International Operators Seminar · SEO – Search Engine Optimization • Optimization = Organic...
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Bem-vindo! Bienvenidos! Bonjour! Croeso! Foon ying! Hujambo! Velkomen! Welkom! Welcome! International Operators Seminar
Transcript of International Operators Seminar · SEO – Search Engine Optimization • Optimization = Organic...
Bem-vindo! Bienvenidos! Bonjour!
Croeso! Foon ying! Hujambo!
Velkomen! Welkom! Welcome!
International Operators Seminar
Introductions
Loss Prevention
Rate Management
Online Marketing
More Introductions
Benchmarking Revenue and Expenses
Technology Tools
Q & A
Loss Prevention
David Purinton
President
Who is PurCo?
Largest Independent
Damage Recovery Company in the U.S.
(50,000 Claims in 2011)
Challenges of International
Damage Recovery
Definitions
Loss of Use
Administrative Fee
Diminution Value
Help with U.S. Renters
Rate Management
Michael Meyer
President
Revenue Management Top 7 obstacles to success
1. Too few products
2. Looking out the wrong window
3. Out of season
4. Swimming too deep
5. Sleeping on the job
6. Reinventing the wheel
7. Strategy isn't written down
Revenue Management Who am I?
1. Michael Meyer – President of Rate-Highway
2. First company in the rental car industry to provide Internet rates for competitive shopping
3. We help customers from Alaska down to Australia and all points in-between
Revenue Management
Dealing with too few products:
Most of you aren’t using enough!
Daily, Weekly & Monthly only, but why?
Operating in competitive markets
Multiple day rental incentives
Extra day
Revenue Management
Looking out the wrong window Near (next day through 7 days)
Mid (8 to 30 days out)
Far (a month out)
Super Far (seasonal)
Revenue Management
Operating Out of Season It’s the holiday season for advanced
bookers
Major Sporting events And you are giving your cars away in
advance
Summer vs. Winter changes How long in advance do you need to
address these?
What else is happening in your market that you are arriving too late for?
Revenue Management
Swimming too deep Understand your market
Establish your rankings
Don’t fight for last You may feel like you need to, but resist
Frequently do market research
Revenue Management Sleeping on the job
What you don’t know can hurt you
Rates drop – but yours don’t – in time at least Unsupported high rates = more cars in the
parking lot. You just succeeded in avoiding business
Rates raise – but yours don’t Whoohoo! You got reservations – at a poor
rate. You just succeeded in giving away business
Watch your competitors Know their patterns
Rate Automation
Revenue Management Reinventing the Wheel?
Running your own brand has benefits Global recognition is not one of them
The best brand you never hear of
GDS considerations
OTA considerations
Where can people find you? Just to beat a dead horse,
if they can’t find you they can’t rent from you…
Visibility = $$$
Revenue Management Strategy – where is yours?
Written down – can be passed along
“It is as real as the paper it is written on”
Most (perhaps every single one) of the Independents & Licensees here do not have their complete rate strategy documented Caveat – Those using rate management
services do
You can’t delegate what you can’t explain…
Fatal Flaw – “I’ll know it when I see it”
Revenue Management #8 - Bonus Item!
Using your Utilization / Demand / Build Curve The hidden weapon against your competitors
Only move when it makes sense for your fleet
Game changer for moving rates up and down
Online Marketing
Strategies
Robert Rogener
President
Market Size
US Outbound Travel Market Size U.S. citizen outbound market totaled 53.7 million travelers for
the first eleven months of 2011
SOURCE: U.S. Department of Commerce International Trade Administration
Office of Travel and Tourism Industries (OTTI)
Website: www.tinet.ita.doc.gov
Who is Avalon?
A Los Angeles based Search Engine advertising agency and marketing firm established in 2004, and focused on using the
Internet.
Experience includes marketing
for Hertz, Fox, and Agency.
What is Your Unique Selling Proposition?
Emphasize your “Unique Value Proposition” within your online marketing initiatives. Rate, Location, fleet, Service, English speaking staff, automatic cars?
Online Marketing Strategies
Tips, & Deployments
Website Development Basics
• Significant Asset • Navigation: Branded-User Friendly = better conversions • English Language Translation: automated vs. manual • Use of “call to action” or 800 number • Mobile Optimized site vs. app • Branded Videos • Internet Coupons - Discounts • Rates in US Dollars • Fleet images & Specs • Terms & Conditions
SEO – Search Engine Optimization
• Optimization = Organic Traffic • Keyword Research • Onpage: Content & Site Optimization • Offpage: Link-building • Social: Twitter & Facebook • Submit to US based Search Engines
US Based .com Website Deployment
Advantages: PPC & Branded Organic traffic Disadvantages: costs/maintenance /hosting Beware of duplicate content!
