From the beginning of time car rentals were only available on a per day, per week, per mile basis. 8 Seater Vehicle Hire in Morningside you rented a car and paid for the time used and the miles driven. However it was only a question of time and circumstances before car rentals would be offered with free mileage.
In 1967 my partner and I took over a bankrupt car rental company and had three rental stations, Miami, 5th Street on South Beach and the third in Ft. Lauderdale. 7 Passenger Car Rental at the time Yellow Rent A Car, owned by Yellow Cab of Miami, with rental stations in Miami and Ft. Lauderdale was offering a sub-compact car with unlimited free mileage at $45 a week. They were the first and only car rental company with free mileage but with a one week minimum rental requirement.
Car Rentals and Unlimited Free Mileage, Its Evolution
I can not tell you what year they first offered free mileage but I can guess why. They were only in South Florida, 8 Passenger Suburban Rental they were only dealing with the leisure market and Disney World 200 miles north was not open. Renters did not use a lot of miles. The competitive rate for a sub-compact car back in the 1960s was $5 per day, $25 per week [5 times the daily rental] and 5 cents per mile. With a one week minimum rental at $25 and with their weekly rate of $45 they would have the difference, or $20, to cover the cost of the miles. At 5 cents a mile the client could use up to 400 miles for the week and the rental would be a wash. I found out later that this was a winner for Yellow Rent A Car.
The Six-Dollar-A-Day Car
To my knowledge Yellow Rent A Car was the granddaddy of free mileage. Their caveat was a one week minimum. My partner and I, owners of Capital Rent A Car took it one step further. We were the first to offer unlimited free mileage one day or more. One week minimum rental did not apply. It couldn’t get any better than that and I will tell you how it evolved.
We first published in CATM in 1970 and I mention this because I previously stated that we, Capital Rent A Car, was the first to offer unlimited free mileage one day or more. To substantiate this claim I must mention that in 1942 I was in my seventh grade Shop class and the teacher claimed that he invented the airplane before the Wright brothers. I am not kidding you and maybe he did. But if he did he didn’t tell anyone so Wilbur and Orville got the credit.
Maybe we weren’t the first with unlimited free miles and maybe someone in Okemos. MI or Rockford, IL did. But if they did they didn’t tell anyone. We did by being in a national publication, CATM. So we are going to take the credit for being the first. The next time you rent a car and don’t pay for mileage you can thank us.
For those out there who wish to contest our claim please contact me at my email address below, You can also read another one of my Ezine Articles, “Start A Major Car Rental Company”, dealing with the car rental business at the resource below.
8 Seater Vehicle Hire in Morningside ?
"My time's limited... how do I choose?"
Car rental is a hot topic for vacationers headed to Costa Rica. Recent research conducted by the Costa Rican Institute of Tourism (ICT) indicates that, after accommodations, renting a car is the largest expense, averaging $702 for an eleven-day vacation.
The Internet is buzzing with negative reviews discussing overcharging, poor customer service and mechanical breakdowns. You might have even written one yourself!
A typical midsize (3 - 4 adults) 4X4 rental runs between $58 and $65 daily with third party insurance and rates can vary as much as 20 percent among car rental companies, so reading a quick review will be time well spent once you calculate the savings.
So the question is; which rental company offers the best balance of fair price, capable customer service and reliable vehicles? I've researched it all for you, so keep reading!
Disclosure: This research was conducted in May - July 2013. The following companies were selected because they are the most widely used in Costa Rica. Some are local companies; others are international franchises of recognized brand names. Comparisons include: customer service, pricing and the reservation process. The companies are listed alphabetically and not based on personal or online preferences.
Consider this information before renting:
One of the biggest causes for complaints is from the stack of unforeseen charges presented to the renter once standing at the rental company's counter. Vacationers are typically tired after a long flight and then are confronted by costs that were not anticipated, explained or budgeted.
Topping the list of grievances is the non-disclosure of fees associated with the mandatory third-party insurance at the time the reservation is made.
According to Costa Rican law, every driver is required to carry liability coverage to insure against injuries to third parties. Car rental companies generally refrain from disclosing the cost of this policy in the quoted rental rate to appear more competitive. Mandatory third-party insurance can sometimes be as much as double the vehicle's rental cost. The only guarantee against insurance confusion is to inquire if your estimate includes the third party insurance and insist on a written quotation.
