Whenever you are looking to plan a vacation or want to go on a business trip you will probably consider using Car Rental Dubaiservices. Car Rentalbusiness has hit new heights in recent years. They basically provide you with an alternative to your standard vehicle. The quickest way to find well reputed and cheap rental cars Dubai agencies is to do a search on the internet.
In UAE car rental industry is a multi-million dollar sector. Unlike other major industries, the car rental industry is highly fused which makes potential newcomers extremely vulnerable due to cost disadvantage. While most of the revenue is produced by a few firms.
The landscape of car rental industry in Dubai has changed massively over the past five years. Studies show that cars are being rented when they have accumulated at least 20000-30000 miles. Five years ago the turn-around mileage was near 10000-130000 miles. The market has seen narrow profit margin for the agencies over the years. Although within the industry there is no forthcoming threat of backward integration. In fact, some of the bigger organizations have seen vertical integration in the last five years.
Over the last decade, the car rental companies have looked to enhance their fleet sizes in order to increase their yield. Due to the economic downturn in the last few years, most of the car rental agencies have struggled. Although the major industrial leaders have grown steadily. According to industry experts, the good days for the car rental industry are still to come, it is just a beginning for something huge.
In case of car rental companies, their earning is based on what type of vehicle they have rented. The car rental companies are divided into five major categories.
If we take a look at the statistics, we come to know that the economy class earns the highest profit. It has contributed 35% of the total revenue. The remaining four categories cover 30% of the total profit.
There are many reasons for competitive rivalry among the sellers in the car rental industry. Over the last decade, the car rental industry has focused on enhancing their fleet size and increasing their revenues. All the major players of car rental market have been growing both in terms of sales and fleet sizes. Moreover, the competition among the sellers amplifies as they are constantly trying to better their current condition and service. They are always looking to offer improved and best deals as compared to their compatriots.
FACTORS FOR SUCCESS:
There are many key factors for success that areinvolved in the car rental industry and capacity utilization is one of them. This is because car rental companies can experience massive loss in revenues when they have too few or too many cars available at their disposal. Efficient distribution is another factor that helps keep the car rental industry profitable. Also, convenience is another crucial attribute. Consumers are always looking for agencies tha