Some major new happenings in the commercial fleet rental market are shaking up the industry.
With new technologies, increasing digitization, and the evolution of current electric vehicle models, the industry is seeing new savings and massive ROI rate increases, making it a great time to be in business.
To benefit from these changes, however, it’s important to be educated on some of the reasons the market is fluctuating as it is currently. To assist you, here is how new savings and ROI rate increases are leading to growth in the commercial fleet rental market:
Vehicle Electrification is Beginning to Look Like the New Normal
Electric vehicles may not have experienced as massive of a surge in popularity as some consumers expected, but the amount of vehicles becoming electrified is still growing at an impressive rate nonetheless. The higher cost to invest in the vehicles, and the still difficulty to find chargers for them in many locations are likely to blame for the growth is slower than ideal.
That being said, if you have the capital and the resources, electric vehicles can make you stand out as fleet rental service. The easier upkeep, price saved on gas, and the modern feel of these electric vehicles will prove incredibly appealing to customers (while saving you cash in the process). Additionally, you’ll have access to potential tax credit by using these vehicles, as they help save the environment alongside helping your company to save costs.
Increases in International Tourism is Driving Growths in the Marketplace
Despite some Covid-19 restrictions proving challenging for businesses, there has been a recent surge in international tourism that is making the fleet rental market see major profits.
Tourists from emerging regions are going abroad in especially astounding numbers, making them prime customers for companies that rent out vehicles (fleet and otherwise). Understanding their needs, their reasons for traveling, and the type of vehicles that appeal to their plans the most will become key in profiting from this tourist demographic.
With increased digitization and technology implementation at fleet rental businesses, attracting this valuable consumer base has become a breeze. However, if you fail to implement these modern practices into your rental business, you’ll be nearly certain to lose many potential customers to more up-to-date competitors’ services. To stay competitive, finding watts to digitize your fleet and your fleet rental platforms as much as possible is absolutely crucial.
Rental and Leasing Services are Seeing Business Boosted by Digitization and New Technologies
Real-time internet booking software and fleet management software are revolutionizing the way fleet managers perform their tasks. Now, members in the commercial vehicle rental and leasing sectors are acquiring these new softwares and skillsets at a hyper-quick rate. To ensure your business can benefit from these softwares and skill sets as well, you must digitize your business’s practices wherever possible.
Effective digitization will help you decrease work expenses and create much more refined adaptability for pickups, bookings, and leased vehicle operations. This increased utilization of online channels is nearly certain to bring an even bigger boom to the marketplace in the coming years. You cannot afford to wait and need to digitize your practices and operations as soon as possible.
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However, Airport Rental-Focused Opportunities are Seeing Major Obstacles
One key area of the commercial fleet market is not experiencing a boom period, however, and is actually seeing some major obstacles in terms of making a profit and running business smoothly: airport rental-focused companies.
Especially with key players like Hertz and Avis experiencing major profit decreases to the Covid-19 regulations and decreased airline travel, this is one aspect of the industry that will prove less profitable to invest in for the coming year, so be aware.
Additionally, the larger vehicle fleets that are used in this area of the industry are more susceptible to risks associated with non-programmable vehicles. In fact, nearly 30% of the fleets at these companies remain non-programmable. The lack of attention being paid to new digitization and fleet management technologies in this sector of the industry is likely to blame for this current road bump.
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Now is the Time to Revolutionize Your Commercial Fleet Rental Business
With this new knowledge, taking advantage of the trends in this ever-changing market will help you increase your company’s profits significantly. Understanding how to continually keep your company’s practices up to date is key to standing apart from competitors in the industry, after all.
Thankfully, there are more opportunities to grow your company’s profits and business practices than there have been in many years, so the time to act is now! With the right decisions, your company will experience a revolutionized way of making a profit and staying above the competition in no time.