Budget | Car Rental

BUDGET: OPERATIONS AND STRATEGY

INTRODUCTION

Budget has a straight and simple operational strategy to provide services and Vehicles on rent and give the best to their customers in terms of Services. In the services industry it’s important to focus on Client needs and be responsive to what they want and how they need it. In a result oriented economy like Canada and States, the maintenance of the Services Industry is the key objective that will influence all the stakeholders including the Rental Company.’ Budget’ has proved its mettle in the Rental business where there are many problems, including car wear and tear, and the rental companies’ competition in the similar industry. Mostly, there are operational issues and strategy issues, as going up and expanding at a global medium is a very difficult thing to attain, and Budget has been detrimental in achieving their targets.

GLOBAL OUTREACH

Budget has maintained its Global outreach while originating from the United States, and hence moving to Canada and in some other countries. The international exposure that has helped them move forward, and made them industry giants is something that is overwhelming and deserves lots of praise. The linking with RMA/MBBP is something that has helped MBBP reach its global goals, as ‘Budget’ being their Benefit stakeholder has helped clients in achieving what they need in terms of benefits.

CLIENT SATISFACTION

Attaining client satisfaction is the frontline goal in the Car Rental industry. As in the services industry, client satisfaction factors will help in the smooth running of the business and the Car. It is a saying “When the Car is with the Client, Don’t worry for the Car, worry for the Client”. This is something that determines the factor of client satisfaction and also brings improvement in service deliverables. Services industry becomes a phenomenon when we get the best output or response from the company, and all the stakeholders involved with the company. WHY WE NEED CLIENT SATISFACTION?

A question that we as a business owner must ask our self, I think the answer is very simple we drive the business for Profits, and profits are attained from our ‘Clientele’. The more the clientele the more you will feel satisfied for your business goals. As the name suggests, Budget, wants their customer to stay in Budget, and in line with their travelling’s.

INSURANCE, SAFETY AND SECURITY

The safety, insurance and security with the Car rentals is the assurance of the Car and its handling to be made 100% in line with the initial agreement. There are many things that can happen with the Car, as when the car is on the highway, it is highly prone to accidents that can happen anytime, anywhere. ‘Assurance’ is to assure something with money, or commodities, etc., insurance similarly is the assurance of a certain risk that can happen and how it shall be encountered.  This is merely a reason ‘Rent a Car’ is not a simple business, it has got its complexities and will remain as one of the most risk taking businesses, especially in States and Canada, the two countries with high fatalities on the roads.

EXECUTION OF DISCOUNTS THROUGH WEBSITE (RMA)

The execution of Discounts is similar as of Avis and the nature of discounts are also similar but variable in terms of pricing. A link is shared on the RMA/MBBP website, and the members need to go to the link, they are than forwarded to ‘Benefits’ website and hence, a promo code is generated and discounts can be availed.  Discounts are price dependent as the pricing is economical as well as convenient for the customers.

PARENT COMPANY (AVIS BUDGET GROUP)

The parent company Avis Budget Group is the same parent company as of Avis Car rental. Avis Budget Group has been something of an umbrella when it comes to Budget sales, and pricing strategies. It has also protected similar interests in the Car rental industry and helped the company ‘Budget’ compete with similar scale competitors & stakeholders.

CONCLUSION

Budget has made a huge impact in the Car rental business, as it is an economical and convenient option for its customers/clients. The pricing strategy is developed for the convenience of customers, people who are looking for economical options to attain their needs. As the parent company for Avis and Budget has been same, the competition measures are fruitful, but the target market differs. Can rental industry challenges are truly immense if we speak with a global perspective, but Budget has done whatever it can to reach the optimum level. When the pricing is economical the market is wide scope, and budget has done enough to compete in the markets.