The car rental industry overall has been slower than other fleet sectors in embracing advanced telematics for their rental fleets, one operator told ARN.
Photo: Ford Pro
The rental car industry has a more complicated relationship with technology: Some operations are early adopters ready to find the most efficient tools quickly; others prefer to go it on their own with a mix of the old and new; and a few more take their time and only spring for a new tech if their comfort level matches it.
And like a household still relying only on broadcast VHF-UHF antenna TV, a handful succeed on their own terms with more basic tech.
Technology adoption among independents can be as varied as the markets they serve, while the corporate and franchised outlets use networks and direction from above.
In Part 4 of the Operator Outlook series from the 2025 Auto Rental News Fact Book, the interviewees confronted a broad and basic question that will be posed for years to come: What tech options are either enhancing or challenging your operations?
At Midway Car Rental in Los Angeles, the focus has been on developing technology that improves customer experience and makes operations more efficient. During 2024, the company has been exploring and/or testing digital keys, genuine contactless rentals, counter bypass options, and AI integration, Kolodziej said.
Hemmert advocates for more use of telematics in rental fleets. “I am surprised by how slow the car rental industry has been in embracing telematics processes for their fleets. I would have thought by now that telematics would have made more inroads into the large car rental companies than they have done. I’m shocked when you look at everything telematics can do with a vehicle, and it’s not a bigger part of the industry. That will change.”
Telematics providers have a harder time selling to larger companies than to private, local fleet operations, said Hemmert, adding that Fox is now working with several possible telematics providers.
At York Car Rental, a software program provides reservation services and points of sale, Fathi said. The company keeps improving the system to help provide faster service to customers. York has sped up the pickup and drop-off process and inspections. “We try to get them to do advance paperwork digitally and online check-ins.
Paul Hemmert, director of airport relations, Fox Rent a Car/Europcar, Orlando, Florida, said he is shocked telematics is still only a small part of the industry. “That will change.”
Photo: Fox Rent A Car/Europcar
“It’s a tough business,” Fathi said. “Everybody expects a brand-new car like at the big companies. You must provide service, rates, and everything better. We are trying to make the car rental pickup and drop-off process faster and smoother for the customers. We cannot cut off the rental counter process completely. There’s not enough technology out there. People also still want a human touch; not everyone wants contactless.”
Fathi said his technology approach frees up time to provide upselling and better customer service. The company upsells about 50-55% of customers and is getting more positive customer reviews.
Midwestern Wheels applies technology to better account for vehicle damage and hold the appropriate customers accountable.
“We use PurInspect,” Wallschlaeger said. “This service interacts with the customer and engages them in the process of accounting for vehicle condition at the time of rental and allowing them to be part of the process. Some AI damage detection products are testing the market for viability, and this product is emerging as a plus to operators but still needs some fine-tuning to replace human sight on the damage.” He added that driver’s license ID scanners help reduce fraud. One challenge is to stay ahead of the fraudsters’ tactics.
The use of data helps our operations make more accurate business decisions. “Our use of data analytics is making it easier to analyze pricing, fleet sales, and other aspects of our business to determine what and how many fleet vehicles to buy, sell, and price for our rental market.”