How can rental companies help multinational companies?

Never has there been a bigger challenge for international businesses in managing transport costs while meeting the duty-of-care obligations they have to their staff.

But good rental providers with an international network can provide a very effective resource to help manage cost and take care of business people when they’re driving abroad. Key benefits international rental providers can provide to global businesses include:

Fleet: Businesses should have the assurance that their drivers have access to a quality fleet of vehicles, generally less than six months old and covered by roadside assistance. This also includes one-way rental, as well as delivery and collection in many countries.

Central reservations: International booking systems allow drivers and bookers to make reservations 24 hours a day, regardless of their global location. Pre-filled driver profiles make booking fast and accurate.

Frequent driver schemes: Many rental providers offer ‘frequent driver’ schemes to fast track business travellers when they arrive at their destination, cutting out queues and getting them on the road quickly. Business travellers can also make the most of the frequent flyer partnerships offered by many of the leading international rental providers.

Preferential leisure rental rates: International rental providers may also offer competitive rates for employees of corporate customers who wish to rent privately.

Sat nav: Recognising that time is precious for business travellers, many rental operators have invested in this technology. GPS units are now widely available to hire in key business destinations to help smooth the journey.

Security: It may be necessary to locate all your drivers who are overseas on business, either for security or commercial reasons. Using a rental management company provides a single communication point to identify which members of staff are where, noting where they hired their rental cars and when they are due back. Text messaging to drivers’ mobile phones provides a quick and secure means of getting information to all your staff.

What are the benefits of setting up a corporate account?

Corporate accounts offer certainty of rates for large volume users of vehicle rental. A business can set the terms and service levels it requires at the outset of the contract with rates being agreed according to the volume and profile hiring, and therefore gain immense control over travel costs.

What developments have there been in the daily hire market in the last few years that have been particularly valuable to fleet managers?

The online revolution has to be the key development that has made a huge difference to fleet managers’ lives in the past few years. The volume of paper and person-to-person interaction has been reduced enormously.

Fleet managers now have much greater control over every aspect of the rental process – control of drivers, fuel use, vehicle use and costs.

They can ensure rental is only conducted in line with their company’s travel policies and rental authorisation by line managers can be made part of the process.

Is anything happening now, or will anything be happening soon, that is likely to change the daily hire landscape for fleet managers?

The ongoing e-revolution has to continue to be the big thing for fleet managers. Online rental reservation and management is already here. Where can it go next? Could smartphones deliver even more convenient access to daily rental services?

It’s certain that even more information and knowledge will be delivered to both fleet managers and their drivers.

We already provide access to traffic and travel data from our IRIS rental management system – there’s no reason why that couldn’t be extended to individual drivers’ smartphones or other mobile devices to help them manage their business travel as efficiently as possible.

And, of course, these advances will not only improve the business traveller’s experience – but will help to reduce costs by providing a better insight into total expenditure and eliminating unnecessary journeys.

The other big issue that will continue to have an influence on the daily rental sector is the impact of the global financial problems on the motor industry as a whole.

No-one can have missed the headlines over the past year or so showing new car sales falling month on month. And whatever affects motor manufacturers has a direct impact on the rental sector.

So the relationships between the rental industry and manufacturers continue to be absolutely vital. But it is undoubted that the rental industry will continue to face a huge challenge to contain costs.

If you were to advise a fleet manager on the best practice when it comes to daily hire, what would that advice be?

Managing rental providers’ and drivers’ expectations is the key to best practice. The fleet manager should agree service levels from the outset of the contract, including:

Booking channels: Ensure rental vehicles can be booked via a number of different channels and that a 24/7 online function is available for the ultimate convenience.

Upgrades/downgrades: Car rental companies usually can’t guarantee a particular make or model, but they should be able to provide a vehicle from a specified group. If this isn’t possible there should be clear agreement that they will provide a vehicle from the next group up. If a vehicle from a lower group is provided, the customer should only be charged the appropriate rate for the lower group.

Delivery and collection service: Business users will want the convenience of a delivery and collection service that covers home and business addresses, inside and outside normal branch operating hours. They should also agree the time parameters within which the vehicles will be delivered and collected. If the supplier fails, they should pay a pre-agreed level of compensation.

Abortive delivery and collection: There should be clear agreement on whether a fixed charge will be made if a car is delivered and is no longer required.

One-way rentals: Customers should be able to collect a car from one location and return it to another.

Efficient response to queries and complaints: Service standards should be agreed setting out response times for handling queries and complaints.

Invoice accuracy: This should be a prerequisite of any rental provider.

Cancellation policy: Today’s business world is highly changeable, so fleet managers need the right to change or cancel reservations without penalty during an agreed timeframe.

Damage policy: Ensure this includes clear processes for claims resolution and settlement, and no hidden costs.

Having a robust travel policy is at the heart of best practice for drivers. This should set out the car groups that can be requested, the additional services such as delivery and collection that can be utilised and the authorisation process that needs to be followed when booking rentals.

Clear guidance should be given to drivers on what to do if the hired vehicle is damaged or involved in an accident.