Premium Car Rental Business Shows Better Prospect

People now rent cars not only for visiting travel destinations. There are quite many people who rent cars for important moments, including wedding. It’s just that the cars rented are different from the cars rented for holiday or office business.

For special events such as wedding party, premium cars with luxury appearance and expensive price are now in to-rent list. The rented cars are meant to make the once-in-a-lifetime moment very memorable and look beautiful in digital records of the day.

The option to rent a premium car is also considered more practical. By renting, everything that one wishes for is already provided by the rental, from the driver, the fuel, and even the car decoration.

Validnews.com on Monday (March 11, 2019) wrote that MVP Premium Cars are some of the more affordable among premium cars. These cars with a capacity of up to seven passengers are usually rented for a range of Rp1.25 million to Rp3 million for 12 hours.

The rent rate is very different from premium cars of the luxury category (sedans), with the cheapest rate of Rp1.4 million, while the highest can reach up to Rp50 million. Meanwhile, for exotic car category, the cheapest rate is around Rp6 million on average.

Other than for weddings, car rentals also take orders for business purposes or for welcoming state guests. For instance, during Asian Games or when Saudi Arabian King Salman bin Abdulaziz al-Saud visited Indonesia, premium car rentals managed to reap quite significant profit.

The business revenue for premium car rentals is believed to continue increasing. In 2020, it’s even projected to grow two-fold from the figure in 2014 or equal to $106 billion.

Global Info Research published by Report Hive recorded that the business revenue of premium car rental reached $10 billion in 2016. Then again, geographically, North American region is the giant in this business, representing almost 50% of the global market. Europe comes next, representing about 29% of the market share.

Still in the same research, globally premium car rental industry will stay exclusive. The market is dominated by three big international car rentals that until now still hold 74% of the global market share.

Indef economics observer Nailul Huda thought that inexpensive cars are the greatest threat for the exclusive business in Indonesia. Inexpensive cars can fulfill the need for transportation means. Many people still prioritize function, not caring too much about the added value of luxury aspect.

“Luxury cars are not even second-tier need yet. It’s still tertiary. I think the market is still very niche,” Huda said.

The market share might be small, but we cannot underestimate the future prospects of the business. Opportunities still wait to fulfill the need for big events or state events.

TRAC offers some premium models to rent, including Toyota Fortuner, Camry, and MPV Alphard. Of the three models, Alphard is the most in-demand. The customers rent these premium cars not because they don’t own cars of their own.

TRAC owns about 50 premium cars spread in big cities such as Jakarta and Surabaya and the province of Bali. Camry and Fortuner can be rented in a package of Rp9 million for seven days, while Alphard is offered at Rp10 million for the same time length.

For TRAC, as a business line of PT Serasi Autoraya (SERA) that is affiliated with Astra Group, maintaining the quality of every car offered for rent to customers is a must. The condition of every TRAC car is always monitored. Maintenance is held regularly.

TRAC also guarantees customers’ safety by providing travel insurance. A corporate customer can also opt for additional protection for third party.

TRAC is a transportation service provider offering rented cars to both corporate customers (long term) and individual customers (short term). TRAC provides car options that can be chosen based on needs, including MPVs, SUVs, compact cars, and sedans. TRAC also offers buses of different kinds too. Please click this link to learn more about TRAC’s services.