Create the perfect car rental business by facing the challenges

Challenges Faced by Car Rental Companies

In 2020, the pandemic’s double punch of a shaky economy shocked the whole vehicle rental business to its core. Every player, whether multinational or independent, experienced a range of hits, with some companies permanently sinking and others treading water while waiting for some form of comeback. Car rental companies are picking up the pace now that the aftermath of the pandemic is coming to a closure.

However, there are a few challenges that need to be fixed. Challenges are a part of all industries including the car rental industry. It is important to face them in the right manner.

Overall, the circumstances wreaked havoc on the business, causing revenue to plummet by more than 27% to just over $23 billion, the lowest level in a decade. While experts foresee a rebound in 2021, it will be slow, with a turnaround not predicted until the third quarter.

It’s encouraging news based on a number of variables, including a new federal administration grappling with some tough realities and a vaccination campaign steadily attempting to build herd immunity among the masses. That, however, is just a tip of the metaphorical iceberg. RentCubo, one of the leading car rental software development companies, has collated some of the biggest challenges faced by the car rental industry.

The largest issue for many automobile rental firms, especially in large and famous cities, is dealing with international consumers. These travelers are more likely to be in danger or have an accident.

Many visitors are unfamiliar with the country’s traffic laws, and others are accustomed to driving on the opposite side of the road. Some of them had never driven on a winding route with abrupt twists before. As a result, it is a major burden for rental companies to give special attention to these customers.

It is beneficial for automobile rental firms to provide a brief training to international tourists in order to deal with this issue. It’s a smart method to make people aware of the traffic restrictions before they get in their cars. Inform them on the vehicle’s functionality, as well as the roads, routes, and country road regulations.

  • Booking and Pricing Management:

Keeping track of and managing all of the booking information is a time-consuming effort. It’s challenging for most automobile rental companies, especially when they adjust their prices or provide special specials. Manual booking administration is extremely demanding and prone to errors.

Offering new deals, controlling prices, and analyzing performance are all made easier with car rental management software. It facilitates the creation of complex rates and promotions, as well as the automation of your everyday vehicle rental tasks.

  • Customer Service and Transparency:

Customer happiness is one of the most critical parts of any successful organization. It’s difficult for the automobile rental sector to deliver accurate information and total openness to its clients. Customer service is critical for retaining clients and may be a fantastic method to generate referrals.

To overcome this obstacle, you should create a user-friendly and straightforward booking process. The user always appreciates a smooth booking experience. Attempt to obtain feedback from your clients by inquiring about their experience and any improvements they would want to see in the firm. It will pique the user’s curiosity and demonstrate how serious you are about making great changes in your company.

  • Brand Awareness:

Many businesses struggle to raise brand recognition. There are a lot of new rental firms on the market, and they’re all vying for a reputable name. Even some of the older companies do not have a lot of visibility. To gain market awareness, it is first necessary to deliver high-quality services, as a negative review of your offering might harm your reputation.

It’s all about reaching out to your target audience and creating a buzz in your business when it comes to branding. Keep an eye on what your competitors are doing and come up with some unique and fascinating deals. Create a strong online presence by posting regular updates, interacting with users, and creating fresh content.

  • Competing with the Car-sharing Industry:

The car-sharing sector of the transportation industry, which has seen a boom in activity, is somewhat lost in the mix, according to The Guardian. Due to the necessity to avoid being in close proximity to strangers during a pandemic, which is nearly impossible to achieve when taking public transportation, taxis, or ride-hailing, car-sharing services such as Turo and Zipcar saw a spike in usage in 2020.

Much of this was due to people feeling compelled to leave their houses in the safest way possible while they were isolated: in vehicles that avoided contact with potentially virus-spreading strangers.

Car Rental Reservation System modules

Many tourists make use of car rental services especially during the pandemic when social distancing is a priority. Customers prefer convenient and well-timed service, but it’s not surprising for car rentals to wait. Approximately, vehicle pick-ups delay every third time. Considering the big competition in this business scene, car rental services can’t fail to satisfy their customers.

If you need to grab virtual reservations and manage your fleet with comfort, what you want is a car rental reservation system.

If a user chooses to rent a car before, they visit a car rental website or app and find a vehicle that fulfills their requirements. Then, they reserve it and pay for the selected rental period, if advanced payment is required.


There’s no denying that car-sharers offer a benefit to consumers who just need a vehicle for an hour or two on occasion. Car rental firms, on the other hand, have the potential to affect that user market by offering bargains and incentives to keep a car for longer if necessary, by offering flexible rates and marketing the benefits of renting a clean and well-maintained vehicle.

If a user has to go greater distances, renting is a better option. Rentals, unlike car-sharers, have the added benefit of providing other conveniences such as bonus points and subscriptions. The car rental industry is set to grow at a fast pace and for that it needs to first face the many challenges that lie within.




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