For the fourth consecutive year, Enterprise ranks highest in overall customer satisfaction in the J.D. Power North America Rental Car Satisfaction Study released Wednesday.
Enterprise has a score of 851 followed by National, Alamo and Hertz, with scores of 846, 828 and 822 respectively.
Despite increased airport passenger congestion and construction at airports, overall consumer satisfaction with rental car companies has improved in recent years, according to J.D. Power.
Increased satisfaction can be attributed to a sharp decrease in rental rates over the past four years, says J.D. Power travel practice lead Michael Taylor.
“Rental car satisfaction is improving, but it's not really the type of satisfaction increase rental car companies want to see,” Taylor said in a news release.
“Lower prices are having a positive effect on perceived value for renters, which is raising overall levels of satisfaction, but several other key quality measures—notably, wait times and problems with the pick-up and return processes—have not improved over the past four years. But cheaper daily rental rates overcome those negatives for most renters,” he explained.
Additionally, while price perceptions are found to have the most significant impact on the overall satisfaction of consumers, with a score of 787 versus 889, the study shows that renters who choose a rental car brand based on features and benefits are more satisfied than those who choose rental car brands based on price alone.
Something the study suggests can be largely attributed to increased passenger volume and construction at airports is that on average, the wait time to pick up a rental car has increased two minutes since 2013. According to the study. J.D. Power suggests longer waits times can be largely attributed to increased passenger volume and construction at airports.
The study found that of consumers who say they have experienced a problem renting a car, 20 percent reported a problem with the pick-up process, and 17 percent reported a problem with the return process.
Interestingly, 70 percent of renters who post online about their rental experience expect a response from rental car companies.
Car renter’s expectations far outpace those of hotel guests and airline passengers. Only 45 percent of both groups of customers look for a response, according to J.D. Power.
On average, the study found that satisfaction increases 63 points when a rental car company responds to a post. And if the issue is resolved, the satisfaction score increases 95 points.
The study is based on responses from consumers who rented a vehicle at an airport location from August 2016 through August 2017.
ACE Rent A Car, Advantage Rent-A-Car, Mercedes-Benz and Fox Rent A Car are the top ranking retailers for customer loyalty, according to this year’s Temkin Loyalty Index, which examines the loyalty of 10,000 U.S. consumers to 329 companies across 20 different industries.
The three rental car companies and luxury automaker outpace retailers of all other industries for loyalty , including banks, fast food chains, grocery stores, insurance carriers, and TV and Internet service providers.
Temkin Group asked study participants how likely they are to exhibit five loyalty-related behaviors. The list of behaviors measured includes the following:
- Repurchasing from the company
- Recommending the company to others
- Forgiving the company if it makes a mistake
- Trusting the company
- Trying the company's new offerings
The study found that customers are most likely to recommend ACE Rent a Car, most likely to forgive both Advantage Rent-A-Car and ACE Rent A Car, and most likely to try a new offering from ACE Rent A Car and Advantage Rent-A-Car.
Additionally, each company is given a Temkin Loyalty Index (TLi) score to determine their ranking.
ACE Rent a Car recieved a 79 and Advantage Rent-A-Car came in with a 78. They were followed by both Mercedes-Benz and Fox Rent A Car with a score of 75.
Companies with the lowest index scores this year include TV/Internet providers Time Warner Cable, Comcast and Cox Communications. The retailers received scores of 36, 37 and 40, respectively.
For additional information about index scores and this year’s full Temkin Loyalty Index report, click here.
The Enterprise Rent-A-Car Foundation announced Wednesday it has pledged $750,000 to the American Red Cross and $250,000 to Americares to help communities devastated by Hurricane Irma.
The $1 million in donations from the philanthropic arm of the Enterprise Rent-A-Car brand will go towards relief efforts in both the Southeast U.S. and the Caribbean, the company said.
Enterprise's support for disaster relief now totals $3 million this year.
Following its Annual Disaster Giving Program donation of $1 million to the American Red Cross earlier this year, Enterprise gifted another $1 million to support Hurricane Harvey last month.
