Economic downturn good for some

Its not all bad news on the economic front, it seems that a few high ups in the food chain of car rental businesses feel that the current difficulties faced will strengthen the long-term future of the car hire sector.

Airlines and hotels have always played a key roll in the  for travel management companies and their corporates clients.

As the travel agenciess struggle to maximise their cashflow amid the recession, car rental suppliers say their focus on ancillary products has never been so strong.

Anita Jarratt, Europcar’s business travel manager in the UK, believes that customers were no longer making long term commitments  on vehicles and preferring hire for shorter periods.

“Out of bad situations often come good things, We’re seeing growth that is contrary to the economic climate.”

But she claimed the success of the car rental sector will be sustained as TMCs forge closer ties with suppliers.

“We have been working very closely with the TMCs and getting out in front of the consultants to make sure they have the training and product knowledge. The car hire industry is a sleeping giant and we could be at a turning point. We’re ready to work in partnership when times get better.”

Lisa Eastwood, Avis’s head of corporate sales, agreed there was scope for optimism within the sector.

“We’re in a fortunate position that we don’t have much more market share to win as we have preferential status and partnerships with everyone in the TMC community, But though business is down this year we have seen the TMCs concentrating on ancillaries such as car hire.”