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A.V.R partners with Avis’ Budget Rent a Car to expand rental services

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Ly Sovanarith, A.V.R’s Operations Manager (second from the left), James Richmond, Avis Budget Group’s licensee manager for Asia and Saing at the launch last Tuesday. Pha Lina

A.V.R partners with Avis’ Budget Rent a Car to expand rental services

A.R.V (Asia Vehicle Rental) is trying to stay ahead of its competitors in the car rental business by teaming up with two strong American brands.

On Tuesday, the company, part of RMA Cambodia, officially launched the Budget Rent a Car in Phnom Penh, to bolster its rental services - which will now include heavy machinery - from construction, agriculture to material handling equipment.

In 2014, A.V.R partnered with Avis Budget Group.

“Through this partnership, Budget will bring transformation in various industries in Cambodia, including tourism, transportation, warehousing, construction and agriculture,” said Saing Ngorn, CEO of RMA Cambodia.

Both the Avis Rent a Car and Budget Rent a Car are under Avis Budget Group.

A.V.R boasts a large fleet of vehicles – pick-up van, sedan and SUV (sport utility vehicle), all in tip-top condition and driven by friendly drivers – largely to serve its foreign clients.

The company offers variety of car rental services — self-drive cars, short-term rental, chauffeur-driven cars, car operating lease and airport pick-up and drop-off services as well.

The company, which has been in the business for almost eight years, is set to expand its business in the Kingdom, as economic prospects look brighter and more tourists are expected to arrive this year.

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Well-maintained A.V.R’s vehicles are mostly leased out to corporate companies. Photo supplied

A.V.R has gradually expanded its fleet and plans to add more vehicles this year due to popular demand for rental cars.

“We grew very fast in the last two years, from 50 units to 340 units in 2018 and in 2019 we plan to have 400-plus units,” Saing told The Post last week.

“For the car rental market, we see a continued growth because all businesses are growing in Cambodia. With tourism [sector] continuing to grow, we believe the car rental business will also grow in 2019,” he added.

Cambodia’s car rental market is expected to enjoy a brisk business, primarily due to the steady economy, projected to grow at seven per cent this year and tourist arrivals expected to cross six million.

A.V.R’s business focuses on two segments, corporate and individuals, mostly foreign tourists.

Content image - Phnom Penh Post
A.V.R teams up with Avis to comepete in the domestic car rental market. Photo supplied

“We focus more on tourists and business people coming to Cambodia, and our long term focus is on the corporate sector."

“Currently, 70 per cent of the businesses are from the corporate sector and 30 per cent from individuals,” said Saing.

At least a dozen car rental companies are competing in the tight market, offering competitive prices and similar services, across the Kingdom.

“It is a very competitive market in terms of pricing. But we are competing in different fields, ours are brand new vehicles, they are all covered by insurance, well maintained and we offer English speaking drivers and sometimes they also (back-up) as tourist guides."

Content image - Phnom Penh Post
Saing says AVR is well positioned for the competitive market. Photo supplied

“We are not competing head to head (with local players) and we have a different strategy. We assure safety of our customers and they can have peace of mind (while travelling),” added Saing.

According to Orbis Research “Car Rental and Luxury Car Rental Industry 2018-2022” report released last March, the Asia Pacific (APAC) region will witness a robust growth in car rental business, driven by rising disposable income and tourism activities.

“APAC region will witness the fastest regional market growth during the forecast period as rising middle-class population is leading to significant increase in air travel, providing an opportunity for key players in the car rental market to offer services across all major airports in the region.

“Moreover, rising number of both international and domestic tourists coupled with increasing number of internet users to carry out online travel bookings is boosting the growth of APAC car rental market,” said the report.

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