J.D. Power and Associates
Stuart Greif
Vice President & General Manager
Global Travel & Hospitality
Agenda
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J.D. Power and Associates
Travel Industry Satisfaction
2010 Rental Car Satisfaction
What Travelers Want
Future Traveler Needs
J.D. Power and Associates
J.D. Power and Associates
Worldwide offices staffed by over 800 professional analysts, researchers, and consultants
Regional Office
London
Markets Served
Shanghai
Beijing
Munich
Toronto
Canada
U.S.
Mexico
Guatemala
Venezuela
Colombia
Peru
Brazil
Finland
Sweden Belarus
U.K.
Netherlands Ukraine
Belgium Poland
Scotland
Russia
Germany
France Austria
Switzerland Croatia
Italy Turkey Syria
Spain
Portugal
Malta
Georgia
IsraelKuwait
Morocco
Pakistan
Egypt BahrainQatar
U. Arab Emirates
Ethiopia
Oman India
Djibouti
Nigeria
Benin
Uganda
Bangkok
Tanzania
Kenya
Zimbabwe
Chile
South Africa
China
Korea
Tokyo
Japan
Taiwan
Hong Kong
Thailand
Singapore
Philippines
Malaysia
Indonesia Brunei
Fiji Islands
Australia
New Zealand
Argentina
Singapore
Industries Served
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Automotive
Travel & Hospitality
Commercial Vehicles
Recreational
Vehicles
Marine
Real Estate
Financial Services
Insurance
Healthcare
• Telecommunicati
ons
• Utilities
• Retailing
• Consumer
Electronics
• Consumer
Packaged Goods
• Media and
Entertainment
• Office Products
• Professional
Services
Core Capabilities
Syndicated Research
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Industry Benchmarking, full market visibility
JDPA designs, executes and owns the data
Media coverage, Customer Satisfaction Awards
Club Studies
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Conducted for several clients, including competitors
Information is co-owned by clients and JDPA
Confidential, no awards or press releases
Proprietary Research
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Conducted exclusively for a single client, can
include competitor benchmarking
Client owns the information
No awards or press releases
Brand Strength
• Trusted and widely recognized by Consumers
• Integrity and independence of results
• Mark of excellence and distinction
• Voice of the Customer
Travel Industry Satisfaction
The Challenge and the Opportunity
“…The airlines have infuriated the customers [with
fees]…No wonder they are fed up by the time they
come to get to our cars. Let’s put the “customer”
back in customer service.”
Bob Barton
President, American Car Rental Association
,January/February 2011
2010 Satisfaction by Industry
Index Score
500
600
700
800
900
2010 Motorcycle
827
2010 New-Home Builder
826
2010 APEAL - Vehicle
778
2010 Auto Insurance Service
777
2010 North America Hotel
771
2010 Self-Directed Investor
763
2010 Vehicle Sales Satisfaction
757
2010 Home Insurance Service
750
2010 North America Rental Car
750
2010 Retail Banking
748
2010 North America Airport
690
2010 North America Airline
673
2010 Original Equipment Tire
673
Source: J.D. Power and Associates
1,000
Travel Industry Satisfaction
850
North America Airline
North America Airport
North America Hotel
North America Rental Car
800
771
767
758
Index Score
755
750
758
744
756
750
750
734
689
700
756
733
690
689
675
692
650
687
673
668
665
658
600
2005
Source: J.D. Power and Associates
2006
2007
2008
2009
2010
2011
Travel Industry Advocacy
North America Airline
40%
North America Hotel
North America Rental Car
36%
35%
% "Definitely Will" Recommend
35%
34%
34%
34%
33%
33%
32%
34%
30%
30%
31%
30%
28%
30%
29%
25%
25%
25%
2008
2009
23%
20%
15%
2005
Source: J.D. Power and Associates
2006
2007
2010
2011
Travel Industry Loyalty
North America Airline
40%
North America Hotel
North America Rental Car
36%
34%
% "Definitely Will" Rent Again
35%
33%
35%
33%
30%
30%
30%
31%
30%
28%
30%
29%
30%
26%
25%
26%
25%
25%
2009
2010
20%
18%
15%
2005
Source: J.D. Power and Associates
2006
2007
2008
2011
Rental Car Satisfaction Over Time
S&P Close
Overall Satisfaction (Rental Car)
1700
1000
1500
S&P
1300
800
1100
700
900
600
700
500
2000
500
2001
2002
2003
2004
2005
2006
Time
2007
2008
2009
2010
Overall Rental Car
Satisfaction
900
Overall Satisfaction (Rental Car)
Is The World Really Flat?
