BR Interview | Adrian Halmagean: Three decades of growth for Avis Romania

As Avis Romania celebrated its 30th anniversary, the company reflects on its remarkable journey from a modest fleet of six cars to becoming a leading player in the local car rental industry. Adrian Halmagean, the General Manager of Avis Romania, talked to Business Review about the company’s most significant milestones, the evolution of the car rental market, and the transition to electric vehicles.

What have been the biggest achievements of the past three decades? How have customer needs and the car rental market evolved during this time?

The company representing Avis in Romania marks a significant milestone this year, celebrating 30 years since its inception on 13 June 1994. Having started with just six cars, we’ve continuously grown to become a top player in the local car rental industry. Today, we have a network of 6 locations nationwide in the centres and airports of Bucharest, Otopeni, Cluj-Napoca, Constanta, Brasov and Timisoara.

The company has also consistently invested in modernising its fleet, ensuring customers have access to a wide range of well-maintained, fuel-efficient vehicles. This commitment to fleet renewal has allowed Avis Romania to adapt to the evolving needs and preferences of its customers.

Over the decades, the market has evolved significantly. Initially, our clientele consisted mainly of representatives and employees of foreign companies. As the economy grew, new segments emerged, including foreign tourists and Romanians in the diaspora.

Another priority for Avis Romania has been to deliver exceptional customer service. The company has consistently received positive feedback and high customer satisfaction ratings, a confirmation to the dedication and professionalism of our team. This customer-centric approach has been a crucial factor in Avis Romania’s longevity and success on the competitive car rental market.

Access to car rental services on the Romanian market was initially limited by the low availability of bank cards, but the liberalisation of banking services and increased credit card accessibility have expanded the market. I estimate the fleet has grown from a modest 1,000 cars in the first years to around 30,000-40,000 in recent years across the whole industry, with almost 1,900 companies operating in the field. This growth was driven by market education efforts targeting local companies, Romanian tourists, and local customers needing cars for specific situations, highlighting the flexibility and benefits of car rentals.

How has Avis Romania been preparing for the transition to electric vehicles and what are the main challenges and opportunities you’ve encountered in this process?

Taking into account the fact that travellers today are more conscious of factors like sustainability, technology integration, and personalised service, Avis Romania has responded to these changing demands by introducing initiatives such as its green fleet of hybrid and electric vehicles, offering seamless digital booking and check-in/check-out processes, and providing tailored solutions for both corporate clients and leisure travellers.

Avis Romania has been proactive in integrating hybrid and electric models into its fleet, reflecting its commitment to environmental sustainability and technological advancement. However, the market hasn’t reached a point where electric vehicles are dominant—on the contrary, I would say. Customers are still very cautious about choosing an electric vehicle. The main challenges include the limited infrastructure available in Romania for electric vehicles and ensuring customer readiness for this transition.

How has Avis adapted its services to the demands of Romanians who are interested in renting cars in exotic destinations, and what is driving this trend?

The trend of renting cars for exotic destinations is driven by a growing appetite for unique travel experiences and the flexibility offered by rental cars.

As Romanians become more experienced and adventurous travellers, they are seeking out unique, immersive experiences that often require the flexibility and independence that a rental car can provide. Countries such as Malaysia, Thailand, the United Arab Emirates, Mexico, Australia, South Africa, and Mauritius, as well as Caribbean destinations, have become popular among Romanians for vehicle rentals.

Avis has adapted by offering its Romanian customers the possibility to book within its network of 180 countries across the globe, ensuring that they have access to reliable rental options wherever they travel. In our network we have more than 10,000 rental locations in the 180 countries around the world.

We have also enhanced our booking systems to make it easier for customers to rent cars internationally, providing them with seamless experiences and comprehensive support to meet their diverse travel needs.

Avis has also focused on enhancing its customer support and guidance for those renting cars in unfamiliar markets. This includes providing detailed information on local driving conditions, regulations, and recommendations to ensure a smooth and worry-free rental experience.

Additionally, Avis has diversified its fleet offerings to include a greater selection of vehicles suitable for the unique terrains and road conditions often encountered in these exotic destinations. From rugged SUVs to compact city cars, the company aims to match the right vehicle to the specific needs of each traveller.