Cost of Mandatory Insurance (also called Third Party or SLI)
Expect to pay between $12 and $15 daily for this insurance, depending on the make and model of the rented vehicle and the rental car agency. This is a legal condition of your rental agreement and is generally not covered by credit cards and cannot be waived. It's a fact of renting a car in Costa Rica.
Collision Damage Waiver (CDW)
As the name suggests, this isn't insurance, but a waiver, which relieves the renter from any liability for damage to the rental car after the deductible is paid (usually from $750 to $1,500). Some agencies require renters to purchase their CDW policy; thereby negating any credit card program. For an additional fee, many agencies do offer a zero liability option where the renter will be freed from paying for any damage to the car. Some companies may put pressure upon renters to purchase the zero liability coverage; however, it is entirely optional, unless it is in the fine print of their rental agreement.
Credit card insurance programs may cover the CDW for a rental vehicle. Check with your chosen rental car company to find which proof of insurance is needed and then request that from your credit card company prior to arriving. If you use your credit card's CDW policy, expect to pay a higher deposit on the vehicle; around $1,500 to $2000 is common. The higher deposit ensures that the credit card holder has enough financial reserves to cover damages if needed. It is important to consider that if using CDW coverage provided by a credit card (in lieu of the rent a car operator), all damages will be billed to the renter's credit card. The credit card company will then reimburse the card holder for damages.
Tires and windshields are rarely included in insurance policies, although additional policies may be taken out for covering these frequently damaged items. Neither the interior nor the underneath of the vehicle may be covered. Always read the fine print.
Your credit card will be charged, or a 'hold' placed, for the rental vehicle during the time of the rental agreement; i.e. from picking up the rental until you return it. Debit cards are generally not acceptable.
Most companies have surcharges for additional drivers, car seats/boosters, cell phones, coolers, GPS and/or roof racks. The costs vary from company to company, but since these extras are billed at a daily rate, it is worth checking the total cost -- additional options can add up very quickly! A GPS is around $8 to $10 per day; however, some operators may offer discounted units. Expect to pay around $5 daily for a child seat and a few dollars a day for all the other 'niceties'. Vamos is notable for offering most of these options and, during some promotions, even the GPS rental complimentarily. Alamo, Budget, Hertz and National charge the most for such additional options; whereas the other companies listed, charge more reasonable prices.
Toll-free U.S.A and Canada phone number. No Live Chat.
4 offices nationwide
Mandatory insurance: $19.99 daily
Additional charges: GPS $10/day, child seat $5/day
Website is clear and easy to use. Mandatory insurance costs are not given along side the list of vehicles and rental charges, but are clearly displayed on the following page as the customer moves towards booking a reservation. Anibal, a representative, is frequently mentioned in online reviews for his high level of customer service skills. General Manager, George Schwarzenbach is known on Trip Advisor for his upfront and honest responses to customers' posts.
In recent years, Vamos has received very positive reviews online. Email response is less than 24 hours. Live Chat has instant response time to inquiries.
Toll-free U.S.A and Canada phone number. Live Chat.
3 offices nationwide
Mandatory insurance: $11.95 daily
Additional charges: GPS $8/day, child seat free
Website is clear and easy to use. Mandatory insurance costs are given next to the list of vehicles. Wild Rider is the only car rental firm in Costa Rica with no visible bad reviews online. Owner, Thorsten, is often praised for his efficiency and customer service, despite the very limited resources the company has at hand. Emails receive very prompt and detailed responses in less than 12 hours.
No toll-free phone number or Live Chat
1 office -- no Liberia airport office
Mandatory insurance: included
Additional charges: GPS $8/day, child seat $5/day
Vamos and Wild Rider respond quickly and efficiently to email or live chat inquiries. Adobe, Alamo, Dollar, Hertz, National, and Service respond to email inquiries in less than 24 hours, but Adobe and Service did not provide all the information requested (possibly a language barrier). Budget offers a free phone service, but it appears to be always busy. Hertz's live chat appears to be constantly offline. During the past year, customers who posted to online review sites expressed a particular satisfaction with the customer service offered by Service, Vamos and Wild Rider.
Adobe, Alamo and Budget have different rental prices posted on their websites than those quoted over the phone. Telephone prices were lower than that quoted on the website in the cases of Adobe and Alamo, but yet higher in the case of Budget. Adobe also offers different vehicle models over the phone as compared to their website. International car rental firms with both a Costa Rican and international website appear to have pricing differences between the two sites.
Budget and Wild Rider include the mandatory insurance in their rental prices, but Budget states that 'other charges' which will be presented at the counter in the small print on their website. Rental prices for car seating had to be verified on the phone as they are not listed on the Budget website.
