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Could you please provide me with benchmark on utilization (% time with billed days versus total) for rental vehicles companies?
Hello, and thank you for your question regarding the utilization for rental vehicle companies in Europe. The short version is, that while it was difficult to find details on the exact percentage of fleet efficiency; by identifying top European car rental companies, we were able to calculate statistical data to get an idea of that percentage. Below you will find a deep dive of our findings.
METHODOLOGY
After searching corporate websites, industry reports, and trusted media sites, we were not able to find data specifying the different types of vehicles that were rented, similarly, there was nothing to be found to specify B2B or B2C. We were able to take the transaction (billed) days, and the number of rented vehicles from three of the top rental companies in Europe, Hertz, and Avis, and Europcar. From these numbers, we calculated some percentages of utilization.
HERTZ FIRST QUARTER 2017
The transaction days for Hertz in the first quarter (through March 31) are 10.18 million (10,184*1000). Dividing this by the average vehicles, (10.18mil/150400) gives you 67.7 (about 68) transaction days per vehicle for the first three months of 2017.
By using the LinkedIn article, we can assume a possible transaction day total of 87, we attained this figure by dividing 350 by four (because there are four quarters in the year). Therefore, you get a ratio of 67.7/87, or 78% for Hertz in their first three months.
350 DAYS VS 365
Nicolay Nedrelid, is the founder of Nedrelid Corporate Advisory, a European consulting firm that specializes in car rentals. He calculates the annual performance of a single car for use as a proxy for an entire fleet. He also assumes that there are 350 available rental days for a single car, minus maintenance, in-fleeting, decommissioning time, etc.
AVIS FIRST HALF OF 2017
The transaction days for Avis in the first half of 2017 (through June 31) are 23.26 million (23,260 *1000). Dividing this by the average vehicles, (23.26mil/183403) gives you 126.8 (about 127) transaction days per vehicle for the first six months of 2017. Assuming a total of 175 possible transaction days (350/2), we get a ratio of 126.8/175 or 72% for Avis in their first six months.
EUROPCAR FIRST HALF OF 2017
The transaction days for Europcar in the first half of 2017 (through June 31) are 30 million, following the same process as with the above rental companies. Dividing this by the average vehicles (30mil/217100) gives you 138.19 (about 139) transaction days per vehicle for the first six months of 2017. Assuming a total of 175 possible transaction days, we get a ratio of 138.19/175 or 79% for Europcar in their first six months.
TYPES OF VEHICLES PURCHASED FOR LEASING
In 2015, the vehicles most purchased by rental/leasing companies was passenger cars, increasing by 15.9%. According to Leaseurope, "European leasing and rental companies purchased some 8.5 million passenger cars in 2015". There was an increase of 11.3% in the purchase of commercial vehicles for lease in 2015.
CONCLUSION
To wrap it up, while we were not able to find data specifying the different types of vehicles that were rented, or information on rentals to B2B or B2C, we were able to calculate the number of days vehicles were rented out of the possible number of available rental days, (minus days for maintenance, in-fleeting, decommissioning time, etc). We used information from three of the top vehicle rental companies in Europe, Hertz, Avis and Europcar.
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