By adapting its services and capabilities, Avis Romania has positioned itself as a trusted partner for Romanian travellers seeking to explore the world beyond the traditional European bounds. As this trend of increased interest in exotic destinations continues, Avis will undoubtedly play an essential role in facilitating these remarkable travel experiences for its customers.

Can you provide more details about the countries from which cars are most frequently rented by those visiting Romania and some insights into the preferences of these international customers?

Visitors to Romania frequently rent cars from countries such as Germany, Italy, France, Spain, and the United Kingdom. These customers often prefer vehicles that offer comfort and reliability for both business and leisure travel. We have noticed a preference for automatic transmissions and well-equipped cars with modern amenities. To cater to these preferences, Avis Romania ensures that its fleet includes a wide range of vehicle options that meet the high standards expected by international travellers.

How would you describe the current state of the electric vehicle infrastructure in Romania? What improvements do you think are necessary to support a larger fleet of electric cars?

Romania’s infrastructure for electric vehicles is still developing. There is a need for a more extensive network of charging stations, especially in urban areas and along major travel routes. Improvements should focus on increasing the number and accessibility of charging points, promoting the use of renewable energy for these stations, and incentivising the adoption of electric vehicles through supportive policies and programmes. Enhanced public awareness and education about the benefits of electric vehicles are also crucial for fostering a more electric-friendly environment.

How do the demands of corporate clients differ from those of leisure travellers, and what specific services do you offer to cater to these different customer segments?

Corporate clients typically require more structured rental services, often involving specific vehicle types that are suited for business use. They prioritise reliability, cost-efficiency, and comprehensive support services. Avis Romania caters to corporate clients with tailored solutions, including dedicated account management, flexible rental agreements, and a wide range of vehicles equipped with the latest technology and comfort features and personalised payment methods. For leisure travellers, we also offer flexible rental options, focusing on convenience, diverse vehicle choices, and value-added services like GPS, child seats, and travel insurance to enhance their travel experience.

The corporate customer segment continues to the main driver of our business. Although requests for business vehicle rentals are more cautious, there has been a significant increase compared to the years immediately following the pandemic. Romania is not yet as popular a travel destination as other European countries, and the corporate sector remains predominant.

Our data shows that the current economic situation has led to an increase in car rentals among domestic corporate clients, while the main factor that has influenced international travel is the need for Romanian companies to engage on foreign markets. Clients using Avis corporate services include both large companies with strategic projects in Romania and small companies with 1-2 employees. Avis remains committed to offering tailor-made programmes and competitive prices to meet the diverse needs of its clients.

Italy, Spain, Germany, and the US have generated the highest volume of business car rental requests to and from Romania. Additionally, there have been special requests for exotic destinations, such as Guadalupe for long-term projects, and South Africa, where there have been occasional rentals.

Could you elaborate on the processes and technologies you use to maintain the quality and reliability of your rental cars?

We strive to always surprise customers with new models and cars. Customers who receive cars with just over 0 km driven are always extremely pleased. The cars in the Avis fleet are always as flawless as they were on the first use. The average mileage for each car in the fleet is under 20,000 km, and the average car retention time is less than 18 months.

Maintaining a high-quality fleet involves rigorous inspection and maintenance protocols. Avis Romania uses advanced fleet management software to track vehicle performance, schedule regular maintenance, and monitor real-time diagnostics. Our cars receive comprehensive inspections before and after each rental to ensure they meet our stringent quality standards.

How does Avis Romania ensure a seamless and well-informed experience for its customers and how do you assist those with international rentals?

Avis Romania ensures a seamless international rental experience through a robust support system that includes either a dedicated reservations agent or a comprehensive online booking platform, multilingual customer service, and a global network of rental locations. We provide detailed information about rental policies, insurance options, and local driving regulations to help customers make informed decisions. For open rental agreements, each customer can contact a road assistance service which is available 24/7. Additionally, we can offer various tools and resources such as child seats, additional coverage options, and GPS navigation to enhance the convenience and safety of our customers’ journeys.