Route 66 Riders rents Harleys and scooters next to the world famous Bartels’ Harley-Davidson in Marina del Rey, Calif. More than 80 percent of the business comes from international tourism, especially Europeans, Australians and South Americans who want to experience Americana on Route 66.
Marketing Americana on a Harley
Route 66 has long been known as the symbol of a mobile America, and tourists wanting to experience a part of Americana can choose to follow this historic highway aboard America’s most iconic motorcycle brand.
Glenn Bartels, owner of the independent Harley-Davidson rental operation Route 66 Riders, says more than 80 percent of his business comes from international tourism, usually through tour operators coming from Europe, South America and Australia.
Bartels comes from a Harley family. In 1983 his father founded the famous Bartels’ Harley-Davidson, now located in Marina del Rey, Calif. In 1994, with just four Harleys, Bartels branched off to start his own rental company, now in a conjoined building, and he later added scooters to the rental business.
A Bike for All Seasons
Bartels says the ideal fleet size for his staff and location size is 135 units, though demand is usually greater. In the winter, from December to February, he cuts his fleet to about 50 bikes.
Rates are adjusted based on the season. Quotes for a summer rental are around $200 a day, less if rented weekly.
Scooter rentals are used more as a tool for a sale. Bartels is an authorized reseller of the Genuine Scooter brand.
A One-of-a-Kind Agreement with Harley
Harley operates differently than most OEMs when it comes to supplying rentals, says Bartels. “They modeled my store for what has become their international Authorized Harley Rental Program, which is now in its 10th year,” he says. “I am currently the only independent Harley Authorized Rental Operator in the world.”
Because he is prohibited by his license agreement to sell any inventory directly to the public, Bartels created a specialized lease program with the dealer network. The motorcycles are leased for one season. The winter fleet is returned to the dealers in the spring with under 10,000 miles on the bikes, while the summer fleet is returned in the fall with 16,000 to 20,000 miles.
“It works great for a dealer who needs current second-hand inventory to retail,” says Bartels. “Often dealers are buying used bikes in questionable condition at auctions, sometimes at higher rates than our units. We return the used rental units in pristine condition.”
Bartels works closely with dealers to plan lease returns, allowing dealers to pre-market the bikes. In addition, if any renters are interested in buying a bike, Bartels sends them directly to the dealer.
Bartels says he manages revenue per unit, though he tends to avoid the fancy reports. “I know what it is, based on what I’m doing every day because I’ve been doing it for so long,” he says. “I don’t need the report. I just know it.”
Protecting the Hogs
The majority of rental customers do not have insurance that will cover them for a motorcycle rental, and regulations vary for different states even within the same insurance company, according to Bartels.
He says it was difficult in the beginning to find a company to insure his rentals. “I went the first six months relying on my own AAA insurance policy with a hope and a prayer, and good fortune,” he says. Eventually he found an insurer with good rates and low deductibles, but had to switch when the company went away after Sept. 11.
Now, his rentals are fully covered through Harley’s provider, Zurich/Empire Fire and Marine. He says he spends $180,000 a year on his insurance policy.
Managing the Matrix
Bartels manages his fleet with a year-round staff of eight. Though the crew is taxed in the summer months, “I don’t have to lay anyone off in the winter,” says Bartels. “We still manage to stay busy to where an eight-man crew is still working.”
Because Harley dealerships—including the one next door—are consistently backed up on repair work, Bartels keeps his own maintenance team with a service bay and utility warehouse. “We literally will have to prep 30 bikes for rental in 48 hours, and they all need full service,” he says. “We need three hours to service each bike properly.”
Reservations are received via email. Bartels keeps track of them through a spreadsheet matrix accessible online by his staff and mechanics. Booked tours are built into the matrix at the beginning of the season. The matrix is set up to accommodate “random chaotic events that occur.”
Some 80 percent of overseas tours are booked a full year in advance. Marketing is Internet and word-of-mouth, and being next to one of the most well-known Harley dealerships in the country helps, too.
Mostly, the experience of riding a Harley through classic American scenery does the job for him.