Although investing in technology plays a big role in digital transformation, transforming or growing a car rental company isn’t just about the deployment and modernization of front- and back-end systems. Transformation initiatives also require the development, implementation, and execution of strategies and programs capable of delivering operational efficiency, reducing expenses, and increasing revenue.
For example, one such initiative could focus on global expansion through franchising and business partnerships (e.g., hotels, airlines). It could be a program meant to invest more resources in specific franchises based on individual performance, with the goal of maximizing a company’s return on investment. It could be implementing new revenue management and fleet optimization models and strategies that help car rental companies improve their forecasts, optimize revenue, and reduce costs. Or, it could be a rate segmentation initiative.
A compelling digital strategy finds a balance between maintaining what you already offer while providing new, disruptive ideas that will get you to next level, hold off competition, and entice new customers. We present five digital essentials to help you rise to the challenge.
Transformation is also about reengineering more traditional business processes and cutting costs (e.g., HR, shuttling) to become more efficient and disciplined. It’s about creating the best possible outcome for your employees, partners, and customers, at the lowest cost possible.
The car rental industry is embracing people’s changing habits and a new operating environment. Car rental companies are responding with intelligent strategies, innovative ideas, and technology investments that can help drive operational efficiency, growth, and profitability. These are the strategic initiatives on which industry executives must focus to remain relevant. To learn more, download our new guide: 2018 State of the Car Rental Industry.