When thinking about your car rental program and provider, does fleet management come to mind as a major consideration? If it doesn’t, then you are not alone. It’s a topic I bring up a lot when talking about car rental with new CU members, so I wanted to take a few minutes to tell you why fleet management should be important to you too.
Although car rental is a mature category, industry changes affecting rates, fees and technology cause procurement and travel to review their contracts every few years. The category is ripe with opportunities for increased cost savings and employee satisfaction, but there can be resistance to change. Employees get comfortable using the same provider and travel managers fall victim to the belief that all suppliers offer the same benefits.
When evaluating car rental spend, it can be tempting only to compare the daily rental rates of a contract, but this rarely, if ever, provides a true picture of the total cost. While base rates are certainly the foundation of car rental spend, they are only one component of the total cost of a car rental program. Items such as city surcharges, energy recovery fees, fuel charges, insurance premiums, and GPS fees greatly impact car rental spend. These charges can be further amplified by organizational travel habits.
Those employed in sourcing often have a direct and profound effect on the footprint their organizations make in the world. Price and the quality of products will always be a high priority, but partnering with suppliers that offer sustainable and environmentally-friendly services has also become a real opportunity for success.