Car rental is an extremely competitive industry that can prove to be quite lucrative when done right. With an estimated value of over $72 billion in 2015, and with growth likely to continue, according to Grand View Research, now is a great time to consider starting a car renting business. Like with starting any other business, when starting a car business you need to consider some essential factors. Before you can start your business, you need to determine what business model you’ll follow, find an ideal location, and build your fleet. However, before you start your car rental business, you should consider these five tips.
Pinpoint Your Niche
Consider your location and determine who you want to cater your business to. Does your area receive a wealth of business travelers? If you live in a place that is centered around business and industry, cater to the clientele by picking out vehicles that appeal to these individuals. Market to mediums that your target customers are likely to be exposed to. Have numerous kinds of cars ready to rent at all times of the year that will appeal to customers of all backgrounds.
Look for Marketing Alliances
Always be on the prowl for a sensible marketing alliance with the businesses around your location. When you can partner with a complementary supplier in a joint marketing campaign, you can multiply your customer base, according to the site Gaebler.com. If you can establish this kind of a relationship with businesses around you, create a brochure that explains your alliance with the company. You might even be able to coordinate the placement of the pamphlet, as well as other marketing materials in the hotel.
Develop a Website
Your car rental website is of the utmost importance. You want to ensure that it is enhanced for search engines through SEO and that it is compatible with mobile devices. If you aren’t an expert web developer, consider bringing on a web programmer and user experience designer to help you polish your site and develop a mobile app for your business. The mobile app will allow your customers to rent a vehicle in a moment’s notice.
Advertise Across Different Mediums
Don’t settle on one avenue for advertising your business. Develop a marketing strategy that utilizes both traditional mediums, like newspapers, radio, and television, and digital marketing through social media and SEO. Spend the time to create introductory letters, flyers, brochures, magazine and newspaper ads, local directory listings, as well as online listings.
Have a Plan for Maintaining Your Vehicles
As you acquire your fleet and start your business, you want to make sure you have a solid plan for not only maintaining your vehicles but insuring them as well. Not only is maintenance essential for keeping your fleet running, but also for keeping your customers happy. Having the right insurance on your fleet is also extremely important because all sorts of unexpected circumstance could put you in a difficult situation.
As the car rental industry continues to boom because of the growing number of inbound and domestic travelers, according to Transparency Market Research, now is a great time to get your foot in the door and start earning money on the side. Make sure to do your due diligence so that you can provide your customers with the best cars and experience.