The world of business travel never stands still, and lately, the car rental sector has been shifting gears faster than ever. Companies are zeroing in on efficiency, sustainability and convenience, pushing the industry to adapt at breakneck speed. Here in South Africa, we're watching this transformation play out in real-time.
So, what do these trends and the issues facing the car industry mean for business travellers?
Being in the right place at the right time
One of the industry's biggest hurdles is managing fleet capacity amid fluctuating demand. According to SAVRALA, the Southern African market reported rental days at only 90.63% of 2019 levels, with corporate rentals down by 1.2%.
However, Bonnie Smith, GM of Corporate Traveller says the issue is not with capacity, but availability in busy periods. Smith adds, “Our corporate clients often face challenges with availability during high-demand periods. The industry's ability to manage capacity effectively is crucial for ensuring consistent service and ensuring they have travel options.”
“The variety of available car types can significantly impact a company's travel policy and budget,” Smith observes. “It's not just about having a car available, but having the right car for each business trip,” adds Smith.
“We're constantly balancing our fleet size to meet customer needs while maintaining operational efficiency,” Nelius Vermaak, National Sales Manager at Europcar explains. “Europcar Southern Africa offers a wide variety of young vehicle models across five Southern African countries, ensuring support wherever our customers need a vehicle.”
Corporate clients want convenience
Business travellers don't have time to waste. The demand for quick, easy solutions has pushed car rental companies to rethink their operations. Vermaak explains: “Customers want to skip the usual queues and paperwork. That's why we've invested in services like Ready2GO, our express checkout service.”
Smith agrees that seamless travel experiences are at the top of corporate clients' minds. “Our clients are juggling tight schedules, so having rental solutions that simplify things is key. The move towards faster pick-up times and digital processes has really helped in this area,” she says.
Digital and contactless transactions are trending
COVID-19 forced many industries to adapt quickly, and car rentals were no different. One of the biggest changes we've seen is the rapid adoption of contactless service. Smith says that today's business travellers expect corporate travel technology to play a bigger role in their experience—from booking to drop-off.
Vermaak comments, “At Europcar, we’ve introduced a mobile app and online tools that allow clients to manage their rentals entirely on their smartphones. We’ve seen a huge uptick in people opting for these services because it’s faster, safer, and more convenient.”
He elaborates on their tech offerings: “Our Ready Service is designed to get travellers on the road quickly. It works in tandem with our Vehicle Inspection App, which has significantly streamlined the collection process. This app allows for a thorough digital vehicle inspection, capturing its condition accurately. As a result, we've seen a marked reduction in post-rental queries about damages, saving time and reducing potential disputes for our corporate clients.”
The sustainability factor
As environmental concerns become more prominent, travellers are making greener choices. Companies are also under pressure to show that they’re serious about sustainability.
“We’ve seen a noticeable increase in clients asking about the environmental impact of their car rentals,” says Smith. “Corporate Traveller has been working closely with suppliers like Europcar to ensure sustainable options are available to our clients.” Europcar, for example, has recycling initiatives for water capturing, rubber from tyres, and glass and ensures appropriate oil disposal.
Safety on the road is key
Research indicates that rental cars experience a higher collision rate compared to non-rental vehicles. Arrive Alive, South Africa's road safety initiative offers valuable advice for renting vehicles. They recommend choosing a rental company with a reliable network and backup service and suggest requesting a car similar to yours for familiarity. They also advise renters to ask about pre-rental maintenance checks, breakdown procedures, and navigation assistance.
“We've recently launched WhatsApp for Business as a new customer service channel,” Vermaak says. “If a client has an accident, they can instantly send us their location via a pin on WhatsApp. This allows us to rapidly dispatch assistance, enhancing our response times and approach to customer safety.”
The future of car rentals in business travel
Smith sums it up: “These car rental trends are exciting for travellers. The rental businesses that adapt quickly and put convenience, sustainability, and tech at the forefront of their offering will be the ones that succeed.”