Car Hire Services

Topics: Car rental, Tourism, Damage waiver Pages: 20 (6913 words) Published: March 26, 2013
The International University of Management

A research project | topic: an evaluation of the effectiveness of car hire services in windhoek|

This chapter looks at the introduction and background of the study. It outlines the statement of the problem, objectives and questions of the study. It also points out the importance of the study, its delimitation and the definitions of the terms. 1.1 Background to the study

Walter (1985), “A car rental or car hire agency is a company that rents automobiles for short periods of time (generally ranging from a few hours to a few weeks) for a fee. It is an elaborate form of a rental shop, often organized with numerous local branches (which allow a user to return a vehicle to a different location), and primarily located near airports or busy city areas and often complemented by a website allowing online reservations”. Pretty (2008) described the introduction of the Ford Model T as the first mass produced car is closely linked with the car hire industry. A mere eight years after the first Ts rolled of the production line an enterprising Nebraskan businessman called Joes Saunders started a car hire firm with one car. The main focus of his business was the travelling salesman market, although his first customer is believed to be a man who wished to take a girl out on a date. Two years after this original foray, a young entrepreneur, Walter L. Jacobs started a company in the Chicago area. The car rental firm was founded with a dozen Model Ts with Jacobs carrying out all of the repair and maintenance work himself. The success of this business was outstanding and within five years it is believed that it was generating an annual income of one million US dollars. The success of Jacobs' car rental company did not go unnoticed by investors; most notably John Hertz. Hertz already owned the 'Yellow Cab and Truck Hire Company' and used his funds to buy out Jacobs' car hire firm. Hertz himself was then bought out by the General Motors Company who re-branded the company as the 'Hertz Drive-Ur-Self System'. Hertz is still a major player in the car rental industry and most probably the company with the most history. Pretty (2008)

Car Rental Association of Namibia (CARAN) which is a non-profit association of 18 members namely Advanced Car Hire, Africa 4x4 Rentals, African Car Hire cc, African Tracks 4x4 Car Hire, Andes Car Rental, Asco Car Hire, Autovermeitung Savanna, Avis-Rent-A-Car, Budget-Rent-A-Car, Camel Car Hire, Caprivi Car hire, Camping Car Hire, Europcar, Hertz, Odyssey Car Hire, Okavango Car Hire, Pegasus Car & Camper Hire. Its main aim is to protect the tourists and the car rental industry against sub-standard service and quality. The car rental companies must subscribe to minimum standards before they are accepted as members of the association, described Mathes (2011).

“The Namibian Government, through its Department of Environment and Tourism, supports CARAN members by distributing their brochures and advertising material through its networks worldwide, but non-CARAN car rental companies don’t enjoy this courtesy. The stringent standards set by CARAN were necessary due to the vastness of our country, the huge number of self drive tours and the unfortunate experiences tourist have had in the past by renting vehicle of sub-standard quality. CARAN, through its members, undertakes to immediately address any problem that may arise in renting a vehicle from one of its members” explained Mathes (2011).

1.2 Statement of the problem
There is a major shortfall in the supply of rental cars; supply does not always meet demand. There are times when tourist need cars and they are not available; it impacts on the tourism and host country...
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