CAR RENTAL MAGAZINE AUSTRALIA ISSUE NO. 1 AUTUMN 2014

dan mekler talks redspot.sixt

Feature article

BeHiND tHe WHeelLatest industry news and reLeases

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BUILD anD GROW YOUR BUSInESS WITH InDUSTRY KnOWLEDGE

as a supporter of the Car Rental Industry for over 25 years, Rentsure hopes that CR Magazine will provide a valuable means for the industry to enhance its knowledge of news and events that affect its wellbeing and provide a voice for it in the broader community.

Issues will include interviews with prominent industry leaders, special features to keep you up to date with Government, tourism and industry developments. It is your opportunity to express your opinion, take stock of circumstances in the industry, and tell the industry what you think are the solutions to its challenges.

Enjoy reading this first edition of CR Magazine.

David Heume, General Manager, Rentsure

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iN tHis issue

2Industry news

specIal feature

8On the spOt – we speak tO dan Mekler, ceO Of redspOt.sIxt rent a car

‘If the car rental industry is going to turn its performance around in the near future, there’s one word that should focus the minds of everyone involved… service’, says Dan Mekler.

Industry fOrecast

6rental Industry enjOys MOdest grOwth, wIth lIttle relIef In sIght

VIewpOInt

14OccasIOnal drIVers nOt drIVIng prOfIts

We look at the growth in the car sharing industry.

BusIness In fOcus

16gOIng alOng fOr the rIde

Not many have the opportunity to turn a lifelong passion into a successful business, but Selena Thurbon has done just that with Bikescape.

BusIness In fOcus

24franchIsIng success needs lOcal flaVOur

Franchisees need to look beyond their parent company’s marketing efforts if they want to survive in the longer term.

BusIness In fOcus

26get the lOwdOwn On the tOp spOts

A young company, Whileaway Guides, has done the hard yards preparing handy guides to Australia’s favourite destinations.

30new MOdel dIary

A rundown of likely release dates of new car models.

32new prOducts

New releases of products that appeal to rental companies.

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iNDustry NeWs

Hertz adds 40 Toyota Priuses to its Green Collection

Hertz Australia has introduced 40 new Toyota Prius Hybrid vehicles to its Green Collection of rental cars in Australia.

The Toyota Prius is powered by electricity and petrol, and can run on a combination of both for maximum distance and fuel economy while producing minimum emissions.

Group President of Hertz International, Michel Taride, said, “Globally we are constantly looking for initiatives that reduce environmental impacts.”

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2013 ESi AwArdS rEcogniSE ThrifTy And hErTz AS cuSTomEr friEndly

“The Green Collection highlights this commitment and features vehicles that reduce CO2 emissions to a practicable minimum.”

The company is developing a number of environmentally significant business practices that includes building a fleet of vehicles that are fuel efficient and use clean, low-emissions technology for customers who wish to make a difference in their rental decisions.

Chris Rusden, regional vice-president of Hertz Australia and New Zealand, said, “Sustainable business practices are extremely important to us, and we’re proud to expand the Green Collection in Australia with the Toyota Prius. The fuel-efficient vehicle is the ideal rental solution for drivers concerned about the environment and high fuel prices, while also looking for style, comfort and uncompromised performance.”

Hertz customers can rent the new Toyota Prius vehicles by visiting www.hertz.com. After selecting the Australian pick-up location and booking dates, the Green Collection cars that are available will be displayed.

The 2013 Australian Service Excellence Awards have recognised Thrifty Car Rentals as the easiest car rental company to deal with in Australia with an ESi Award.

The ESi Award is based on a national online survey about the overall ease of doing business with more than 300 businesses in 22 product and service categories. The ESi Award category was introduced to the Australian Service Excellence Awards for the first time this year in a bid to include a customer focused awards category. The winners were chosen based on customer experience, determined by feedback from over 3,000 Australian consumers in the Annual Easy Service Survey.

The 12th annual awards ceremony of the Customer Service Institute of Australia (CSIA) was hosted by

Sky News Business’s Bridie Barry and executive director of CSIA, Brett Whitford.

Acting CEO of Thrifty, Michael Lamb, commented that the company’s ESi Award was recognition of the commitment and dedication of all Thrifty employees.

“This is a huge honour, especially because we were voted number one by the people who matter most – our customers,” Mr Lamb said. “We’ve worked hard to create a streamlined and seamless experience for our customers, and this award will only spur us on to continue making it even easier.”

Hertz also scored an award on the evening. The Award for National Customer Service CEO of the Year was awarded to Chris Rusden of Hertz Australia and New Zealand.

Rentsure provides more than just an insurance policy.

