Surabaya Car Rental Business Analysis

Component analysis focuses on the basics of Surabaya Car Rental industry. Here we look at the basics of industrial, economic, and financial risk. Thought industrial base found similarities in the sense that investors can expect to find a car rental business Surabaya having their own characteristics in order to be an effective round money. Visit our web Artha Raya Trans

The purpose of Surabaya Car Rental Industry ;

To identify the advantages behind this industry, business model, risks and critical success factors.

Expected Results ;

  1. To understand the economic and financial fundamentals of Surabaya Car Rental industry.
  2. To understand the key issues and profits in Surabaya Car Rental industry.
  3. To be able to review a typical company in this sector and compare it with significant global norms.
  4. To be able to identify the warning signals and a chance at a car rental company Surabaya typical.
  5. To complement the company's management as well as the evaluator Surabaya Car Rental.
  6. To understand the prescription analyze a company Surabaya Car Rental.

What Is Surabaya Car Rental?

Surabaya Car Rental is a car transport industry used to rent As with core bussines them in Surabaya. This industry is a service company that moves to serve the efficiency and effectiveness of the other companies in terms of transportation. Besides, the industry is not rare and often empowers drivers to Surabaya Car Rental services as a key factor in the success of this business. Rent Car Surabaya is generally done on a daily, weekly or monthly. Rent Car Surabaya for a company usually associated with a car hired for a period of 12 months or less. "Rent Car Surabaya" for a long time is often referred to as a lease. Surabaya Car Rental Industry consists of two main markets: the use of general and business users. What general use car rental Surabaya especially for business and leisure travelers, while business users to optimize the transport support to achieve their business goals. Car Rental income Surabaya, the industry came from significant revenue from the sale of related products such as Car Rental Package Car Rental service Surabaya and Surabaya.

Customers from Surabaya Car Rental includes:

  1. Business travelers hired under a contract negotiated between employers and rental company,
  2. Business and leisure travelers are making their
    reservations and may receive discounts through travel, or other
    professional organizations,
  3. Accounts of small companies is provided by the rate and benefits package that requires no contractual commitment and,
  4. Business and leisure travelers without organization or affiliate program. Business
    travelers tend to take advantage of mid-week rental of shorter
    duration, while the travelers have a greater utilization weekends and
    tend to rent a car for a long time.

Surabaya Car Rental Business

Players Car Rental Business Surabaya

Surabaya Car Rental industry is dominated by a few major global players. But
they have a global player with a market share of different players and
above middle class, Surabaya Car Rental company middleclass often prefer
to trade under the brand of

global opportunities to achieve proportionate share of Surabaya Car Rental.

The big global players usually have bigger profit setting
where the operator optimize the maximum revenue to cover operational
cost borne.
Here they created the image in a different
market, causing opportunities in Surabaya Car Rental companies to
benefit middle and upper small it continue.

Growth Incentives Surabaya Car Rental

Key factors driving growth in Surabaya Car Rental
industry is not spared from increased passenger traffic flying to
Surabaya, the trend toward shorter, more frequent vacations and business
resulting from the number of airline passengers, and if didemografiskan
trend towards more affluent citizens to travel more often and increased
business travel.
Surabaya Car Rental Companies also been
able to increase the income they earn on their vehicles through the
implementation of management systems results similar to those used by
their global players Surabaya Car Rental.

The latest developments in the industry Surabaya Car Rental

Due to the overall global economic conditions, the price and the business travel

environment continues to be under pressure if we are not keen to see the opportunities that exist. Moreover, the prosperity / security state and nation is a parameter that can be to blame Surabaya Car Rental

significant because historical records and security are the main assets
sutua areas that travelers and businessmen are not afraid and think
twice about doing a holiday visit or business expansion.

It should be noted that areas such as Surabaya is
considered more secure, enabling and enhancing opportunities for
improvement and the business traveler to conduct Surabaya Car Rental.

Due to economic conditions and the competitive nature of the industry Surabaya Car Rental

Car Rental Surabaya then owner should focus on:

  1. Financial Position, creating a capital structure that is affordable and flexible,
  2. Operations, focusing on increasing productivity by
    developing and maintaining business infrastructure more efficient and
    better equipped to take advantage of all the opportunities,
  3. Customers, strengthening the brand and focus on growth opportunities and opportunities brought about an area,
  4. Employees continued to focus on improving services,
    including the drivers who are the main assets in Surabaya Car Rental

A number of car rental companies Surabaya also have to
develop their own internal to sell core bussines causing thought and
discourse that they do not mess around in this industry, and exist for
the development.

