`We Are Looking At Promoting Motoring Holidays’

International Travel House (ITH) has recorded a turnover of Rs 333.35 crore for the financial year 2003-04, recording a growth of 16 per cent over the previous year. As per the company’s estimates, it holds a 40 per cent market share of the car rentals business in the organised sector and is perceived to be the market leader. Anil Bhandari, MD, ITH, in an exclusive interview with Jyoti Koul, talks about the future plans of the car rentals division

Please throw some light on the growth of the division and the returns on investment?

We see a bright future in the business of car rentals. There is also the business of radio cabs, which we are examining. Our present growth in this segment is 20 per cent and we envisage an improvement in the future. We have enhanced the emphasis on safety and reliability of the fleet. Indigenous oracle-based software for reservations has been developed for car rentals, integrated with back office accounting systems in order to provide world class service. The returns on investment in the car rentals business have been 10 per cent.

What is the size of the fleet and area of network?

The car rentals division has a fleet of more than 400 owned cars (apart from short-term hire from vendors) spread over 10 cities with a total of 32 locations. All the 10 cities have branches with IATA affiliations and the car rentals business is an essential part of the offer for clients at any ITH branch. There are also 12 hotel counters located at major hotels at metros, which operate around the clock.

Do you provide the self-drive option?

Self-drive is an option that is offered in all major cities.

What is your marketing strategy and whom are you competing with in the car rentals segment?

Our slogan for the car rentals business is ‘Feel The Difference....A Safe Drive’. As an ISO 9001 certified company, our aim is to offer a drive that is safe and comfortable. Our drivers are specially trained and each car is carefully checked before it is allowed to go to a client. Servicing is done regularly, to ensure that each vehicle is in the best possible condition. No car is allowed to remain in the fleet for more than three years or after completing a mileage of 90,000 km. Our competitors are Hertz, Avis and Orix.

What is the market share of ITH with respect to car rentals division?

As per our estimates, ITH holds a 40 per cent market share of the car rentals business in the organised sector. We are perceived to be the market leaders.

How do you look at future? Is there any expansion plans?

We see a good future for the car rentals business with improved roads and infrastructure. ITH is looking to promote motoring holidays in the near future.