With over 25 years insuring rental vehicle companies, we provide a complete, tailored

solution of service and products to cover your every insurance need. We help you

find the best solutions for your business, with insurance products and expert claims

management – teamed with a comprehensive understanding of your industry’s unique

risks. Contact us today to find out how we can assist you and your business.

RENTSURE Pty Limited ABN 98 059 004 634 ACN 059 004 634

Level 3, 345 Pacific Highway, North Sydney, NSW 2060 | PO Box 1670, North Sydney, NSW 2059

Office (02) 9460 2200 | 1800 355 646 Facsimile (02) 9460 2111

Email insurance@rentsure.com.au Claims claims@rentsure.com.au

www.rentsure.com.au An Authorised Representative of Delaney Kelly Golding Pty Ltd AFS Licence No. 231146, ABN 35 000 663 221, ACN 000 663 221

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A survey carried out by Canstar Blue, a customer satisfaction research and ratings business, reveals that one in three drivers experience anxiety when driving rental cars. This news will no doubt also increase anxiety levels in car rental companies and their insurance brokers.

Nearly half of all female respondents (45%) were likely to feel stressed when driving a hire vehicle, while 30% of men surveyed were likely to feel stressed.

Perhaps even more alarmingly for rental companies, men were more likely than women to drive a rented car with less care than their own (14% versus 5%).

More than two-thirds of respondents typically use a hire car for leisure travel, and more than half have never had a bad car rental experience.

14%

One in three drivers experience anxiety in rental cars

of men drive a rented car with less care than their own

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iNDustry NeWs

Car Sharing Providers in Australia: Market Research Report, prepared by IBISWorld, shows that the fledgling car sharing industry is growing in Australia, and can expect to improve revenues by 25% per annum to 2014.

Ryan Lin, an IBISWorld industry analyst, said, “This has been partly due to the continual climb of world crude oil prices and the demand for cost-efficient and convenient inner city transport.”

But IBISWorld also pointed out in the report that Australia’s car

sharing industry shows some distinct differences from its European and American counterparts due to its geographic dispersion of large populations in just a few large urban areas along the coast.

“This has made it difficult for providers to build a diverse network of cars, but has given an opportunity for new companies to enter the industry,” said Lin.

Although there are several significant companies in the industry, including Carshare Australia, Hertz Investment (Holdings) and GreenShareCar, none

of these has a national presence due to the spread of the population.

IBISWorld reports that it anticipates that the car share industry will continue its rapid growth over the next five years. Petrol prices and congestion are significant issues for consumers, who are expected to seek more efficient forms of transport. The industry will increase the number of cars available, more consumers will be exposed to the industry and will be prepared to try car share vehicles.

Car share business expected to grow significantly in Australia

the car share industry is expected to increase revenue by an annualised 25% from 2009 to 2014, according to a new report.

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The car rental industry grew by a relatively modest 3.1% over five years through 2013-14, with total industry revenue to reach $2.8 billion.

But those figures are based on a

low base year, according to the

report, IBISWorld Industry Report

L6611, Passenger Car Rental and

Hiring in Australia, compiled by

IBISWorld in September 2013.

The report points out that the

industry has suffered mixed

fortunes over the past five years,

but future estimates reveal that the

industry can expect slightly better

performance and revenues.

The modest growth over the past five years occurred as travel spending growth and tourist numbers slowed down, compounded by fluctuating business and consumer confidence. The global economic downturn is the major factor for the industry’s poor performance for the period’s early years,

2008-09, when car rental virtually collapsed during the crisis.

But there was a jump in industry revenue during 2010-11, due to improved economic conditions, which saw revenue spike by 12.8%. This will ease to just 2.2% during 2013-14.

The next five years are projected to see industry revenues increase by an annualised 2.0%, and reach $3.0 billion in 2018-19. This will come about from growth in international arrivals to Australia, helped along by a lower Australian dollar, which will boost demand for car rentals.

On the flipside, however, Australian tourists are expected to continue travelling overseas in greater numbers because of the attraction of low airfares and greater tourism competition from overseas industries. Australian domestic tourism will suffer slow growth, putting a dampener on local demand for car rental.

Rental industry enjoys modest growth, with little relief in sight

iNDustry Forecast

$3.0BillioN

PROJECTED REVENUE IN

2018-19

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oN tHe spotWe speak to Dan Mekler from Redspot.Sixt Rent a Car

special Feature

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Dan Mekler can look back on 25 years in the rental business, and has no hesitation in pointing to a decline in customer service and value as a fundamental challenge for the industry as a whole.

“Customer expectations have actually declined. Car rental is seen as a poor provider of customer service historically, and it’s got worse over the years,” Mekler told CR. “People look at car rental and think, ‘I’m about to have a poor experience here’. We hear too many stories and we all lose a lot of business because of it. We have a large disenfranchised lot of people who are looking for someone to look after them. That’s the trick – to give them great service so they want to come back. Their expectation is very low. Our job is to create surprised customers.”

