THE Daily Rental Company of the Year trophy was one of the closest-fought of all the Fleet News Awards this year. But how did Hertz UK hold on to the trophy it took in 2002?

A common sense and thorough approach to customer service and a raft of new initiatives gained Hertz UK its second Fleet News Award in a row. Both schemes attracted the attention of the judges at this years Fleet News Awards, who awarded Hertz the title of Best Daily Rental Company.

Neil Cunningham, Hertz UK's general manager, says the company has taken a 'back to basics' approach to customer queries, leading to the number of customer complaints being slashed by 50% during the past 18 months alone.

He said: 'We have spent a lot of time during the past 12 months looking at customer satisfaction programmes and we believe that if something goes wrong, you must get to the root of the problem.

'In the past, complaints were sourced to a customer complaints department. However, we decided to investigate problems using the branch manager or the representatives who initially dealt with the customer. This ensures the branch learns from its mistakes and means the same error doesn't happen twice. It has been very successful and customer complaints have halved over the past 18 months.'

To keep in line with fleet requirements, Hertz has plans to repeat another success of last year, the customer forum, which will go ahead later this year and will cover 'hot industry topics'.

Hertz's approach to running a business is what keeps it ahead of the competition, according to Cunningham. He believes its senior team members are very much in touch with what is happening at the customer end of the operation, thereby offering a seamless service.

However, it is the group's ability to inform customers of impending industry issues that most impressed the judges.

They said: 'If only every sector of fleet was as good as the rental industry, with its cost-competitiveness and business efficiency. Winning this category takes something special and Hertz just keeps on delivering with services and initiatives that had the judges applauding.

'Hertz has led the pack with its approach to helping customers cope with EU Fourth Motor Insurance Directive, while it has overhauled its business to pro-actively help customers with London congestion charging. It offers a well-thought-through package and seems well ahead of the game, keeping its customers one step ahead of any changes that may affect them.'

Despite being pro-active in its approach to aiding customers with the London congestion charge, introduced earlier this year, Hertz has encountered fewer problems than initially anticipated with the levy. Cunningham said: 'The congestion charge has not been as onerous as we initially thought. This is because our customers have been buying their own congestion charge fees, which we were not expecting them to do. However, we do only have one branch in the congestion charge zone.'

Coinciding with the introduction of the London charge, Hertz announced in February this year that it would be offering a number of Ford Th!nk cars from its Marble Arch branch.

The vehicles were built purposely for city use. Running on electricity meant they escaped the congestion charge. However, following Ford's decision to cease production at the Th!nk factory, its future remains in the balance, although Hertz is still running them.

Hertz also launched its Prestige hire service in the summer of 2002 which enables customers to select certain executive and luxury models from both UK and European locations.

Customers are able to select prestige models for hire from locations in France, Germany and the UK. Vehicles offered as part of the initiative include the Jaguar S-type, Mercedes CLK, Mercedes E and S-class, BMW 5 and 7-series and the Volvo S80 and V70.

Almost a year after its launch, the success of the initiative has led Hertz to consider expanding the scheme with a possible site in Edinburgh.

Cunningham said: 'Prestige has done pretty well, as there is a market for this type of car. The Volvo V70 stands out as being extremely popular. We are considering extending the scheme to Edinburgh but it won't be until after the summer when we have assessed its success further.'

For the more immediate future, Hertz wants to focus on its online solutions, using the systems adopted by some of the low cost airlines as role models.

'The internet is very important. I believe the renter wants to take control of booking and people are happy to book online if the functionality exists. We are fine-tuning this, which will be complete at the end of the year. If you look at the low cost airline model, it shows how the whole industry is trying to be more efficient,' Cunningham said.

It is also more efficient than using a call centre and saves costs, according to Cunningham, who stresses the importance of using an online booking system as a means of driving the business forward.

As part of its strategy for the coming year, Hertz wants to continue with the innovations, which has made it a consecutive Fleet News winner. It wants to develop relationships with businesses at the small and medium end of the sector while improving its profile in the replacement sector.

In February this year, the group signed a three-year deal with German roadside assistance group Allgemeiner Deutscher Automobil-club (ADAC) to provide breakdown replacement car rental to ADAC members in Germany.

The group plans to forge similar relationships, while expanding its services throughout Europe.

? It is also developing partnerships within the travel industry and recently signed a preferred supplier partnership agreement with Opodo to provide global car rental to customers making reservations via any of the Opodo European websites.

Hertz factfile

  • Hertz began in Chicago in 1918
  • It has an industrial and construction equipment rental business in America
  • There are 7,000 locations in more than 150 countries worldwide
  • There are 135 locations in the UK, with 28 airport locations
  • It has a UK fleet of about 14,000 vehicles
  • Hertz became a Ford subsidiary in March 2001