COVID-19 virus is now spreading globally, and quarantine COVID-19 viruses and other recent new coronavirus measures have resulted in significant global travel reductions

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COVID-19 virus is now spreading globally, and quarantine COVID-19 viruses and other recent new coronavirus measures have resulted in significant global travel reductions. Of course, it also has a ripple effect on peripheral industries such as car rental. As the epidemic develops, AVIS car rental giants will also face some major problems. As coronavirus arrives, the first thing AVIS have to do is follow closely the World Health Organization and Centers for Disease Control guidelines on viral transmission. For AVIS, the most important thing is to ensure that customer needs are met while ensuring the safety of customers, employees and communities.

Furthermore, AVIS should take measures to ensure employee benefits as well as guest benefits.

This article will aim at the current impact of COVID-19 virus on AVIS companies, through macro and micro analysis, put forward suggestions and measures to make it survive the crisis.

Introduction:

In 1946, Mr. Warren Avis set up a AVIS car rental company at the Detroit Willow Run Airport, This is the world's first car rental company to set up a site. Operating from a service point, a three buses, 70 years of AVIS development, Has become a global car rental industry leader, AVIS is known in the world by its trademark red and We Try Harder, Provide global quality services as one. Now, AVIS business covers 177 countries and regions worldwide, With five, More than 500 points, More than 50 cabs have been rented.

AVIS, the largest car rental company in Europe, Africa, Central East and Asia, AVIS focused on technological innovation, set up the first information management system and service platform, and set up an unparalleled network of professional services. Since 1996, AVIS first car rental company to launch a website service, the AVIS website service has still been rated as the best in the industry. A AVIS and comprehensive global network of 177 countries and regions provides efficient and convenient car rental services to customers worldwide. AVIS gain countless rewards and trust from customers.

AVIS is a truly international car rental company, representing the world's highest level of car rental industry, with a constant brand spirit and never agreed service quality, in 177 countries and regions around the world to provide car rental services for customers.

Environmental scanning (micro and macro analysis - PESTEL)

A VIS Budget Group .Inc. PESTEL analysis is a strategic tool for the analysis of macro and micro environments, PESTEL analysis affects Avis Budget Group .Inc political, economic, social, technological, environmental and legal factors. It also affects the macro environmental factors of other participants in leasing services, the formation strategy of the service industry and the overall profitability. PESTEL analysis provides detailed information on business challenges.Avis Budget Group,Inc is also affected by the macro environment. For example, if an industry is in an unstable political environment, it can not make huge profits even on a strong growth trajectory to benefit Avis Budget Group Inc..

 Micro environmental factors affecting AVIS Budget Group .Inc.

Macroeconomic factors such as inflation, savings, interest rates, exchange rates and business cycles determine aggregate demand and investment in the economy. micro environmental factors (e.g.competitive norms) will affect the competitive advantage of the company. A VIS Budget Group .Inc. can use national economic factors (such as growth rate, inflation rate) and industry economic indicators (such as the growth rate of rental services, consumer spending, etc.) to predict industry names and industry growth trajectories.This is the economic factor A VIS Budget Group .Inc. should consider in their PESTEL analysis.Economic considerations also include:

?type of economic system in the country or region you operate and its stability. Government intervention in free markets and related services, stability of exchange rates and host country currencies, financial market efficiency ,- A VIS Budget Group .Inc. the need to raise funds in local markets, and the quality of infrastructure in the leasing service industry.

?advantage comparison between host country and specific country service sectors.

 

?skill level and education level of employees in leasing service department.

 

?labor costs and productivity.stages of the business cycle (e.g., boom, bust, recovery).

 

?economic growth rate, disposable income, unemployment rate, inflation, interest rate.

Before entering new markets or starting new business in existing markets, the company should carefully evaluate the environmental standards required to operate in these markets. Some of the environmental factors that companies should consider in advance are weather, climate change, laws regulating environmental pollution, air and water pollution regulations in rental service industries, recycling, waste management in services, attitudes towards "green" or ecological products, attitudes towards and support for renewable energy.

Different markets have different norms or environmental standards, which may affect the profitability of organizations in these markets. Even within a country, a country may have different environmental and liability laws. For example, in the United States, Texas and Florida, there are different liability clauses for accidents or environmental disasters. Similarly, many European countries offer healthy tax incentives for companies in the renewable energy sector.

