Enterprise Expansion: $20m Investment From Rental Car Firm Set To Boost NZ’s Tourism Infrastructure

Published: Tue 29 Aug 2023 06:45 AM
New Zealand’s rental car fleet is set for a multi-million-dollar boost following a new agreement between the country’s largest airport and the local franchisee of Enterprise Holdings, the world’s largest car rental business.
The new agreement between Auckland Airport and GO Rentals will open an in-terminal branch inside the international arrivals hall. The company will significantly expand its local fleet size to accommodate a projected surge in demand from corporate travellers.
According to latest industry data, around half of the 55,000 vehicles in New Zealand’s rental fleet were lost to the second-hand market during the pandemic. Global supply chain disruptions have subsequently impacted the ability to rapidly rebuild the size of the fleet and there are currently 18,000 fewer vehicles than there were pre-Covid.
Over $20 million dollars will be invested in a further 500 new rental vehicles to operate under the Enterprise Rent-a-Car, Alamo and National Car Rental brands. The additional vehicles are set to arrive before the end of the year and will make up 5% of the current shortfall in New Zealand’s national fleet, which is still recovering from the global supply chain challenges that have impacted new car availability.
James Dalglish, chief operating officer of GO Rentals, says the agreement with Auckland Airport will also see it double its annual revenue within a year.
He says their largest markets include North American and European corporates from the tech, education and energy sectors visiting New Zealand to expand their local operations.
“The partnership with Auckland Airport is the sixth in-terminal presence we have established within airports around NZ, including Wellington, Christchurch, Queenstown, Nelson and Dunedin and means we can now offer thousands of international corporate and leisure travellers a more seamless service model as they travel around the country.
“The move will also give us the chance to significantly build our brand equity and saliency in this segment through exposure to the hundreds of thousands of travellers that pass through the airport every month.
“As a result, we expect to double our transaction numbers within the coming 12 months alone,” he says.
Dalglish says Enterprise is growing its presence in the trans-Tasman market and there is a need for greater brand alignment across the two markets.
“The arrivals area of our airports is often the first impression that a traveller has of New Zealand.
“From a brand perspective, it is critical that high-value North American and European corporate travellers have a comparable experience as they travel from market to market.
“The presence of companies they are familiar with operating in a country can even act as a tacit endorsement for the business environment in which they are entering,” he says.
Dalglish says the multi-million-dollar fleet upgrade will cover up to nine different classes of vehicles ranging from passenger to commercial and will also include dozens of EVs.
“We started working with the Enterprise business model a year ago and have spent that time improving our operations and learning a new software platform.
“GO Rentals has an existing mobile application that allows customers to book, check-in online and complete their agreement all before they pick up their keys.
“In the future, we will look to integrate that platform to work with Enterprise’s systems, and it will help to significantly expedite the transaction speed for customers,” he says.
He says as a result of the new deal with Auckland Airport, they will increase their New Zealand staff numbers by 20% to over 150.
“Globally Enterprise has a number of services that could be adapted to the New Zealand market over time.
“One of the areas we are looking at in particular is a long-term rental product. This is a bridge between lease and rental, but not quite as formal and could operate as a multi-month subscription within this market,” he says.
Enterprise Holdings, the world’s largest car rental business, operates the Enterprise Rent-A-Car, National Car Rental, Alamo brands in more than 10,000 global branches in over 90 countries and territories.

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