The short-term car rental market benefited from the economic recovery in France in 2017, marked by a 1.9 % increase in GDP according to INSEE. The sector was particularly buoyed by the surge in car-sharing, which now accounts for more than 15 % of transactions, compared with just 6 % in 2016. Leasing is gradually establishing itself as a real alternative to car ownershipThis phenomenon is particularly noticeable among the younger generations and in large cities where local authorities have introduced policies to reduce the use of cars.
"The importance of car-sharing in France is diluting the weight of the corporate market, which still accounts for between 40 % and 50 % of leasing activity."It's a good thing that the car industry is doing well," says Jean-Philippe Doyen, Vice-Chairman for Chains at the Conseil National des Professions de l'Automobile (CNPA). Similarly, thanks to this sustained economic activity, both commercial vehicle rental and medium-term rental are particularly buoyant.
However, while volumes have risen, there is still significant pressure on prices, partly because of competition between rental companiesand also because of the control companies have over their travel expenditure. "Fares are under pressure. Business trips are becoming shorter, which has an impact on the average shopping basket."says Jean-Philippe Doyen, Sixt's Managing Director for France.
READ ALSO: " Mobility management: optimum organisation"
In order to benefit from better conditions, companies are continuing to negotiate the terms of their contracts firmly, while also opting for smaller vehicles - which are less expensive to hire - and for a shorter number of days. The average rental period is as follows between three and five days depending on the hire company. "The average rental period for companies is around five days; this average is increasing with the development of medium-term rentals, corresponding to renewable contracts of four months to one year.It's a real challenge," explains Didier Fenix, Europcar's Managing Director for France and Chairman of the CNPA's Shared Mobility business group.
In order to maintain their position in a highly competitive leisure market, some rental companies are now operating a second signThese include Avis' Budget, Europcar's InterRent and Enterprise's Rent a Car. However, in the corporate market, rental companies continue to offer their premium brands because of the range of associated services dedicated to business customers.
Multi-branding and digitalisation
"Although multi-branding is now part of our value proposition, only the Hertz brand is offered to companies, as it is the only one that can meet all business travel requirements."confirms Grégory Vandenbroucke, Infrastructure and Network Director at Hertz France. Europcar has the same strategy, with different products depending on customer expectations for medium-term rental, such as FitRent, short-term rental for SMEs, such as Autoliberté Pro, or occasional rental with Smartway.
When it comes to the act of hiring itself, companies are looking above all for simplicity and services for their employees. In response, rental companies have made the smoothest possible customer journey. New technologies, and in particular mobile applications, have made things easier, whether it's for booking and managing the rental file, quickly picking up the vehicle from the branch, or even dealing with any damage. In stations and airports in particular, vehicles can be accessed 24/7 using a smartphone or a magnetic card that automatically unlocks the doors and retrieves the keys from the glove compartment.
For professional tenants, these new services represent "zero waiting time to pick up a vehicle"according to Grégory Vandenbroucke at Hertz. "There is a demand for avoid going to the counter for short-term rentals. But for this offer to develop, we need to remove the anxiety that some customers feel about using a dematerialised key integrated into a smartphone."says Didier Fenix.
At the same time, rental companies are now offering companies tailor-made contracts depending on their size, consumption, location and desired level of service. What's more, companies can add the rental of specific vehicles - prestige cars, eco-friendly cars, vans, etc. - as well as delivery and collection of the vehicle at the location requested by the customer, and car-sharing...".Additional services are personalised for each Europcar customer, continued Didier Fenix. Contracts are tailored to the company's consumption profile: territorial representation, rental requirements at airports, stations or city agencies, rental duration, specific pick-up requirements, etc."
With tighter control over their transport budgets, companies are also looking to reduce the number of vehicles they use. In this context, with the rise of car-sharing, companies can consider the following solutions pooling of vehicle fleets between several companies. Some of them do not hesitate to return their vehicles to the rental circuit at weekends.
Faced with these new practices, car rental companies have taken the lead. With its Drive & Share offer, Europcar allows companies to hire a vehicle for between four months and a year, then offer it on the GoMore car-sharing platform when it is not being used by employees. Using its 24/7 technology, Hertz offers companies self-service vehicles for better optimisation of their vehicle fleet. "Companies are looking to optimise their fleets, whether owned or leased. This is driving the development of new ideas"Europcar has set up a dedicated subsidiary with Ubeeqo to provide tailored car-sharing and mobility credit solutions, for example.
Mobility solutions
Today, vehicle rental companies clearly have an advisory role to play in helping you find the right vehicle for your needs. tailored mobility solutions to the needs of each company. This involves not only traditional short-term rental, but also the pooling of car fleets between companies located in the same business park, and the introduction of car-sharing or even car-pooling schemes...
Hire companies believe that car-sharing, which is still only a marginal part of the corporate offering today, has a bright future ahead of it, with both large groups and medium-sized companies. The question of sustainable development Companies are keen to reduce their CO2 emissions, and are looking to hire companies to help them do so. Electric vehicles, and hybrids in particular, are making inroads into both hire companies' fleets and corporate fleets.