"We know firsthand how services from the American Red Cross and Americares can be life-changing and make a positive difference for disaster victims," Enterprise Rent-A-Car Foundation senior vice president and executive director Carolyn Kindle Betz said in a news release. "These are the communities where our employees and customers live and work, and we will continue to support the efforts of those organizations to help people in their times of greatest need."
Throughout Florida, Enterprise Holdings, owner of the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands, was forced to close more than 100 of its over 500 neighborhood and airport car rental locations due to power outages following the storm.
Currently, only more than half of the initially closed locations have resumed operations.
For Southeast Florida customers who rented vehicles but had to drop them off elsewhere, Enterprise Holdings' said it has waived the company’s one-way rental fees.
In the Caribbean, while the Enterprise location in Turks and Caicos has reopened, in Tortola, St. Maarten and St. Barths where some of the heaviest damage occurred, Enterprise Holdings' franchises still remain closed for inbound reservations.
Enterprise said it has started to work with neighboring partners in the recovery process and local customers in need of vehicle rentals.
Enterprise Holdings' franchise location employees in the Caribbean have continued to follow the ongoing storm activity to determine any potential need for additional closures within the region, according to the company.
Auto Remarketing has learned that Greg Thibault, vice president of fleet disposal at Avis Budget Group, is retiring next month.
Longtime dealer group executive Mark Zurales, who has been vice president of fleet remarketing since he joined Avis Budget in January, will take on Thibault’s duties (in addition to his current duties) once Thibault retires on Oct. 6.
Thibault and Zurales will work together on the transition.
Thibault, along with Avis Budget director of wholesale operations Todd August, were both honored as the 2016 National Remarketing Executives of the Year.
Thibault joined Avis Budget in 1997.
The record-setting streak for the Manheim Used Vehicle Value Index reached three months in a row when Cox Automotive shared the new reading on Monday.
The report indicated wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 0.75 percent month-over-month in July. This rise brought the index reading to 130.3, which was a record high for the third consecutive month and a 2.6-percent increase from a year ago.
The new high mark is more than 30 points above the index’s low point of 98.0 registered in December 2008.
On a year-over-year basis, analysts noticed prices for mid-size cars produced the largest decline in July, softening by 0.9 percent.
Each of the other five vehicle categories analysts track for the index registered price gains, with pickups leading the way at 7.8 percent and vans not far off at 5.5 percent.
Prices for CUV and SUVs along with luxury cars ticked up by nearly similar rates at 1.9 percent and 1.8 percent, respectively. Even compact cars edge slightly higher as prices for those units ticked up 0.2 percent year-over-year.
“Wholesale market values continue to show strength despite concerns that increasing off-lease maturities would result in a used vehicle supply glut and rapidly declining used-car values,” Cox Automotive chief economist Jonathan Smoke said in his commentary associated with the latest index update.
“Instead, used-vehicle sales are growing, driven by double-digit year-over-year growth in sales of vehicles less than 4 years old. Increased demand is absorbing the higher supply of newer vehicles.”
Analysts also mentioned that rental risk pricing improved as volumes dropped.
Cox Automotive determined that the average price for rental risk units sold at auction in July decreased by 2 percent year-over-year in July, which was a significant improvement over June. Rental risk prices were up 3 percent compared to June.
Average mileage for rental risk units in July (at 41,400 miles) was 2 percent below a year ago, according to analysts.
Smoke closed his commentary by emphasizing the U.S. economy “remains strong.”
According to the first estimate from the Bureau of Economic Analysis, the U.S. economy grew 2.6 percent in the second quarter.
“Consumer spending on both durable and nondurable goods drove most of the growth in the second quarter,” Smoke said. “Consumer confidence strengthened to the second-highest level in 16 years in July (only higher month was March).”
Recall Masters has a new partnership to integrate its real-time vehicle recall lookup solution into Record360’s vehicle condition reporting app. And this collaboration aims to help dealers and rental agencies avoid claims disputes when putting drivers in vehicles during recalls.
The enhanced transparency and real-time recall updates are brought by the integration, following new legislation concerning vehicle safety recalls passed just last summer.
