How AI is driving a better rental experience

As published by Fleetpoint

The rental car industry had a record-breaking year in 2023, with an estimated $38.3 billion in revenue earned in the US alone. Despite this positive revenue trend, the industry remains a dynamic, competitive sector with many challenges. Rising fleet and other operational expenses, which increased by at least 15%, significantly impacted earnings. Not to mention, customer needs and preferences are rapidly evolving.

While the industry has made strides in innovation with online booking platforms and mobile applications, many traditional rental and fleet maintenance processes still rely heavily on manual inspections, paperwork, and human judgement. This reliance on manual processes can often result in delays, errors, and inconsistencies in service quality, impacting the overall customer experience.

Many rental companies are turning to AI-powered solutions to address these challenges and stay ahead in the market. With AI, rental companies can accelerate vehicle inspection times, instantly detect damage from images or video of a vehicle and generate detailed reports in a fraction of the time it would take a human inspector.

Automating even just some of these processes not only helps companies improve operational efficiency and reduce turnaround times but can also help ensure higher levels of transparency and accuracy in assessing vehicle conditions. Rental companies can mitigate disputes between customers and service providers more efficiently, ultimately leading to a more seamless and satisfactory rental experience for everyone.

Accelerating vehicle inspections for better first impressions

Traditionally, a manual inspection must take place after a vehicle is reserved. A rental agent meticulously examines the vehicle for any existing damage and confirms it with the customer before handing over the keys. AI can help accelerate these time-consuming manual inspections and give customers a better first impression.

For example, computer vision algorithms can analyse high-resolution images or video footage of the vehicle and accurately detect and document even the smallest dents, scratches, or other imperfections in a matter of minutes. This not only saves valuable time for rental agents and customers but also ensures that the vehicle’s condition is accurately recorded, reducing the potential for fraudulent claims or disputes upon return.

Hassle-free vehicle returns

When returning a vehicle, a rental agent will usually need to perform yet another time-consuming manual inspection. This can lead to delays and frustration for customers, particularly during peak hours or outside of business hours.

AI can be equally valuable when it comes to the return process. While telematic systems can continuously monitor vehicles, Visual Intelligence, an advanced type of computer vision AI, can be used to quickly inspect them when returned. These systems allow either customers or agents to capture high-resolution images or videos of a vehicle from any mobile device and receive a comprehensive assessment of its condition. Advanced algorithms can then analyse these visual data points in real-time, detecting any new damages or discrepancies compared to the vehicle’s initial condition.

Incorporating AI not only streamlines the return process but also helps minimise the risk of human error or oversight. This type of AI can operate around the clock, enabling rental car companies to provide efficient services even outside of regular business hours, which can be a significant competitive advantage for reaching today’s ‘always-on’ customers.

A more proactive approach to fleet maintenance

Beyond the booking and return processes, AI can also play a crucial role in proactive maintenance of rental fleets. Regular inspections are essential to ensure vehicle safety, identify potential issues, and maintain the overall quality of the vehicles. However, manual inspections of large fleets can be incredibly time-consuming and resource-intensive, especially when physical inspections of each vehicle are required at regular intervals.

Thanks to computer vision AI capabilities, rental car companies can continuously monitor their fleet remotely without major disruptions to operations. These systems can quickly analyse photo or video evidence taken from a mobile device and extract important visual data, such as worn tyres, chipped glass, or other maintenance concerns. This data can then be passed on to maintenance or insurance providers, and stored in the rental company’s system so that any new damage that may occur during the next rental period can be identified quickly and accurately.

Using real-time data to address maintenance needs can be a significant competitive advantage. AI-powered systems can help optimise scheduling and resource allocation for servicing vehicles. By analysing historical data and usage patterns, AI can recommend maintenance schedules for each vehicle in the fleet, maximising operational efficiency and minimising downtime. This proactive approach saves time and resources and improves the overall reliability and longevity of rental vehicles, leading to increased profitability in the long run.

The rental car industry shows no signs of slowing down

As global travel demands return to normal and driving habits continue to change, the rental car market shows no signs of slowing down and is estimated to reach $126.6 billion by 2028. AI’s potential to bring even more value to the sector is vast and promising. Beyond streamlining inspection processes and maintenance schedules, AI-powered systems have the capability to revolutionise vehicle reliability. By analysing data and patterns in real-time, AI algorithms can predict and address potential mechanical issues before they escalate, minimising downtime and ensuring that rental vehicles are consistently in optimal condition.

This proactive approach to maintenance can contribute to higher customer satisfaction, as renters can have greater confidence in the safety and performance of their vehicles. The AI-powered future holds exciting possibilities for further improvements in the car rental process and the customer experience overall.

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