Avis Romania expands amid slowing market
“In the last 12 months, we hired one-third of our total staff, comprising around 60 people at the moment, and we have introduced a new service, the Avis Preferred Counter.” On that note, Galeteanu also mentioned Avis Romania would introduce a new format for its rental contracts, its Rapid Return service and its reservations system.
The company, which has invested more than 300,000 lei in its operations since October 2008, currently operates a fleet of around 500 cars. According to Galeteanu, this number might rise by 15 - 20 per cent during peak season. “We offer our clients new cars to rent, with a production date not older than 2008, all of them representing brands that are famous for their quality, comfort and reliability, such as Mercedes, Ford, Opel, Hyundai, Mitsubishi, VW and Land Rover,” the Avis General Manager explained. Most clients request cars that belong to the compact/intermediate class, such as the Ford Focus and the Opel Astra. Cars in these classes account for 80 per cent of monthly rentals. “If the clients' requests at a certain time do not match our capacities, then we will definitely increase our fleet,” he added.
Around 30 per cent of all Avis Romania transactions for 2009 were for use in business. The remainder has come from the weekend rentals, replacements and special offers. In addition, around 65 - 70 per cent of the company's clients are foreign citizens. “In 2008, we had a turnover of more than 4.6 million Euro, which turned us into market leaders. We anticipate a relatively constant turnover for this year, while for 2010 we expect a relatively low first half, followed by growth, enough to bring our turnover to at least the same level as it was in 2008,” said Galeteanu. He added, “We believe the services market will follow the general evolution of the economy, but maybe with a slight delay. Nevertheless, a trusting business climate is extremely important in the present market.”
Avis Romania began to feel the impact of the financial crisis about six months after it had already hit the auto and real estate markets. “We felt it in the decrease of the per-day medium-rental tarrif. The number of days contracted for rentals also decreased,” said Galeteanu. “In order to reduce these effects we consolidated the sales segment, spent more on developing the marketing segment and increased our exposure through publicity. We've also tried to separate ourselves from the competition by investing money and work so as to ensure our clients have quality services that meet their expectations.”
The general manager also expressed his views regarding the evolution of the rent-a-car market in Romania, explaining that “even though the domestic rent-a-car market has decreased, it is much more developed than we had expected. The known level of the market five years ago was probably 20 - 25 per cent lower than it is now. For the moment, though, we can't estimate the real volume of the market, but definitely there is still room for growth in the years to come.”
Market conditions have been tough this year. According to Galeteanu, though Avis Romania continues to encounter difficulties due to decreased demands from its clients, the company has been able to avoid any cuts in staff or closing of departments.
The company, which has invested more than 300,000 lei in its operations since October 2008, currently operates a fleet of around 500 cars. According to Galeteanu, this number might rise by 15 - 20 per cent during peak season. “We offer our clients new cars to rent, with a production date not older than 2008, all of them representing brands that are famous for their quality, comfort and reliability, such as Mercedes, Ford, Opel, Hyundai, Mitsubishi, VW and Land Rover,” the Avis General Manager explained. Most clients request cars that belong to the compact/intermediate class, such as the Ford Focus and the Opel Astra. Cars in these classes account for 80 per cent of monthly rentals. “If the clients' requests at a certain time do not match our capacities, then we will definitely increase our fleet,” he added.
Around 30 per cent of all Avis Romania transactions for 2009 were for use in business. The remainder has come from the weekend rentals, replacements and special offers. In addition, around 65 - 70 per cent of the company's clients are foreign citizens. “In 2008, we had a turnover of more than 4.6 million Euro, which turned us into market leaders. We anticipate a relatively constant turnover for this year, while for 2010 we expect a relatively low first half, followed by growth, enough to bring our turnover to at least the same level as it was in 2008,” said Galeteanu. He added, “We believe the services market will follow the general evolution of the economy, but maybe with a slight delay. Nevertheless, a trusting business climate is extremely important in the present market.”
Avis Romania began to feel the impact of the financial crisis about six months after it had already hit the auto and real estate markets. “We felt it in the decrease of the per-day medium-rental tarrif. The number of days contracted for rentals also decreased,” said Galeteanu. “In order to reduce these effects we consolidated the sales segment, spent more on developing the marketing segment and increased our exposure through publicity. We've also tried to separate ourselves from the competition by investing money and work so as to ensure our clients have quality services that meet their expectations.”
The general manager also expressed his views regarding the evolution of the rent-a-car market in Romania, explaining that “even though the domestic rent-a-car market has decreased, it is much more developed than we had expected. The known level of the market five years ago was probably 20 - 25 per cent lower than it is now. For the moment, though, we can't estimate the real volume of the market, but definitely there is still room for growth in the years to come.”
Market conditions have been tough this year. According to Galeteanu, though Avis Romania continues to encounter difficulties due to decreased demands from its clients, the company has been able to avoid any cuts in staff or closing of departments.
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