University of Science and Technology of Southern Philippines – Jasaan Page 21

CHAPTER 1
THE PROBLEM AND ITS SCOPE

Introduction
A car rental agency is a business that offers the temporary use of vehicles for a fee,
whether for a few hours, days, or a week. Typically, these agencies have multiple local
branches, enabling users to return the rented vehicle to a different location. They are often
strategically positioned near airports or busy urban areas and may also provide online
reservation services through a dedicated website.

Car rental agencies primarily serve people who have a car that is temporarily out of
reach or out of service, for example travelers who are out of town or owners of damaged or
destroyed vehicles who are awaiting repair or compensation. insurance. Because of the
variety of sizes of their vehicles, car rental agencies may also serve the self-moving industry
needs, by renting vans or trucks, and in certain markets other types of vehicles such as
motorcycles or scooters may also be offered (Mohd, 2012).

Car rental companies operate by purchasing or leasing a number of fleet vehicles and
renting them to their customers for a fee. Rental fleets can be structured in several ways they
can be owned outright (these are known as 'risk vehicles' because the car rental operator is
taking a risk on how much the vehicle will be sold for when it is removed from service), they
can be leased, or they can be owned under a guaranteed buy-back program arranged directly
through a manufacturer or manufacturer's financial arm (Walter, 2012).

In response to the escalating challenges within the car rental industry, this research
proposes a comprehensive solution centered on enhancing user experience, system
efficiency, and overall operational integrity. The hypothesis asserts that by implementing a
sophisticated user authentication and account management system, distinguishing between
registered customers and guests, we can optimize the utilization of the car rental platform.
University of Science and Technology of Southern Philippines – Jasaan Page

The proposed solution further posits that streamlining the booking and renting
processes, contingent upon the successful completion of secure payment procedures, will not
only ensure financial integrity but also foster a seamless user journey. Additionally,
maintaining a meticulously managed real-time vehicle inventory and enforcing strict
prohibitions against simultaneous rentals of the same vehicle on identical dates are integral
components of this solution. Coupled with robust error-handling mechanisms and user
feedback loops, this comprehensive framework aims to redefine and elevate the standards of
the car rental system, addressing current industry pitfalls and enhancing overall operational
efficiency.

Conceptual Framework
The car rental system's conceptual framework establishes a structured foundation,
emphasizing user authentication to differentiate between registered customers and guests.
Account management follows, focusing on creating user accounts with distinct privileges.
The system's functionality includes secure booking and renting processes, tied to a robust
payment mechanism. Financial integrity extends to transaction security. Real-time vehicle
inventory management ensures availability accuracy, prohibiting simultaneous rentals of the
same vehicle on identical dates. The framework includes error-handling for policy violations
and user feedback for continuous improvement. This roadmap guides systematic
development, enhancing the car rental system's functionality.

Transaction Input Process Output

Background Customer’s Manually Verified User

Checking/ Credentials Verify the
Verifying Customer’s
Customers Credentials

Booking a Filling-up Booking Manually - Booked Car

Car Form Verifying - Pending
Customer’s Transaction
Transaction
details
Table 1. Conceptual Framework of the Input and Output Process.
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Statement of the Problem

General Problem:

1. Vehicle Availability: Ensuring an optimal balance between supply and demand to

prevent situations where customers cannot find a suitable vehicle for rent, especially
during peak periods.
2. Reservation Errors: Technical glitches or manual errors in the reservation system
can lead to double bookings or inaccuracies in rental details, causing frustration for
both customers and the rental company.
3. Fleet Management: Challenges in efficiently managing the rental fleet, including
maintenance schedules, vehicle inspections, and the timely removal of older vehicles
from service.
4. Customer Authentication: Ensuring the security and accuracy of customer
information during the registration and authentication process to prevent identity
theft or misuse of personal data.
5. Insurance Issues: Clarifying insurance policies, terms, and conditions to customers
can be complex. Ensuring customers understand their coverage and addressing claims
efficiently is crucial.
6. Technological Issues: Dependence on technology for reservations, vehicle tracking,
and other operations can lead to challenges such as system glitches, downtime, or
cybersecurity threats.

