Land Based Transportation: Car Rentals

Car Rental: Introduction

• Car Rental is to rent an automobile for a
short period of time, generally ranging
from a few hours to a few weeks.
• It is often organized with numerous
local branches (which allow a user to
return a vehicle to a different location).

(2897) ENTREPINOY: Car rental

business - YouTube
 Car Rental: Introduction
• Primarily located near airports or busy city
areas and often complemented by a
website allowing online reservations.
 Car Rental: History
• The earliest known example of cars being
offered for rent dates to 1906.
• The German company Sixt was established
in 1912 with three cars for rent.
• Joe Saunders of Omaha, Nebraska first
started with only one borrowed Model T
Ford in 1916.
 Car Rental: History
• The company name became Saunders Drive-
It-Yourself System and then Saunders
System.
• By 1926, Saunders had expanded to 56
cities. Saunders' company was bought
by Avis in 1955.
 Car Rental: History

• An early competitor to Saunders was Walter

L. Jacobs, whose Chicago-based Rent-a-
Car opened in 1918 with twelve Ford Model
T.
• The company was bought in 1923 by John
Hertz.
 Car Rental: History
• In Britain, car rental started with Godfrey
Davis, established in 1920, and bought
by Europcar in 1981.
• The sector expanded rapidly in the US; in
1926, the American Driveurself Association
assembled over 1200 delegates in Chicago.
 Car Rental: History
• The growth in travel after World War II led to
the establishment of several well known
international companies, including National
CarRental (1947), Europcar(1949), Enterpris
e Rent-A-Car (1957), Thrifty Rent A
Car (1958), and Budget Rent a Car (1958).
 Car Rental: Motivations
• Freedom of movement
• While enjoying your holidays, you don't want to worry about
taxi prices, schedules or bus stops. You just want to explore,
improvise and enjoy your time.
• Comfort
• A car rental allows visiting remote places, hidden trails or
restaurants with a view, impossible to get to by taking a taxi
or a bus. These special places are usually inaccessible by
bus. Also, there is nothing better than a car waiting for you at
the railway station or airport. Nothing more comfortable than
not having to carry your luggage to the bus, tram or
underground, or paying taxi airport additional charges for it.
Say yes to the comfort.
 Car Rental: Motivations
• Price
• Due to the competition among offices and car rental
companies, they usually offer really good deals and a
wide range of cars
 Car Rental: Business Models
• Car rental companies operate by
– purchasing or leasing a number of fleet vehicles and
renting them to their customers for a fee. Rental fleets
can be structured in several ways
• they can be owned outright (these are known as ‘risk
vehicles’ because the car rental operator is taking a risk on
how much the vehicle will be sold for when it is removed from
service)
• they can be leased, or they can be owned under a
guaranteed buy-back program arranged directly through a
manufacturer or manufacturer’s financial arm.
Car Rental: Business Models

1. Customer
2. Agency (Direct or Online)
3. Payment
Car Rental: With Chauffeaur
4. Driver
5. Customer Pick-up Point
6. Travel to Destination
7. Drop-Off Point
Car Rental: Business Models

1. Customer
2. Agency (Direct or Online)
Car Rental: Without Chauffeaur 3. Payment
4. Customer Picks-up Unit
5. Travel to Destination
6. Customer Returns The Unit
Car Rental Companies:
Philippines
Car Rental: Cost
Car Rental: Cost
Car Rental: Cost
Car Rental: Cost
 Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

SIPP codes are used to summarize the key features of a vehicle. They are the
industry standard for describing vehicles.

The code is normally 4 characters long.

For example:

• CDMR: Compact 4 door manual car with air conditioning

A CDMR vehicle could be one of many different

makes/model, for example: Ford Focus, Fiat Stilo or
Hyundai Matrix
 Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

FIRST LETTER (Size of the vehicle)

M – Mini N – Mini Elite E – Economy H – Economy Elite

C – Compact D – Compact Elite I – Intermediate J – Intermediate Elite
B – Standard R – Standard Elite F – Fullsize G – Fullsize Elite
P – Premium U – Premium Elite L – Luxury W – Luxury Elite
O – Oversize X - Special
 Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

Second Letter (Number of Doors)

B – 2/3 door T – Convertible G – Crossover

C – 2/4 door J – Open Air All Terrain K – Commercial Van
D – 4/5 Door X – Special or Truck
W – Wagon/Estate P – Pickup/Regular
V – Passenger Van Q – Pickup Extended Cab
L – Limousine Z – Special Offer Car
S – Sport E – Coupe
F – SUV M – Monospace
R – Recreational
H – Motorhome
Y – 2 Wheel Drive
N - Roadster
 Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

Third Letter (Transmission or Drive)

M – Manual Drive N – Manual (4WD)

C – Manual (AWD) A – Auto drive
B – Auto (4WD) D – Auto (AWD)
 Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

Fourth Letter (Fuel & A/C)

N – Unspecified Fuel, no A/C C – Electric, no A/C

R – Unspecified Fuel, A/C
D – Diesel, A/C
Q – Diesel, no A/C
H – Hybrid, A/C
I – Hybrid, no A/C
E – Electric, A/C
L – LPG/GAS, A/C
S – LPG/GAS, no A/C
A – Hydrogen, A/C
B – Hydrogen, no A/C
M – Multi-fuel, AC
F – Multi-fuel, no A/C
V – Petrol, A/C
Z – Petrol, No A/C
U – Ethanol, A/C
X – Ethanol, no A/C
 Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

CBMR: Compact Car, 2/3 Doors, Manual Drive, Air Con

Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

IDAR - Intermediate Car, 4/5 Doors, Automatic, Air Con

Intermediate - Toyota Camry or similar

The intermediate car is a neat package combining comfort,

safety and style, with enough room for two large travel cases.
This is the perfect hire car for groups of four touring the cities
(without luggage), or couples wanting extra luggage space.
Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

FFAR – Full Size, SUV, Auto Drive, Unspecified Fuel, A/C

Large 4WD - Mitsubishi Pajero Sport or similar

The rugged, breath taking beauty of New Zealand deserves to

be seen from a vehicle that best compliments the terrain and
gives you full access to the wonders of the country.

Adults and plenty of luggage space, whether you want to rough

it and camp under the stars, or stay in five star luxury hotels,
the full size 4wd hire vehicle is guaranteed to get you there in
the comfort, safety and style you deserve.
Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

FVAD - Full Size, Passenger Van, Automatic, Diesel and Air Con

With standard seating for 12 and available

seating for 15.
Car Rental: Matrix Codes
Standard Interline Passenger Procedure (SIPP) Code

Monospace

Open Air – All Terrain

 Car Rental: Special Request
and Services
AUTOMATIC TRANSMISSION PERSONAL ACCIDENT INSURANCE

Standard Rate:
P300/day

WITH CHAUFFEAUR
Standard Rate:
P1500/10hrs

•P200 for every

additional hour
 Car Rental: Special Request
and Services

NAVIGATION SYSTEM (GPS) CHILD SEAT

Standard Rate:
P300/day

Standard Rate: P500/day

COLLISION DAMAGE WAIVER

Car rental companies treat the CDW as

a waiver of their right to make the renter pay
for damages to the car.
Car Rental: Special Request
and Services
People with Disabilities
Car Rental: Special Request
and Services
People with Disabilities

Automatic Transmission
with Hand Controls
 Quiz: Next Meeting
Review:
-Overview of the Travel Industry
- Car Rental History
-Top Car Rental Companies in the
Philippines
-and SIPP Codes