Jamaica: Interview with Michael DaCosta

Michael DaCosta

Managing Director (Avis Jamaica)

2015-07-24
Michael DaCosta

Jamaica, as well as other countries in the region, is working to promote and attract foreign investment.What would you say is Jamaica’s competitive advantage compared to other countries in the region?

 

Most of the countries within the region are similarly positioned to capitalize on their natural climate. However, Jamaica’s competitive advantage comes from the distinctiveness of its people. Jamaicans are assiduous, forward thinking, and as a people have been able to develop a cultural brand so prevalent, it is often used as the benchmark for Caribbean culture.

 

As you are well aware, President Barack Obama will visit Jamaica next month, the first time a sitting American president has visited in 33 years. How do you think Obama’s short yet historic visit will impact the relationship between USA and Jamaica?

 

Jamaicans have a lot of respect for President Obama, so his planned visit has become a highly anticipated event. One respectable feature of the President is that in the face of adversity or strong opposition, he remains tenacious and achieves the goals he has committed to performing.  This leads me to believe that by deciding to put Jamaica on his agenda, it will further increase bilateral relations between both countries. In addition, his arrival can also be expected to boost morale, further open the lines of communication between the USA and Jamaica, and initiate the requisite momentum to spur development.

 

The global rent-a-car industry is highly competitive but Avis is one of the leaders in this market. Is Jamaica’s car rental industry special in any way?

 

The car rental industry in Jamaica is seemingly no different from anywhere else in the world, with the exception that it operates in a primarily leisure-based marketplace. Many of the people who come here, do so with one predominant goal in mind, that is, to have fun! As a result, we have had to strategically adapt the Avis model in such a way that can both cater to and also cope with our customers’ enjoyment needs. For instance, we appreciate the fact that the rent-a-car is only one element in the total tourism package that Jamaica has to offer.  With this is in mind, we place a very high value on providing exceptional customer service. Thus, if Jamaica’s car rental industry is special in any way, this can be attributed to our tourism based market and the consequential adjustments we have had to make in order to perform in this environment. As you have seen, we have increased our tourist visitors each year and have continued to rapidly grow since the 90s.

 

Who is the Avis’ typical client?

 

The typical Avis client would be the visiting tourist, as well as Jamaicans returning home to visit; both combined represents approximately 95% of our overall business.

 

Do you work with hotels?

 

Yes.  We offer special rates for hotel guests and also offer free vehicle delivery service to customers who require transportation to our various locations.  This remains the case although I must say that with the proliferation of all-inclusive hotels in Jamaica, many of our tourists have been depriving themselves of the opportunity to really experience all that the island has to offer. This is unfortunate in light of the recent major developments in our roadwork, now making driving from airports to our major hotspots “no problem.”

 

The rental car industry is fiercely competitive. What makes Avis such a successful company? What are Avis’ competitive advantages compared to other major players in the sector?

 

Avis is a global brand and it has been around for a very long time. It is one of the premier car rental companies in the world. Avis has some very strict policies and guidelines in terms of customer service, the quality of motor vehicles and the experience altogether to the customer, and so the brand is very special in that regard. As the Chairman of Avis says “Avis is Avis anywhere and everywhere.”

 

Avis in Jamaica is no different from Avis in New York, London or Tokyo.  We pride ourselves on service delivery and meeting our customer expectations, which are consistent wherever the Avis brand operates. This is the competitive advantage that we have and seek to maintain.

 

How big is your fleet?

 

Avis Jamaica currently has over 500 vehicles in its fleet, but this figure is continuously growing. It is a licensee requirement that the fleet is renewed after 24 months so we have a relatively frequent vehicle turnover. In addition to motorcars, the company fleet includes: pickup trucks, SUVs that seat up to 5 persons, minivans that seat approximately 7-10 persons and small buses that seat up to 15 passengers. We also offer a chauffeur service for passengers who want the convenience of being driven.

 

Does Avis specify the fleet that you carry?

 

No. However, we seek to carry a broad spectrum of vehicles to satisfy our customers’ diverse requirements. 

 

How will all of these new business travellers know that Avis is the best car rental company in Jamaica?

 

As I mentioned earlier, according to our Chairman “Avis is Avis anywhere and everywhere.”  As Avis is the best car rental company in the world, no doubt the new business traveler would have already had the Avis experience and would thus make Avis their choice when travelling to Jamaica.

 

Avis Jamaica is operated by Bargain Rent-A-Car (Jamaica) Limited. How exactly does this relationship work?

 

Bargain Rent-A-Car (Jamaica) Limited is a limited liability company that holds the exclusive license to operate the Avis brand in Jamaica. Bargain was incorporated in 1983 and marketed itself under its own name until 2004, when the company acquired the Avis license. Since then, the company has exclusively traded under the Avis brand in compliance with the Avis International Licensee Agreement. 

 

Bargain is mandated to operate in full compliance with Avis’ international standards. Bargain along with its Avis counterpart, work collaboratively to build the Avis brand in Jamaica; sharing ideas in charting a way forward whilst utilizing the Avis worldwide network and economies of scale.

 

Does Bargain Rent A-Car (Jamaica) Limited operate any other car rental services apart from Avis?

 

No, not at this time.

 

1983-2004 is a long time to be operating under Bargain Rent A-Car (Jamaica) Limited. How did the change of brand come about?

 

Avis is a well-established international brand, with marketing might. Prior to acquiring the Avis brand, I was an Avis customer and had experienced the high quality of service when I travelled.  The service experience with Avis was in line with Bargain’s customer service philosophy.  Therefore, when the opportunity to represent Avis in Jamaica arose, the decision was not a difficult one.

 

In addition to being CEO of Bargain Rent-A-Car (Jamaica) Ltd. thus Avis Jamaica, you are also Vice-President of the Jamaica Rent-A-Car Association.

How does the car rental industry benefit from having an association like yours?

 

Playing such an integral part of the tourism sector, the JRACA has been regarded as “The Wheels That Drive Tourism.”

 

The industry benefits from having an association because of the increased clout that is derived from having a collective body, representing the interests of the individual car rental companies within the wider tourism sector. The JRACA helps to bolster negotiating power between the government and car rental companies on matters such as the cost of duty on imported vehicles.  It also creates a consensus of best practices within the industry and provides a means through which related bodies such as the Jamaica Tourist Board (JTB) and the Jamaican Hotel and Tourist Association (JHTA) can devise strategies to address conflicting or overlapping problems in a much more effective manner.

 

The Association also gives back to the community. How exactly does it do this?

 

We make charitable donations for many different causes. For example, we have given numerous scholarships to the Jamaican-German Automotive School, which provides training and education in the field of mechanics.

 

The readers of Harvard Business Review include the world’s most influential business and political leaders. What message would you like to send them?

 

Jamaica, strategically located between North and South America has powerful infrastructure namely (a) new highways which span the length and breadth of the country (that is, east to west and north to south), (b) superior telecommunications systems with fibre optic cables and cellular network throughout the island, (c) natural harbors with modern shipping facilities, (d) two international airports, and (e) a stable political environment.  Additionally, the country has a strong legislative structure which ensures the protection of property rights auguring well for foreign direct investment. Therefore, Jamaica is an excellent country to develop a relationship with; whether for business or leisure, it is a place like no other!