Why Is Fox Rental Car So Cheap? – A Guide to Affordable Rentals

Fox Rental Car is a well-known car rental operator company in the U.S. that serves leisure and business travel markets at low costs. The company started its operation in 1989 in Los Angeles, California. It has spanned the entire U.S. due to its cost-effective and affordable vehicle rentals to cost-conscious customers. Not only in the US, Fox Rental Car is operational at airports and tourist attractions to cater to a large number of people by providing affordable rides. Moreover, they work closely with online travel agencies to increase their visibility to budget-conscious individuals.

As the operation of Fox Rental Car increased, they started offering different business models to help consumers pick the vehicle that aligns with their needs and preferences. Their wide range of vehicles includes SUVs, compact cars, sedans, etc.

So, if you are planning a business trip or family drive, Fox Rental Car’s Business model is there to pick the vehicle according to your budget and preferences.

Historical Background: From 1989 to Present

Fox Rental Car was established in 1989 as a small local car rental company, but it expanded its visibility in 1990 to other California cities. In the early 2000s, it opened its rental locations at airports and travel hubs across the U.S. The brand started to be recognized nationally due to its affordable prices.

Fox’s customer service was enhanced in 2016 when Europcar acquired the company. It proved to be a turning point in the recognition of Fox. Though the COVID-19 pandemic impacted the company, its focus on cost-effective travelers saved it from the pandemic storm. To date, Fox Rental Car has been expanding continuously. It successfully operates in more than 20 major U.S. airport locations due to its clear vision and focus on providing cost-effective and affordable rides.

Why Is Fox Rental Car So Cheap?

Fox Rental Car offers low rental prices for various reasons, which are:

1. Operational Efficiency: Lean Management Practices

Fox operates with a lean business model, streamlining its process and focusing only on core services such as vehicle rentals and maintenance, which help it to reduce costs and increase efficiency.

• Efficient Staff: They avoid unnecessary expenses and offer low prices to their customers, i.e., they have a limited but efficient staff.
• Automation: They invested in online bookings and fleet management technology to reduce labor costs.

2. Strategic Location Choices: Budget-Friendly Locations

To take advantage of cheaper real estate, Fox operates in high-traffic areas such as airports, tourist attractions, etc.

• Alternative locations: Fox focuses on second-tier cities and off-airport locations to reduce operational costs compared to metropolitan areas.
• Shuttle Services: They provide shuttle service to and from the airport to offer convenient services by saving on real estate costs.

3. No-Frills Service: Focus on Essential Offerings

Fox Rental Car is cheap as it focuses on offering no-frills service that enables them to provide necessities without adding luxury add-ons. It helps them to cut extra costs to appeal to budget travelers. They do not focus on

1. Top-notch customer lounges
2. Premium vehicles
3. High-end personalized services

4. High Vehicle Turnover: Bulk Purchases and Fleet Management

Fox Rental Car is cheap because of its effective fleet management and bulk purchasing capabilities. They acquire a large number of vehicles at once, which saves them money. Most importantly, they focus on high vehicle turnover. They use vehicles for the short term and sell them at good value, which reduces long-term maintenance costs and maintains the value of feet.

Economy and Standard Vehicle: Fox buys fuel-efficient models that are cheaper to maintain.
Fleet Optimization: They keep the fleet fresh, efficient and reliable, which cuts maintenance costs.

5. Discounts & Promotions: Customer Incentives

Discounts and promotions attract potential customers. Fox also implements this strategy and offers seasonal deals, loyalty programs, and discounts on a specific number of ride completions.

• Third-party listings: Fox Rental partners with online travel agencies to offer discounts to its customers, which ensures a steady business flow.
• Direct promotions: Fox gives promotions to customers who book directly through their website.

6. Economies of Scale: Lower Costs from Bulk Purchasing

Fox Rental Car benefited from economies of scale. Due to the large car rental company, Fox negotiates with vehicle manufacturing companies, maintenance providers, and insurance companies to cut operational costs.

• Supplier Discounts: They buy vehicles in bulk, and avail of discounts in return.
• Insurance savings: Fox secures better insurance deals by managing a large fleet.

Comparative Pricing: Fox vs Competitors

The pricing strategy of Fox Rental Car is more affordable than that of its competitors, making it a cheap option. They have 15-30% lower daily rates than their competitors. They offer lower base rates, low service fees, and no hidden costs or additional fees.

1. Price Variations in Different Locations

The rental price of Fox varies depending on the location. Though they strive continuously to maintain low costs, certain factors lead to price variations for example:

• Airport vs. City Center: Fox’s prices are more competitive at airports than at city locations as it aims to target budget-conscious travelers at airport locations. In contrast, high operation costs in city centers lead to slightly higher prices.
• Tourist Destinations: The demand for rentals is slightly higher in tourist-heavy destinations, which leads to higher rates.
• Major Cities vs Secondary Cities: The high demand and limited availability of Fox Rental in major cities and densely populated areas lead to higher fares rather than in small cities.

2. Seasonal Promotions and Discounts

Fox Rental Car offers promotions and discounts such as:

1. Holiday discounts
2. Off-peak discounts
3. Early-booking discounts
4. Partner and Loyalty discounts

These discounts attract customers during off-seasons and holidays to ensure the company’s seamless functionality.

User Reviews and Service Quality

Fox Rental Car receives positive feedback and complaints about its services. It has a 3.8-star rating on Trustpilot. 63 % of reviewers have rated it an excellent service, while 11% have rated it bad. Moreover, the company received a 3.7-star rating from Consumer Affairs, an “A” star from Better Business Bureau and 2.4 stars on its website in Fort Lauderdale.

1. Positive Reviews

The positive reviews of the company are due to:

• Affordability: The most common appraisal received by Fox Rental Car is the low and affordable prices for families, students, business travelers, and tourists.
• Convenience: The other standout appraisal of Fox is its user-friendly and convenient booking and online reservation system. Customers can easily book their rides at affordable rentals.
• Variety of Vehicles: Fox offers various vehicles, including economy, compact, SUVs, and vans so that customers can select the vehicle according to their preference. This service of Fox is appreciated by its customers.

2. Common Complaints

Common complaints from the customer end are given:

• Hidden Fees: Many users have frequently complained about charging for underage fees, toll services, additional driver fees, etc.
• Service Issues: The other major complaint has been the company’s unresponsive and unhelpful behavior.
• Long Wait Time: The customers report long wait times for pick-ups at busy locations.
• Vehicle Condition and Issues: Mechanical issues and dirty car conditions have been reported, which have impacted customer satisfaction.

Conclusion

For the above reasons, Fox maintains cheap and low prices while remaining competitive in the car rental market. The company balances lower prices with a no-frill service model, fleet management, and promotions and discounts. They aim to provide budget-friendly rides for business professionals and travelers to avoid additional costs. Due to the focus on affordability, operational efficiency, and cutting unnecessary extras, they have dominated the car rental market and have made themselves a budget-conscious and a cheap go-to option.