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5 Biggest Challenges for the Car Rental Industry and how to Deal with Them

Car Rental operators and vendors face different challenges while managing reservations and resources. Here are the 5 biggest challenges faced by the car rental industry and some great ideas to deal with these challenges.

Car Rental Industry Challenges

1. Driving Challenges with Overseas Travelers

For many car rental companies, specially in big and popular cities, the biggest challenge is to deal with overseas customers. There are higher chances of risk and accident with these travelers. Many travelers are not aware with the traffic rules of the country and some of them are used to drive on the other side of the road. Some of them never drove on narrow roads with sharp turns. So, this is a big headache for the rental companies to pay extra attention to such customers.

For dealing with this situation, it is good for car rental companies to provide a small training to overseas travelers. It is a good way to inform customers about the traffic rules before they take out the vehicles. Inform them about the vehicle functionality, roads, routes, country road norms and other details.

2. Complex Booking & Pricing Management

Managing and keeping all the booking data is a very tedious task. Most of the car rentals find it very difficult, especially when they change the pricing or offer any deals. Manual booking management is very difficult and there are chances of errors also.

A car rental management software can make it easy to offer new deals, managing prices and monitoring the performance. It helps in creating complex prices and deals and automate your daily car rental activities.

3. Improving Customer Service and Transparency

One of the most important aspects of any successful business is customer satisfaction. For a car rental industry, it’s a challenge to provide the right information and complete transparency to their customers. Good customer service is very important for retaining your customers and can be an amazing way to get referred.

For overcoming this challenge, you should provide a user friendly and simple booking experience. A seamless booking experience is always appreciated by the user.

Try to get feedback from your customers, ask them about their experience and what changes they want in the company. It will grab the user interest and make them sure that how serious you are about the positive changes in your business.
Always keep in touch with your customers even after the closing of the contract. Send them offers and deals regularly. There are so many ways where you can contact them for example- social media, emails, newsletters.

4. Brand Awareness

Brand awareness is a challenge for many companies. There are so many new rental companies in the market and they struggle for a reputed name in the market. Even some of the old companies also have not that much exposure.
For getting a good market recognition, first it is important to provide quality services because a bad review about your offering can spoil your image. Branding is all about reaching your targeted audience and making some buzz in your industry. Keep a close eye on your competitor’s activities and come up with some interesting and unique offers. Make a strong online presence and post regular updates, interact with users and come up with new updates.

5. New Independent Car Rental Companies

In many countries, old and established rental companies are facing challenges of new competitors. Lots of new and independent companies are entering into the market with new ideas and advance technologies. It affects the business of well-established old car rental companies.

For dealing with this situation, what you can do, is to keep yourself updated with new technologies and always try to bring some new offers to grab customer attention. Get rid of old manual rental management and start working with a good car rental management software.

Car Rental business has never been easy, it is full of challenges. By implementing some strategies and easy fixes you can run it in a better way and deal with these car rental industry challenges.

If you want to automate your car rental business with the help of a car rental management software, contact us to ask your queries and quick free demo.

Mauro Chiarugi

Mauro Chiarugi

CEO of Dogma Systems



    February 13, 2018



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