It’s not quite full throttle ahead for car-rental companies as they anticipate the opportunities and challenges that await them in the run-up to the 2010 World Cup. Local companies are starting to see an increase in interest but believe that the December 4 draw will give them better guidance on what they should be doing to gear up for the event.
“Of late we have started to see greater interest from organisers, sponsors and the general public and expect requests to increase substantially after the 2010 draw to be held in December,” says Dawn Nathan-Jones, ceo of Europcar SA. “This is when fans are likely to firm up on their travel plans once they know where their teams will be playing.”
Leslie Matthews, ceo of Tempest Car Hire, agrees: “We are already fielding numerous large-scale enquiries and the draw on December 4 has not even taken place yet. It will be a great opportunity for local rental companies to experience and learn from being able to effectively manage the logistics and fleet planning around moving thousands of people in a very short space of time.”
However, Nathan-Jones believes that an increased demand for rental vehicles during the six-week event period is likely to be balanced out by a major drop in business travel due to the limited availability of flights and hotel accommodation.
“Many businesses will turn to teleconferencing instead. Even though the government has rescheduled school holidays to coincide with the event, the premium rates charged by hotels and airlines will decrease the amount of local leisure travel significantly.”
Even so, car-rental companies believe it is still wise to increase their fleets specifically for the 2010 World Cup. “Demand will undoubtedly exceed the industry’s supply. This can easily be achieved by delaying de-fleeting,” says Nathan-Jones.
“It is already apparent that there is a great demand for people carriers (eg. VW Kombi) and automatic vehicles,” says Lance Smith, executive director at Avis SA. “Several conditions are likely to be placed on the various vehicle groups to try and ensure an uninterrupted level of service to our customers during this period. We are advising out customers to book as early as possible to avoid disappointment.”
First Car Rental says it is taking a responsible approach to the 2010 Soccer World Cup by ensuring that rates are at affordable levels. “There are many companies that spend a lot of effort by focusing on the idea of the short-term profits that they can make during this six-week period,” says Melissa Storey, executive head: strategy, development and marketing.
“Two of the big players have already gone on stop-sale for the World Cup period in an attempt to drive their yield through the roof. I am not advocating foolishness in terms of profits but rather a responsible approach to this event and an understanding that it is an opportunity to showcase South Africa as a spectacular yet affordable destination in order to serve our tourism needs in future.”
In general, no deposits will be required for reservations from customers with existing accounts with Avis, says Smith. “On December 4 the World Cup 2010 final draw will be announced and customers with unusually high requirements over the period may be required to pay a deposit.”
A key lesson from the German 2006 FIFA World Cup was the increased tourism for years after the event.
“The World Cup has given us the opportunity to re-think and evolve our business and processes,” says Matthews. “For example, upfront deposits to secure vehicles, pre-paid rentals, running higher utilisation levels and quick turnaround time of out-of-service vehicles to keep cars on the road. All of these measures will remain long after the last soccer fan has left.”
Pat O’Brien, chief divisional executive of Hertz SA, agrees: “2010 has the potential to create growth opportunities for many businesses in the country. Car rental is no exception but we need to ensure fleets and bookings are well managed to ensure that corporate customers and non-event-related bookings are catered for during this period too.”
