is more longer term creates this demand, one that car rental companies could be taking advantage of in order to increase their margins.

But commuters would also benefit of course as the higher the demand the more affordable the service would need to be. So car rental companies renting their vehicles long term would benefit as well as the commuters in need of reliable and affordable transport.