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The car rental
market was born out of the need of business travellers for convenient and
flexible ground transportation at their destination airports.
Whilst the market has clearly evolved considerably into many other
sectors, particularly private holiday travel, airport business rentals remain
the cornerstone of the market. The world
market is worth approximately $40 billion annually, across more than 200 million
rentals utilising 3 million rental vehicles.
Whilst there are nearly 15,000 car rental companies around the world, the
top 4 companies account for approximately half the revenue. Consistent
market growth is predicted for car rental, but increasing price competition and
the continuing need to innovate while providing superior levels of customer
service and added value, are placing pressure on profit levels. |
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Avis has seen
more than 50 years of successful operation, and now has over 4000 locations
worldwide (1400 of them are at airports) in 135 countries. Avis has more than
400,000 vehicles and 20,000 employees. The key to the
Avis success story has been the “We Try Harder” culture which supports
everything the company does. This
culture insists on a total focus on customer service, quality and innovation. In Australia,
Avis has won a series of major awards including the prestigious Australian
Quality Award and the Qantas Award for Outstanding Achievement in Customer
Service, widely regarded as the pinnacle in customer service recognition in this
country. |
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Avis is the
world’s best known car rental company. Avis
has had more books and articles written about it than almost any other company
of its size. The reason seems to be
that Avis has its own unique personality, a personality that began in 1946. Today’s
international Avis network grew out of an idea conceived by Warren E Avis, who
was among the first to foresee the rapid development of commercial aviation
following World War II. He reasoned
that the growth in air travel would
lead to a need for ground transportation at destination airports.
Mr Avis, a Detroit Ford dealer, opened the first airport rent a car
counter at Detroit’s Willow Run Airport in December 1946.
Almost simultaneously, an Avis location opened at Miami International
Airport, then the country’s busiest rent a car market.
The fledgling business was called Avis Airlines Rent-A-Car System. The idea of a
national airport rent a car system was a valid one. Mr Avis expanded his business at a steady pace primarily by
licensing local independent operators to do business under the Avis name at
airports. New York, Chicago,
Dallas, Washington, Los Angeles, and Houston soon joined the Avis System. By 1948,
system operations were opening in US downtown locations to serve hotels and
office buildings and the word “Airlines” was dropped from the company’s
name. In Australia,
the beginning of the car rental business and Avis were virtually simultaneous.
The late Eric McIllree, the company’s founder, pioneered car rental in
this country. In the early 1950s
with the tremendous growth of air travel and the great distances between capital
cities, he saw the potential in operating a national service, providing rental
cars at airports throughout the country. The
original idea was the “Fly and Drive” concept. In 1955, Eric
McIllree successfully negotiated for the right to use the name of Avis Rent A
Car in Australia and so the company started out on the first step of the path of
tremendous progress that has led to Avis’ leadership in the Australian car
rental business. McIllree
started Avis Australia with 150 FJ Holdens stationed at 9 Australian airports.
He pioneered the Fly/Drive concept and the first International Fly/Drive Holiday
Schemes. He lobbied for government approval of car rental facilities on
airports. Avis Europe
corporate offices were established in the United Kingdom in 1960 and during the
1960s and 1970s Avis expanded rapidly throughout Europe, Africa and the Middle
East. Avis is today market leader
in the region. As the local
market leader today, Avis Australia has approximately 220 locations, employs
nearly 1000 staff and operates a fleet of 10,000 vehicles. |
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Avis has a
long history of aggressive, innovative industry leadership.
New ideas, techniques and services have been implemented by Avis people
with continuing energy and enthusiasm. This is the essential ingredient of the
“We Try Harder” spirit. The company
has structured comprehensive training programs for its employees so that they
comprise a team of specialists whose across-the-board efforts are focused on
delivering first-class service to every customer. This means providing a clean, safe, reliable car at the
appointed place and time; and checking-in the car promptly when the customer
returns. Standards of
performance are based on customer expectations and honed by the employees
themselves. They consistently strive to improve their own levels of customer
service which they monitor continuously to assure the same high degree of
service is maintained throughout the Avis System. Avis has
remained a leader in product and service innovation with an endless list of
developments over its 50 year history. One of these was the first central
billing charge card system for corporate accounts in the car rental industry.
Avis introduced Wizard, the first and the largest on-line, real time rental,
reservation and management information system in the industry. Rapid Return, a
mobile, automated check-in service that eliminated the need for the customer to
go to the counter to return the vehicle was another Avis first. It was all done
at the vehicle, in less than a minute. Avis’ Preferred Service eliminated
paperwork and queues for regular renters. Employee Participation Groups (EPG)
were among the most important innovations. At monthly meetings staff members
identify problems and opportunities in their work location and develop
appropriate programs leading to further improvement in customer service. |
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Within the
very competitive car rental market, Avis recognises that the two areas where
product differentiation and superiority can be demonstrated to the consumer are
customer service and technological innovation. In 1994 Avis
launched the “Raving Fans” concept. The challenge for every Avis employee is
to “create one Raving Fan per day”. A
key component of Avis success in creating Raving Fan customers has been
management’s belief that this can only be achieved by first creating Raving
Fan employees. To achieve this
effective communication amongst employees and departments has been a priority
and Avis has set up processes through which employees can both talk and listen
to each other. From this internal
Raving Fan culture has evolved a program by which external (customer) Raving
Fans are created every day through excellence in customer service. Avis prides
itself on its technological leadership and was first in the car rental industry
in Australia to provide an in-car navigation system in the average sedan - Avis
Navigator. At Sydney and
Brisbane airports, a leading edge service has been developed in which regular
customers are directed straight to their rental car by large screens featuring
their name and their car’s bay number. There
they find the keys and rental agreement already in the vehicle. All they have to
do is drive past a window, show their driver’s licence and drive off; it’s
the fastest way to rent a car! |
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Avis has one
of the most remembered advertising slogans ever developed - acknowledged as one
of the ten all-time best: “We Try
Harder” has been an essential element of all Avis advertising since 1962.
This slogan has become a culture within Avis and has provided the
company’s advertising with a consistent image of service and quality. The “We Try
Harder” slogan has been very effectively supported by the inclusions of the
distinctively dressed “Avis Girl” which has strengthened the core value of
customer service. As loyalty
programs and partnership arrangements become increasingly important in
consumers’ travel planning, so Avis’ advertising and promotional activity is
increasingly involved in joint programs with airline, hotel and other partners.
Customer retention is strengthened
by linked partner loyalty programs. Whilst Avis
continues to be a strong advertiser, funds are increasingly being channelled
into direct marketing programs which focus on building the loyalty of the renter
base and the frequency with which it uses Avis services. |
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The “We Try
Harder” philosophy is the linchpin of Avis.
Avis is always looking for ways to do even better - in quality, service
and innovation. That’s what makes
Avis different and it’s the reason why customers keep coming back. |
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