From this paper, it is clear that any business will have particular target customer segments. The rental car industry was targeted mainly at the business segment and the travel or leisure segment of people. Each segment was concerned about different features of the service…
Avis, Europcar, and Hertz were very prominent across Europe. However, each region had a prominent domestic player in the market as well and these attracted about half of the crowd for the simple reason of familiarity. These top firms were aware of their place in the market and the reason for their being there. They targeted both business and leisure segments and offered them the services they required most by offering a wide range of vehicles. This meant that the leisure or tourist class could opt to use a lower end vehicle and save on cost and the business segment could choose the best and optimize their experience. The rental car scenario also comprised of a few smaller players who operated out of a few locations only and focused mainly on the tourist crowd, and brokers who did not own a fleet of vehicles of their own but had tie-ups with various players in the market and earned via commission from them. It can be said that the car rental industry was at the time very stable in Western Europe. Service delivery was monotonous and there was huge scope for the revolution to occur in the segment.
Reducing the operating costs is a key strategy to survive and succeed in any industrial sector, with the rental car industry being no exception to it. EasyCar undertook various measures to keep their operating costs down. EasyCar’s mission was to provide rental cars at low prices so that these could prove to be competition for public modes of transport as well as even owning one’s own vehicles. They followed many simple strategies such as keeping only one type of vehicle at one venue. This worked out well for them as maintenance charges would be uniform. Even when they decided to use different vehicles, they always ensured that there was only one class of vehicles at one location. The reason for choosing to introduce a different class of vehicles was that newer vehicles were costing them lower to maintain on a daily basis and so they could charge. ...
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