Specific Problem:

1. Vehicle Maintenance: Ensuring regular maintenance and prompt repairs to keep the
rental fleet in optimal condition. Breakdowns or unexpected issues can disrupt
services and inconvenience customers.
2. Fuel Management: Monitoring fuel levels accurately and ensuring that customers
return vehicles with the same amount of fuel they received to avoid disputes and
streamline the rental process.
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3. Age Restrictions: Managing and enforcing age restrictions for renting vehicles, as
younger or older drivers may face limitations or higher fees due to insurance
concerns.
4. Cross-Border Rentals: Handling the complexities and potential legal issues
associated with customers taking rental vehicles across borders, including
compliance with international driving regulations.
5. Toll Processing: Dealing with toll charges and ensuring a seamless process for
customers to pay tolls during their rental period, especially in regions with electronic
tolling systems.
6. Damage Assessment: Implementing efficient systems for assessing and
documenting vehicle damage before and after rentals to avoid disputes and ensure
fair charges for damages.

7. Seasonal Demand Fluctuations: Balancing inventory during peak seasons and

managing lower demand periods to optimize fleet utilization without overstocking or
shortages.

General Objectives:

1. Accessibility: Ensure easy access to a diverse fleet of vehicles, allowing customers

to choose based on their specific needs, preferences, and the nature of their travel.
2. Convenience: Streamline the rental process to make it user-friendly, from online
reservations to vehicle pick-up and return, enhancing the overall convenience for
customers.
3. Efficiency: Optimize fleet management, reservation systems, and operational
processes to maximize the utilization of vehicles and minimize downtime.
4. Customer Satisfaction: Prioritize customer satisfaction by providing well-
maintained vehicles, transparent pricing, clear communication, and efficient problem
resolution.
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5. Cost-Effective Solutions: Offer competitive pricing models and cost-effective

solutions for short-term vehicle needs, providing an attractive alternative to long-
term ownership.
6. Safety and Security: Implement measures to ensure the safety and security of both
customers and rental vehicles, including routine maintenance, proper inspections, and
robust security features.
7. Regulatory Compliance: Adhere to legal and regulatory requirements governing the
car rental industry, including licensing, insurance, and data protection laws.
8. Environmental Considerations: Integrate environmentally friendly practices, such
as fuel-efficient vehicles and sustainable fleet management, to minimize the
ecological impact of the rental service.
9. Technology Integration: Embrace technological advancements to enhance the
overall customer experience, including online reservations, GPS tracking, and mobile
applications for seamless interactions.
10. Flexibility: Provide flexible rental options, including various vehicle types, rental
durations, and additional services, catering to a broad spectrum of customer needs
and preferences.
11. Profitability: Ensure the financial viability and sustainability of the car rental
business by managing costs effectively, optimizing pricing strategies, and
maintaining a healthy fleet turnover.
12. Market Competitiveness: Stay competitive in the market by continuously
evaluating and improving services, staying updated on industry trends, and adopting
innovative solutions to meet evolving customer expectations.

Specific Objectives:
1. Efficient Reservation Management: Streamlining the process of booking and
managing car reservations to ensure customers can easily reserve vehicles.
2. Fleet Management: Keeping track of the entire fleet, including maintenance
schedules, availability, and location, to optimize the utilization of vehicles.
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3. Customer Management: Creating a user-friendly interface for customers to register,

log in, and manage their profiles, making the rental process smoother.
4. Billing and Invoicing: Developing a robust billing system that accurately calculates
rental costs, additional charges, and issues invoices to customers.
5. Vehicle Tracking: Implementing GPS or other tracking technologies to monitor the
real-time location of vehicles, enhancing security and allowing for better fleet
management.
6. Documentation and Contracts: Generating digital contracts and documentation for
each rental transaction, ensuring legal compliance and clarity in terms and conditions.
7. Integration with Payment Systems: Enabling secure online payments and
integrating with various payment gateways to provide convenient and efficient
transactions.
8. Reporting and Analytics: Incorporating reporting tools to analyze rental patterns,
customer preferences, and overall business performance, aiding in strategic decision-
making.
9. Maintenance Scheduling: Implementing a system to schedule and track regular
maintenance and inspections to ensure the safety and reliability of the fleet.
10. Customer Support: Providing customer support features, such as a helpline, chat
support, and FAQs, to address customer queries and issues promptly.

