COVID-19 Impact: 3 Biggest Challenges for Car Rental Companies in 2021

Car rental fleet
The COVID-19 pandemic wreaked havoc on businesses worldwide– and car rental companies were no exception. Every player, whether new or established, took a hit and witnessed a significant decrease in revenue. The year 2020 was full of challenges for car rental companies, but it also taught some crucial lessons.

Let’s discuss how things have changed in the industry over the past year and how you can bring your business back on track.

Biggest Challenges for Car Rental Companies

Below are a few critical issues that car rental companies need to overcome to achieve success in 2021 and beyond.

1. Shortage of Rental Cars

The shortage of rental cars is one of the biggest challenges for car rental companies in 2021. They are left with no choice but to increase their prices, which is likely to drive customers away. More people are inclining towards car-sharing services because of affordability.
Car rental companies must realize their potential to sway the competition by offering deals and incentives for customers willing to hold onto a car longer. In addition to ensuring your rates are as flexible as possible, you must promote the benefits of renting a vehicle that’s been properly maintained and disinfected.

2. Need for Flexible Policies

Ever since the pandemic hit the industry, customer needs and market trends have evolved big time. It is high time that you implement agile operational policies to ensure your business is in the best position to take advantage of the current opportunities and maintain a high standard of customer service.

3. Inefficient Digital Strategy

Since social distancing is the new normal, you shouldn’t be relying on face-to-face interactions for car rental agreements anymore. Thanks to technological advancements, you can go paperless and allow your customers to book vehicles and sign contracts online. You need to develop a digital strategy that prioritizes mobile as the first point of sale.

To discuss the challenges for car rental companies and what you can do to overcome them, talk to one of our car rental experts at Cars and More.