Car rental market in the world, which is a radical change occurred in 2009 and the first half of 2010. The global financial crisis has not spared this industry from its negative consequences, especially as the lease is linked to the real economy, ie, consumption of peoples and their standard of living and their ability to own property and debt. The car rental sector most affected by the recession that hit the global economy in 2009, although the expectations at the beginning of the crisis was referring to the possibility of overcoming the negative effects of the sector less damage as possible.
Difficult market conditions:
Affected car sales market rental (lease to own) largely by the financial crisis that hit in the developed countries, and have had repercussions in emerging markets. Consumers cut their spending because of the waves of demobilization, which affected tens of millions of employees around the world, especially in the United States and the European Union, because of the evaporation of hundreds of billions of dollars of wealth and savings in various types of investments, and also because of the reduction of hundreds of companies and banks to pay their workers and their privileges, as well as cases fear, uncertainty and lack of confidence, which seized the hearts of human beings.
Under these difficult conditions, faced by the private sectors of the wounded, and public sectors, some of which is about to go bankrupt because of the debacle on the repayment of sovereign debt, car rental sector has witnessed a serious crisis in the developed countries, especially in the United States and Western Europe. This crisis has a variety of reasons, including:
• the credit crunch faced by the global leasing companies. Many of the institutions found it difficult to reschedule its debt and provide the necessary funding for expansion and development.
• sharp fall in travel and tourism market worldwide.
• decline in used car prices, prompting consumers to buy vehicles rather than rent.
Strategy of the key players:
Responded to that car rental companies around the world on the challenges and difficulties faced by a strategy based on two main points:
• First, lower prices and launch offers and discounts in order to adhere to existing customers, attract potential customers, and to maintain market shares, and the recovery rate deals.
• Second, improve work efficiency by reducing the financial and administrative expenditures, and develop effective sales and marketing, and other things and activities that are in this area.
In turn, renewed a lot of American companies fleets despite the crisis; For example: A group Enterprise Holdings, owner of the quotation, "National" and "Alamo" for the rental car they renewed their fleets through the purchase of new vehicles, the Group Enterprise is a private company does not disclose its financial statements, but she on behalf of the group told the American press that the company "has a strong balance sheet, one of the few institutions capable of investing in this difficult period," has had recently, Standard & Poor's Rating "Enterprise" credit rating, citing that the company will continue to generate cash flows. With expectations improved demand, seek the company to increase the working capital to meet the demand and the replacement of old vehicles fleet units of new, since the average functioning vehicles, "Alamo" and "National" Today, 17 thousand miles, compared with 13.8 thousand in March 2008; During the current financial crisis, the average a vehicle leasing companies in all the world to 25 thousand miles, compared with 16 alpha 4 years ago.
As for the status of staff in the global car rental companies seems the situation is not Balorda never, as the recession forced the U.S. company Enterprise to implement the first to lay off staff in its history. It has expelled at the beginning of 2009 about 2,500 workers out of 50 thousand working in their offices. I did as well as Hertz, which dropped about 4 thousand employees, or 12% of its workforce. In turn, Avis Budget - which saw its revenues decline for six consecutive quarters since the second quarter in 2008 - 8 thousand employees laid off during the past two years. These layoffs were aimed at reducing costs, due to lower demand for cars rented by the customer during the crisis. According to the department of labor statistics in the United States the number of laid-off from car rental companies of 25 thousand workers since 2006, when he was working in the sector 139 thousand employees.
Rising stocks and possible mergers:
For the shares of international companies, car rental has flew in 2010 - after he collapsed dramatically in 2008 and 2009 - saw the shares of each of the "Hertz" and "Avis Budget" and "Dollar Thrifty" great leaps in the past few months; For example, decreased shares of Dollar Thrifty to less than $ 1.16 over the past year, but it came back skyrocketing up to $ 33 at the end of the first quarter of 2010, any investor or employee was smart or lucky and bought the shares do not doubt that it is today among the millionaires.
On the other hand an active modern global financial markets about the outlook for mergers and acquisitions in the rental car; For example, without limitation, seeking Hertz since March 2010 to acquire its counterpart "Dollar Thrifty" $ 1.2 billion, officials said in "Hertz", said the deal will be through the exchange of shares and cash payment, even if successful, this acquisition will become the "Hertz" the biggest company in terms of market share in the rental car through U.S. airports.
Mention here that in spite of the difficulties experienced by the sector rental cars during the past two years, is "Dollar Thrifty" of the few companies offered for sale, especially as the sector has seen a wave of mergers unparalleled since the beginning of the twenty-first century; Since only two acquired group Enterprise Holdings brands on the "Alamo" and "National".
But the surprise in the case that a group Avis Budget last month, entered the competition on the line to buy the "Dollar Thrifty," and the coming days will show the results of this fierce competition contested.
Future trends of the industry:
On the outlook for the global car rental market can determine the general trends including:
• the growth of rental cars to luxury does not own property, thanks to expectations of recovery in the global travel market and increasing numbers of tourists.
• will contribute to technical innovations in the recovery of the market through environmentally friendly cars, or what is known vehicles green, which will come to a sector of the door wide in the next three years, has started already companies such as Hertz and Avis Budget in the marketing and leasing of hybrid vehicles, while the Company has signed a Europe Carr finally signed a contract with the French manufacturer Renault to buy a fleet of electric cars, has offices around the world prepare for the processing of the necessary equipment to charge batteries of these vehicles as of 2011.
• It is expected that the industry is experiencing strong growth in the reservations of vehicles leased through the websites; Many airlines and travel agencies, tourist institutions working to promote this vital sector through the Internet, with easy access to a wide range of clients all over the world, and now manufacturers Mobaillat such as Apple offers leasing services through its product iPhone.
• companies will work in the coming period on the development of services associated with the leasing process, such as support services and maintenance on roads and other.
To the back car manufacturers to think again in the revitalization of leasing sector has, after the sector has suffered the same two things during the crisis, and this of course, mean that manufacturers have the confidence value of their cars, and the leasing sector has become attractive in this difficult period for consumers who wish to acquire cars, and find appropriate funding.
Positive outlook in emerging countries:
At the end of the monthly report indicating "alloy" to the positive expectations that hover around the Gaza car rental in the Arab region and emerging markets, after a period of difficult circumstances experienced by; is true that many challenges still lie ahead for this sector, it is expected that the market a wave of mergers between companies, especially small and medium-sized ones, to very competitive environment and the necessity of pumping investments imposed by technology and modern cars.
The countries of the Middle East and Latin America as well as India and China of the leading markets that will grow in the car rental sector, due to a boom in travel and tourism market, in addition to the high demand by companies and increase the income of the modern consumer....