850
789
800
773
751
762
767
768
777
773
786
770
751
750
746
725
700
701
710
2000
2001
702
716
731
713
709
690
686
650
600
2002
2003
2004
2005
Time
2006
2007
2008
2009
2010
Rental Car Variation vs. Other Industries
861
822
810
751
786
877
786
768
739
700
701 706
708
732
685
600
618
739 727
713
625
690
610
579
2000
2010
Banking
Auto
Insurance
Hotel
Rental Car
Utilities
Banking
Auto
Insurance
Hotel
500
Utilities
900
800
899
886
Rental Car
Overall Satisfaction
1000
Rental Car Brand Variation
Financial Implications
Bottom 2
Top 2
2002
2010
2002
2010
Index
705
719
753
772
Repurchase
16%
19%
27%
38%
Market share
11.9%
11.5%
31.9%
40.1%
Why Satisfaction Matters!
Increased
Advocacy
Increased
Loyalty
Superior
Customer
Satisfaction
Increased
Market Share
Increased Usage
Greater Pricing
Leverage
Lower Costs
Superior
Operating
Results
2010 Rental Car Satisfaction Study
A look in the rear-view mirror
2010 Rental Car Satisfaction Study
• Study Overview
• Study Insights
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Key Findings
Business vs. Leisure
Wait Times
Problem Incidence and Recovery
Study Overview
• Study in its 15th year
• North America airport locations
• Measures critical components
that drive satisfaction
• Establishes importance of each
factor to overall satisfaction
• Fielding from September 2009
to September 2010
J.D. Power and Associates
Rental Car Satisfaction Index Model
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Unique and proprietary approach
Based on what matters most to Rental Car customers
1,000 points equals perfection
6 key measures:
Reservation
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Reservation Process
Pick-Up Process
Rental Car
Shuttle Bus/Van
Return Process
Costs & Fees
Costs & Fees
Pick-Up Process
Return Process
Rental Car
Shuttle Bus/Van
• Comprised of 27 detailed attributes
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
Rental Car Satisfaction Index Model
Reservation
Costs & Fees
Pick-Up Process
Return Process
Rental Car
Shuttle Bus/Van
Rental Car Index Model - Attributes
Phone Reservation
Ease of getting through to a representative
Courtesy of telephone reservation staff
Ease of booking
Availability of booking options/travel packages
Knowledge of telephone reservation staff
OVERALL Cost & Fees
Website Reservation
Ease of navigation
Appearance/design of the website
Ease of booking
Availability of booking options/travel packages
Usefulness of the information on the website
Reservation
Costs & Fees
Pick-Up Process
Convenience of rental car return location
Amount of time need to get from rental car facility
to terminal
Ease of getting rental car returned
Courtesy of rental car staff during drop-off
Knowledge of rental car staff during drop-off
Speed of rental car return process
Cleanliness of rental facility
Clarity of explanation of rental contract terms/charges
Courtesy of the counter personnel
Professionalism of exit-gate personnel upon leaving lot
Knowledge of counter personnel
Speed of rental pick-up process
Return Process
Rental Car
Shuttle Bus/Van
OVERALL Shuttle Bus/Van Experience
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
Appearance/cleanliness of rental car received
Performance of rental car received
Amenities in rental car
Comfort of rental car received
Rental car smell
Key Findings
• Each ranked rental car brand improved performance from 2009
• Most companies returning to pre-recession levels of satisfaction
• Loyalty and advocacy rates increased for business and leisure
• Incidence of significant problems has decreased and remained in
the 9%-11% range over the past 5 years
Satisfaction by Customer Type
Total Industry
850
Business
Leisure
800
Index Score
771
767
750
759
758
744
758
740
750
740
734
720
733
750
738
724
700
650
2006
2007
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
2008
2009
2010
Satisfaction by Customer Type
Business
1,000
Leisure
Index Score
900
795
800
802
791
765
759
770
767
765
744
741
738
712
709
679
700
600
500
Overall
Satisfaction
Index
Reservation
Process
Index¹
Pick-Up
Process Index
Rental Car
Index
Shuttle
Bus/Van
Index²
Return
Costs & Fees
Process Index
Index
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
¹Based to those who made a reservation themselves, by calling the rental car company or visiting the rental car company's website to make the reservation.
