Driveaway, Kemwel and Auto Europe back down……………..well at least for the UK

As one industry analyst described it, commenting on Kemwel.com.au’s UK rates being increased on Friday to exactly the same level as Driveaway’s UK rates, “Driveaway has put up the white flag”, also saying, “As the UK is probably close to 50% of Driveaway’s outbound car rental market, it is a major, major backdown by Driveaway, Kemwel and Auto Europe.”

The analyst added, “It’s clear that the whole industry was watching this like a hawk, because Driveaway is so big, this being the test case, with the industry now going to be clicking and checking the Kemwel.com.au rates daily for ever.”   

The analyst added that there is no doubt that Driveaway, Kemwel and Auto Europe have come under some pressure and the lifting of the rates has come about because of that relentless pressure from the major car rental suppliers, with the two major ones, Hertz and Avis insisting that their rates are taken off the Kemwel.com.au site as they believe that their wholesale net rates had been supplied direct to consumers, with a third supplier about to do the same.

In addition, it is reported that some of the major retail chains have made it very clear that they do not like what has occurred either, with potential dire consequences for Driveaway’s business from those chains.

With AFTA also getting involved CATO was also reportedly watching this scenario developing with CATO criteria for membership being that the member must support agents.

It also appears that the key issue also became that while normally competitors accept discounts, sales, deals etc, this time the degree of their disapproval must have shocked Driveaway and in particular that Driveaway tried to distance itself from it all, blaming colleagues in Auto Europe and the cardinal sin of using wholesale rates on a direct sell site.

Interestingly on Friday at around the same time as the increasing of the Kemwel.com.au rates, Driveaway through a TravelMole competitor eTravelBlackboard issued an email broadcast to the industry titled, “We thank you for your support”.

Industry analysts say that although Kemwel.com.au rates to the UK have now been increased, everyone will be watching to see if they will now also increase the rates to other countries to Driveaway levels, because if they are not then the “war” will continue.

Geoff Harvey, Managing Director of Europe Travel Centre said,  “It is my belief that with the huge resources at their disposal you can bet the Kemwel.com.au site has the potential to dominate the online car rental market in coming years and will no doubt take sales and commission away from local agents”

Interestingly another industry leader called The Mole and said that while Driveaway says that they will price match Kemwel, what they don’t say is that they don’t pay commission on Kemwel price matches, with another saying, “Its amazing that DriveAway is beating it’s own prices on the Kemwel site, which is is a bit like Qantas matching Jetstar fares and then Geoff Dixon denying he has anything to do with it!

As the old saying goes – it ain’t all over until the fat lady sings and it doesn’t sound like the right tune is being sung yet or at least not the right words!

Report by The Mole