Car Rental Management Audit
The global car rental market was worth around USD 87.4 billion in 2021 and is estimated to grow to about USD 132.6 billion by 2028, with a compound annual growth rate (CAGR) of approximately 6.9 percent over the forecast period. as per Zion Research.
However, as per KEN Research UAE is expected to reach a CAGR of 8.5% for the period 2020-25. With 2018 Car Rental revenue hitting $3.8 Billion for UAE, post Covid era may quite easily hit the above CAGR. Till 2020, The number of transport and rental car companies registered in Dubai is 12,000 and the number of vehicles registered for transport and rental activities is 255,000,” as quoted in Khaleej Times.
Reasons for a positive future for Car Rental Industry may be attributed to the following :
Rental Cars are seen as the preferred mode of travel after COVID 19.
Technological improvements and support systems are gearing up the market towards Car Rental activity.
Fleet width and depth availability with UAE Car Rental providers
Post 2020 Bullish nature of Commercial and tourism activities in the region
Focus on Value-Added Services like sliding scale termination policy, pooled mileage services to corporates to after rental services and guaranteed replacement of vehicles during servicing.
Easy financing opportunities will be offered to both corporations as well as individuals.
Shift towards Electric/Hybrid Vehicles
PROVEX Coverage of Domains in Car Rental Activity
Spot Rentals – Process review of advance bookings, Walk-in customer management.
Documentation – Internal and Regulatory, Yield Management techniques, Rate Management, CRM, Security, charge claims and purchases, etc.
Lease Rentals: Pricing, agreement documentation, Lease closure process, Buy out schemes, CRM, Pre-terminations, Lease extension, Price revisions, etc
Administration: Fine updates to rented vehicles, Fuel charge backs, Salik charge backs to customer, Hand over and hand back documentation, Replacement controls, Parking bay management, Vehicle upkeep, Inter location transfer controls, weekend idle vehicle utilization, etc.
Fleet Management : Service schedule adherence, Insurance coverage, Warranty controls, organizational controls over safeguard of its fleet, Fuel consumption during idle time, Non chargeable fines, Accident claims, Total loss instances review, Utilization reporting and maximization strategies, Salik Account Management, Delivery and collection of vehicles, etc
Procurements: Fleet price negotiations, Purchase of lease vehicles, Spot vehicles, Procurement timing and model options utilized, Buy Back options with vehicle Agencies etc. Defleeting decisioning process, Sales strategy of defleeted vehicles, Period minimization of defleeted status, etc
Petty Cash Fund Management, Payment processing controls,
Treasury Management : Accounts Receivable Management, Cash Flow Management, Finance options utilized, etc.
Expenses: Fuel cost and charge backs, Insurance premium negotiations, Salik charge review during off hired period, Promotion activities, etc