From a motor trade apprenticeship to a motor repair business and service station in Sydney’s Waterloo, Mekler’s car rental initiation came through a courtesy car service offered to clients at the service station.

“It’s a very different business today from it was then, 25 years ago,” he told CR. “Redspot the brand was already functioning then, started by a bloke from Network Rentals, who started a licensing group called Redspot. I joined and quickly became the largest in the group of six. We’ve grown constantly since those beginnings.”

While his competitors have diversified into niche markets like exotic cars, caravans and trucks, Dan Mekler has concentrated on maintaining a basic formula for Redspot.

If the car rental industry is going to turn its performance around in the near future, there’s one word that should focus the minds of everyone involved… Service.

that’s the opinion of dan mekler, managing director of redspot.sixt rent a Car, who concedes that the industry does not have a solid reputation for delivering on its word. and with little growth in the past couple of years, the industry will need to find new ways to capitalise on any potential for growth in the near future.

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“My challenge right now

is to provide efficiencies,

especially in the back end.”

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“Our model is to keep it simple and focused, mostly on airport markets. We don’t want any low utilisation areas because the costs are too high. It’s the 90/10 rule as far as I’m concerned, so we’re not likely to venture into things that are not core to us,” he said.

“Our core product is the all-inclusive drive away price. It’s about transparency. Most car rentals have hidden extra charges that can add significantly to the price. Our price includes zero damage liability, no airport pick-up fee, and now toll roads are included for Sydney, Melbourne and Brisbane. And of course, good old fashioned service,” he added.

Coming back from the GFC

Like most industries, car rental paid a toll for the global financial crisis, and is only now climbing back to previous levels, although Dan Mekler suggests that there has been a lull more recently.

“If I think about the GFC in 2008-09, the industry was subdued for a good period of time after it. We found activity quite strong during the GFC and coming out of it. We actually grew during the GFC and just after – they were some of our strongest growth years,” he recalled.

“The industry had a bounce-back and then a further decline in the past 12 to 24 months. The exchange rate fluctuation might have had a bigger impact in the more recent decline, with our dollar climbing above the US dollar and domestic tourism heading overseas for the more recent impact.”

Sharing, not caring

Dan Mekler considers the adoption of the USA’s car share business model will have consequences for the car rental industry, but is not convinced it will be a significant competitor in the longer term.

“They’re certainly having an impact on the rental industry, and predominantly on the metropolitan branches because they concentrate on the city markets,” he said. “Downtown rental companies would be feeling the pinch, and car sharing will continue to take a chunk of the metropolitan business. But I’m told, and the rumours are, they’re not profitable businesses, but at the moment they’re surviving. It might work in circumstances like the original businesses in the USA, like ZipCar, which were based in busy university towns, with a ready market of people who don’t own a car but need one regularly.”

our cHalleNge is to make australia look opeN For BusiNess

aND more competitive.

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Car rental companies can take a leaf out their book, though, said Mekler, by analysing some of their business methods, to see if there are opportunities to be gained.

“Their technologies and systems are of interest to the rental industry because of their adaptability, and their staffless operations are being looked at by the industry to see how they can adapt them to other sectors.”

Business not as usualRedspot is undergoing an overhaul of its operations for new efficiencies to build on its reputation for service, said Mekler. It’s about improving the customer experience, especially at airports, where much of the company’s business is based.

“My challenge right now is to provide efficiencies, especially in the back end. We get very busy at certain times, with seasonal

variations too. People arrive at an airport and want their car ready so they can get out quickly. We need to turn cars around quickly in our back of house, cleaning, refuelling and checking efficiently,” he said.

“So how do we cater for growth and still provide a good level of service? We’re building two new facilities at Melbourne and Brisbane to better deliver our back-of-house services. We’re hoping to get our turnaround time down by about 50 per cent, and get more cars out quicker. We’re in high cost airports and parking bays are not cheap, so we have to make them work. That means reduced turnaround times.”

Building new businessIf there’s a market that remained resilient in the past few years, it’s been business travellers, said Dan Mekler, and that will continue. But it is tourism that will provide more growth in the industry.

“There is new business to be had. All through the tough times the market that has stayed strong, certainly for us and probably for the whole industry, has been the business market. It’s the tourism and leisure market that has backed off. People still have to travel to do business. Last year it gave us 11 per cent growth, which is double our total growth, against only two per cent for the industry overall,” he said.

“A lot of our growth has also come from low cost airlines. We have a new breed of passenger who isn’t a regular car renter, but is in the market for a car when they fly to a destination and is looking for a price. This leisure traveller is very price conscious.