Lawmakers addressed rental car agencies need to fix any and all open safety defects before renting out vehicles to customers.
The legislation established a fine of $5,000 if a consumer is put into a rental or loaner vehicle with an outstanding recall, Recall Masters explained in a news release announcing the partnership.
“Countless damage disputes impact relationships, customer satisfaction, and cause negative reviews,” said Recall Masters president Chris Miller. “Vehicle condition and claims management processes is dependent on paper or low-fidelity digital reporting and Record360 fills the gap with a modern solution.”
Dealerships and car rental agencies can automate their asset management by digitizing vehicle conditions reviews via Record360’s condition reporting software.
The software is designed to help prevent customers being put into a rental or loaner vehicle with an existing recall, as well as end customers’ ability to claim they did not cause damage to a loaner or rental.
“Our integration with Record360 ensures that the user is informed of any open recall in real-time while the initial inspection is done. This helps build trusting relationships between automotive dealers or car rental agencies and their customers,” added Miller.
Avis Car Rental has come out with a new skill for Amazon Alexa, giving consumers a new way to book their next car rental in today’s evolving digital age.
Avis’ integration with Amazon Alexa will allow customers to both book and manage car rental reservations via Amazon voice-controlled artificial intelligent personal devices like Amazon Echo. This will be available by the end of August.
The company claims it that is the first car rental brand to offer the innovation.
Avis is set to showcase its skill for Alexa-enabled devices at the Global Business Travel Association Convention this week.
“We are constantly looking for ways to make the customer’s experience more magical,” Avis Budget Group chief innovation officer Arthur Orduña said in a news release. “We have our mobile app, which allows renters to manage their entire experience from their smartphone at approximately 175 locations globally, and now with Alexa integration, we will provide them with yet another way to engage with us seamlessly thanks to transformative digital technology.”
Avis’ new skill for Amazon’s Alexa-enabled devices lets customers book a rental reservation, review reservations and request e-receipts of past rentals.
Customers can make voice commands such as “I need a car at La Guardia Airport at 9:00 a.m. this Friday.” And Amazon’s voice platform will manage the booking process through secure integration with Avis.
The new skill is also designed to utilize travelers’ preferences which are stored in their Avis Preferred profile.
Preferences include preferred cars and options such as SiriusXM, GPS devices and coverages.
In related tech news from the company, the Avis mobile app has been recently fitted with new features that include a wider variety of vehicle options, fuel and parking options, courtesy bus tracking, rental receipts and the “Find My Car” tool.
The “Find My Car” feature works with connected cars and shows consumers the exact location of their rental car located at all times.
The Avis mobile app is currently available at about 150 locations globally, according to the company.
Franchise Services of North America (FSNA) — which among its subsidiaries includes U-Save Car & Truck Rental, U-Save Car Sales, Auto Rental Resource Center (ARRC), Xpress Rent A Car, Sonoran National Insurance Group and Peakstone Financial Services — filed for Chapter 11 bankruptcy protection this week.
The company said it made the move in the federal bankruptcy court located in Mississippi in order to best preserve the value of its assets for the benefit of creditors and shareholders.
FSNA is the holding company for operating entities that own several car rental brands whose associated independent operators have more than 650 locations across the United States. The company anticipates that these subsidiaries will continue to operate their businesses in the normal course during the pendency of the Chapter 11 case.
Officials added no layoffs are anticipated at FSNA or any of its subsidiaries.
FSNA explained its decision to seek bankruptcy protection was necessitated by several factors, including liquidity issues associated with expenses incurred in pending litigation by and against its former financial advisor, Macquarie Capital (USA) and two Macquarie employees who also served as directors of the company, as well as other legacy claims against the company.
The company's litigation expenses relate to the FSNA’s acquisition of Simply Wheelz —doing business as Advantage Rent A Car — which was led by Macquarie and its affiliates. The company said it also remains impaired by potential claims that are stemming from the Advantage acquisition.
“The expenses and claims arising from the failed acquisition and, in particular, those fees and expenses associated with these actions pending with Macquarie and its associates in multiple jurisdictions have severely impacted the company’s liquidity, strained the company’s ability to operate, and necessitated that the company seek bankruptcy protection,” FSNA said.