PPC - Pay Per Click – Adwords/ Yahoo-Bing
• Instant Results/ Pay for performance/targeted
• KW & Adcopy - vernacular nuances • Big Brands Competitive bidding on KW’s • Monthly Budget Parameters • Managing PPC platform settings and
options
Other Online Strategies - Deployments
• LOCAL Google Places – International • Online Reviews: Google places, review
centre UK, TrustPilot • Online Alliances: US based Travel
Websites with Synergy • RAC Online Travel Agents & RAC
Aggregators
Benchmarking
Revenue and Expenses
Tom Kelley
Executive Director Global Franchise Operations and Development
To people from outside the car rental business:
Looks so simple……..
So basic……. Buy, rent, clean, re-rent…….
Sell……..then – Buy, rent, clean……
Make TONS of money!
We all know, it’s not quite so simple
Ernst and Young said it best
Benchmarking Your Business
“I have never seen a company with so many expense and revenue accounts that all can have such a material effect on results. We audit companies that generate several billions in revenue that with 1/3rd the accounts!
It’s not exactly Rocket Science but……
It requires diligence in watching all revenue and expense opportunities
Benchmarking Your Business
Three key areas to focus on: Key Performance Indicators
(KPIs)
Best Practices
Using the proper tools
Benchmarking Your Business
Incremental Sales - KPIs Average incremental revenue sold
per closed day (yield)
Typically expressed as incremental RPD or DDA
LDW, Upsells, GPS units, etc.
Penetration of each product (what percentage of closed days
Establish Benchmarks on all items Measure employee success
Set goals for improvement
Revenue KPIs
Incremental Sales Penetration of product as % of closed
days:
Loss Damage Waiver 30%
Upgrades 20%
Supplemental Liability 10%
RoadSafe 30%
Additional Driver 12%
Incremental revenue should make up
at least 10% of total rental revenue
Key Performance Indicators
Revenue generated per month per unit (RPU) The ultimate benchmark tool
Identify realistic vs. desired RPU that will yield profit
Then decide how you will get there
Combines rate with utilization Avg. RPD X Days in month X utility
for month
You know your fleet
You know rates in your market
Key Performance Indicators
Most expense items can be benchmarked from RPU as a % of revenue Car costs (depreciation and interest)
What is the breakeven car cost for my market’s RPU?
If RPU is $1,000 and my KPI for fleet costs is 35%, I need cars that cost $350/month
Personnel costs Based on the RPU my market will
generate, what % of my revenue can be applied to personnel that will allow me to maintain profit
CSR and manager’s commissions
Key Performance Indicators
Making sense?
You can do this with most of your expenses
Direct Operating Expenses
Selling costs
Premise
G & A
Key Performance Indicators
Operating Norms – Any Country
Unit Expense 35 – 42%
Direct Operating Expense 5 – 8%
Variable Operating Expense 7 – 12%
Sales Expense 4 – 10%
Personnel Expense 17 – 22%
Premise Expense 6 – 8%
G & A Expense 4 – 6%
______________________________________
Before Tax Profit (EBT) 2 – 22%
Key Performance Indicators
Other Expense Ratios:
Fuel profit/loss Fuel expense/fuel collections
Body damage collection (excluding LDW/CDW) as a % of total damage
Key Performance Indicators
Best practices – Every market/country may have different benchmarks
Productivity Metrics Transactions per employee
Non-operating personnel expense
Operating Metrics Out of service %
Downtime – how long the unit is OS
Servicing levels
Reports for daily review
Benchmarking Your Business
BENCHMARKING – PRODUCTIVITY METRICS
Job Classification Transactions per Month
Low Mid High
Rental Agent 290 434 547
Service Agent (Porter) 345 518 770
Greeter 786 1182 1444
Total F.T.E. (includes admin.) 90 110 120
Total F.T.E. Cost per Trans. $29 $34 $38
Why benchmark? Way to measure your success
Difficult to set goals for your business and employees if you don’t know what excellence looks like
It makes it easier to manage your business
Hopefully, this helps
Thank you for your time!
Benchmarking Your Business
Angela Margolit
President
Technology Tools
Going Mobile The Cloud Report Writers Signature Pads Drivers License
Scanners/Cameras Social Media
Technology Tools: Topics
Founded in 1982
Technology Leader
Worldwide Presence
Who is Bluebird?
Laptops Handhelds Netbooks Tablets Smartphones
But why all the fuss?
Going Mobile!
What do we need to do?
1. Create a mobile version of our websites!
2. Make it easy for our customers to communicate with us!
Going Mobile!
SaaS vs. On-Premises
Really: Cost vs.
Convenience
PCI Compliance
The Cloud
SaaS/Cloud Versions
Wizards/Easy to Use
Scheduled Tasks
Report Writers
Signature Pads
Drivers License Scanners/Cameras
Create a Page
for your company
YouTube
Social Media
Loss Prevention
Rate Management
Online Marketing
Benchmarking Revenue & Expenses
Technology Tools
Questions?
