War in Iran also affects car rental, especially for smaller companies in the market.
Companies are trying to be more efficient: optimized fleet management, fewer kilometers “for nothing”, greater digitalization and automation of processes, simplification of contracts, saving time and cutting costs.
Even so, the sector car rental is being harmed for the . Some companies even run the risk of closing.
The Association of Driverless Car Rental Industries (ARAC) warns that “the risk (of closing) is higher among smaller operatorsless capitalized and with a smaller operational scale”.
Os fuels became more expensive, inflation rose, the costs of financing also tighten.
But the problem comes from behind: in recent years prices have been falling due to increased competition, excess fleet numbers and a drop in demand.
“As competition remains intense, this increase (in costs) cannot be automatically passed on to prices. The most direct effect is felt in operating costs and in a new compression of profitability”, laments Joaquim Robalo de Almeida, president of ARAC.
The current price increase was reflected, above all, “in the operational costs borne by companies, such as deliveries and collections, fleet repositioning, internal displacements, service and preparation of vehicles, in addition to indirectly worsening the general cost of the operation in a context of greater economic instability”.
Only a few companies are succeeding “survive” more easily at this stage.
To clients tourists It doesn’t help either: they are spending less on secondary services, prioritizing accommodation and food.
And here too the war in Iran makes a difference: “People are more cautious, they book more at short notice, they are more sensitive to prices and want more flexibility”, describes the ARAC leader.
ARAC wants government support: “The sector will hardly say that it has had sufficient support. There was a response from the Government in the ISP. But, from the point of view of rent-a-car companies, this falls short of a structural response in a particularly demanding year, marked by fiscal pressure, increased operating costs and less room for inefficiencies.”
Therefore, the association has some requests: “Greater fiscal and energy predictability to reduce exposure to new shocks, regulatory simplification and relief of compliance costs, especially for small and medium-sized companies, and support for investment in fleet modernization, digitalization and efficient asset management”.
