Car rental service eyes 15 percent growth in 2017
Car rental service eyes 15 percent growth in 2017
A successful car rental agency, the Avis Budget Group, is expecting a 15 percent upswing in its business operations in Laos this year.
The boom in tourism, hydropower development and the increase in the number of flights to Laos are viewed as being instrumental in spurring growth in the vehicle rental sector.
The group's Operations Manager, Mr Alberto Correra, told Vientiane Times recently he believed it was possible to achieve this target.
In February this year there were more tourists in Laos than Mr Correra said he had ever seen before, most of whom were Thai. The number was high because of it being easy to understand the language, he added.
These days tourists have more options when it comes to travel destinations in Laos. They can choose between Luang Prabang province in the north and other places in the central, southern and northern provinces such as Thakhaek in Khammuan province and Pakxe in Champassak province, as well as Luang Namtha, Bokeo and Phongsaly. In the past, there was only Vangvieng in Vientiane province and Luang Prabang.
After 25 years of doing business in Laos, the company has added to its sales team and customer care services. They now offer specific services for specific customers. Most of the staff can speak English, some can speak French and some Chinese, making communication with customers easier.
Mr Correra noted that the projection for Laos' economic growth rate in 2017 is 6.9 percent. This is high compared to other countries but there is a good chance it will be achieved because of the constant development and investment.
Now that Laos is part of the unified Asean Economic Community he believes it will provide greater opportunities and benefits not only for the business sector, but also for the region's citizens.
Mr Correra said �I think my business will benefit from the Asean Economic Community.�
The increasing number of overseas flights arriving in Laos such as Silk Air, Thai Airways and AirAsia are also bringing a lot of new customers which is good for business. The car rental business is in turn driving growth in other segments such as restaurants, hotels, and aviation.
Not only operational in Vientiane, the Avis budget Group also has offices in Luang Prabang, Savannakhet and Champassak provinces.
Some of the company's major customers are Coca-Cola, Phoubia Mining, the Namngum 1 and 2 hydropower projects, and various NGOs. 15 percent of all customers have long term contracts with the group.
Markets are increasing and most customers are Thai and Chinese.
The operations manager said �We have 120 vehicles including sedans, pick-up trucks and minibuses available. We buy vehicles not because we like them but because that's what our customers want.�
The company also provides safety and tourism information to all customers such as informing them about road conditions. All of the vehicles are fully insured through AGL.
One challenge for the company is maintaining standards, as the Avis budget Group works with lots of premium customers and differs from other global car rental businesses in offering a personalised service.
If people rent a car in France, for example, they can just walk into the rental agency, fill in the necessary documents and then leave after five minutes, Mr Correra said, but it's not like that in Laos. Staff have to give customers information and the office operates rather like a small tourist information office.