Scope and Delimitations of the Study

In developing an efficient car rental system, meticulous attention is given to detail,
capturing and managing a wealth of information related to both the vehicle fleet and customer
interactions. Tailored for small enterprises specializing in car rentals, this system streamlines
operations by tracking crucial details such as rental durations and specific car preferences.

A key feature of the system is its capability to generate and print invoices for each
successful transaction. This not only ensures financial transparency but also enhances overall
billing efficiency. The system's design considers distinct roles, with administrators
overseeing functionality and customers benefiting from an intuitive interface.
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This car rental system transcends conventional record-keeping, representing a

formidable tool for small businesses operating in the car rental industry. It adeptly integrates
efficiency, transparency, and user-friendliness, illustrating how technology can enhance and
optimize operations within the dynamic landscape of vehicle rentals.

Limitations

In order to avail themselves of the car rental feature, users are required to engage in
a distinct process contingent upon their status—registered customers must log in to their
existing profiles, whereas guests are prompted to create new accounts. A pivotal condition
for the initiation of booking and renting functions lies in the successful completion of the
payment process, underscoring the interdependence of these actions. The system, in an effort
to maintain integrity, strictly prohibits the concurrent rental of the same car on identical dates.
Should this violation transpire, the system is designed to respond with a fatal error, an
unequivocal deterrent to prevent any unintended or unauthorized duplication of car rental
instances. This multifaceted protocol ensures a seamless and secure experience within the
car rental framework.

Significance of the Study

The profound impact of a car rental system on passengers surpasses mere
transportation, expertly managing comfort, safety, and convenience. Within the realm of
comfort, ergonomic considerations guarantee a seamless ride, while cutting-edge safety
protocols secure the travel environment. Every facet, from streamlined bookings to intuitive
interfaces, caters to passengers' dynamic requirements. The interdependent dynamic between
passengers and the car rental system represents not just a mode of transport but a
meticulously tailored solution, shaping an inherently gratifying and efficient travel
experience.

In envisioning the future landscape of transportation, the significance of a car rental

system transcends its immediate role, positioning itself as a linchpin in the evolving
dynamics of mobility. As technological advancements and sustainability imperatives shape
University of Science and Technology of Southern Philippines – Jasaan Page

the trajectory of the automotive industry, the car rental system emerges as a nexus where
these influences converge. This research delves into the integration of cutting-edge
technologies, such as autonomous driving and connected vehicles, forecasting a future where
these innovations seamlessly integrate into the fabric of car rental services. Moreover, the
study scrutinizes sustainability practices, acknowledging the pivotal role of the car rental
system in fostering eco-friendly transportation solutions. By shedding light on these
futuristic considerations, the research contributes to the strategic evolution of car rental
services, propelling them towards a future defined by technological prowess, environmental
consciousness, and adaptive responsiveness to changing transportation paradigms.

The pivotal significance of a car rental system to a driver extends beyond the mere
provision of a vehicle, encapsulating a holistic approach that prioritizes safety, user-centric
interfaces, and innovations geared towards an elevated driving experience. Within this
framework, the role of the driver is central, and this research intricately examines and
addresses the unique needs and concerns inherent to their experience. By focusing on the
integration of advanced safety features, the study ensures that the driver feels secure and
confident behind the wheel. Simultaneously, emphasis is placed on refining user interfaces,
fostering an intuitive and seamless interaction between the driver and the rental system.
Through such initiatives, the research contributes substantively to the evolution of a car
rental system that not only meets but anticipates the demands of drivers, thereby cultivating
a more efficient, user-friendly, and ultimately gratifying driving experience.
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Definition of Terms

Car Rental System: A web-based application that allows users to browse, book, and pay for
rental cars online.

