Mr. Fei, on business trip to Tianjin, drove a BMW as soon as he got off the plane. He had booked the car on the car rental website before the trip.
The car rental business in Tianjin started to prosper in 2010. Some giant car rental companies, like Shenzhou, Yihai and Zhizun, set up branches in Tianjin last year and doubling the cars on the market.
Shenzhou has devoted much efforts to grab the nationwide market since last year. Zhou Bin, the GM of northern China said, “We only had a few dozens of cars in Tianjin at first, but last year, more than 120 cars were added.” He also said the company will add about 400 cars before the end of 2011.
Another car rental magnate, Yihai, is also focusing on the Tianjin market this year. More than thirteen kinds of medium and high grade cars are available for consumers, including Ford, Chevrolet and Volkswagen.
Car rental for personal use contributes a small portion of the business, and only spikes during holidays. Businessmen prefer renting cars when they are on trips.
According to statistics, car rental companies have opened their businesses at Binhai Airport, Tianjin Airport and Tianjin Olympic Center Stadium, which reduces traffic congestion at the airport and makes it accessible for rental-car customers.
Shenzhou Company has launched a series of discount promotions. From April 1 to May 31, people renting cars for personal use can enjoy half price for the first day, and renting cars like BYD, Chery and Creat Wall only costs CNY39 for the first day. Yihai Company offers “99 yuan services” for more than sixty kinds of cars. Zhizun Company also offers discounts for big customers.
However, apart from the low price, customers are more concerned about the safety and services. Improving the quality of service instead of the price war has been the crucial part in the industry competition.
