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Toll Road Infrastructure Brightens Up Car Rental Business

Car rental business is a business that is always productive every year. Moneysmart.id (7/1/2016) wrote that car rental business is always needed by the people.

The bright prospect is also supported by online transportation trend. Moreover, a number of toll roads in Java have finished construction, so there are more people who prefer using private vehicles rather than public transportation.

Regional Car Rental Business Association (Apserda) Chair Harmawan Jeffrivan said that there are two things that cause the high demand for rental cars amid economic slowdown. First, corporations prefer to rent cars.

"Second, the finished construction of toll roads in Java will ease vehicle access," Jeffrivan told Bisnis Indonesia,Sunday (February25, 2018).

Jeffrivan explained that there is high demand from companies because renting cars can help efficiency. The companies do not have to think about taxes or maintenance cost every month.

As cited from Marketeers (April 26, 2016), the growth of car rental market in Indonesia is mainly boosted by many companies that do not want to own and manage car assets. It is because car assets burden their finances.This factor helps car rental industry to grow 20% on average each year.

According to a 2016 survey, there are around 490 cars rented out; 70% of them rented for a long term. "The value of this market can reach Rp34 trillion in one year. This figure does not include yellow-plate cars (read: taxis) that are rented out," Marketeers wrote.

If the project of Jakarta–Banyuwangi toll road is finished according to the government's target at the end of 2019, the demand for rental cars may skyrocket.

TRAC Chief Operating Officer Agus Riyadi said that toll road infrastructure is like a breath of fresh air for car rental business, especially for long-distance journey. "It automatically becomes a motivation for us and to be honest, we have waited for this for quite a long time," he told Kompas.com, Sunday (November 4, 2018).

TRAC Bus Operating Manager Lutfhi Khairawan Putra echoed the sentiment. According to Lutfhi, the development of bus rental service will have big opportunity when all the toll roads connecting Java have finished construction.

According to trend, Lutfhi said, until now, demand for rental of commercial vehicles that can carry many passengers is still stable, especially in small bus segment. Meanwhile, for big bus, the orders only come at certain periods, like holiday or Eid al-Fitr.

"It indirectly makes the distance and journey shorter for tourism activities. This surely also drives us to open more outlets in the future," he said.

In car rental industry, there are at least two periods of peak season. First, Eid al-Fitr, when many people go on homebound trips. For comfort factor, many urbanites choose to rent cars instead of taking the public transportation. During this period, demand for rental cars can double or increase by 100%.

Second, Christmas and New Year holidays, which is customarily at the same time as school holiday. Usually, the increase in demand for rental cars occurs since mid-December.

A player in the car rental industry is TRAC, which is under PT Serasi Autoraya (SERA).TRAC has Corporate Rental service for corporations and daily rental service for individual customers.

TRAC has various types of vehicles available, offering prime services. Its services can be enjoyed by both individual and corporate customers. TRAC can be the ideal choice to fulfill people's need for transportation at any time.

Check this page for more information about TRAC.

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