How to create a corporate car rental agreement for your organization
The number of car rentals you reserve for your corporate travelers has finally reached the volume that warrants an agreement with a rental car provider. Great! Get ready for all the benefits you deserve!
Here are a few tips to consider when selecting a partner and contract terms:
Choose the right partner: Look for a car partner who is willing to collaborate with you to review your overall rental spend and customize a program to your needs. A partner should work with you to review your most frequented cities to ensure you are receiving the most competitive pricing. Before selecting a partner, ask to see their sample reports: how are they broken down, what data is captured, etc. Bonus: Choose a partner with a bypass counter so your frequent travelers and executives don’t have to wait in line!
Understand your cost savings potential: For starters, you have the option to negotiate flat rates or percentages off. With flat rates, you know what to expect and can budget more appropriately. With a percentage off, you have the opportunity for better rates depending on the demand of the location. Whether you negotiate a flat rate or percentage off, request to have set price ceilings to avoid extremely high rates during peak times of the year. Bonus: An agreement can also help to eliminate any hidden fees (i.e. additional drivers, late or early returns, cancellation fees, etc.) Your budget will thank you at the end of the year!
Set up a direct bill account: As far as payment is concerned, we recommend setting up a direct bill account with your program. This way, you can set policy parameters and clearly define what the company pays for in advance (i.e. Sirius Radio, GPS units, additional insurance, refueling policy). Bonus: A direct bill account also streamlines the payment process for your travelers.
Get a TMC (Travel Management Company) involved in the process: We have stellar relationships with our industry partners, which helps us negotiate rates and agreements on your behalf. Bonus: If you don’t have the volume for your own agreement or if travelers need to select your non-contracted car company, Cadence has percentage off agreements already in place that you can tap into.
Don't forget your VIP travelers: If you have executives and VIPs that need a little more attention (like black car service), we can seamlessly handle that too. Our team is available to book these trips as well as assist with negotiated rates for both black car and chauffeured transportation companies. If there is enough volume for a program, some significant benefits can include flat rate pricing options for frequently traveled cities/airports, discounted rates for other cities, and exclusive VIP experiences.
If you'd like to get a car rental agreement in place for your organization in 2018, let's chat! We can walk you through the entire process.
Written in partnership with Enterprise/National.