“I think there is growth in the inbound tourist market, and the falling Australian dollar will help, and prevent people travelling outbound by making Australian holidays more attractive. The low cost airlines have helped fly-drive holidays pick up, so the traditional family driving holiday has been replaced by fly drive holidays.”

Long haul markets will come back too, he predicts.

“Our challenge is to make Australia look open for business and more competitive. One of our reasons for aligning with Sixt is because we see that as a future market – the inbound European market with well-to-do travellers on long trips, and wanting long rentals.

“Our challenge, and our objective, is to create a big loyal customer base. It’s the one who hasn’t booked with us before that we need to provide better service than they’re expecting, and turn that person into a loyal customer.

“It’s important to facilitate growth for the business efficiently. Technology will play a role. Gathering information so customers spend less time at the counter is important.

The more information we can gather online the more efficient our service can be, and the quicker we can get them into our cars and on their way.

“I think it would help the industry if every company improved their performance. Anything that makes the industry look better as a whole would benefit all players in the industry. The industry doesn’t have a very good image, so if we could do a lot to improve that image it would be good for all.”

aNytHiNg tHat makes tHe iNDustry look Better as a WHole WoulD

BeNeFit all players iN tHe iNDustry.

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Visitors to paris, rome or london nowadays have their work cut out dodging the

literally thousands of bicycles that constantly take locals and tourists around the city.

not that they own the bikes. they’re shared with thousands of others by renting them at any one of hundreds of bike

stations throughout the city, to which they return them when no longer needed.

their use has been in vogue for many years and has only recently been followed by the concept of shared cars. City street corners are proliferating with special parking slots reserved for the likes of “Go-Get” vehicles which,

like the paris bicycle phenomenon, are rentable for as little as an hour or as much as a month. While most of the corner car spaces are filled by popular makes of small passenger vehicles, more particular renters can specify their preference for an electric car, a luxury brand or a small commercial van.

By henry MendelsOn

Occasional drivers not driving profits

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vieWpoiNt

in australia the concept has taken off dramatically with the leading firm claiming more than 20,000 members using its 800-vehicle fleet. industry research has projected the current two million worldwide membership is expected to grow tenfold by the end of the decade.

all of which should predicate huge profits for the early entrants to the new industry. But reality reveals that despite continued membership growth and the constant ecological demand for reduction of traffic congestion and lower greenhouse gas emissions, the car-sharing industry’s high costs currently stand in the way of profitability.

However, as garaging becomes harder to access, registration and insurance costs continue to increase, the next generation’s attitude to today’s perceived convenience of a garaged car, available at a moment’s notice, may well recede.

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BusiNess iN Focus

GOING ALONG fOR ThE RIdE

Not many have the opportunity to turn a lifelong passion into a successful business. The pitfalls are too numerous – so many people

find that it can just as easily turn from a dream into a nightmare.

Not so for Selena Thurbon, who took the gamble, quit her corporate career and bought a struggling business renting motorcycles.

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BusiNess iN Focus

ON TOUR

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A niche market requires more than a strategic plan. Through sheer hard work and a clear understanding of her potential customers, Selena Thurbon has grown the company, Bikescape, based in Sydney’s inner west, from a fleet of eight old motorcycles to 50, ranging from Vespa scooters to touring BMWs and Harley Davidsons.

“I bought the business nearly ten years ago, but it wasn’t running very well,” recalled Selena. “My husband Terry and I are passionate motorcyclists, and probably bought it with emotion as much as anything. In the beginning, I cleaned bikes and did everything just to keep it going. Over the last ten years we’ve invested in more bikes. We now have 50 bikes, have broadened the range and increased our profile – especially in the international market.”

About 75 per cent of Bikescape’s market in summer is international tourists, particularly tour groups making the trek here from the USA, Germany and the UK.

“In winter it’s a more local market,” said Selena. “It can be guys with a marriage, mortgage and kids, who don’t want to, or can’t, own a bike, so they opt for a rental, play with the toys and don’t have the issues associated with owning a bike. We also provide an instruction service and bikes for licences – we also have scooters for people who want to get around Sydney easily and cheaply.”

As Bikescape grew so did its motorbike service costs, so Selena opened a service and maintenance workshop. That now also accepts outside work, which helps to take out the seasonal peaks and troughs of the rental business.

“Recently, we moved into bike accessories and clothing. It was a natural progression,” said Selena. “It’s not a full blown bike shop but it adds to the rental business. About 80 per cent our business occurs from September to April each year, largely because of the weather.

