What a good year for the Goodyears (Car hire sector booms and move motors offshore)

The world car hire market is worth about £40 billion annually.  And about 805 of booking are handled vie the internet. That explains why it’s one of the most competitive sectors on the web.  This article explains why this year has been one of the most lucrative years.

In the middle of last year when the world seemed condemned to an economic ‘nuclear’ winter, businesses across all sectors in all countries searched for way in which they might haul up the draw bridge; save some costs and lighten the load.  The car rental business was no difference.  From the back end of 2008 inventories were reduced and stock sold off; all in the name of, cost cutting ahead of what everybody thought would be a terrible year for travel; and hence the car hire industry. However, the market was wrong…

Reason 1: The world’s holiday-makers had either already booked their holidays, or were going to take advantage of low (some might say desperate) prices being offered by travel companies

Reason 2:  By the beginning of 2009, car hire and lease companies  had reduced their available stock to a point where they would struggle to provide adequate supply.

By springtime it become clear that deminad was outstripping supply.  Event he majors couldn’t keep up and thus would be holiday hire drivers were forced to search for supply from smaller independent car rental websites.  Spring turned into summer and grins turned into smiles!

Now internet car rental businesses have are moving offshore to save tax.  For a few hundred pounds, e-commerce car rental businesses can move their business from a high tax country, to a low or even nil tax country. Depending on the specifics of the directors and the business, a new structure can be as simple as an offshore company and bank account, all completed in less than 24 hours.

Costs vary depending on country of choice and complexity of the plan.  Businesses thinking of moving offshore should get guidance from a reliable corporate services provider that can deliver a cost effective solution.