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Fuel Card Distribution through Leasing Companies

http://www.companiesandmarkets.com/Summary-Market-Report/fuel-card-distribution-through-leasing-companies-32813.asp

Report Summary

Introduction

Financing company vehicle fleets through operational leasing contracts is popular across Europe and management services are often provided in the agreements. Fuel card issuers are taking advantage of this trend, using leasing companies as a distributor for their cards. This brief assesses growth in the sector, identifies the main players within it and the key relationships with card providers.

Scope

Analysis of the size of the fleet leasing market segment Ned by operational leasing, finance leasing and outright purchases. Forecasts of operational fleet leasing vehicle numbers across Europe to 2011 relative to the overall company car market. Insight into the size of operational leasing market oil company card providers have access to through their relationships with leasing companies. An overview of the remaining partnership opportunities for card providers and leasing companies.

Highlights

Between 2003 and 2006 the number of operational leasing cars grew by 660,000 across Europe, creating numerous opportunities for leasing companies and affiliated service providers. The growth is greatest in Poland, Austria and Hungary. Oil card providers, including BP and Shell, have gained access to a high percentage of the leased vehicle parc through partnerships with fleet lessors such as LeasePlan and ALD Automotive. These relationships have enabled some fuel card issuers to distribute their cards to up to half of the operational leasing fleet within selected markets. There are many remaining opportunities for fuel card issuers to enter into partnerships with operational fleet lessors. The sheer number of fleet lessors in the large Western European markets provides numerous opportunities as does the fast growing Central and Eastern European markets.

Reasons to Purchase

Understand the importance of the operational fleet leasing market to fuel card providers and assess how growth will continue over the next five years. Gain insight into the relationships between fuel card providers and fleet lessors, and uncover the number of vehicles it gives card providers access to. Identify how leasing and fuel card company partnership opportunities differ between markets.
Introduction

While South Australia and Victoria lead the way in customer switching, conditions vary across the States and the recent hike in wholesale prices is holding back retailers, especially new entrants, in competing effectively. This brief examines switching trends across the country's competitive States, customers' drivers for switching, the most effective and preferred channels and future prospects.

Scope

Survey of 2000 households in Australia conducted in May 2007 regarding their switching behaviours and preferences, with comparisons with a 2005 survey Breakdown of responses by State, age group, spend and switching status. Specific analysis of intentions of households in Queensland.

Highlights

While price and specific financial incentives, such as loyalty or sign-on bonuses, are the most influential in attracting customers, dual fuel is a key factor in customers' decisions when choosing a new supplier. Of all respondents with both electricity and mains gas that had switched, 73% were supplied both gas and electricity by the same utility. Door-to-door sales are by far the most effective, initiating the most recent switch for 58% of switchers. The telephone is only really effective for existing customers, and using telemarketers for new customer acquisition is more challenging after the establishment of the Do Not Call Registry, which attracted a million users in its first month. In Queensland, those in metropolitan areas and with larger bills were by far the more likely to seek out a new supplier in order to switch in the first six months of competition. However, with high wholesale prices, the number of competitors to AGL and Origin Energy is likely to be limited purely to those with a strong hedge position.

Reasons to Purchase

Identify key sources of information for consumers when switching and the effectiveness of various offers in encouraging customers to switch. Understand the reasons behind customers not switching, how these have changed over time, and how to overcome them. Evaluate the potential for further switching by State, including anticipated customer switching in the newly-opened Queensland market.

Table of Contents

Overview 1
Catalyst 1
Summary 1
Sources 1
Analysis 2
Operational company car fleets are the fastest growing fleets in Europe 2
Company cars account for a third of commercial vehicles across 16 European markets 2
Across the European car fleet leasing market, growth in the operational leasing segment has been most pronounced 3
The distribution of fuel cards through operational leasing arrangements is an increasingly popular route to market 4
The operational car leasing market is most developed in the Netherlands and the UK 5
Operational leasing of LCVs is less common than with cars but the market is growing 6
The operational car leasing market will continue to grow significantly over the next five years 7
The development of operational leasing in CEE provides new opportunities for fuel card providers 7
Fuel card providers have gained access to a high proportion of the leased vehicle parc through partnerships with fleet lessors 9
Shell has access to almost half of the operational leasing market in France 9
BP has the potential to supply fuel cards to a third of Germany's operational leasing market 10
Total's relationships with lessors in France offer it the potential to supply almost half of the operational leasing market 11
Repsol's agreements with fleet lessors in Spain give it access to almost a third of the country's operational leasing market 12
The Esso fuel card has strong bases in France, Germany and Belgium 13
A wide range of partnership opportunities remains for fuel card providers 14
The competitive landscape is highly fragmented in mature operational leasing markets 14
The high number of fleet leasing companies in mature European countries provides fuel card issuers with opportunities 14
Leaseplan has generated a strong market share in small western European countries 16
Smaller western European markets show comparatively high levels of concentration 16
Western European fleet lessors have gained significant shares in CEE 18
The development of the eastern European leasing market will benefit fuel card providers with pre-existing relationships 18
APPENDIX 20
Definitions 20
Sources 22
Western European Cards Database 22
European Fleet Market Database and European Fleet Lessor Database 22
Further reading 23
Ask the analyst 23
Datamonitor consulting 23
Disclaimer 23
List of Figures
Figure 1: The proportion of commercial vehicles accounted for by company cars ranges from 13% to 53% 2
Figure 2: Operational leasing has experienced the greatest growth of all the leasing segments 3
Figure 3: Operational car leasing is more common than outright fleet purchasing in four markets 5
Figure 4: The operational leasing LCV parc is forecast to grow at a higher rate than the total LCV parc 6
Figure 5: The operational leasing segment is forecast to grow at a much greater rate than the total market 7
Figure 6: Shell has relationships with three of the largest operational fleet lessors in France 9
Figure 7: BP has a high number of partnerships in Germany 10
Figure 8: Total has agreements with the four largest fleet lessors in France 11
Figure 9: Respol has relationships with four leading fleet lessors 12
Figure 10: Esso has access to 11% of the operationally leased vehicles in France 13
Figure 11: The competitive landscape is highly fragmented in mature operational leasing markets 14
Figure 12: Leaseplan has generated a strong market share in small western European countries 16
Figure 13: Western European fleet lessors have gained significant shares in CEE 18