Master expands with Asean franchise

Feb 24, 2012
Bangkok Post

Master Car Rental has earmarked 270 million baht to enter other Asean markets this year.

"Our expansion in Asean is because we see a growing tourism market in this region," said Thirapong Khumruangrit, the deputy managing director.

Master Car Rental signed a 10-year agreement with Sixt GmbH, a leading automobile rental provider in Europe, to be its master franchisee for seven Asean countries.

They are Thailand, Vietnam, Malaysia, Indonesia, Cambodia, Laos and Myanmar.

In the first phase, the company will open Sixt Rent a Car shops in tourist destinations in Malaysia, Vietnam and Indonesia. Each country will have at least two branches by next year.

In the second phase, at least one outlet will be opened per country in Laos, Cambodia and Myanmar by 2015. The investment per shop is estimated at 30 million baht.

"Inbound tourism in this region is burgeoning. Becoming a part of Sixt will strengthen our automobile rental business both domestically and internationally," said Mr Thirapong.

Sixt's worldwide network will hopefully attract international tourists, especially from Europe and the US, increasing Master's revenue growth to 20-25% this year from 15% normally.

Master Car Rental has been in Thailand for nine years and counts 4,000 cars in its fleet _ 400 for short-term rental and 3,600 for long-term rental.

It plans to add 80-100 new cars to its fleet by the end of this year with an investment of 80 million baht.

Key players in the car rental business are Avis Thailand, Budget Car Rental Thailand and Hertz Car Rental (Thailand). Master Car Rental is a top five local operator.

"We focused on quality service, functions and options for our cars. We strongly believe many clients are more concerned about service and functions than pricing," said Mr Thirapong.

The company has more than 20 models and is the only rental company in Thailand that offers premium cars such as the Mini Cooper and BMW 325ci conversion.

These cars typically serve the meeting and incentive sector or luxury promotion events.