An interview with Mr. Chandra Mouli, Founder & CEO of Travelauto.
Insights on the Car Rentals Industry
Car Rentals Industry has been growing at a rapid pace, and more users are opting for renting a car as compared to buying one. Most global travelers opt for renting a car instead of hiring a taxi or using public transportation. The reasons include the comfort and convenience, as well the cost savings to the user. Users also have the flexibility to plan out their tours, and make changes mid-way as per their need. As an industry, Travel and Tourism niche has seen sustainable growth irrespective of the economical conditions; As the saying goes: “No Stop for the Wheels of Travelers” whether business or leisure!
The Math – Customers, Service providers & Consolidators
With more than a decade of experience in managing direct car rental sales, the realization and worthiness of car rental consolidator was better understood. Irrespective of the business, customers are the primary success factors. For facilitating the customer’s mindset of exploring multiple options before making a decision, the option to choose between brands, product types, price tranches is provided by one and all – “Good the Brand, Customer’s would Buy them again, Bad the Brand, they Switch the Product” is the day’s rule. There are no two ways about it. Of course, apart from the product quality, the presentation and the price are still the critical factors.
The taste, feel and experience of each customer vary from region to region. Likewise, the car rental aggregators provide the choice of car rental brands for customer to choose their rentals from. The Day’s rule even applies here. Car rental aggregators make use of their reach and distribution, to spread the word about the various car rental service providers. They enable customers to compare the various companies, and hence act as a bridge between the two parties. Car Rental brands partner with the car rental aggregators to build a competitive advantage within the industry.
Loyalty leaned towards….Bonding
Though the leading car rental brands have their set of loyal customers, they prefer to be on most car rental aggregators’ portals, wherever their potential customers might step in. apart from the price difference between the brands, there are other promising criteria like quality of service, physical proximity, and the brand perception, which make customers speak out their mind with an action of booking their rental car.
The bond essentially begins when a booking happens, which acts as the source of engagement between car rental provider and the car renter. But this engagement is provided by none other than car rental aggregator, acting as an interface between the two parties. In this scenario, the awareness began with the car rental aggregator making the customer explore and choose their preferred brand to rent a car, which set the space for both car rental aggregator and the service provider in the customer’s mind. Better the service offered, more preferred will be the service provider.
Foreseeing the Future
Businesses prefer to have some amount of insights into the future trends. With the advancements in technology, the internet disclosing the secrets, the businesses have been able to understand and adapt to the trends faster. Over the past few years, the travelers across countries have substantially increased. Even small airports across the globe are planning to become international, and the unpopular destinations in media are also picking the interest of the new generation of travelers, thereby increasing the business opportunities.
Specific to the automobile industry, new model vehicles are released often, and people are becoming trendier in trying out new things based on style and convenience. Some car rental companies have doubled their fleet size to cater to car rental customers, which provides an answer to the growth in car rental segments. Regional brands are going global, with the help of Car Rental Consolidators has contributed to the bond, which would certainly exist forever, irrespective of the economic slowdown.
Mr. Chandra Mouli is the Founder & CEO of Travelauto Inc, a veteran in the car rental industry, well known in the Middle-East Markets. Having traveled across the globe, he shares his insights about the car rentals segment.