All other companies with the exception of Thrifty (a U.S. website), clearly show the mandatory insurance cost with the quotation given. Thrifty's Costa Rican website is simply unusable.
Service, Vamos and Wild Rider consistently offer the best rates for both Green and High seasons, although Dollar has one of the lowest Green season rates available, while Adobe has a cheaper High season rate. Vamos offer the best "all inclusive" rates, given that most options are offered for free.
Adobe, Dollar, Service, Thrifty and Wild Rider remain competitive with their pricing of items such as child seats. Alamo, Hertz and National are the most expensive companies to rent from and their additional option costs are also more expensive.
"So, what's your rental recommendation?"
Overall, the Costa Rican companies seem to trump the multi-nationals with better pricing, service and clarity.
Service offers a generally high-level of customer service and fairly competitive pricing at both international airports.
Vamos can offer efficient booking and continued high-level of customer service with competitive pricing, as well as free additional options at both SJO and LIR airports.
Wild Rider is very highly rated for a rental with clear and economical pricing and excellent customer service, but they are only in San Jose.
"Now you're ready to book your rental car after seeing how the competition compares. Good luck and happy travels!"
Car Rental - Three Major Traps To Avoid
The car rental industry is a multi-billion dollar sector of the US economy. The US segment of the industry averages about $18.5 billion in revenue a year. Today, there are approximately 1.9 million rental vehicles that service the US segment of the market. In addition, there are many rental agencies besides the industry leaders that subdivide the total revenue, namely Dollar Thrifty, Budget and Vanguard. Unlike other mature service industries, the rental car industry is highly consolidated which naturally puts potential new comers at a cost-disadvantage since they face high input costs with reduced possibility of economies of scale. Moreover, most of the profit is generated by a few firms including Enterprise, Hertz and Avis. For the fiscal year of 2004, Enterprise generated $7.4 billion in total revenue. Hertz came in second position with about $5.2 billion and Avis with $2.97 in revenue.
Level of Integration
The rental car industry faces a completely different environment than it did five years ago. According to Business Travel News, vehicles are being rented until they have accumulated 20,000 to 30,000 miles until they are relegated to the used car industry whereas the turn-around mileage was 12,000 to 15,000 miles five years ago. Because of slow industry growth and narrow profit margin, there is no imminent threat to backward integration within the industry. In fact, among the industry players only Hertz is vertically integrated through Ford.
Scope of Competition
There are many factors that shape the competitive landscape of the car rental industry. Competition comes from two main sources throughout the chain. On the vacation consumers end of the spectrum, competition is fierce not only because the market is saturated and well guarded by industry leader Enterprise, but competitors operate at a cost disadvantage along with smaller market shares since Enterprise has established a network of dealers over 90 percent the leisure segment. On the corporate segment, on the other hand, competition is very strong at the airports since that segment is under tight supervision by Hertz. Because the industry underwent a massive economic downfall in recent years, it has upgraded the scale of competition within most of the companies that survived. Competitively speaking, the rental car industry is a war-zone as most rental agencies including Enterprise, Hertz and Avis among the major players engage in a battle of the fittest.
Over the past five years, most firms have been working towards enhancing their fleet sizes and increasing the level of profitability. Enterprise currently the company with the largest fleet in the US has added 75,000 vehicles to its fleet since 2002 which help increase its number of facilities to 170 at the airports. Hertz, on the other hand, has added 25,000 vehicles and broadened its international presence in 150 counties as opposed to 140 in 2002. In addition, Avis has increased its fleet from 210,000 in 2002 to 220,000 despite recent economic adversities. Over the years following the economic downturn, although most companies throughout the industry were struggling, Enterprise among the industry leaders had been growing steadily. For example, annual sales reached $6.3 in 2001, $6.5 in 2002, $6.9 in 2003 and $7.4 billion in 2004 which translated into a growth rate of 7.2 percent a year for the past four years. Since 2002, the industry has started to regain its footing in the sector as overall sales grew from $17.9 billion to $18.2 billion in 2003. According to industry analysts, the better days of the rental car industry have yet to come. Over the course of the next several years, the industry is expected to experience accelerated growth valued at $20.89 billion each year following 2008 "which equates to a CAGR of 2.7 % [increase] in the 2003-2008 period.
