Hassle-free car renting on the way

By TOM CLARKE

Technology such as global positioning systems (GPS) and Smartcards will revolutionise the rental car businesses, says Rob MacGregor, the new general manager of Budget Rent a Car Ltd.

They will provide the flexibility, convenience and speed of service delivery that customers will require in future.

"The pace of change and demands on our customers' time are so great that companies which remove the paperwork and preamble, and offer top service, will be the winners," he says.

Future customers will be offered a rental pickup and drop-off service around the country - or around the world - where "cardholders could swipe themselves in and out of vehicles, and everything would be recorded automatically."

GPS technology, for remote fleet management, is being considered for a recent Budget initiative, a pilot City Car Club in Wellington. The first to be tested outside Europe, the concept may be extended to other regions, including Auckland, if successful.

This inner-city car-sharing scheme caters for apartment dwellers and corporate drivers who do not need a car all the time. Club members can choose a car at short notice from a range of vehicles located at pick-up points around the city. The car parks are provided by the Wellington City Council.

Mr MacGregor says the scheme gives all the benefits of having a car without the problems and costs of replacing, maintaining and parking one, and paying for things like registration and insurance. "Savings on an around-town car like a 1.3-litre, three-door hatch Ford Ka would be about $3000 a year."

The scheme has helped reduce pollution and transport congestion in European cities, Mr MacGregor says. "In cities in Switzerland, a country of similar size to New Zealand, there are 29,000 car club members.

Environmental impact studies show that, since the scheme started, a significant reduction in car miles and fuel usage has been achieved."

He intends to anticipate market changes and customer demands.

"The industry seems to have a mindset towards carving up the same pie rather than through creating the innovation that generates growth."

Metro-60, the hourly rental product available at Auckland, Wellington and Christchurch Airports, is an example of the firm's recent initiatives.

Mr MacGregor has held a variety of senior management roles, including three years as Australia and New Zealand manager of Tork Products, a division of BP; two years as general manager of Stylus Industries; and three years as New Zealand manager of CSP Construction Products, a division of Fletcher Challenge.

Budget Rent a Car is a wholly-owned subsidiary of a global group and one of the world's top three car and truck rental systems. It claims to be the largest operator under one brand and has over 3200 world-wide locations in more than 120 countries, 60 of them in New Zealand.