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How is Artificial Intelligence Transforming the Car Rental Industry?

Artificial intelligence has been progressing in almost all sectors in recent years. Car rental is no exception. How is artificial intelligence transforming this area?

Utilization of the Fleet

Thanks to the efficient use of data, car rental companies can forecast the demand for car rental and adjust the offer accordingly. Traditional data sources showing the demand for car rental include, for example, demographic data, weather information, traffic, hotel occupancy, and airport schedules. All this helps car rental companies optimize the use of their fleet. However, forecasts vary slightly depending on the city, country, and people's behavior. Models based on Artificial Intelligence are able to predict demand very accurately, taking into account all these differences, and car rental companies can thus produce better demand statistics. This makes fleet optimization more efficient.

Fleet Maintenance

Models based on Artificial Intelligence are also effective in managing fleet maintenance. The vehicle maintenance process is affected by several factors, such as mileage and the age of the vehicle. With the use of Artificial Intelligence, car rental companies can reduce maintenance costs, for example by adjusting one-way rentals, thus minimizing the amount of fuel consumed and driving time.

Customer Satisfaction

Real-time data analysis can help car rental companies provide customers with a vehicle according to their individual preferences (pick-up time, car model, accessories, etc.). In this case, Artificial Intelligence can contribute to building long-term relationships with customers through customized solutions and recommendations.

Revenue Management

Artificial Intelligence models help car rental companies estimate the right time to de-fleet and sell assets. This allows revenue managers to easily anticipate ongoing optimization.

Autonomous Vehicles

In the era of autonomous vehicles, car rental companies will strive to provide new rental options and vehicles will soon be synchronized according to customer needs. Using technology, car rental companies will be able to provide customers with more personalized solutions, such as picking up children from school.