Highlights
Interview with Zafer Bülent Salman: Analysis and Advice on the Car Rental Industry
Hello dear readers! We had a very enjoyable conversation with Zafer Bülent Salman, Co-Founder and General Manager of RentiCar and a popular face of the industry, to enlighten you about the behind the scenes of the car rental world. Mr. Zafer enlightened us on many topics ranging from the tricks of car rental to the exciting developments that await us in the near future. We have compiled Zafer Salman's experiences and valuable advice for you, our valuable readers. If you are ready, don't wait any longer to embark on this pleasant journey!
Mr. Zafer, what were the main trends and challenges affecting the car rental industry in 2023?
2023 stood out as both a dynamic and challenging period for the car rental sector. Trends such as Renault being the most preferred brand, Fiat and Toyota being among the popular choices shaped the preferences in the sector. Mostly compact, small class and economic vehicles were preferred. In addition, the share of hybrid and electric vehicles rose to 10 percent.
The most important issue in 2023 was vehicle availability. Our business partners purchased and put into service the vehicles they could find, not the ones they wanted. The increase in the number of vehicles in the last quarter was pleasing, but since this period coincided with the end of the season, it did not have the impact we expected in the current season. Just at the end of the season, when the vehicles were about to be sold, the campaigns organized by the manufacturers due to the abundance of vehicles drove down second-hand prices. In a nutshell, in 2023 we had it all. It was an incredible year with annual sales of 1.2 million units.
Fluctuations in fuel costs and increased competition have forced companies to constantly review their strategies and marketing approaches. We also observed a significant increase in the number of weekend rentals and short-term rentals.
In conclusion, despite the difficult economic conditions in 2023, the car rental sector stood out for its advantages over purchasing. The sector remained an effective alternative for providing more economical and cost-effective vehicles. This period has taken its place in the memory of the sector as a period full of both opportunities and challenges.
How have recent technological developments affected car rental transactions? What is the role of digitalization in particular?
Recent technological developments have made car rental operations faster and more user-friendly with digital platforms and automated systems. Digitalization has improved customer experience and increased operational efficiency by streamlining every stage from booking processes to vehicle delivery.
Digital transformation has accelerated due to expectations and the new normal after the pandemic. As RentiCar, we have improved our reservation processes and kept our website up-to-date in order to provide more efficient services. In this process, we took the necessary measures to avoid cyber security risks and collaborated with the leading software developers in the sector.
For 2024, what developments do you expect in the car rental sector?
In 2024, digitalization in the car rental sector is expected to further streamline processes and facilitate transactions. Increasing interest in electric and hybrid vehicles and the conveniences offered by technology are creating a significant change in the industry. Increasing use of data analytics and artificial intelligence, offering more personalized and intelligent services, and the spread of innovative mobility solutions are likely to shape the future of the sector. These developments offer exciting potential for a more resilient and green future.
In this context, domestic and international tourism is one of the most important factors affecting the car rental sector both positively and negatively. Increases in the tourism sector directly affect the demand for car rental. Especially in touristic regions and during holiday seasons, domestic and foreign tourists' tendency to rent a car contributes to the revival of the sector. However, fluctuations and uncertainties in tourism also complicate car rental companies' demand forecasts and can lead to operational challenges.
Therefore, keeping a close eye on tourism trends in 2024 and beyond will be of strategic importance for car rental companies. Increases and changes in tourism will not only create new opportunities for the car rental industry, but will also be among the factors that transform the industry and force it to adapt. Therefore, developing strategies that develop in parallel with tourism and adopting a flexible business model will be one of the keys to success in the sector.
The Ministry of Culture and Tourism announced that 68 million tourists and 68 billion dollars in revenue targets have been set for 2024. Targets have also been set for the next four years; 74.3 million tourists in 2025, 80 million in 2026, 85 million in 2027 and 90 million in 2028.
In 2024, despite all kinds of economic risks, I think that the tourism sector will grow and the rental sector will do well. Although the number of vehicle sales in the market remains below 2023, I think that rental companies will find it easier to find vehicles and that vehicles can be purchased with more discounts in 2024 compared to 2023. New entries and new brands continue to come to the sector, which shows the confidence of investors in the sector. We see existing brands increasing the number of their branches.
The number of electric vehicles is increasing day by day, how does the rental sector respond to this situation?
As the number of electric vehicles increases, the rental world is catching up with this new wave. We are now seeing more and more quiet and green vehicles on the roads, which not only improve air quality in the city, but are also friendly to our pockets in the long run.
Everyone is adapting to this new change in one way or another. Sometimes we see a sleek electric vehicle in the city center, sometimes we hear about the increase in charging points for those who want to go on a long journey. These innovations mean a better environment and more enjoyable journeys.
As the number of electric vehicles increases, we at RentiCar are keeping pace with this new era. Offering a total of 26 electric vehicle options, we have added models from world-renowned brands such as BMW, BYD, Citroen, Fiat, Hyundai, Jaguar, Kia, Mercedes, Mg, Nissan, Opel, Porsche, Renault, Skywell, Tesla and Volvo to our portfolio. Each one caters to different preferences and requirements.
What makes RentiCar unique and what differentiates it from your competitors?
RentiCar's uniqueness stems from our people-oriented approach. We pay special attention to all our customers and focus on understanding their needs and expectations. This approach ensures that everyone who interacts with us has a special experience they will remember, rather than just a rental transaction.
Providing innovative solutions by closely following the technology, flexibility, accessibility and reliability are not just concepts for us; they are the basic principles that we work on and develop every day. In this way, we continue to set the standards in the sector and stay one step ahead of our competitors.
RentiCar's strength lies in the fact that we provide services all over Turkey, our long years of experience in the sector and our extensive partner network. For example, we cooperate with 93 business partners in 346 locations, offering services with a total of 25,000 vehicles in 283 different models. This widespread presence reflects our commitment to providing a reliable and quality rental experience for everyone, anytime and anywhere.
Do you have any special suggestions or recommendations for our readers who will be planning their car rental and travel plans in 2024?
In 2024, I would like to remind everyone planning to rent a car the importance of early booking. Early planning offers both cost advantages and a wider and more diverse selection of vehicles to choose from. Don't forget to be flexible with your travel plans; sudden changes can happen and flexible cancellation policies are a great comfort in this case. Also, keeping an eye out for special offers and promotions organized by RentiCar can help you get extra benefits for your travels. A good deal will not only ease your budget but also enrich your experience.
Our diversity is our strength. We offer all-wheel drive SUVs for mountainous terrain, economical compacts for urban mobility, comfortable sedans for long journeys or luxury vehicles for special occasions. Our hybrid and electric vehicle options are also ideal for our environmentally conscious customers. We ensure that your trip is both comfortable and unforgettable by having an option suitable for everyone's needs and preferences.
Remember, RentiCar is always there for you and ready to offer you the best option for your trip.