Selena’s enthusiasm for motorcycles had steered her into designing

and producing a range of clothing for female bikers, but the lure of

a career change ultimately proved too strong and the motorcycle rental

business provided the circuit-breaker.

selena thurBOn,

BIkescape

BusiNess iN Focus

2004THURbONs PURCHAsE bIkEsCAPE bUsINEss

2003sElENA bUys sIlVERHORsE bIkE ClOTHING lINE, CHANGEs TO bIkIE CHIC

2004RElEAsE Of EwAN MCGREGOR’s DOCUMENTARy ‘Long Way Round’, bOOsTs MOTORbIkE ADVENTURE TRAVEl

2005bIkEsCAPE MOVEs fROM AlExANDRIA TO ANNANDAlE PREMIsEs

“It’s not a big market, but people are more adventurous and free-spirited now. This is definitely an adrenalin activity. A big driver of new business was the release of the documentary program ‘Long Way Round’, in 2004, with Ewan McGregor and Charley Boorman circumnavigating the globe on motorcycles. That really appealed to a lot of people. Business has increased, but the number of new rental companies has not increased greatly.” said Selena.

While a large number of rentals go to adventurers wishing to tour large tracts of Australia, many more are looking for shorter trips on weekends. Sydney is ideally placed for those customers.

“For weekend trips, I send them to the Blue Mountains, along the Bells Line of Road, or down to the south coast of New South Wales, along the Grand Pacific Drive. The tourism board of the NSW south coast has put together terrific maps, which make it really easy for bikers to find great beaches and quiet roads.

They really have it nailed, whereas other areas don’t offer that at all. International tourists want to see our beautiful beaches, the countryside and the water. You can show them all that down the south coast.”

covering the risk

Understandably, a major cost factor for the business is insurance, and this was initially a large stumbling block for the business. Renting motorcycles to strangers has its inherent risks, and few insurers are prepared to take it on.

“From an insurance perspective, with bikes being high risk and with no real way of quantifying customers, it was difficult, especially at first. But for the most part I’ve had minimal accidents and damages, and we do have age and experience restrictions.

“But there are some companies out there with no insurance, and I don’t know how they sleep. They self-insure. For the first few years, even with insurance, I struggled. There’s so much to learn about insurance. There are so many different types of insurance for businesses.

This was my first business, so I needed help, and that’s where my broker was really good to me,” said Selena.

Marketing an experience

Its niche nature meant that Selena had to build the business for the tourist sector rather than local thrill-seekers. She worked hard at promoting it internationally via the internet, with which she had extensive experience from her previous career.

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2005fIRsT lARGE INTERNATIONAl TOURIsT GROUP bOOkING

2006PURCHAsE Of fIRsT HARlEy DAVIDsON

2008MAJOR PURCHAsE Of NEw bMw TOURING bIkEs

2009COMMENCED OwN sERVICE/MAINTENANCE bUsINEss

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YEARS IN OpERATION

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BIkescape In the red centre

selena thurBOn

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“If people google bike rental in Sydney, Bikescape pops up on top,” she said. “Promotion through the internet was critical to the business. I will spend a lot more on internet promotion rather than magazines, because that kind of marketing is too targeted.

“I started promoting through booking and travel agents. There are people around the world who specifically do bookings for motorcycle rentals. Their whole business is about finding companies who can provide that service. Many agencies don’t really know how to sell a motorbike holiday, so it takes specialists. There are a couple of large ones around the world, and we deal with them.”

Selena places considerable resources into developing the company’s website. It is well established but needs regular updating with new bikes and information. She pays for google advertising, maximising SEO and placing her business at the top of search lists.

The website, she said, is critical for business. Every business now needs to drive their business online, “My best advice is to keep it really simple and easy to navigate. If people can’t find what they want in a couple of steps, and it’s not clear, they’ll find the next company. The information they want needs to be easily accessed, and not too complicated.

“I’m dealing with a lot of tourists with foreign languages as well, so my site must be very easy to understand.”

Building up from the downturn

The global financial crisis had a significant impact on Australian tourism, and Bikescape felt it as keenly as any other business. However, there was a lag behind the impact, and a corresponding lag in resurgence.

“It took a while for the GFC to have an impact on us because people book up to a year in advance, but then it’s taken a while to climb back up.”

“There is still a nervousness, or hesitation, out there, but we have quite a few tour groups coming though now. Independent travellers are there, but not as strongly,” she said.

“I’ve seen a bit of rumbling in the Indian market, but not really in the Chinese market yet. A couple of Indian tour companies will be huge, and I don’t think the bike rental industry is ready for them when they do come. I’m talking groups of 70 at a time.”

looking ahead

As the GFC works its way out of consideration, Selena is not certain it will mean immediate gains for the rental industry.

“Since I took on the business, we’ve had growth every year, but last year we plateaued and held our own, and I expect the same this year.

