Enterprise Rent-A-Car (US) to Expand into Finland with LänsiAuto Group
15 Feb 2018 - Enterprise Holdings, the world's largest car rental company, is set to take its brands into Finland after appointing LänsiAuto Group as its franchisee in the country.
The agreement means that Enterprise Holdings' brands, Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car, will be available to corporate, replacement and leisure customers in Finland following the integration of LänsiAuto's rental car business and Enterprise in the coming months.
Helsinki-based LänsiAuto Group, which has 550 employees, will draw on Enterprise Holdings' global expertise, resources and technologies to expand its reach throughout Finland and grow its rental car business.
LänsiAuto Group is one of the country's largest car dealerships and has a flourishing rental business, which has achieved growth of 50% over the past three years. However, the car rental division is expected to increase even more significantly now that it will have access to Enterprise's global booking platforms and support infrastructure.
Established in 1978, the LänsiAuto Group currently operates 2,500 rental and lease vehicles from several retail locations, but will look to add additional airport locations to service domestic and in-bound customers. The operations at Helsinki Airport will open later this year.
The partnership is set to benefit from increased demand from in-bound tourists, as well as a recent change in legislation that now allows holders of Chinese driving licences to drive in Finland. In addition to serving business and leisure travellers arriving in the country, the partnership will service an increased demand for mobility from urban residents.
The agreement will also make Enterprise Holdings' network more accessible to Finnish travellers. The Enterprise family of brands is already available in more than 90 countries, of which more than 40 are in EMEA.
Tommi Köninki, CEO, LänsiAuto Group, said: "It is a huge opportunity to partner with the world's largest rental car group in order to build our rental business and extend our services. No company is better placed to respond to the growth in demand for vehicle rental and mobility than Enterprise. The initial focus of the partnership will be to grow our daily rental business and explore how additional mobility solutions could meet the needs of our domestic and international customers. Enterprise is already leading the development of mobility services, such as car clubs and ride sharing within its network, and we look forward to drawing on this expertise."
Peter A Smith, Vice President of Global Franchising, Enterprise Holdings, said: "There are so many parallels between LänsiAuto Group and Enterprise, not least the fact that we are both family owned businesses that share a commitment to delivering excellent customer service. Finland is a fast-growing market for leisure and business travel, but there is also a huge opportunity to provide mobility services to neighbourhood customers. From a network perspective, this agreement is also significant as it means that we have virtually complete coverage of the European car rental market. We look forward to servicing customers in Finland."
About Enterprise Holdings
Enterprise Holdings – through its integrated global network of independent regional subsidiaries and franchises – operates the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands at more than 9,900 fully staffed neighbourhood and airport locations. The company and its affiliate, Enterprise Fleet Management, together offer a total transportation solution, including extensive car rental and car-sharing services, truck rental, corporate fleet management and retail car sales. Combined, these businesses accounted for more than $22.3 billion in revenue and owned nearly 1.9 million vehicles throughout the world in fiscal year 2017. Enterprise Holdings' regional subsidiaries and Enterprise Fleet Management currently employ more than 100,000 worldwide.
In total, the annual revenues of Enterprise Holdings and Enterprise Fleet Management rank near the top of the travel industry, ahead of many airlines and most cruise lines, hotels, tour operators and online travel agencies. Enterprise Holdings currently is ranked as one of America's Largest Private Companies. In addition, among all North American car rental companies, it has the lowest leverage ratio and is the only one with an investment-grade rating. Furthermore, if it were publicly traded, Enterprise Holdings would rank on Fortune's list of the 500 largest American public companies. In addition, Enterprise Holdings not only accounts for the largest airport market share in the U.S., but its domestic rental fleet also is one of the newest in the industry. The company's affiliate, Enterprise Fleet Management, provides full-service fleet management to companies, government agencies and organizations operating medium-sized fleets of 20 or more vehicles, as well as those seeking an alternative to employee reimbursement programmes. Other transportation services marketed under the Enterprise brand name include Enterprise CarShare, Enterprise Rideshare, Enterprise Car Sales, Enterprise Truck Rental, Exotic Car Collection by Enterprise, Zimride by Enterprise, Enterprise Flex-E-Rent and Enterprise Car Club.
About LänsiAuto Group
LänsiAuto is one of the largest car dealers in Finland with sales of more than €300 million. The group sells some 25,000 new and used cars annually. LänsiAuto is a family owned company established in 1978. LänsiAuto has invested significantly in leasing and rental car services and doubled its sales during the 2010s. The group employs some 550 people.