Cebu demand for car rentals seen to spike

CEBU, Philippines — American car rental company Enterprise Holdings Inc. (EHI) has entered the Philippines’ flourishing rent-a-car industry, starting with Cebu.

Through its franchisee DriveServices Asia-Pacific Corporation, the multi-national transportation solutions provider has started with an initial fleet of 30 units in Cebu as it anticipates a surge in car rental demand, especially for self-drive service.

EHI regional director for Asia-Pacific Todd Pfister, in a press conference after the formal launch of the business in Cebu yesterday, said Cebu provides good prospects for car rental business given its booming tourism industry.

Tourists, including balikbayans, are the primary growth drivers for car rental business, led by the rising demand for self-drive, he said.

A report published on statista.com said that revenue in the car rentals segment in the Philippines is expected to hit $71 million (about P3.7 billion) in 2018.

The revenue is expected to show an annual growth rate of 11.3 percent from 2018 to 2023, resulting in a market volume of $122 million by 2023.

The study further revealed that user penetration will be at 1.6 percent in 2018 and is expected to hit 1.9 percent by 2023. The average revenue per user (ARPU) currently amounts to $40.34.

DriveServices Asia-Pacific Corp. president Cita Tomada expressed confidence that the increasing number of sophisticated tourists and global businessmen coming to Cebu will push the need for reputable brands of car rental services.

EHI operates in three brands, each catering to targeted markets: the Enterprise Rent-A-Car for everyday use, National Car Rental for corporate market, and Almano Rent-A-Car for luxury and leisure transportation services.

Tomada, a Filipina businesswoman based in Guam, operates three EHI car rental services in other island-destinations like Guam, Palau, and Saipan. Cebu is the fourth site where EHI has presence in.

“Cebu is similar to Guam. It’s a resort-destination. Like Guam, it is also a vacation haven of Koreans and Japanese, who are heavy users of car rental services, mostly self-drive,” she said.

With its initial fleet -- a combination of Sedan, SUV, luxury car, and vans -- the company has hired at least 23 chauffeurs.

Despite its reputable brand name in the worldwide car rental industry, EHI is offering competitive rates, company officials said.

A 24-hour self-drive is pegged within the range of P2,000 to P2,300. The car can be used within the Central Visayas region. Car rental with chauffeur, on the other hand, costs a bit higher.

Tomada said EHI and its affiliate Enterprise Management together offer a total transportation solution. Combined, these businesses—which include exclusive car rental and car-sharing services, truck rental, corporate fleet management and retail car sales—accounted for $22.3 billion in revenue and operated nearly 1.9 million vehicles in fiscal year 2017. — JMD (FREEMAN)