Shifting gears in car rentals

Lumi is a reputed car rental and leasing brand with 12,000 vehicles in their fleet with 24 branches that cater to corporate and government to suit their needs with a wide range of solutions. However, the past few months had many new revelations and TRAVTALK spoke with Azfar Shakeel, Vice President, Lumi about the new era in car rentals.

Shehara Rizly

Could you explain how car rentals will change post COVID-19?

The car rental sector, no doubt, is heavily dependent on domestic travel, and supported by international tourist arrivals. The shift in the car rental market will be directly related to the performance of the domestic travel market, which is showing strong signs of recovery led by massive government stimulus. In fact, Seera Group, our parent company, is taking concerted efforts to promote domestic tourism, which will also support the car rental industry.

Further, according to a study by Almosafer, the leading omni-channel travel brand under Seera Group, appetite for travel, especially domestic leisure, is strong among Saudi nationals, with 73 per cent – nearly three in four – confident to travel once all restrictions are lifted. More than 35 per cent are keen to discover the Kingdom through domestic leisure trips, with experiential destinations such as AlUla, Taif and Abha of rising interest. Of direct relevance to Lumi is that nearly half – 48 per cent – prefer journeys by car, which again underlines the strong prospects for our business.

A critical shift for car rental companies will be to focus, more than ever before, on ensuring the best standards in hygiene. But most importantly, going digital will be of strategic importance for car rental companies as people will increasingly turn to bookings and payments online. Innovative solutions must be developed, and companies that thrive will be those that integrate effectively with travel service providers. Being part of Seera Group also offers a strong advantage as we can serve our clients through the Group’s integrated offering.

Will travellers prefer self-rental vehicles or cars with a driver?

People typically prefer self-rental vehicles; chauffeur-driven cars will also mean having to follow social distancing rules, which will mean lesser number of occupants. While business clients might prefer it, others are most likely to drive themselves.

In your opinion how will car rental companies attract the travellers?

The two critical factors are the hygiene standard assured – such as regular sanitisation of the vehicles – and the digital transformation, whereby customers can make bookings online with minimal visits or interaction with showroom staff – contactless will be the way forward.

Providing attractive packages with the support of travel companies will be another step forward.