Perhaps one day, self-driving vehicles will be coming down the off-rental lanes at the auctions you most frequent.
On Monday, Avis Budget Group announced that it has signed an agreement with Waymo to offer fleet support and maintenance services for Waymo's self-driving car program at Avis Car Rental and Budget Car Rental locations.
Under the multi-year agreement, Avis Budget Group will enhance selected rental facilities to offer automotive services and secure parking for Waymo’s fleet. The services offered by Avis Budget Group include interior and exterior cleaning, oil changes, tire rotations, and the checking, ordering and installation of automotive parts, as well as other necessary fleet support and maintenance.
Auto Remarketing reached out to Avis Budget Group to inquire whether one day remarketing services might be added to the list, but the message has not yet been returned.
The collaboration is designed to support Waymo's growing autonomous vehicle (AV) fleet and Waymo's early rider program, a public trial of its self-driving cars in Phoenix.
Waymo recently announced that it is adding hundreds of Chrysler Pacifica minivans to build a 600-vehicle fleet.
Officials highlighted this partnership will allow Avis Budget Group to service Waymo's growing number of cars on the road, ensuring Waymo's self-driving vehicles are ready for riders around the clock.
“We are excited to partner with Waymo, the self-driving technology leader that is changing the mobility landscape in a profoundly transformative and beneficial manner," said Larry De Shon, president and chief executive officer of Avis Budget Group.
“Not only does this partnership enable us to leverage our current capabilities and assets, but it also allows us to accelerate our knowledge and hands-on experience in an emerging area as Waymo-enabled self-driving cars become available in the marketplace,” De Shon continued in a news release.
Waymo chief executive officer John Krafcik, whose career includes time as Hyundai Motor America president and chief executive officer as well as the president of TrueCar, elaborated about the new relationship with Avis Budget Group.
“With members of the public using our growing fleet of self-driving cars, our vehicles need standard maintenance and cleaning so they're ready for our riders at any time of the day or night,” Krafcik said.
“Avis Budget Group is an ideal partner to provide fleet support and maintenance. With thousands of locations around the world, Avis Budget Group can help us bring our technology to more people, in more places,” he went on to say.
So much for the theory that rising wholesale volume would cause used-vehicle prices to soften — or even crash, as some doomsday observers feared.
The Manheim Used Vehicle Value Index climbed to a new record high in May as analysts determined wholesale used-vehicle prices (on a mix-, mileage- and seasonally adjusted basis) rose 2.6 percent month-over-month. The movement brought the index reading to 127.9, which is a record high and represented a 2.8-percent increase from a year ago.
The previous index high came last September when it was 126.9.
“The May index result challenges concerns that increasing wholesale supplies from near peak off-lease volumes and rising rental volumes would lead to rapidly declining used-car values. Indeed, the opposite appears to be happening,” new Cox Automotive chief economist Jonathan Smoke said in commentary that accompanied the latest index update.
“Higher commercial volumes at auction are providing the used vehicle market with quality and choice that offers a compelling value to consumers,” Smoke continued.
“Dealers responded to the consumer demand for used vehicles by purchasing the most vehicles at Manheim for the month of May since 2008,” he went on to say. “Year-over-year growth in sales outpaced the growth in inventory, which helped result in the record high index value. A slightly younger mix of vehicles also likely contributed to the record index level.”
Looking deeper at the six vehicle segments Manheim tracks for its update, analysts spotted May prices for pickups and vans helped to lead the charge to the new index record as they rose 9.1 percent and 7.3 percent, respectively, on a year-over-year basis.
Only the midsize car category dropped year-over-year, declining by 2.4 percent in May.
Within the off-rental market, Manheim determined the average price for rental risk units sold at auction in May dipped 2 percent year-over-year and 1 percent compared to April.
Analysts also mentioned SUV/CUVs accounted for 29 percent of rental risk sales in May versus 25 percent during the same month last year. Compact cars’ share fell from 31 percent to 27 percent.
Manheim added that the average mileage for rental risk units in May (at 38,900 miles) settled 9 percent below a year ago.
