ComfortDelGro Competition
Now Viewing ComfortDelGro's competition in: Automobile Rental and Leasing
Call Preparation Questions
Customers, Marketing, Pricing, Competition
For car rental: Does the company target the airport or local market? - The airport market is much larger than the local market, but also more competitive.
For car rental: Does the company cater more to business or vacation/leisure customers? - Many companies, including the national chains, target one particular type of customer.
For truck rental: Does the company cater to short-term rentals or long-term corporate fleet management? - Company may choose to specialize in one type of truck rental customer.
How does the company get rental reservations? - Most rental companies are connected to the large global reservations systems like Sabre.
Does the company have agreements with big Internet travel sites like Expedia? - Many companies maintain agreements with Internet travel sites.
Does the company operate a website of its own? - Reservations through a proprietary website are the most inexpensive.
Does the company operate a telephone reservations center? - Only national or regional companies can afford such call centers.
What sort of advertising does the company do? - Large companies advertise on TV. Local companies rely heavily on Yellow Pages.
Does the company have arrangements with local hotels, repair shops, insurance agencies? - Referrals are extremely important in local markets.
Who is the price leader in the company's market? - The national companies often are price leaders.
How many competitors serve the same market? - The company may face a mix of local and national chain customers.
Competitive Landscape
The industry depends highly on the general state of the US economy because most customers are business or vacation/leisure travelers, whose numbers can rapidly fall during an economic slowdown. Big companies have economies of scale in acquiring vehicles and customers. Small companies can compete effectively by providing better service, alternative products, or lower prices.
Business Challenges
CRITICAL ISSUES
Demand Depends Strongly on Air Travel - Car rental demand depends on air travel, which in turn is affected by the health of the national economy. During recessions, car rental revenue often mirrors declines in air passenger traffic. Car rental companies also see seasonal changes in business depending on their location and the type of traveler they serve.
Profitability Depends on Auto Resale Values - The profitability of rental companies is sharply affected by the difference between new and used car and truck prices. Even companies that acquire cars through guaranteed residual value programs eventually see larger spreads between acquisition and residual values if used car prices are weak.
Industries Where ComfortDelGro Competes
- Transportation Services
- Bus Services(primary)
- Consumer Services
- Energy & Utilities
- Retail
- Automobile Dealers
