Rent a car at Walmart??

[mchastek]

An article published in the Wall Street Journal explains that car rental counters are beginning to pop up at large retail chains such as Wal-Mart and Sears. Rental companies like Budget, Avis, and Hertz are looking to target customers who need an extra vehicle around town - not just those who are travelling.

Hertz is looking to target malls and hotels, and is aiming to have 1,500 off-airport locations this year.

To read a digest on this subject from AutomotiveDigest.com, please visit: http://www.automotivedigest.com/view_art.asp?articlesID=15267

Do you think this is a wise move for car rental companies?

[FleetPlan]

This is not only a natural industry progression but one out of necessity in order to compete with Enterprise and Hertz Local.

With Enterprise having maintained a lead position in the insurance replacement and repair replacement market for so many years, in addition to their re-positioning to the leisure and business traveler market with the roll out of on airport locations, many competitor rental companies were forced to identify new markets that would not cost them substantial capital to build facilities in order to support this new concept. Joint venturing with a major retailer(s) and setting up a small counter at minimal expense eliminates a great deal of financial risk and puts the brand out front and center to the general public thus increasing market penetration.

With a majority of the major rental companies (like Dollar/Thrifty) on a buying spree to purchase up Licensee/Franchisee locations in major markets and to bring them back in-house, it will be interesting to see if they will be opening these rental locations themselves, or creating a new Licensee/Franchisee program to support it. If they go the Licensee/Franchisee route, they will capture all of the Franchise fees for the location, earn revenue from the leasing of cars to the operators, as well as the reservation fee's and other royalty's, and let the operators put all of the hard work and sweat to build the location just to come back in a few years later and buy them out as they are doing right now.

Not a bad deal for Corporate and the shaft for the Licensee!.. :mad:

[fruitengine_hannah]

I think... this is just the same in every business... if you know what I mean? for example, computer shop is the "in" thing for this year.. and you can expect that everyone will be investing for computer shops.... just like in a rent-a-car biz...

[Fixmywindshield.com]

I think that rental car companies being in walmarts and other type places makes perfect sense walmarts are usually in prime spots that are near where consumers are. This makes the retailer makes money , and the rental car gets a prime location. Enterprise has places all over in car lots. Except with enterprise they are very smart about their business, they are one of the few that did not loose their hind end after sept 11 when people drove vehicles all over the dang place costing the car rental companies a fortune.

Larry Diesbach
www.fixmywindshield.com