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Characteristics of the European Car Rental Industry Essay

The European rental car industry represents a car rental industry that is not fully integrated. Although there are large companies that can be identified as leaders in certain countries, such as Avis Europe, Hertz and Sixt, there is not one set of leaders among all European countries.

The industry is also littered with a number of small localized rental companies. Furthermore, there are two identifiable broad segments to consumers in this industry – the business segment and the tourist segment. However, both segments have a significantly different set of expectations and priorities.

Among the significant price control strategies of easyCar was their strategy of passing charges to customers and making possible costs as an add-on service rather than inclusive in the rental charges. For example, if a potential client would like to book over the phone, the client was charged 0.95 per minute.

Also clients were expected to provide fuel for the car as opposed to the car having a full tank of fuel when received and clients were also expected to return the car clean, having received an exterior wash. Otherwise, when cars are not returned clean, clients are charged extra. Similarly, insurance coverage was an optional charge.

Also particularly interesting is the

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streamlining of the staff and on-location offices. Offices were small and with the bare minimum requirement to conduct businesses. Overhead costs were limited by renting parking spaces in existing garages. Schedules, as in pick up and return of vehicles were strictly established and followed before clients even received the rental cars, as a method to schedule client service.

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