Still no official data on the number of rent-a-car agencies in Serbia – At least three cars needed to start a business

There are no official data on the exact number of rent-a-car agencies in Serbia, and since their business activities are not discussed much, many place this field in the gray zone. Although it is true that some providers of rent-a-car services do not adhere to the rules, there is also a considerable number of those who operate legally – and very profitably – in Serbia, judging by what they've told us in those companies.

We sought some answers to the questions of what the rules for founding an agency are, who controls them, who their most frequent clients are and how profitable the business is.

The operations of rent-a-car agencies in Serbia are regulated by the Law on Tourism, Article 101. The same article regulates the field of limo-services, that is, the services of renting a car with a driver. In both cases, only passenger cars may be rented. These services are in fact seen as tourist services, so the agencies fall under the competence of the Ministry of Tourism.

Cars no older than 5 years

Rent-a-car agencies need to be registered as business entities, other legal persons, entrepreneurs or branches of a foreign legal person at the Business Registers Agency. These business activities, then, can be carried by an association as well, as long as the core activity is properly registered.

According to the Law on Tourism, the vehicles that are rented may not be older than five years and need to meet certain road traffic safety regulations. A rent-a-car business needs to own at least three registered vehicles.

The competent ministry says for eKapija that they don't have exact data as to how many rent-a-car agencies operate in Serbia. The reasons for this, they explain, is that the Tourism Register is still not working at full capacity.

– Rent-a-car agencies, just like all other business entities are registered at the Business Registers Agency. They are also legally obliged to be listed in the Tourism Register, but this register is not working at full capacity, so these entities are not registered at the moment. The Tourism Register lists tourism agencies, organizers and mediators only – the Ministry of Tourism explains.

The sector of tourism inspection, the ministry adds, is in charge of controlling the legality of the operations of business entities which provide rent-a-car services, but is not responsible for running a record of registered entities providing such services.

Franchise empire

Five rent-a-car agencies operate as part of the National Association of Travel Agencies of Serbia (YUTA), which brings together 262 members, the organization says for eKapija. Representatives of YUTA explain for eKapija that this activity is profitable in Serbia, and that the country ranks well when it comes to service quality.

– These are members with the biggest franchises in the world – Hertz, Europcar, Avis, Budget, Sixt. With a fleet of 3,500 vehicles, the rent-a-car department of YUTA is the most representative association of rent-a-car agencies in Serbia – Aleksandar Senicic, director of YUTA, says for eKapija.

He clarifies that these franchises place Serbia high on the global list looking by the quality of rent-a-car services, as well as the number of transactions realized.

He explains that, in order for a rent-a-car agency to become a member of YUTA, it has to be legally registered as such at the Business Registers Agency and it needs to have a written reference from two rent-a-car members.

70% foreign clients

Senicic explains that 70% of the total number of reservations at rent-a-car agencies are made by foreign clients.

Dragana Milosevic, owner of Alpha Rent-a-Car Beograd, agrees with this and explains that foreigners are their most frequent clients. Our interviewee explains that she entered the rent-a-car business by first working for an agency that closed down and then opening her own agency and taking over the majority of the clients.

Alpha Rent-a-Car primarily rents Fiat and Skoda models of various sizes.

– One can make a good living in this business, depending on the number of vehicles. In our agency, the number constantly varies, but no one will just come out and tell you the exact number – Milosevic says for eKapija.

She believes that around EUR 50,000, for the purchase of vehicles and other expenses, is needed to start this business.

Rent-a-car agencies Dalmos, Monza, Union, Grand Mobile and others also operate in Serbia.

S.S.