“We need a couple of things to happen. We need our dollar to weaken and the Euro and US dollar to strengthen. Until then tourism really won’t climb, and Sydney is extraordinarily expensive, so they’re hit by a double-whammy – the dollar and the high costs.”

hit the road

Selena sees more than just a business in Bikescape. “Hiring a motorbike is about the journey, not the destination. It’s a completely different mindset to hiring a car. In a car it’s all about the destination. On a bike the destination is just the place you turn around. It’s not the highlight of the trip. “I get a lot of one-way hires, so I have to fly to the destination and ride the bike back. What a shame!”

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BusiNess iN Focus

Franchising success needs local flavour

Franchisees need to look beyond their parent company’s marketing efforts if they want to survive in the longer term, says Henry Mendelson.

In the world of franchising, where a small business becomes the licensed offshoot of a larger corporation, success is often short lived if the aspiring local business owners are short sighted. Frequently they expect that the large corporation is going to do everything for them and all they need to do is sit back, ring up the cash register and walk around the corner to the local bank.

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“Franchisees who expect Big Brother to undertake all their promotional needs for them will run their businesses into the ground very quickly” is the way an industry consultant put it recently. “The best performing franchisees are those who are constantly active in promoting their business at the local level,” he added, referring to the process as local area marketing (LAM).

He went on to stress the need for a proactive attitude – one where the small business owner forges positive links with the local community. This entails such initiatives as making contacts with neighbourhood groups and organisations, clubs and charities, as well as the local media, to ensure the community is constantly aware of the business name and its offerings.

And while the franchisor, the larger company which licenses its franchised offshoots, regularly enters into agreements to promote the brand nationally, the costs of such undertakings are usually borne by the franchisees in the form of an agreed contribution to a national fund. However, the warning signs flash in bright lights to alert aspiring franchisees that this can never be the be-all-and-end-all for ultimate success. Such national initiatives must be supplemented by promotion at the local level, the costs for which are again required to be invested by the franchisee.

When addressed by industry experts, the question of how much local franchisees should spend on their LAM activities brought out a variety of answers, ranging from 1.5 per cent to 3.5 per cent of turnover. Many businesses supplement this by internal programs such as staff incentive schemes, non-cash sponsorships and by undertaking speaking engagements at local service clubs and other charity organisations.

“It’s all a matter of keeping the name before the widest possible spectrum of the local community,” one franchisee recently reported, adding, “We also take advantage of every little bit of help we can get from the franchise head office such as campaign ideas, artwork and logos, which we access free of charge from the franchise organisation”.

In addition, a proactive franchisor organisation will ensure its network is kept up to date on success stories from other market areas, and will organise regular meetings where new promotional concepts are presented and franchise holders can exchange ideas and their experiences with each other in the knowledge that, given they operate in different geographic areas, they are unlikely to reveal such ideas on a competitive basis.

The ultimate success of a franchised business will always depend on the extent to which its proprietor’s promotional mindedness concentrates on the business’s local market. The more the proprietor – and often his wife and family – keeps an upfront, individual profile and is constantly identified with the business, the more that business will flourish. Without such an upfront local area profile, the greater the scope and likelihood of failure.

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gettiNg tHe loWDoWN

oN tHe top spots

The new range of tourism booklets from Whileaway guides

provides the perfect extra value for customers at car rental counters.

BusiNess iN Focus

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How often do people plan a trip, book planes and cars, pack and run, but forget about planning what to do at their destination?

International travellers know that destination itineraries and brochures are plentiful in Europe and the USA, but it’s rather more difficult finding useful information about Australian locations, especially if they’re off the beaten track.

BusiNess iN Focus

That’s changing now, with a young company doing the hard yards preparing handy guides to Australia’s favourite destinations. Whileaway Guides is the brainchild of two women who teamed a love of travel with their professional skills to compile a series of guides for travellers who want to do more than take a few snapshots.

In very short time Jessica Grinter and Kitty Spry have compiled more than two dozen guides to regions right around Australia, and don’t have any plans to stop there.

“Whileaway started about two years ago,” said Jessica Grinter. “My friend Kitty and I were living in London, doing a lot of trips there, and we found when we came back to Australia that it was difficult and time consuming to find information to get away for the weekend. You have to invest a lot of time and effort in researching where to go, how to get there and what to do.

“our guiDes are For tHose people WHo WaNt to FiND out aBout tHe Best parts oF a regioN.”

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“We’re both inquisitive by nature and realised there was a gap in the market. Friends asked about our travel discoveries, so we did a lot of research on the top locations around Australia, spoke to locals and visited each place to experience and write about it for ourselves. It just grew from there. There are now 28 guides covering Australia’s top locations for getaways. Our plan is to expand, and potentially tackle New Zealand, and overseas.”