²Based to those who used the shuttle bus/van service.
550
600
650
700
750
800
850
900
Reason for Selecting Rental Car Company
Primary reason you selected the rental car company¹
Price
Corporate policy
Previous experience
Rewards program
Convenience
Reputation
Package deal
Recommended by someone
Other
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
¹Based to exclude 'Don't know.'
Business
Leisure
30%
17%
16%
13%
10%
8%
2%
2%
1%
52%
1%
15%
7%
8%
9%
4%
2%
1%
Shuttle Bus/Van Wait Times
To Rental Counter
850
To Airport
800
764
750
Index Score
751
708
700
672
702
654
650
648
665
632
600
577
550
500
1 to 5 minutes
6 to 10 minutes
11 to 15 minutes
Shuttle Bus/Van Wait Time
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
16 to 20 minutes
21 minutes or more
Car Pick-Up Wait Times
850
800
750
738
Index Score
708
682
700
643
650
600
577
550
500
1 to 5 minutes
6 to 10 minutes
11 to 15 minutes
Pick-Up Wait Time
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
16 to 20 minutes
21 minutes or more
Car Return Wait Times
850
800
Index Score
750
726
700
665
633
650
618
600
600
550
500
1 to 5 minutes
6 to 10 minutes
11 to 15 minutes
Return Wait Time
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
16 to 20 minutes
21 minutes or more
Significant Problem Incidence
% Experienced a Significant Problem
20%
15%
11%
11%
10%
9%
10%
9%
5%
0%
2006
2007
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
2008
2009
2010
Top 5 Problems Experienced
Problems with this rental car experience?¹
Pick-up process
Billing
Customer service
Return process
Vehicle
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
¹Based to those who experienced a significant problem.
2010
2009
2008
38%
24%
20%
20%
19%
39%
22%
22%
15%
23%
39%
18%
22%
15%
21%
How you resolve problems matters!
Had Significant
Problem
Problem
Resolved¹
Problem
Resolution²
1,000
888
Index Score
900
796
800
762
694
700
662
635
600
559
526
D
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
¹Based to those reporting a problem.
²Based to those whose problem was resolved.
*CAUTION: Small sample size (n=30-99).
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650
700
750
800
850
900
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500
What Travelers Want
Accelerating Expectations
Convenience and comfort consistent
with their lives outside of travel
Airport
Airline
Expectations
Home, Work, Society
Rental Car
Hotel
Expectations
Future Traveler Needs
The Road Ahead
Rental Car Customer Trends
• Green – electric / hybrids
• Fractional usage – companies / individuals
• Technology integration - personal devices, apps, location
– I want to listen to my music
– I want to use my phone hands free
– I want to use my navigation and other apps
• Customization and individualization (arrange pre-rental)
• Address and integrate across the overall travel experience
The bigger picture
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How can you better solve customer pain points?
How can you differentiate your product and service?
Technology as key enabler - opportunities and threats
Think expansively
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Reservation
Pre-arrival
Shuttle bus / van
Pick-up
Rental car
Customer destination
Car return
Post-return travels
Address Pain Points
Examples of innovative thinking
Air Travel
Online check-in,
seat selection,
kiosks, alerts, apps,
digital boarding
passes
Point-to-point,
boarding process,
gate area seating,
outlets….
On-board
entertainment
options, JFK
terminal….
Car sharing; Car
Rental Cos; P2P
Redefining budget
Room service app
Guaranteed
baggage delivery
Customer service
Enduring Truths
• You must deliver
– each and every customer
– each and every time
– Product AND Service
• Culture, staff and service as competitive advantage
• Innovation is critical and ongoing
– Today’s innovation = tomorrow’s expectation
• E.g., Navigation Systems  Integrated into cars  Mobile devices
– Commoditization
• Continue to find ways to address pain points and add value,
convenience, comfort, save time and save $ for your customer
You may be feeling a little….
Summary Takeaway
“One of the profound lessons I have
learned is that customer satisfaction
is a moving target. You can never
declare victory.”
Source: J.D. Power III
Satisfaction – How Every Great Company
Listens to the Voice of the Customer
February 2006
Questions?
Contact
Stuart Greif
Vice President & General Manager, Global Travel and Hospitality
J.D. Power and Associates
(805) 418-8661
[email protected]
Matt Holland
Manager, Global Travel and Hospitality
J.D. Power and Associates
(805) 418-8869
[email protected]