When the COVID-19 crisis occurred, AVIS company also made the following response from all aspects of the PESTEL.

P?Political?

AVIS companies should respect the laws of nature and ecology as one of the core values and ethical principles of the company, in accordance with the changes in government legislation and the concept of people, so as to avoid triggering similar crises again in the future.

 

E?Economic?

1. Epidemic has hit demand and consumption in most of the world's industries, and employment, purchasing power and consumption power have suffered severe setbacks for a long time, and its impact on the global economy will not be under the global financial storm of 2008. AVIS companies should therefore revisit expansion and investment strategies, particularly productive expansion and investment strategies.

2. Consumer spending habits will change a lot. During the epidemic, the proportion of online sales rose sharply. Originally less online car rental consumers, began to learn and get used to online car rental. A large proportion of this change in consumer shopping habits is irreversible. As a result, AVIS need to re-examine the sales channel development strategy, further strengthen the construction of online channels.

3. The epidemic will lead to a large number of small and medium-sized enterprises bankruptcy, thus allowing market share to promote the rapid increase in market share concentration, competition and market regulation will also improve. After the outbreak, competition patterns in many industries will likely change significantly. And that means opportunity for powerful companies like AVIS that can safely survive the epidemic. Proper strategy, market share and market position will likely produce in the "peaceful age" difficult to reach the mutation.

S?Sociocultural?

People's public health and safety awareness will be greatly enhanced, offline large-scale assembly-style dissemination and promotion activities, will be negatively affected for a long time. AVIS company needs to re-examine the communication promotion strategy in the future.

T?Technological?

After COVID 19, the technology of online communication and transaction will be further developed rapidly.

2. More and more technologies and products related to ecological protection, ecological balance and health and safety will emerge and will play an increasingly important role in the competition of enterprises.

E?Environmental?

1. The impact of the epidemic caused a large number of small and micro enterprises to fail, market standardization and market concentration increased rapidly, once the epidemic situation into the recovery period, such as large and medium-sized enterprises will improve the competitive environment.

L?Legal?

In the aftermath of the epidemic and the epidemic, the government will also enact some legal provisions to protect businesses and workers

Micro environmental factors are closely related to enterprises, which directly affect the management and success of enterprises. The six stakeholders involved in the microenvironment are customers, employees, competitors, media, shareholders and suppliers.

g) completion SWOT analysis: strengths, weaknesses, opportunities and threats

Strengths

A new crown epidemic is changing the pattern of the industry, and the travel tools that really pay attention to safety details gradually become the mainstream choice. In this respect, the safe travel of the high-end car rental business in the AVIS has a unique advantage.

Weaknesses

In any crisis, the weakness will change, maybe before the coronavirus infection, your weakness is lack of team cooperation time, lack of integrated system, unable to run on time and so on. After COVID-19 crisis, you will face a series of different problems. This may include guests who are afraid to rent a car for safety reasons and employees who are afraid to resume work. When the recession brings serious financial challenges to many guests, financial choices will be limited. If the cost remains the same, new customers can be attracted through traditional marketing.

opportunities

In any crisis, there is a chance. The crisis may turn things around, and it may be beneficial for some companies.The epidemic has brought travel restrictions, the original public transport travel, most of the people have changed the mode of travel, people with cars can drive, people without a driver's license will rent a car to work, no driver's license to rub or carpool to work.At this time AVIS saved people's travel under the epidemic. When public transport becomes a more risky way to travel, car rental companies meet the necessary travel needs such as commuting to work.

Threats

coronavirus has posed a threat to the car rental industry. Threats include guests who do not rent a car in the absence of an emergency. A guest who renounces a regular rental car; or leaves because of security concerns. Other threats include the long-term spread of coronavirus, the continuing recession of the economy and loss of income. But take some time to think about your SWOT. from COVID-19 perspective. You don't have all the answers yet, but it's time to find the most effective way to recover from the epidemic.

h) recommendations

As COVID-19 seriously affected the global tourism industry, the business of car rental booking decreased. this is affecting the demand for rental cars, especially at airports, which are the main business of AVIS operators. Avis Budget's credit rating was set as "negative" by s & p on the grounds that global air traffic fell and share prices plummeted. The spread of COVID-19 and government measures have also influenced S & P's global projections of Avis Budget's future, and car rental activity will be limited even after the number of infections begins to fall. The severity of the virus crisis is hitting tourism with unintended consequences a few weeks ago. In this particular case, it is important to provide customers with solutions that meet their travel needs. During infection with the virus, many customers value the possibility of personal travel. I recommend that this need be met by significantly expanding long-term leasing and changing the rental model.so what measures should AVIS take to solve this problem? Clearly, money is at the heart of the problem. As travelers reduce car rental business, companies like AVIS should reduce fixed costs such as car payments. AVIS should also work with lenders and some holders of notes from its auto finance arm to adapt to the current market while reducing the speed of payments. and seek support to get payment exemption.

