Europcar Rental Revenue up 3.2%

Date: 23 JUL 2018posted by Car Rentaledited by WinX

Against all expectations, notorious with poor customer reviews, Europcar, known for their low budget car rentals has managed to see their rental revenue up 3.2 percent in the first half of 2018. Caroline Parot, chief executive officer of Europcar Mobility Group, released a statement, "We have made significant progress on the execution of our strategy during the first half of 2018 confirming our organization into business units and the relevance of the acquisitions made in 2017." "This is highlighted by a good set of operational and financial results with solid performances across our three major business units, which puts us well on track to deliver our 2018 financial objectives."

The Group's leisure business, which has been responsible for more than half of the Group's rental revenue growth at 56 percent, and the Group's corporate business were the main pillars of success. Europcar has been able to make progress on two of its key operating metrics, fleet utilization and fleet cost per unit. In fleet utilization, Europcar saw a 10 basis point increase to 76.4 percent versus 76.3 percent when excluding for Buchbinder and Europcar Denmark, which are airport set up locations. And as for fleet cost per unit per month was down €2 to €236 versus the same time last year.

And as for the poor PR, the Group has focused on improving customer service through some programs. While the Group is still struggling, it has made improvements in that sector. Europcar's net promoter score reached 57.2 points in June 2018 compared to 54.0 same time last year. The company changed its corporate name to Europcar Mobility Group in May this year to reflect the changes the Group wants to transform from a traditional car rental company to a new age mobility service. The company's operating income for the first half of 2018 came in at €104.9 million versus €31.8 million same time last year, but that is due to the sale of the company's 25 percent stake in Car2go.

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