Aaa car rentals, houseboat rentals rise in 2016
Aaa Car Rentals, a rental service based in South Africa, reported a 2.9 percent increase in 2016, to $2.6 million, compared with a year earlier.
The average cost for a 2-bedroom car rental in South African cities fell 0.6 percent in 2016 to $1,845, while the average cost of a 2 bedroom houseboat rental rose 0.4 percent to $632.
The rise in Aaa’s car rental business was fueled by lower rental rates across the board, said CEO Chris Wessels.
“As the market adjusts to the lower prices, Aaa is confident it will be able to maintain its position as a top provider of car rental services in South Africans.”
Aaa’s business is also improving, Wesselss said, pointing to the recent success of the Car-A-Bus service in South Australia and the expansion of its business in the United States.
“In 2018, Aaaa’s car rentals will account for more than one-third of our overall business, and we expect this growth to continue,” he said.
The Aaa business model has expanded beyond South Africa and into other parts of the world.
It’s now available in Australia, Germany, and Japan, Wesssels said.
In addition to the U.S. and South Africa it also has partnerships in the U-Korea, China, Hong Kong, India, Indonesia, Japan, Singapore, Taiwan, Thailand, the United Arab Emirates, and the United Kingdom.
Aaa is also working with other companies to develop more global operations.
It has partnered with the world’s largest auto parts supplier, Bosch, to create an automotive manufacturing service that provides Aaa customers with a platform for developing their own bespoke parts.
Aaa has also partnered with global technology company Autodesk and the World Bank to develop a business platform that provides a marketplace for financing the development of car manufacturing solutions for Aaa clients.
Aaaa also has partnered in other countries with its service, including Australia, Brazil, the Czech Republic, India and the Netherlands.
The company is also expanding internationally, with the acquisition of Aaa Cars in Spain, a German car rental service that also offers a car rental and a car-sharing service.
Aaaa Cars is available in Spain and will expand to other countries in the future, Wesson said.
In the past few years, Aaas business has expanded rapidly, with revenues rising by more than 20 percent in the first quarter of this year to $10.5 million.
The company’s annual revenue grew 17 percent to more than $10 million.
“The increase in revenues is primarily due to the growth in the business from its car rental model,” Wesselson said.
Aaac also added that the average rental fee in South Afrika has increased by 8.3 percent over the past year.
The growth in car rental revenues, coupled with rising rental prices, has allowed Aaa to become the most popular car rental option in South Asia.
“We have a very stable rental market that has grown over the last few years,” Wessss said.
“This is good news for the market as the majority of Aa cars have been leased, meaning that they are more affordable.”