Updated car rental plans and security measures:

Because the company requires employees to work from home, it greatly reduces commuting and unnecessary travel, further affecting the demand for rental cars. car rental company bookings are largely stable as customers rent cars instead of using public transport. Customers are increasingly choosing long-term leases, which allows them to use the same car for a long time, thus reducing the chance of infection. I suggest AVIS promise to disinfect the car every time before and after the guests use it.The minimum age for free car rental will be reduced from 21 to 18. Another measure is to increase the credibility of the company through the public good.you can also reduce the price without customers. Advice is to closely monitor guidance shared by the World Health Organization and our Government on how to help reduce COVID-19 dissemination. To protect employees and customers, encourage regular hand washing and use hand sanitizers as much as possible.The company should improve the vehicle cleaning technology. Please pay special attention to cleaning contact areas such as steering wheel, door handle and other hard surfaces. Our focus is to ensure that we meet the needs of customers while protecting the safety of customers as well as employees and communities. As a travel service provider, it is recommended that AVIS, recognizing the indispensable role in supporting the needs of customers and communities, continue to listen to the advice of the authorities so that as much help as possible can be provided to those who may need to use vehicles. Ensure the safety of customers and employees. take all reasonable measures to prevent the potential spread of coronavirus and strive to minimize the risk. According to the World Health Organization and local authorities, all vehicles are cleaned and disinfected.Use enhanced and more frequent cleaning methods at all locations for regular cleaning and disinfection of high contact areas such as counters, payment facilities and door handles. employees should stay at home if they feel unwell or have symptoms associated with coronavirus. Travel safety and flexibility were top priorities and every effort must be made to support clients.

Advice on AVIS internal management:

1. adopt the way of working in the staff group.

For example, divided into two groups, one group to go to the office today, the other group to work at home, the next day rotation, the office daily disinfection. This reduces the density of office staff, reduces the chance of infection, and even in the most extreme cases prevents the collapse of the entire company. Employees can share car, customer, financial and other car rental information through the car management system. Employees can also monitor vehicles at home, check and collect rent, etc.

2. separate the office area from the customer reception area.

Car rental companies usually have customers from all over the country, especially car drivers, who face different customers every day. Therefore, in addition to strict protection, employees should also minimize contact time with customers.Customer to the company rental car, return the car, try to complete the transaction in the customer reception area. If possible, the car rental company can also set up a temporary customer office outside. Employees outside the office can handle most of the signatures, check and return the car through mobile phone APP. For example, office staff can choose the contract template when signing the contract, and automatically print out the contract through the function of the contract template after entering information through the mobile phone APP. Drivers and salesmen just need to sign.

3. promote online car rental booking.

The company can guide customers to book and rent cars online through the company's public number, attract more potential customers through online promotion, and facilitate customers to choose cars booked online.

Conclusions

AVIS measures taken in the outbreak of new coronavirus pneumonia, in addition to providing convenient and flexible booking services, but also to provide more safe and effective car rental, to ensure the personal safety of customers. The safety of customers and employees is critical to AVIS and will closely follow the news, information, advice and guidance of WHO and local authorities on coronavirus transmission. A VIS will do our best to ensure the safety of customers and employees and ensure that the customer's rental needs are met during this period. if you have booked but your rental travel is affected by coronavirus-related quarantine or travel restrictions can be cancelled for free.

The advantage of AVIS through the use of SWOT analysis is that fewer and fewer people take public transport. People rent cars more frequently when they go out. The disadvantage is that people go out less and less. Cancellation of travel plans could also result in losses. The opportunity is to seize the opportunity to launch a monthly package. The threat is that, if unavoidable, a financial crisis could erupt.Advice was provided to AVIS. The first is to let employees take turns working in groups. Secondly, distinguish office area and customer reception area. Third, promote online car rental booking.May AVIS survive COVID 19 crisis and grow better.