MMK101 Chapter Notes - Chapter 5: Ravels, Loyalty Program, Marketing Mix
Document Summary
Economic: market revenue 2-3% growth, rental cars in service -. 5, supply demand is being met, airports are expanding. Socio demographic: loyalty programs have become common, convenience, immediacy and availability needs, business travel has increased. Technology: rise in technology, online sales of leisure and personally booked business have increased by billion, rises in third party travel consolidators, decrease in room based conferencing, diminishing revenue from extras. The main competitors are hertz, enterprise and avis. The overall market consisted of 5 major rental agencies and 200 regional firms. Figure 1: rental car industry market share (%) Hertz was the industry leader with the highest prices and targets the corporate renter and business traveller. Avis is a market nicher and targets frequent travellers and streamlines membership service. They receive low mileage cars and special offers. Enterprise utilises market penetrator strategies and is becoming the market leader.
