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Jakarta Post

Car rental companies enjoy order boom ahead of Idul Fitri

In line with other public transportation companies, car rental services have also begun enjoying windfall profits in the lead up to Idul Fitri, when millions of people travel to their hometowns to celebrate the holiday with their loved ones and relatives

The Jakarta Post
Jakarta
Fri, August 19, 2011 Published on Aug. 19, 2011 Published on 2011-08-19T08:00:00+07:00

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n line with other public transportation companies, car rental services have also begun enjoying windfall profits in the lead up to Idul Fitri, when millions of people travel to their hometowns to celebrate the holiday with their loved ones and relatives.

Major car rental company executives said that nearly 80 percent of their cars had been booked for the holidays, which will last several days after the end of Ramadhan on Aug. 30.

Daddy Doxa Manurung, the national rental operations manager of TRAC Astra Rent a Car, told The Jakarta Post on Thursday that his company saw between 30 percent and 50 percent increase in demand this month compared to regular months.

“Customers’ needs during this season are growing, particularly MPVs such as Toyota Kijang Innova or Avanza,” Daddy said, adding that people mostly rented the company’s cars for travelling within Java.

To meet the surge in demand for Idul Fitri this year, TRAC Astra Rent a Car would provide 600 cars, up from 450 cars during the same period last year, all of which are multi purpose vehicles (MPVs).

“For this holiday season, we offer special packages, varying from a four-day package to a 10-day package. As of the second week this month, 80 percent of our cars have been booked,” he said, adding that he estimated all cars would be rented out a week before Idul Fitri.

TRAC charges different prices for its cars. The rental price for an Avanza for the four-day package is Rp 2.2 million (US$257.40), while the rate for the same car for the 10-day package is Rp 7.5 million.

TRAC’s rental rates are 25 percent and 30 percent higher than the regular rates.

Cipaganti Car Rent, a business unit of transportation service provider Cipaganti Group, said it would provide 120 cars during this holiday season, up from 100 cars in previous Idul Fitri holidays. “Almost 80 percent of those units are MPVs, while the remaining 20 percent are high-end cars such as the Toyota Alphard and small pick-up trucks,” Bambang Suseno, Cipaganti Group sales area manager, said.

For Idul Fitri, Cipaganti rents its cars for between Rp 2.25 million to Rp 17.25 million for a one-week-rental to a 10-day-rental, 30 percent higher than regular prices.

“As of Thursday, 60 percent of all our cars have been booked. I expect they will be out by five days before Idul Fitri,” he told the Post.

Bambang said that the high demand could continue for 14 days after Idul Fitri. The government previously estimated that the number of home-bound travelers during this year’s Idul Fitri exodus would reach 15.47 million.

The number of car travelers is expected to reach 1.63 million in 2011, up 6.08 percent from 1.54 million in 2010. (swd)

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