Rental Period: The duration for which a user rents a car, specified during the booking
process.

Vehicle Tracking: Monitoring the location and status of rental cars in real-time.

Fatal Error: A crucial malfunction impeding proper functionality, mandating immediate

corrective measures within the vehicular rental framework.

Passenger Count: The number of people the user expects to be in the rental car.

Complaints Platform: A feature within the Car Rental System that allows users to report
any issues or concerns they encounter during their rental experience.

Reservation Confirmation: The formal acknowledgment provided to users after

successfully completing the booking process for a rental car.

Mileage Limit: The predetermined maximum distance a user is allowed to drive the rental
car within the rental period without incurring additional charges.

Insurance Coverage: The range of protection and financial coverage provided to users to
mitigate risks associated with potential accidents or damages during the rental period.

Fuel Policy: The guidelines specifying the fuel level expectations for users returning the
rental car, often involving terms like "full-to-full" or "prepaid."

Late Return Fee: A charge imposed on users who exceed the agreed-upon return time for
the rental car.
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CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

The concept of a car rental system revolutionizes the traditional paradigm of vehicle
ownership, presenting a dynamic framework where individuals and businesses can
transiently access a diverse fleet of vehicles for specified durations. This innovative model,
facilitated through online platforms and characterized by flexible rental periods and a wide
range of vehicle options, not only fosters economic contributions and environmental
sustainability but also signifies a shift towards a more convenient, technologically advanced,
and globally interconnected transportation landscape.

The history of car rental services traces back to 1916 when Joe Saunders established
the first car rental business, Saunders Drive-It-Yourself System, offering Ford Model T cars
for rent. However, it was the acquisition of this business by John D. Hertz in 1923 that
marked a pivotal moment in the industry's evolution. Hertz's company, now known as The
Hertz Corporation, became a driving force. Over the years, industry giants like Avis,
Enterprise, National, and Alamo emerged, each contributing innovation. Their founders,
including Warren Avis, Jack Taylor, and others, played instrumental roles, shaping the car
rental system into the globally recognized and technologically advanced industry we know
today.

Prominent car rental systems, such as Hertz, Avis, Enterprise, National, Alamo,
Budget, Sixt, and Dollar Rent A Car, exhibit key aspects that define their success in the
industry. Global presence and diverse fleets make Hertz a formidable choice, while Avis
distinguishes itself through customer-centric services and technological innovations like the
Avis Now app. Enterprise's neighborhood-focused approach and commitment to corporate
responsibility contribute to its appeal. National Car Rental stands out for its technological
prowess and loyalty program, while Alamo emphasizes affordability and customer feedback.
Budget's value-oriented services and mobile integration enhance customer experiences. Sixt
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targets the luxury segment with a modern fleet, and Dollar Rent A Car attracts cost-conscious
consumers through its budget-friendly options and promotions. These aspects collectively
underscore the diversity and innovation characterizing leading car rental systems, shaping
the industry landscape.

Contemporary car rental services are fundamentally shaped by technology. Mobile

apps enable users to seamlessly book and manage rentals, while GPS tracking optimizes fleet
management. Online reservation platforms streamline the booking process, enhancing user
convenience. Automated check-in and check-out processes leverage technology to reduce
wait times. This integration not only improves operational efficiency but also caters to the
preferences of a tech-savvy clientele, reflecting a dynamic shift in the car rental industry
toward a more streamlined and digitally-driven experience.

