Pandemic drives car rental challenge

Pandemic drives car rental challenge

A local car rental operator is hoping for border and travel restrictions to get back to normal sooner rather than later to keep business moving forward and get vehicles back on the road.

Local Hertz franchise operator Shane Brook is trying to remain positive while struggling to see the light at the end of the tunnel due to restrictions as a result of the coronavirus pandemic, which is severely impacting his business.

Before COVID-19, Mr Brook’s three Hertz branches in Mount Gambier, Portland and Warrnambool were performing better than ever thanks to the success of the local airport and the business also providing critical transport to the Department of Defence.

“In fact, January, February, and March were the strongest months the business had ever seen,” Mr Brook said.

“However, shortly after, COVID-19 took hold and severe border and travel restrictions were implemented, we felt the impact overnight.

“I remember it clearly.

“On the Monday, when the announcements about restrictions started to filter through, people immediately started to cancel their reservations. It was worrying, but there were still enough forward bookings for us to be okay. We’d still be breaking even.

“However, it was a completely different story by the afternoon – almost every future booking had vanished. It all happened so quickly.”

Mr Brook immediately made cost-saving measures to protect his business and nine staff, selling just over 40% of his fleet, which was made particularly difficult by the initial collapse of the used car market. However, he said he was grateful for JobKeeper, which had kept his team employed.

Trickles of reservations are currently keeping the business operational, thanks mainly to a contract Hertz Australia holds with the Department of Defence, who are using their vehicles to patrol the Victoria and South Australian border.

However, other corporate business is yet to be seen, as before COVID-19 most customers flew in from the eastern states.

“The corporate market pulling out of travel has been devastating. I am really hoping states will open borders soon, otherwise it is going to be incredibly difficult,” he said.

“We are also relying on Regional Express reinstating flights when the restrictions are lifted. If the borders are open, people need the ability to fly.

There are so many businesses and residents in our regional communities that depend on the services provided by our customers, not to mention the money they spend while they are here.

“We are also desperate for restrictions to ease because we need flexibility within my business. My three locations cannot operate independently, we need to be able to move vehicles between locations. Normally we’d use ferry drivers, but given the border closure, we’re now reliant on truck transportation, which is slow and expensive. It is definitely restricting our ability to trade.”

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