Pusher Advantages Of Car Rental Industry Surabaya

The key drivers of the advantages of car rental companies are as follows:

  1. lobal economic growth, and / or the relevant local economy,
  2. Seeing opportunities and anticipate surges and decreasing the number of days rental car,
  3. Recording and proper management of rental revenue per day,
  4. Recording a car rental transaction volume (ie number of lease transactions),
  5. Maximum utilization of the fleet.
  6. Driver recruitment system with the guidance of professional codes of ethics and good service.
  7. Training for employees up to date about services at both the management and drivers.

Safety and comfort become the deciding factor in running
Surabaya Car Rental industry, the opportunity to be a trigger to
minimize both internal and external threats.

In order to enhance economic growth and corporate
earnings, the company is ready to take on the opportunities and risks of
the increasing number of tourist and business.
Seeing the
opportunities arising from the use of the security and prosperity of an
area, the placement of the individual to be a priority as well as
service to the businessman.
As a result, the volume and
rates may increase, but the competitive price pressure in a permanent
feature Surabaya Car Rental industry.

It is also important to look at factors affecting indirect drivers of profitability. These include:

  1. Quality of service,
  2. Looking crowded market share among both business and leisure, which are prioritized?,
  3. The presence and active encouragement to the company's brand image,
  4. Vehicle scheduling order so as to avoid overlap and complaints from customers.

Significant changes in the net cost of the vehicle or the
interest rate may also have a material effect on cash flow and
profitability Surabaya Car Rental industry.

Economic Fundamentals Of Car Rental Industry Surabaya

  1. Surabaya Car Rental industry is a global business and regional. Operating on a global scale is achieved either through a subsidiary or franchise operations.
  2. Car Rental Industry Growth Surabaya. If for example the analysis of global income decline, Surabaya Car Rental is still a long-term industrial growth. It is driven by the fact that many people who can fly and volume growth globally. This in turn had a positive impact Surabaya Car Rental business.
  3. The industry is not a seasonal business. Business car rental charges if seasonal variations in customer demand linked to the holidays. And
    if the industry is keen that employers of seasonal variations can be
    anticipated in the business variant became the main destination Surabaya
    Car Rental services.
  4. The industry is cyclical by nature. The
    slump in the economy can cause these businesses to reduce spending and
    make the most of the opportunities in taking the cyclical nature of the
    impact, so it had a positive impact on the car rental business.
  5. Due to the high growth of the car rental companies, the
    industry is affected by the interest rate environment and the inflation
    rate of a country.
  6. Big players who have balance or support to finance the
    acquisition cycle cars will dominate the car rental industry in
    particular Surabaya Car Rental.

Financial Fundamentals Of Car Rental Industry Surabaya

Asset Management

In contrast to the traditional industrial companies, the key to
successful car rental is the effective management of current assets.
traditional industries typically have large fixed asset base off that
should bring back, most of the capital that is used in a car rental
company engaged in current assets.
This is because most of the assets in the rental car company is a car leased to customers.

Key factors affecting the effective management of current assets are :

  1. The price at which he bought the car,
  2. The price at which he sells the car,
  3. Utilization of the car, otherwise referred to as yield management,
  4. Optimal financing a car.

The price at which a car rental company buys and sells vehicles is one of the keys to profitability. Perhaps more important is the utilization of the assets that the company generates income from a vehicle during have. Here is a level of foresight employers to remain sustainable and growing business in accordance with the objectives.

Surabaya Car Rental Income

Revenues from the typical car rental company is as follows. (This assumes no franchisor company):

Revenues primarily consist of:

  1. Vehicle rental – income generated from renting vehicles
    to customers including income from loss or collision damage waivers, and
    the products of other services provided at the rental location.
    Income Insurance can comprise 8-25% of the income from the rental car company. Due to volume, car rental companies normally insure themselves and generally can make 5-10% profit on insurance income.
  2. Royalty fees – costs generated by the investor in the company car.
  3. Sales of vehicles – vehicles sold this year although
    still worth taking, but buying a new re-development of an innovation to
    be done.
    The advantage of the sales is a function of the
    sales price that can be achieved relative to depreciation policies used
    in the company.

Industry Accounting Surabaya Car Rental

Key accounting problems that are relevant to this industry are as follows:

  1. Revenue Recognition. Revenue is recognized over the period the vehicle is leased at the conclusion of the rental contract. It has to go through a good record to trace back the historical car for a company's assets,
  2. Depreciation. Since depreciation is the largest component of operating costs that a proper management practices can anticipate a loss. Depreciation method normally used is the useful life of five years and was eliminated in a straight line. A conservative approach consistently considered more profitable,
  3. Recognition Benefits Vehicle Sales. This is related to the rate of depreciation is applied to the vehicle. Analysts
    have asked the key question: is the value realized on the sale of
    vehicles more than depreciated book value of the vehicle.
    is quite simple, if the car is sold for more than it cost less
    depreciation accounting is considered as profit and profit is
    Analysts should bear in mind that the car and effectively the effectiveness and efficiency of the rental car. Therefore, the analyst a traditional industrial company should exclude gain on the sale of assets of sustainable earnings,
  4. Repurchase Agreement. The greater the percentage of repurchase is more important is to ensure that provisions have been made for the buy-back damage.
  5. Anticipation of Fraud. Anticipation of fraud can be minimized by filing down payment before using the car rental facility so as to avoid large losses.

