The local car rental sector continues to grow despite intense competition, driven by Thai tourists and independent foreign travellers visiting second-tier cities, says car rental firm Avis Rent A Car.
Idanont Thaiarry, director of operations at Thai International Rent A Car, the local operator of Avis, said competition in the car rental business is focused on tourism demand, which benefits from expanding low-cost carrier networks at regional airports.
The company sees opportunities in the provinces as public transport such as buses and trains cannot fully cover major attractions in those locations, he said.
The average length of a car rental for tourism is 3-4 days.
Tourists want to explore new places other than major cities, said Mr Idanont. Foreign visitors do not travel in large tour groups as much, instead opting for self-driving trips, including Chinese tourists, he noted, helping to distribute tourism income to more communities and lesser-known places.
The company has 21 branches in Thailand, mostly at airports, and more than 1,000 rental cars in its fleet.
Foreign tourists planning trips to Chiang Mai and Phuket usually book for more days compared with other domestic destinations, such as Hat Yai or Khon Kaen, said Mr Idanont.
One trend is Thai tourists renting cars to visit spiritual sites in the Northeast, while expatriates or tourists in Bangkok look for nearby provinces, such as Ayutthaya or Ratchaburi.
Given the higher level of competition, he said the company is adjusting its strategy by offering a greater variety of products, such as vans with drivers, or targeting niche markets including concertgoers.
Rental rates start from 600-700 baht per day for sedans, up to 2,000 baht per day for larger vehicles.
For self-drivers, the company does not yet offer electric vehicles (EVs) as many foreign tourists, particularly Europeans, may be unfamiliar with this type of vehicle and could find it inconvenient to find charging stations in some locations, said Mr Idanont.
However, Avis started offering EVs for rent with drivers, mostly in Bangkok, to mitigate the impact of volatile oil prices.
Despite concerns over fluctuating fuel prices, there is still continued demand for travel, particularly during the high season, he said.
The company expects to record a strong rental rate during the high season, similar to the previous year, driven by domestic and short-haul tourists, said Mr Idanont.
Avis is a partner in the Tourism Authority of Thailand’s (TAT) “Luck Laek Loon” domestic tourism campaign. Local travellers can register on the “Amazing Friend of the TAT” platform to receive updates on tourism products.
As part of its digital transformation strategy, the TAT will collect and analyse data on travel behaviour for its customer data platform, to be used in planning future campaigns and marketing plans, noted the authority.