Car rental industry readies itself for 2010 Fifa World Cup

April 2009


“Whilst we do expect positive opportunities for our rental members in 2010, we anticipate growth in demand for people carrier vehicles (micro buses) in particular. As most of our members usually run at maximum utilization of this category of vehicle, this is likely to present a challenge,” says Val van Bergh, general manager of the Southern African Vehicle Rental and Leasing Association’s (SAVRALA).

“The World Cup event will, however, be taking place in the down-season in terms of car rental volumes and utilization,” she adds. “While fleets would normally be trimmed during this period by between 25% and 35%, this is not likely to be the case in 2010.”

Van den Bergh goes on to say that by default, South Africa’s car rental fleet will actually be up over 2009 “which will allow us to cater for increased demand.

“Yield management and the risk in swelling the fleets will be critical during this time and we do not envisage members discounting rates. Travel partners have already been informed that traditional corporate reservations need to be booked well in advance to enable members to plan and so ensure that business travelers are served as usual.

She is of the opinion that the corporate car rental segment may experience fewer rental days as a result of limited accommodation which may result in corporate travelers flying in and out on the same day.

“Shorter rentals place huge pressure on vehicle turnarounds and also increases costs,” adds Van den Bergh.

“The industry is also focusing on all areas of risk management during this period and ‘rental criteria’ is likely to become stricter with better checks and balances and a way of verifying customer information in place at the time of rental.

“Car rental companies have been hard hit during the last few months as a result of credit card fraud and card skimming and we are doing everything within our power to ensure that client information is handled with the strictest care to minimize risk.”

SAVRALA is also looking at the post-event legacy that South Africa’s car rental industry will leave behind and according to Van den Bergh the SAVRALA Mobility Project - which has been developed in conjunction with Theta in preparation for 2010 - will be training over 700 chauffeur-drive drivers. Of these, 30% will comprise currently employed drivers with the balance targeted at unemployed graduates.

Touching down on African soil for the first time, the 2009 FIFA Confederations Cup will test South Africa’s state of readiness for the 2010 World Cup and be played in five cities - Johannesburg, Rustenburg, Tshwane/Pretoria, Mangaung/Bloemfontein and Nelson Mandela Bay/Port Elizabeth - between 14 and 28 June 2009.

“As far as the Confederations Cup goes, we are monitoring developments and reservations closely but see no significant increase in reservations over this period as yet,” says Van den Bergh. “Initial indications are that bookings will be no greater than those experienced with previous international rugby or cricket test match events.

“While our car rental industry is known for delivering world class customer service, it is important that we have properly trained and enthusiastic staff to welcome visitors to these events and ensure that we play our part in making their South African experience a memorable one.

“There is always the danger that opportunistic fly-by-night operators will rear their heads and fail to deliver the standard of service that car rental customers would expect,” she warns. “It is therefore essential that we work as closely as possible with our travel partners and the media to ensure that SAVRALA’s rental members are made known to the public and that when they utilize the services of these companies, they have the comfort that the standard of service and the product delivered will be in accordance with the Association’s charter and code of conduct.”

Traffic fines and traffic offences will certainly increase during these times and it will be critical to capture accurate driver information. “We are hoping that our interactive platform with eNaTIS to verify customer information will be operational, also that the authorities will have a system in place to deal with traffic fines incurred by non residents.

“South Africa is capable of delivering a world class event if the transport system is able to back it up.”