How Does a Car Rental Agency Work?

Provide Cars to Rent

A car rental agency must provide all types of cars to rent, as customers have different needs and preferences. Some customers are interested in a minivan because they have a larger family, while a couple might want to rent a sports car for cruising. So, a car rental agency must make sure it has a wide selection of vehicles (sometimes even RVs) to attract customers.

Several Locations

A car rental agency must have plenty of locations. This is because some customers only need to rent a car for a one-way trip. They could pick up a car in their home town and then return it in the town they are visiting. This makes for convenience. So a car rental agency usually has a lot of branches. Some companies such as Hertz have car rental agencies all over the world.

Charge Fees

Car rental agencies charge their customers mainly by how many days they need the car. The fee might be $30 per day, but there is also often a charge placed on top of that if you drive over a certain number of miles. Each car rental agency sets fees based on how much their cars cost to purchase, how much money they need to keep the car insured, and how much money they need to make a profit.

Offer Promotions

Car rental agencies bring in more business by offering special deals or promotions. One week they may be encouraging customers to go green and rent one of their hybrids. They may offer the hybrid at a discount or offer it rent for two days and get the third day free. Usually there is a reason behind a discount. If a particular location is having trouble renting their trucks, they may offer it for a special rate until they get some people using the trucks.

Clubs to Join

Car rental agencies also offer customers a chance to join their incentive clubs. You pay a monthly fee, and then you get special deals and sales prices when you need to use their services. This option is for the customers that frequently use rental cars usually for business trips. Being part of a club allows them to save money as well as get first pick of the cars and special services. The agency benefits from the repeat business of the satisfied customer, not to mention the money it makes on the monthly fee to join the club.

Resources

• Hertz Rental Agency