Olympic Rental Car Loyalty Analysis

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Founded in 1976, Olympic Rent-A-Car has grown to be the 4th largest car rental company in USA. They have prided themselves as providing the lowest prices and offering a competitive customer loyalty program. Competitors of Olympic are Enterprise, Hertz and Avis. The competitors take up about 92% of the market, with Olympic earning 8%. In the rental car industry, airport business rentals bring in the largest amount of revenue at 9.6 billion dollars. The largest car rental company, Enterprise is increasing focus on their revised customer loyalty program basing incentives on how much a customer spends. This marketing strategy could pose a concern for Olympic, forcing a review of current programs and marketing strategies. What do you think Watkins should do? Add further incentives to high utilizers based on dollars spent as the business-traveling customers care more about service than cost. Service improvements would entail, decreasing wait time and lines, no blackouts, free pick-up and drop off. Olympic could continue with the same loyalty levels, but increase the incentives in each category and alternate travel days with cash spent. The Olympic program would allow customers to earn multiple points on every dollar spent, no matter what you buy, and no matter how you pay (cash, credit, etc.). A simple and hassle-free program such as this gives customers the ability to earn points every time they rent, then turn them around and easily use them to save money on further rentals regardless of what car class. For every 5,000 points you accumulate, Olympic could give $25 towards your next rental. You get double points on luxury vehicles and when using the website. Olympic could offer bonus points for purchases on select days. Olympic would benefit from designing a mobile app, and an online loyalist profile management tool; designed to help you track

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