To run a successful car rental company, operators must maintain vital relationships in two directions.

1. First, executives and managers should establish strong yet affordable connections with vendors and suppliers to maintain vehicles in top condition and ensure the right ones are ready for use.

2. In the second, employees should be trained to resolve customer complaints and unwanted circumstances, so they keep coming back. 

Two seasoned rental fleet operators — Jeremiah Schwersenska, director of revenue, fleet, and strategic planning for Midwestern Wheels Inc., and Brett Lippel, chief partnership officer and senior vice president of sales for Ship Your Car Now — drew on practical business experience and best practices for a presentation Sept. 15 during the American Car Rental Association’s Policy and Performance Conference in Washington, D.C.

For rental fleet operations, the goals are twofold: Control costs and satisfy car renters.

“It really comes down to the customer service,” said Lippel, alluding to the theme that defined the session. “How do you deal with customers? Issues will happen, and vehicles will [have trouble]. But dealing with it, providing options and people who can take a deep breath, will [improve] your customer service.”

Prompted with questions from Mark Novak, chief revenue officer of Zubie, Schwersenska and Lippel covered practical tips for daily operations:

Vendor Connections and Cost Control

• Negotiate pre-set rates with vendors to manage costs and ensure consistency across locations. 

• Diversification of basic services, such as oil changes, helps reduce downtime by spreading work across multiple providers. 

• Returning rental cars to service as quickly as possible maximizes revenue opportunities.

• Build relationships with vendors so they understand the urgency rental fleet operators face, especially when customers expect a vehicle ready within hours. 

• Don’t rely on one single vendor for urgent matters to ensure help is always available.

• Site visits and consistent communication make vendors view operators as partners rather than faceless accounts.

Standard Operating Procedures and Maintenance

• Develop clear standard operating procedures (SOPs) to enable employees and teams to work smoothly together. They must strike a balance between internal efficiency and vendor accountability. 

• Prioritize preventive maintenance by identifying service needs before they become urgent. Service a rental car within 500 miles of an oil change interval.

• Train rental counter agents to examine vehicles upon return, flagging any necessary inspections or repairs and scheduling them immediately.

• Establish clear agreements with vendors on expected turnaround times to prevent long delays. 

• Employees should avoid calling vendors repeatedly for updates, which distracts them from completing repairs. 

• Clear protocols with vendors should set expectations for how long standard services, such as oil changes or tire rotations, will take.

• Monitoring tire wear and ordering parts in advance reduces downtime.

• Mobile service units save money by eliminating the need to shuttle vehicles.

Handling Recalls and Customer Communication

• Recalls pose a unique challenge because they are unpredictable and require immediate attention. 

• A rental fleet team should check and share weekly recall reports to stay ahead of repairs, checking VINs against NHTSA databases even before manufacturer notices arrive. This minimizes downtime.

• Try to schedule repair appointments ASAP and where possible arrange for dealerships to perform software updates onsite.

• Contact customers with reservations ahead of time to inform them of alternative vehicles that will be available upon their arrival.

• A rental operation must train its employees on how to help customers in these situations, preparing them to offer solutions rather than excuses.

• Poor communication can damage customer trust, whereas empathy and effective problem-solving can help manage unexpected disruptions and retain clients.

Moving Rental Fleet Vehicles

• Transportation costs vary widely depending on urgency, and operators who wait until the last minute pay a premium. 

• Using broker companies can reduce risk, as they often provide higher insurance coverage and fraud protection compared to independent operators. 

• Verify drivers and insurance to avoid scams in logistics and transportation.

• Plan ahead for large seasonal moves of rental vehicles by notifying transport partners in advance to reserve needed capacity.

• Strategically moving vehicles to different markets can boost resale value, such as sending front-wheel-drive SUVs from cold northern climates to warmer southern states. Aligning vehicle supply with demand can help offset transportation costs.

Technology and Telematics

• Using telematics and geo-fencing to monitor vehicles alerts operators when vehicles enter impound lots or cross geo-fenced boundaries, enabling a rapid response to potential issues. 

• Geofencing can help save money in markets with high parking violation costs.

• Collected telematics data helps track customer compliance and protect assets from unreported incidents.

• Be constantly open to adopting new technologies that improve operations, please customers, and save on costs.

Cultivate High-Quality Customer Service

• Rental car companies exist to serve their customers, and failures, such as ignoring maintenance issues or providing unsuitable vehicles, erode trust. 

• Small gestures, such as offering a discount or an alternative vehicle, can turn a potential conflict into a positive experience.
  The long-term cost of losing a customer far outweighs the short-term savings of cutting corners. 

• Building repeat business depends on customers feeling safe, valued, and respected. 

• A trained staff that communicates well with customers is a major investment in longevity for a rental fleet operation.

Managing fleet expenses requires more than negotiating better rates with suppliers and setting rates for car renters. Foremost, customers remember experiences, whether in the car or at the counter.

“You must balance expenses with customer service,” Lippel said. “It's not always the customer’s fault. Training your staff to offer solutions and to just be nice people is very important. Customer service is the EMS.”