The pocket-sized Whileaway guides fold neatly into a cardboard envelope, and provide readymade itineraries for travellers looking for more than a tourist hangout. They provide information that only locals know, giving readers a chance to find the best food, activities and scenic spots – information that can turn an ordinary getaway into a memorable experience.

“Our guides are for those people who want to find out about the best parts of a region,” said Jessica. “We want to provide a unique experience to those people who are too busy to work it all out for themselves. We’d go to destinations and experience all the great things about it, like walks, shops, galleries, restaurants, cooking classes – whatever it offers.

“Nobody pays to be in our guides. It’s all unbiased and impartial information, and it’s different from the usual tourist guides. We uncover hidden gems in regions that others miss.”

Whileaway guides are available online at www.whileawayguides.com.au and throughout various bookstores around Australia. Just remember to get one before you head off on your next trip.

far left: kItty spry and jessIca grInter Of whIleaway guIdes

30

NeW moDel Diary

Q1 2014Audi A3 sedan – Four-door Audi will take on the growing entry-level luxury market.

Audi s3 sportback – A smoother and slicker version of the five-door Audi.

Audi Rs Q3 – Audi’s smallest SUV will cost over $80,000 but deliver more.

ford Ecosport – based on the Fiesta, this crossover will use a three-cylinder 90kW engine.

ford Transit – The venerable Transit gets new styling with Ford “kinetic” design ideas.

Infiniti Q50 – This petrol-electric mid-sizer will go up against the Lexus IS300h.

Jeep Cherokee – Iconic off-roader will get a full update.

kia Optima – Bigger size, but missing all the technology offered OS.

kia Pro’Ceed GT – The new hot hatch will use a 1.6 litre engine for 150kW.

lotus Exige s Roadster – This will reportedly be Lotus’s fastest ever convertible.

Mercedes-benz C-Class – New styling, new bells and whistles for C-Class will take on 3 series BMW and A4 Audi.

This is a guide to new car releases for the next two years. While care is taken in compiling this list, car companies may change timelines depending on the market, technology development and other circumstances.

Mitsubishi Attrage – A sedan version of the small Mirage with a 1.2 litre engine and manual or CVT gears.

Nissan leaf – Nissan has boosted this eco traveller’s range about 30km.

Nissan x-Trail – Seven seats and an all-new look for Nissan’s mid-size SUV

Peugeot 308 – An all-new 308 with a large touchscreen for many controls.

Porsche Macan – Baby Porsche SUV is based on Audi Q5, and will help to will double sales, says Porsche.

skoda Rapid – new small car to fit under the Octavia.

subaru wRx – Next-generation turbo will stand away from Impreza.

Toyota kluger – New version will be bigger, and will still use only petrol engines.

Vw Golf wagon – a new wagon will join Golf Mk 7 models.

Q2 2014bMw i3 – Five-door EV hatch.

bMw i8 – A hybrid coupe.

Mazda2 – New small Mazda is expected to take larger slice of the small market pie.

Mercedes-benz GlA – An all-new compact SUV.

Mercedes-benz ClA 250 sport – Front-drive Benz will use 2.0-litre turbo.

Q3 2014Audi A3 cabriolet – Soft-top A3 will win sales with clever design cues.

ford falcon – Last ever Falcon will win over distraught fans.

Range Rover Evoque convertible – Open-air SUV continues the design war.

Alfa 4C – Is this Alfa’s return to glories past?

31

Q4 2014bMw M3 – Next-generation M3 is expected to go back to six cylinders.

bMw 4 series convertible – Two-door convertible will fight C-Class Coupe and Audi A5 Coupe.

Citroen C4 Picasso – Space for seven, this french people mover has a fight on its hands here.

ford Mondeo – Mid-size Ford will get new looks and better engines.

land Rover Discovery 5 – New Discovery will likely be less luxury, more useful.

Mazda Mx-5 – Complete overhaul will update aging sportster.

Mercedes-benz ClA 45 AMG – AWD and brutal performance.

Mercedes-benz M-Class – Facelift for large SUV Benz

Mercedes-benz s-Class Coupe – Two-door coupe S-Class will deliver in spades.

Mini – Mini third generation may get a five-door hatch.

Mitsubishi lancer – Small sedan will get a redesign.

Mitsubishi Pajero – Next generation of the now iconic off-roader.

Mercedes-benz GlC – A new SUV-coupe variant.

Mercedes-benz Glk – Australia should see compact Benz SUV.

Mercedes-benz slC coupe – More compact coupe will replace SLS.

Mitsubishi Challenger – Redesign time for Triton ute-based seven-seat off-roader

Mitsubishi Pajero Hybrid – Hybrid Pajero will probably plug into mains.

