Avis is to introduce a no-show fee for renters who don’t honour bookings from the second quarter of 2015.
The car-rental company announced last year that it would be introducing the fee but this was delayed due to two reasons, says Lance Smith, Executive of Sales. “Namely, the launch of no-show fees internationally in the US and Europe and our decision to wait and see the reaction to the fee in those markets and, secondly, the system changes to accommodate fees in our region.” Smith adds that Avis has implemented the fee in other countries with no problems or major challenges.
He says the fee will be charged to the client’s credit card or account, whichever is applicable, in the event of a no-show.
Smith says Avis is seeing on average 10% no shows and on some peak days, the no shows can be in excess of 25%.
Avis is not the only car-rental company in South Africa contemplating this model to curb no-show behaviour. Thrifty is looking at introducing a no-show in the near future, specifically for high-end and specialised vehicles. Fiona Angelico, Global and National Sales and Marketing Manager of Thrifty Car Rental, says revenue is lost when the company holds a vehicle for a customer and they do not show or advise they no longer require the vehicle. “Moving vehicles to a specific location for a customer incurs fuel costs, wear and tear on the vehicle and the relocation cost of the vehicle and driver.”
First Car Rental has already started applying a no-show fee for specific seasons and events, whereby the no-show fee amounts to 100% of the value of the rental. Melissa Storey, Executive Head of Strategy, Development and Marketing, says First started implementing no-show fees during the Soccer World Cup in 2010. “This was a once-in-a-lifetime opportunity to enhance and perfect our ‘events’ system capability to ensure maximum productivity, less vehicle relocation and optimum utilisation at the right yield in the metaphorical ‘perfect storm’ within a logistics.”
Sherl Camera, Hertz GM of business development, says Hertz reserves the right to charge a no-show fee if the customer fails to pick up the car within one hour of the agreed collection time or – in the case of airport rentals – within two hours of the flight arrival time.