Over the past few years the rental car industry has made a great deal of progress to facilitate it distribution processes. Today, there are approximately 19,000 rental locations yielding about 1.9 million rental cars in the US. Because of the increasingly abundant number of car rental locations in the US, strategic and tactical approaches are taken into account in order to insure proper distribution throughout the industry. Distribution takes place within two interrelated segments. On the corporate market, the cars are distributed to airports and hotel surroundings. On the leisure segment, on the other hand, cars are distributed to agency owned facilities that are conveniently located within most major roads and metropolitan areas.
In the past, managers of rental car companies used to rely on gut-feelings or intuitive guesses to make decisions about how many cars to have in a particular fleet or the utilization level and performance standards of keeping certain cars in one fleet. With that methodology, it was very difficult to maintain a level of balance that would satisfy consumer demand and the desired level of profitability. The distribution process is fairly simple throughout the industry. To begin with, managers must determine the number of cars that must be on inventory on a daily basis. Because a very noticeable problem arises when too many or not enough cars are available, most car rental companies including Hertz, Enterprise and Avis, use a "pool which is a group of independent rental facilities that share a fleet of vehicles. Basically, with the pools in place, rental locations operate more efficiently since they reduce the risk of low inventory if not eliminate rental car shortages.
Most companies throughout the chain make a profit based of the type of cars that are rented. The rental cars are categorized into economy, compact, intermediate, premium and luxury. Among the five categories, the economy sector yields the most profit. For instance, the economy segment by itself is responsible for 37.7 percent of the total market revenue in 2004. In addition, the compact segment accounted for 32.3 percent of overall revenue. The rest of the other categories covers the remaining 30 percent for the US segment.
The rental car industry is in a state of recovery. Although it may seem like the industry is performing well financially, it is nonetheless gradually regaining its footing relative to its actual economic position within the last five years. As a way of insuring profitability, besides seeking market shares and stability, most companies throughout the chain have a common goal that deals with lowering the level of dependency on the airline industry and moving toward the leisure segment. This state of motion has engendered some fierce competition among industry competitors as they attempt to defend their market shares. From a futuristic perspective, the better days of the car rental industry have yet to come. As the level of profitability increases, I believe that most of the industry leaders including Enterprise, Hertz and Avis will be bounded by the economic and competitive barriers of mobility of their strategic groups and new comers will have a better chance of infiltrating and realizing success in the car rental industry.
Passenger Car Rental. Encyclopedia of Global Industries. Dec. 2004. Gale group. 02 Feb 2005. http://galenet.galegroup.com.ucfproxy.fcla.edu/servlet/BCRC.
Car & Truck Rental. Hoover's AB&D Company. Jan. 2005 . Hoovers. 04 Feb 2005. http://premium.hoovers.com.ucfproxy.fcla.edu/subscribe/ind/factsheet.xhtm.
Rental car foes war on each other's turf. The Associate Press. Fall 2004. The Enquirer. 08 March 2005. http://www.enquirer.com/editions/2004/10/11/biz_rentalcars111.html.
United States - Car Rental. Data Monitor Industry Market Research. Nov. 2004. Gale. 12 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu/sessions?products=BNI.
A synthesis of tactical fleet planning models for the car rental industry. IIE Transactions. Sept. 2003. Gale. 12 March 2005. [http://www.fleet-central.com/arn/01stat3.cfm].
Corporate travel plans moving to Web. Crain's Chicago Business. Apr. 2001. ProQuest. 12 March 2005. http://www.proquest.com.ucfproxy.fcla.edu.
"Tracy Esch." Car rental market leaders make rebound . Business Travel News. May 2002. Gale. 12 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
Avis Equips Rental Car with Satcomms 1999. Newsbytes News Network. Oct. 1999. Gale. 12 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
Car Rental In the United States. Data Monitor Industry Market Research. Nov. 2004 . Gale. 13 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
Global - Car Rental. Data Monitor Industry Market Research. Nov. 2004 . Gale. 13 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
Corporate and Travel Trends. Travel Trade Gazette. Nov. 2003 . ProQuest. 14 March 2005. http://www.proquest.com.ucfproxy.fcla.edu.
Car rental market leaders make rebound. Business Travel News. May. 2002 . Gale. 14 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
Car rental market leaders make rebound. Business Travel News. May. 2002 . Gale. 14 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
Ovation Travel. Wall Street Transcript. May. 2002 . LexisNexis. 14 March 2004. http://www.lexisnexis.com.ucfproxy.fcla.edu/cis.
Avis Offers New Deal for Free Weekends. Newswire. Feb. 2004 . LexisNexis. 15 March 2004. http://www.lexisnexis.com.ucfproxy.fcla.edu/cis.