In the last several years the rental vehicle market has built a great deal of development to help it distribution processes. Nowadays, there are around 19,000 rental places glowing about 1.9 million rental cars in the US. Due to the significantly considerable number of car rental places in the US, proper and tactical strategies are taken under consideration to be able to ensure proper distribution through the entire industry. Circulation takes place within two interrelated segments. On the corporate market, the vehicles are spread to airports and resort surroundings. On the leisure segment, on another give, cars are distributed to agency held features which are conveniently found within most major roads and downtown areas.

Before, managers of hire vehicle businesses used to depend on gut-feelings or instinctive guesses to produce decisions about exactly how many vehicles to own in a certain fleet or the utilization stage and efficiency requirements of keeping specific vehicles in one fleet. With this technique, it was extremely tough to steadfastly keep up an amount of stability that would satisfy customer need and the desired amount of profitability. The distribution process is pretty easy through the entire industry. To begin with, managers should establish the number of cars that must be on stock on a daily basis. Because a very apparent problem arises when way too many or inadequate cars are available, most car rental companies including Hertz, Enterprise and Avis, work with a "pool” which is really a number of independent hire features that reveal a fleet of vehicles. Ostensibly, with the pools in place, hire locations run more proficiently since they minimize the risk of low catalog if not remove hire car shortages.

Industry Segmentation

Most organizations throughout the cycle make a profit based of the kind of vehicles which can be rented. The rental cars are categorized into economy, small, intermediate, premium and luxury. Among the five categories, the economy segment yields probably the most profit. As an example, the economy segment by itself is responsible for 37.7 percent of the full total market revenue in 2004. In addition, the compact portion accounted for 32.3 percent of over all revenue. The remaining other types addresses the rest of the 30 per cent for the US segment. เช่ารถหรู

Historic Degrees of Profitability

The overall profitability of the car rental business has been downsizing in new years. In the last five decades, the industry has been striving similar to the rest of the vacation industry. In fact, involving the decades 2001 and 2003 the US market has skilled a moderate decrease in the level of profitability. Exclusively, revenue fell from $19.4 million in 2000 to $18.2 billion in 2001. Consequently, the entire industry revenue eroded more to $17.9 thousand in 2002; an total that's minimally higher than $17.7 million which is the general revenue for the season 1999. In 2003, the industry skilled a hardly apparent improve which produced revenue to $18.2 billion. As a result of the financial downturn recently, some of the smaller participants that were extremely influenced by the flight business have done a lot of strategy realignments as an easy way of planning their organizations to deal with final financial adversities that could encompass the industry. For the season 2004, on another hand, the financial condition of all firms have steadily improved during a since most hire agencies have returned much larger profits relative to the anterior years. For example, Enterprise realized earnings of $7.4 billion; Hertz delivered profits of $5.2 million and Avis with $2.9 thousand in revenue for the fiscal year of 2004. In accordance with industry analysts, the rental vehicle industry is estimated to see continuous growth of 2.6 percent in revenue over the next a long period which means a growth in profit.