SOUTH Africa ranks first among 131 countries for the level of representation of international car-rental companies it enjoys according to this year’s Global Competitiveness Report.
The annual report, released recently by the World Economic Forum, contains a detailed country profile for 131 economies featured and provides a comprehensive summary of the country’s overall position in the global economic ranking, as well as the most prominent competitive advantages and disadvantages of each country. The survey is designed to capture a broad range of factors affecting an economy’s business climate, including tourism services and infrastructure.
Ranking first globally for having the highest number of car-rental companies represented in the country is not a distinction the car-rental sector readily celebrates. Many agree that the sector is completely overtraded.
“We have an ultra-competitive industry in South Africa. But the credibility we see in South Africa’s car-rental industry is as a result of this competition,” says Paul Pauwen, president of Savrala. “Because we all have to fight for market share, players are continuously striving to be creative.”
Avis md, Wayne Duvenage, agrees. “SA has a very large spread of car-rental companies with virtually all major worldwide brands represented plus a few strong local brands. It’s an over-traded market in SA,” says Duvenage.
The advantage of this highly competitive environment, he says, is that the customer will benefit, as rates are pegged at rock-bottom prices with a variety of big brands to choose from.
“Customers are getting added benefits but not seeing them as a cost to the car-rental companies. They’re getting all the bells and whistles without having to pay extra,” says Savrala’s Val van den Bergh. “We have an industry that pulls out all the stops headed by solid, experienced captains of industry.”
“And that’s why we’re no 1. That’s why we’re world-class!” adds Pauwen.
Photo: (from left), Imperial md, Dawn Jones; Avis md, Wayne Duvenage and Budget md, Ray Booth.
