Car Rental Continues as Leading Revenue Source for Airlines

Car rental continues to be a top source of global ancillary revenue for airlines and the travel industry, according to a report shown on the Moodie Report.

The 13-page report, titled "Planes, Cars, and Ancillary Revenues," was conducted by airline ancillary revenues consultancy IdeaWorks.

The report on the $35 billion global car rental industry states that the health of the airline industry traditionally determines the success of any car rental company. Car rentals are among the top commission-generating services sold on airline Web sites, along with hotel bookings and travel insurance.

These commission-based services finished ahead of checked baggage, priority boarding, seat assignments and pre-ordered meals.

The report states that multi-supplier and broker methods provide more auto rental choices for consumers, while exclusive relationships limit brand choice to a single supplier.

The report lists Hertz as a leader in the category of exclusive deals. For example, it is the sole booking partner for Aer Lingus, Air France and Ryanair. The company paid €29.9 million to Ryanair for the carrier's fiscal year ended March 31, 2010.

Virgin Blue, which uses multi-supplier method, offers Europcar, Hertz and Thrifty as preferred partners along with more than 550 car rental suppliers. The report states that consumers respond positively to a larger choice of brands, vehicles, and prices.

Virgin Blue's policy of making car rental a part of the online booking process and by rewarding customers with bonus frequent flier points is a "best practice," according to the report. The airline's rental bookings increased 38 percent when it moved from a single supplier relationship.

To read the full report, click here.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.