The car rental industry grapples with multifaceted challenges, including security
concerns, pricing models, and user trust issues. To foster a more secure, transparent, and
trustworthy car rental environment, innovative solutions are imperative. Implementing
advanced security protocols, such as biometric verification for vehicle access, enhances
overall safety. Transparent pricing models, with clear breakdowns of fees, build trust by
eliminating hidden costs. Leveraging blockchain technology can provide a tamper-proof
record of rental histories, ensuring transparency. Furthermore, user reviews and feedback
systems contribute to accountability, addressing trust issues. By combining technology-
driven security measures with transparent practices, the industry can instill confidence and
reliability among users.

Navigating the car rental industry requires a comprehensive understanding of the

legal and regulatory frameworks. Compliance with industry standards and legal obligations
is paramount. The regulatory landscape outlines requirements and obligations governing
areas such as insurance, liability, and contract terms. Acknowledging these aspects ensures
adherence to legal standards, fostering transparency and trust. Whether addressing consumer
protection laws or environmental regulations, a nuanced comprehension of the legal
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framework is indispensable for car rental businesses to operate ethically and effectively
within the parameters of the law.

Identifying gaps in current literature serves as a crucial compass, pinpointing areas

necessitating additional research within the car rental system domain. Delving into potential
opportunities for innovation and improvement becomes pivotal, steering the industry toward
a future defined by enhanced efficiency, customer satisfaction, and technological
advancements. This proactive approach not only addresses current shortcomings but also
lays the foundation for a more robust and dynamic trajectory, fostering growth and evolution
within the dynamic landscape of car rental services.

Local Literature and Studies

It all began in 1992, when Nissan Car Lease Philippines, Inc., started its rental and
leasing operations in the Philippines with 10 vehicles. It is the product of collaboration
among Nissan Motor Philippines, Inc., Marubeni Corporation of Japan and Dragon Transport
Resources, Inc., with the participation of Universal Motors Corporation. Unlike its
competitors, Nissan Rent a Car is truly corporate-owned.

Now, with a fleet of over 400 vehicles, Nissan Rent-A- Car, as it is popularly known
as a household name in various five-star hotels, corporate and commercial establishments in
the country.

Its Management Team consists of seasoned professionals, experienced in the needs

and demands of the transport service industry, gained from over 20 years of steering to
success some of the biggest auto-making and car rental companies in the Philippines. The
team conceptualized and implemented in 1989 a new and revolutionary concept in airport
transfer service called The Coupon Taxi and in 1992, a commuter shuttle service concept
called The Makati Loop.

Nissan Rent-A-Car can provide its clients with a wide. array of vehicles from the
biggest fleet of high-end limousines, such as the Mercedes Benz S and E Class, Lincoln
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Stretched Limos and Town cars to Nissan Cefiros, vans, SUVs and compact sedans. Its
chauffeur-driven high- end vehicles cater to clients who demand premium services for their
airport transfers, hourly car hire, drop-off and pick-up services. These types of service can
be availed of at several deluxe hotels where NCLPI is the accredited limousine transport
operator.

Nissan Rent-A-Car also offers a better alternative to metered taxis for guests and
patrons of hotels and corporate clients. Compact sedans are unmarked, a cut above. metered
taxi units filled with humongous marketing and advertising stickers. Rates to destinations
within Metro Manila are fixed, paid and receipted at our hotel counters. The drivers are
carefully chosen, trained and well-groomed. The air-conditioned sedans are fully equipped
with 2-way radios for security and operating efficiency.

As the top car rental company in the Philippines, dedicated to its mission of providing
premium land transport services, Nissan Rent-A-Car continues to conceptualize new and
improved services to its clients. With their dedication toward excellence in service, the
company continues to be the top car lease company in the Philippines (Philstar.com, 2004).

