According to The World Economic Forum reports, Private vehicle ownership will drop significantly by 2030.
The experts label it as a “Rentership society” which is motivated by Millennials and Generation Zers. As they are shifting from owning vehicles towards shared economies and paid services including car rentals.
The car rental industry is standing as a pillar to the global sharing economy. With regards to new technological advancements, the fleet management prowess of companies offering car rentals is growing exponentially.
As fleet management is gaining popularity with decades of experience, a loyal customer base, vehicle ownership, and maintenance knowledge help the car rental industry to take an edge over this digital era.
However, fleet management could reach greater heights with ease advanced and provide customer satisfaction with its low operating costs.
Machine learning and Artificial intelligence (AI) is progressing in all sectors over the past few years. To prove how exactly it’s revolutionizing the car rental industry, we have enlisted the 5 Ways Artificial Intelligence is transforming the car rental industry.
As data is considered as the main source of industries, it has created many new opportunities to support crucial factors. Therefore, in the past years, Utilization is the game-changer in demand and supply.
Using Artificial Intelligence, companies can forecast better insights and predict growth in real-time. All this helps car rental industries to plan and optimize fleet utilization for the next level.
Most of the data sources which may affect demand have already existed over years in the past including, demographics, weather, traffic, airport schedules, social events, hotel occupancy, and etc.
Moreover, data source predictions slightly vary according to locations, countries, and people#34sigs behavior. But AI-based models can predict demand very accurately based on all these differences taken into account.
AI-based models are also efficient in managing maintenance and predictions for the whole fleet. As multiple factors can affect the vehicle maintenance process such as mileage and time.
Whereas it’s difficult to analyze fleet telematics data, and vehicle data with respect to weather conditions and patterns of customer driving.
The car rental companies can ensure efficient operations and maximum utilization by synchronizing service demand.
For example, Car rentals using AI can cut down the cost of maintenance by adapting one-way rentals. Which minimizes fuel and driver travel time effectively.
The real-time analysis can help companies to provide the right vehicle as per customer preference.
Therefore, it helps customers to rent vehicles of their specific needs including pick-up time, car model, destination, and more specific requirements like child car seats, and multiple sports equipment carriage racks.
Car rental companies are transforming to build long term relationships with their customers.
However, Artificial Intelligence is the most essential feature to build that customer relationship through customized solutions and recommendations.
AI Models helps companies to find vehicle depreciation, to analyze the best time for de fleeting and selling assets.
Artificial Intelligence engines drive to satisfy the rent prices for service demand. To be more specific, before AI becomes prominent the major role of the revenue manager is to collect the price list and modify new prices.
AI tools help to keep price management and car rental rates based on the depreciation. Using AI tools, now revenue managers could forecast ongoing optimization easily.
In this autonomous vehicle era, companies are planning to provide new rental options to stay up to date.
For example, autonomous vehicles will soon be synchronized according to customers’ needs and reach at the right time.
These rentals can make our hectic schedules more lively with customized solutions such as pick up and drop for children, long trips for vacation, and the delivery process more convenient.
Companies strive to deliver more personalization for customers using technologies. By enabling AI for usage predictions and vehicle automation.
The main advantage of AI is that it helps us to learn friction points beforehand and prepare ourselves to lead the market while autonomous vehicles take a huge role in our lives.
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