Auto Rental News
MenuMENU
SearchSEARCH

Reimagining the Role of the Car Rental Distribution Channel

What if the car rental customer interacts primarily with the distribution channel, and the car rental company becomes more of a service provider?

October 23, 2019
Reimagining the Role of the Car Rental Distribution Channel

Despite digital solutions available, the car rental business just does not make it simple for the customer during the rental. 

Photo courtesy of Gateway Car Rental. 

5 min to read


A customer rents a vehicle to get from one location to another, quickly and comfortably. The more seamless the rental service is, the more satisfied the customer who will return to the business time and time again.

Nevertheless, there are obstacles in the customer journey that are unnecessary.

Ad Loading...

The process of searching for and booking the vehicle on a distributor’s website goes without difficulty for the customer, as there is a wide choice of vehicles available and the content is presented in a clear and unified way. In addition, the customer can contact support at this stage in the process by phone, email or online chat. After making the booking customer has reached to the step in the rental process where they get the confirmation for the rental in a form of a voucher. 

According to the common practice today, the sale of the voucher also means handover of the client to the next company in the service chain, the supplier. However, we cannot really tell whether the change of the service provider is understandable to the customer.

Arriving at the destination, the customer often experiences something entirely different compared to the booking process. There may be a long, slow-moving queue at the rental desk. In addition to waiting in the queue, customers may have to fill in the same data from when they booked the vehicle. 

The branding of the product may change at the counter compared to the booking process, and the style of service could be completely different. For travellers new to that country, they may find the information needed for renting the vehicle in a foreign language. 

Frequently, additional products are sold at the rental desk that put customers into a stressful situation where they need to make decisions under both time and monetary pressure.

Ad Loading...

On the flip side, there is little flexibility for contracting added services outside of the rental desk. For example, the customer cannot pay for an additional driver at the moment of booking or purchase additional services on a mobile device at a moment of their choosing. 

During the rental period, the customer may need immediate help and advice for questions about using the vehicle, or worse — to report being involved in a road traffic accident. In these situations the customer may remember the distributor’s website, the supplier’s web page, and the rental desk phone number, but how does he or she know which one to turn to? 

This situation causes confusion and dissatisfaction to customers as they are expected to know their way around industry-specific profiles on service providers.

Despite digital solutions available, the car rental business just does not make it simple for the customer during the rental. 

A New Model

With these thoughts in mind, the industry should be moving towards a solution where a car rental company becomes the service provider to the distribution channel, who then takes full responsibility in the eyes of the customer. 

Ad Loading...

This solution would be similar to going to the same general practitioner for decades — doctors know their clients and patients know them. This kind of relationship keeps things simple and effective. The same should also be granted to the client while renting a car. 

The client wants to be served by a familiar provider from the beginning to the end of the experience and not to be handed over to the next company without his knowledge (and consent). Merging the service in such a way enables distributors to make renting a car a one-stop-shop.

Some rental companies have invested in their own apps. Such initiatives have and could increase reservations and customer satisfaction, a positive development. However, they don’t necessarily have the reach of a global distribution site that can serve a much wider audience in dozens of countries.  

The magnitude of globally operating distribution channels enables these channels to keep their costs lower than any single supplier ever could. Most importantly, their ability to standardize rental information across markets helps to maintain the quality of service. 

As well, they can bundle other travel options in more seamless ways than the car rental company could such as highly targeted and personalized offers on hotel rooms, sight-seeing tours, and other discounts and promotions available at the booking location. 

Ad Loading...

This is not done for the sole purpose of upselling additional services but for creating an entirely new travel experience and providing a wider range of mobility options to come. 

What Can Be Done?

It’s understood that the traditional car rental service chain cannot be changed overnight. How, then, can the customer experience be improved? Here are two steps to reach a solution:

  • First, the distribution channels should take full responsibility for customer service throughout the service cycle.

  • Second, with the introduction of connected car technology, distribution channels can start to provide car rental services based on a personalized mobile app. Using these apps will significantly improve customer experience.

Current technology concerns such as enabling third-party car access, customer identification, and credit card related data protection are the key issues to address to make these solutions work.  

The pursuit of becoming a one-stop-shop serves a purpose to avoid unpleasant surprises, misunderstandings, and negative emotions. To improve the customer experience and satisfaction, the industry needs to move towards desk-free and personalized solutions. 

Ad Loading...

These solutions can be provided by the customer's first contact — the distribution channel. All parties in the service chain will win. 

Martin Kallasmaa works as the “Smooth Operator” at Car Rental Gateway, a platform for car rental distribution services.

Subscribe to Our Newsletter

More Rental Operations

plane, palm trees, car rental sign
Rental Operationsby Chris BrownSeptember 15, 2026

Palm Beach Airport Code Change Creates Car Rental Distribution Gap

A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.

Read More →
Team members of U-Save's new franchise
Rental Operationsby StaffSeptember 15, 2026

U-Save Continues Dominican Republic Expansion with Launch in Punta Cana

The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.

Read More →
A traveler searches for rental cars with an AI bot
Rental OperationsSeptember 14, 2026

When AI Books the Rental Car, Who Controls the Sale?

As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)

Read More →
Ad Loading...
map of europe and summer car rental rates
Rental OperationsSeptember 11, 2026

European Booked Car Rental Rates Fell 5%, Results Varied by Country

Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.

Read More →
thumbnail of Chris Brown and Mike DeLorenzo with title Time to Rethink Rental Categories?
Rental Operationsby Chris BrownSeptember 8, 2026

Is It Time to Rethink Rental Categories?

As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.

Read More →
Woman receiving car rental rates on computer from AI agent
Rental OperationsSeptember 1, 2026

Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental

Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)

Read More →
Ad Loading...
map of globe with regional corporate car rental rates
Rental Operationsby StaffAugust 25, 2026

U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%

Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.

Read More →
Sixt H1 financial results
Rental Operationsby StaffAugust 14, 2026

Sixt Revenue Tops $2.4 Billion in First Half of 2026

Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.

Read More →
Bobby Klyce in memoriam image
Rental Operationsby Chris BrownAugust 13, 2026

In Memoriam: Bobby Klyce, Avis Licensee Legend

The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.

Read More →
Ad Loading...
Vibe coding webinar promo image
Rental Operationsby StaffAugust 12, 2026

How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]

A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.

Read More →
Ad Loading...