Fleet News

Going for brokerage sets new challenges

THE growing trend for leasing companies to actively promote their own rental broker services in an increasing attempt to offer a one-stop-shop for customers has left the daily rental industry facing a new set of challenges. Experts say daily rental companies must take steps to ensure that such agreements - where customers arrange rental vehicles via their leasing companies rather than directly through daily rental operations - do not adversely affect margins or brand loyalty among end users.

Bob Burrowes, chairman and managing director of Century International, said that for years fleet management and leasing companies has passively generated a demand for daily rental vehicles. The difference now was that rental broker services were being actively promoted by leasing companies.

He said: 'The previously passive approach has now been replaced by the active promotion of daily rental as a significant add-on profit opportunity - and there's the rub. A number of my colleagues feel their space has been invaded, but brokered business can be good business. It is a question of negotiating the right deal.'

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