The Role of Regulation

Around the world, businesses are subject to various car
sewqa government control types, including those relating to regulation
of prices and advertising, currency controls, labor issues,
environmental protection, and taxation on the use and sale of cars.

Role of Technology And Changes In The Industry Surabaya Car Rental

The technology in the car rental industry is focused primarily on interactions with customers. There
has been a demand for greater access to information and faster and thus
the ability to deliver information faster to add an excellent overall
customer service.
A business needs to have a rental car
rentals globally with reliable IT, ordering and billing system that
provides significant added value to the customer interface.

The Warning Signal Industries Surabaya Car Rental

There are some typical warning signal for the failure in the car rental industry. Each
factor alone may not mean that there will be the possibility of
failure, but the combination of these factors can often provide a strong
indication of problems in the company.
Some of the typical warning signals are:

  1. Continued decline in revenue.
  2. Successive significant decrease in rental days, revenue per rental day or utilization rate. A utilization rate of 65% and below is a sign of a poorly run business.
  3. Using the depreciation rate is not appropriate or depreciation methods or use to manipulate earnings.
  4. Management makes the flow of bad accounting in terms of accounts receivable is greater.
  5. Excessive growth of the industry and the ambition to make this unconsciously bigger stake than the pole.
  6. Utility vehicles and poor service makes customers switch.
  7. A significant decline in air travel.
  8. Excessive overhead cost structure.
  9. IT does not have the proper global reservation system and promotion in social media.

How to Identify the Industry Winner in Surabaya Car Rental

Surabaya Car Rental Industry is very competitive but the
winner will most likely come from the major dominant player with a large
market share.

A company by the number of optimal growth will be beneficial to the
interests of the true level of the environment, especially if it has
established a favorable loan arrangements.
The right mix between corporate and leisure travel is also important. Management
and track record of the company is essential and experience of
operating in a competitive environment and the cycle is also a dominant
To succeed, companies need a unique combination of management,

vision, brand image and complete commitment to superior service. The winner must surely have a reliable global IT systems and can help interact efficiently on both sides of supply and demand. More
flexibility to the management of Surabaya Car Rental industry is
unique, the fewer complaints and greater promotion and customer
references are not easily influence dalampengmbangan Surabaya Car Rental
Key industry Surabaya Car Rental is a utility
fleet a clean and decent life as well as professional services at both
the management and the driver as the spearhead.

Surabaya Car Rental Business is Business The Most Unique and Competitive

Surabaya Car Rental Industry is very unique and competitive, especially with regard to price and service. In addition, the recent change in ownership of a number of major car rental companies could further boost competition. In
any given location, the franchise may face competition from national,
regional and local companies, many of them, especially those owned by
major automobile manufacturers, have financial resources greater.
Similarly, vehicle leasing and vehicle management services are also very competitive. In
addition to the main provider of fleet management services hundreds of
local and regional competitors that have a similar focus on the price
and service.

Examples of Key Questions To Ask Surabaya Car Rental Industry Management

  1. What triggers the key advantage of Surabaya Car Rental business from their current standing. How did they do when compared to competitors Surabaya Car Rental?
  2. What is the market share compared to its closest Surabaya Car Rental?
  3. What are the main risks currently affecting business Surabaya Car Rental?
  4. What operating margin of Surabaya Car Rental business?
  5. What is the operating cash flow Surabaya Car Rental?
  6. Is there a rental day growth and what the utilization rate Surabaya Car Rental?
  7. What cover business growth and business interests Surabaya Car Rental? Does it make sense in terms of the expected interest rate environment?
  8. What is the use of depreciation in Surabaya Car Rental company?
  9. What percentage of the fleet is under repurchase? What business structure adjustment Surabaya Car Rental?
  10. Are there any details of the income and expenses of the business Surabaya Car Rental?
  11. How insurance contributions from Surabaya Car Rental business?
  12. What new services brought to market Surabaya Car Rental?
  13. Are there provisions made for anticipated losses and fraud in Surabaya Car Rental business?
  14. What Surabaya Car Rental company has a good relationship with the investor?
  15. Service is what customers want and whether the company has a reliable system for the global IT demand and supply side?
  16. What about the track record of management Surabaya Car Rental?
  17. What strategies are developed to the expansion of the company in the car rental industry is rapidly increasing Surabaya?

It's intended to provide an overview and discourse in the
car rental business Surabaya so beneficial and stay on track with a
sporty competitor and contribute together.
Thank you

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