Financial Proposal for Ceo

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Alamo-Enterprise-National

FINANCIAL PROPOSAL FOR CEO

Rent-A-Car Monthly Financial Proposal

OBJECTIVE:

To optimize the car-rental business with special emphasis during the summer months in any given year, due to the high number of tourist traveling to Florida with a need for an automobile.

REASONING:

Travelers not planning ahead often have great difficulty finding rental cars due to high demand. However, during non-winter months tourism drops dramatically, and travelers have no problem securing rental reservations.

 It’s a given that about 80% of all tourists visit Florida during winter months in any given year about 60% of all tourists travel to Florida by air rent automobiles.[pic 3]

ABC Summer Travel reports revealed that various rental car locations are sold out of cars, and renters must wait longer due to the limited vehicle inventory. Florida car rentals were completely sold out for the week of June 1st thru July 15th. Tourists told of long delays in picking up his rental car in Florida because few cars were available, they had to wait for a car to be returned.

Other indicators have pointed to a strong summer for rental cars. In the third week of June, and July 4th holiday reservations up 11% year to year, and it plans to add 250,000 cars to its fleet. A credit card executive reported 76% of its surveyed customers plan on summer travel and 48% plan on cashing in reward points to do so, up 9% and 60%, respectively, from 2015. Rental car revenues are expected to increase in 2016 by 4% to 8% based on higher rental volume and slightly better pricing. In addition to summer travel, fewer people, particularly those in urban areas, are buying cars. Many of these urbanites are choosing weekend getaways within 2-3 hours of their homes, and renting a car for travel.

Several factors have led to pressure on the car rental market’s supply. Auto manufacturers like Ford Motor Co. (F) have begun to limit their fleet sales to rental car companies in order to achieve higher margins in other units and more favorable leasing rates.

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We think the average person always has to watch their pennies, but we don't think that people should stop enjoying life. With the economy rebounding, Americans are taking vacations in near-record numbers again. But that surge in demand is driving up for travel costs such as airfare, hotels and attractions, and car rentals! Americans will spend an average of $1,246 per person on summer vacations — about $100 more than last year, according to an online survey of 1,500 adults by American Express.