Mitsubishi Triton – New model will replace popular light commercial.

Peugeot 508 RxH – High riding hybrid 508 will deliver some off-road capability.

Toyota Hilux – Full redesign for Toyota’s one-tonner, a combination of power and luxury.

Volkswagen Taigun – All-new small crossover for city slickers.

2015Alfa Romeo spider – New Italian roadster is large part Mazda.

Holden Cruze – Global GM small sedan and hatch will continue the Holden name here.

Hyundai Genesis coupe – New Hyundai coupe will probably hit Australia.

land Rover Discovery sport – New variant of next-generation Discovery.

land Rover freelander III – New generation softie Land Rover.

Maserati levante – Italian SUV will ooze style and use Mercedes M-Class platform.

Mercedes-benz E-Class – The large Benz gets a redesign.

32

NeW proDucts

New TomTom device for access to vehicle information via smartphone

the tOM tOM lInk 100 prOVIdes sMartphOne cOnnectIVIty fOr dIagnOstIcs.

33

EUROPCAR GOEs GOZEN

Europcar Australia and New Zealand has launched GoZen, a product that covers theft and damage to a rental car. It includes full cover for damage to the windshield, headlights and tyres.

Ron Santiago, Europcar Australia and New Zealand managing director, said, “No one ever expects to damage their vehicle but – as we all know – accidents can happen. That’s why we introduced GoZen, an easy-to-understand product that provides complete cover with zero damage liability. We want to provide our customers with the best rental car experience where they can enjoy their journey free of stress and worry.”

Introduced in Europe earlier this year, GoZen is now available to customers in Australia and New Zealand to drivers of any age, including the 21 to 25 age bracket.

When booking a rental vehicle, customers are given the option to purchase GoZen cover.

GoZen does not cover damage caused by negligent driving or improper use of the vehicle, according to Europcar.

TomTom business solutions is launching a new device to enable smartphones to connect to real-time vehicle and driving information. The TomTom lINk 100 dongle allows third parties to create new mobile applications to make use of vehicle information and driver usage.

The TomTom LINK 100 logs vehicle diagnostic information, such as engine rpm, load and temperature, directly from the on-board diagnostic port. The integrated 3D accelerometer logs driving behavioural data. By providing access to real-time information the LINK 100 will enable the automotive leasing, rental, insurance and roadside assistance industries to create products that allow the end user to benefit from connected car technology.

The LINK 100, which also offers accident detection and crash logs, is expected to assist usage based insurance products and solutions to help the leasing and rental industry reduce risk. It will also provide the ability to offer ongoing maintenance and technical services, based on information gathered from the vehicle.

Roadside assistance companies could use the data to ensure the most appropriate responder is sent out to incidents based on the exact nature of the breakdown.

The Tom Tom LINK 100 will be available before the end of the year.

34

Garmin has released its first portable head-up display for smartphone navigation apps, called HUD. HUD projects clear directions onto the car windscreen, making it easy for drivers to navigate to their destination without losing sight of the road ahead.

HUD allows drivers to find their way without taking their eyes off the road, according to Harry Gasiamis, director of Mobile, Garmin Australasia. “Head-up displays currently have their place in select high-end cars, but HUD makes this technology available as an aftermarket accessory for any vehicle, at an affordable price.”

Garmin Releases HUD Head-up Display

garMIn hud prOjects InfOrMatIOn OntO the wIndscreen fOr safe drIVIng.

Drivers apply a transparent sticker to the car’s windshield or attach the included reflector lens and place the HUD’s self-adhesive base on the dashboard. It connects wirelessly via Bluetooth to smartphones running a Garmin StreetPilot or NAVIGON app. HUD provides spoken turn-by-turn directions through the smartphone speaker or Bluetooth-connected car stereo. An integrated USB port allows users to charge their smartphone on the go.

The display’s brightness level adjusts automatically so projections are clearly visible in all conditions. HUD displays familiar information like current speed and limit, estimated arrival time, the best lane for the next manoeuvre, warnings of potential traffic delays and upcoming safety camera locations.

HUD has an RRP of $179 and is available from Harvey Norman and Samsung Experience stores in Sydney and Melbourne, and online at samsung.com.au.

NeW proDucts

CAR REnTAl MAgAzinE AuSTRAliA

Design & production: Sdirect.com.au

PubliShER’S noTE:

Car Rental Magazine is published quarterly by Sdirect for Rentsure. This publication may not be reproduced or transmitted

in any form in whole or in part without the written permission of the publishers. While every care has been taken in the

preparation of this magazine, it is a condition of distribution that the publisher does not assume any responsibility or liability

for any loss or damage which may result from any inaccuracy or omission in the publication.

© CR Magazine is published on behalf of Rentsure Pty Ltd.

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