Foreign Literature and Studies

The rapid growth of interactive Internet services has led to constantly increasing Web
sites (Berners-Lee, T., et. Al, 1992). We have also experienced an increase in their
functionality, which, in turn, makes them more complicated to use (Nielsen, J., 2000). Thus,
a useful web application should be based on traditional graphical user interface designs
which rely on menu selection and navigation. But these interfaces require a considerable
cognitive overhead. This may be tolerable to frequent users, but will in many cases deter
casual users, especially those who are not yet used to computers. (Nielsen, J., 1993)

Suria Car Rental & Tour Sdn Bhd, (SCR & TOUR) focus on customizing corporate
incentive tours, corporate group outing, MICE and also individual group outing in Malaysia
and Overseas. Our customized service in the travel industry has benefited our clients from
University of Science and Technology of Southern Philippines – Jasaan Page 14

government, large corporation, small and medium industries. And individual client’s SCR
Travel & Tour, Online).

WSRAC offers a wide choice of vehicles, and all the cars are well-maintained,
ranging from economical to luxury cars, vans, MPVS, and 4-wheel drives, for you to choose
the one most appropriate for your trip and traveling comfort. To help you on your way, all
our rentals are competitively priced. WSRAC has also engaged the Kurnia Auto Assist’s 24
hours Breakdown Service to assist its customers in the event of an unfortunate emergency
situation. WSRAC also offers a variety of other services, such as, Chauffeur Drive Service,
Airport Shuttle Service, Corporate Rate Program, Long Term Lease Program, Weekend Rate
Program, Fleet Management and etc (WS Rent-A- Car, Online).
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CHAPTER 3

METHODS

Research Setting
The research will be conducted at the most accessible car rental agencies, optimizing
convenience for data collection This strategic choice ensures proximity, facilitating efficient
research operations within a well-defined geographical scope.

Research Design

The researchers utilized a developmental type of research design in the conduct of

the research study. The research is expected to find that customer satisfaction with car rental
companies is influenced by a number of factors, including the rental process, car quality,
price, and customer service. The research is also expected to find that employee satisfaction
with their jobs is influenced by workload, job security, and opportunities for advancement.

Within the domain of quantitative research methodologies applied to car rental

systems, a systematic and data-driven approach becomes crucial for extracting meaningful
insights. The utilization of surveys and questionnaires proves effective in collecting
quantitative data from customers, delving into facets like satisfaction levels, preferences, and
the effectiveness of specific features. Furthermore, the analysis of numerical data pertaining
to rental patterns, booking frequencies, and financial transactions establishes a quantitative
framework for comprehending user behavior and evaluating system performance. Statistical
analyses, such as regression or correlation studies, further unveil relationships between
variables, providing a comprehensive quantitative perspective to guide strategic decisions
and improvements within the car rental system.
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Figure 1. Flow Chart of Car Rental System

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Figure 2. Case diagram of Car Rental system

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Figure 3. System Architecture of a Car Rental System

Respondents and Sampling Procedure

The proponents efficiently collect data from respondents through a convenient

method that is not only quick but also meets the cost-effective and accessibility requirements
of the research study. This approach doesn’t involve complex setups and allows the
proponents to gather data from local population groups without extensive travel. The data
collection involved distributing a survey questionnaire to 60 respondents.
Respondents Frequency Percentage
Owner 2 3.33
Employee’s 8 13.33
Client’s 50 83.33
Total 60 100%

Table 2. Total Number of Respondents

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Research Instruments
The researchers created a questionnaire to collect qualitative data aimed at
understanding how a Car Rental Business addresses challenges posed by the competitive
strategies of other rental businesses. The questionnaire consists of closed questions with pre-
coded answers, limiting responses to the study’s scope. It follows a Likert format with a five-
point scale, where respondents express their degree of very satisfied or very dissatisfied with
statements, facilitating easy and structured responses
.
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References

https://www.altexsoft.com/blog/car-rental-reservation-system/

https://www.goodfirms.co/resources/car-rental-industry-growth-trends-future-scope

https://guardianrentacar.com/history-of-the-rental-car-industry/

https://www.ijraset.com/research-paper/online-car-rental-system-using-web-technology

https://nairaproject.com/m/projects/2209.html

https://www.premiumresearchers.com/computerized-car-leasing-info-system/

https://www.reportlinker.com/p01627676/Car-Rental-in-the-Philippines.html