Inspirational! Here's How to Start a Car Travel Business Multiply Profits

Indonesia is one of the countries with the most transportation users, both public and private transportation, especially cars. This need for transportation can be used as a business opportunity in the form of a car travel business!

This is because the public's need for vehicles to travel from one place to another will never subside. Various types of reasons are often used, one of which is recreation, business trips, visiting hometowns, and many more. The car is also considered more comfortable to use on long and medium-distance trips.

Coupled with the ease of access to the latest technology, this business can get more customers. For example, by using a car rental application.

For those of you who are interested in starting this one business or curious about how this business works, read more here.

Car Travel Business License Terms

Business legality is needed not only to comply with existing policies and rules but also to provide peace of mind for the security of our business. Before your business can operate, be sure to have a business license.

In accordance with government regulations, the car travel business must be a legal entity CV or PT. This rule is written in the Regulation of the Minister of Culture and Tourism Number PM.85/HK.501/MKP/2010 Article 6 Paragraph 1.

Here are some things you need to prepare to get legality.

Technical Requirements

• The existing business is in the form of PT

• Minimum of 5 vehicles (cars)

• All vehicles have passed periodic tests

• Have a vehicle storage area

• Have vehicle maintenance facilities

• Have a driver with official/legal SIM ownership

Application Documents

• Deed of business establishment

• Evidence of legal entity ratification from the ministry of law and human rights

• Company registration mark

• NPWP business entity

• Company domicile certificate

• Business place permit

• Attachment is a statement of commitment to obligations that are accompanied by a signature on stamp duty.

• A letter regarding a statement of cooperation or ownership of a vehicle maintenance facility.

After you have completed all the requirements, then you can directly come to the office of the Director-General of Land Transportation. This Director-General will help you to make a Letter of Approval in Principle (SPP). This letter is useful for the application process at the Office in charge of licensing at your place. Use and apply for the permit then after that, you will immediately get a business license.

How to Start a Car Travel Business

The following 10 tips can be used as a reference for starting a car travel business. Make sure you don't miss anything!

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1. Preparing Capital

Starting a car travel business can be said to require no small amount of capital. Therefore, make sure you prepare sufficient capital before starting this business.

The capital you have will later be used to buy a car as the main asset, promote, register a business, and so on that can support the establishment of your car travel business.

2. Creating a Business Entity

Creating a business entity is the same as creating a brand or brand for your business. This is important to do so that your business is more easily recognized, and operates legally in accordance with government regulations.

3. Determining the Car Type

Starting a car travel business means that you have to prepare the car to be used. One way that can be taken is to choose and buy a new car.

Before choosing a car, be sure to conduct a survey first regarding what types of cars are in demand in the market, especially in the area where you will run this business.

Generally, the cars that are in great demand are minibus/MPV cars because this type of car is considered fuel-efficient and can accommodate many people. The car brands that are often chosen include Avanza, Xenia, Innova, and Gran Max.

Avoid buying a used car. While reading this article, you may have thought about starting this business with a used car. Unfortunately, used cars are not entirely good for travel cars even though they are relatively much cheaper. Why is that? Used cars require additional costs for engine maintenance and other renewal costs. On the other hand.

On the other hand, a new car is much more pleasing to the eye, requires less maintenance, and is able to attract more tenants in its new condition.

4. Determining the Right Travel Path

Determining the travel path or operating path can be started from the location of your business. Even so, it's good to take into account certain busy routes chosen for traveling. For example, lanes close to toll roads, alternative routes, and main roads.

Determining the path of travel can also help you avoid disputes between entrepreneurs and similar businesses.

5. Setting the Departure Location

Once you have decided on a route, the next step is to decide on a starting point. To be more efficient, specify your departure point as a travel agent.

If you pay attention to the location of your company, strategic or not, you are likely to attract a lot of customers.

Some strategic departure points that you can choose from include being located near campuses, terminals, train stations, airports, or in the city center.

6. Implementing Agency System

Try partnering with a few roadside shops, such as grocery stores, gas stations, gift shops, and supermarkets, to make your business known to the public.

This method can reduce the collection service, so that fuel consumption can be reduced. In addition, the presence of a travel agency will certainly make it easier for consumers to buy tickets.

7. Effective Marketing and Promotion

In modern times like today, marketing or promotion can be done anywhere (online or offline) with various strategies that can attract many consumers. Here are some ways you can try.

• Expand relationships or networking

• Utilizing Social Media

• Cooperating with certain companies or institutions

For example, companies that need four-wheeled vehicles for the smooth running of their business such as travel agents, companies, the industrial sector, and schools that often hold study tours.

8. Recruiting Experienced Workforce

Find drivers who are friendly, honest, loyal, hardworking, courteous, and have experience in the same field. Nowadays there are many people who work as freelancers, you can work with them to get hired as a driver. This is considered quite effective because it saves monthly driver fees. Therefore, if the order is delayed, you can call the driver to pick up the passengers.

Apart from the driver, you can also recruit administrative staff to help you manage your business, especially the reservation department.

9. Good Business Management

The following tips are tips that should not be underestimated. The reason is, that without good business management, your business can collapse at any time. Make sure you record all forms of transactions without missing a single one.

10. Insure Car

Everything has its own risks, and the car travel business is no exception. You must ensure this main asset before the business starts to avoid bad things from happening such as traffic accidents, car theft, and other risks that can hinder the smooth running of the business.

11. Using the Latest GPS

In addition to making it easier for you to do tracking, the latest GPS can also make it easier for the driver to know for sure the location to be addressed. Of course, this facility can be a plus as a consideration for choosing your business.

12. Applying Car Rental Regulations

In the vehicle service business, implementing regulations is very important. The reason is, that without regulation, it will be very risky for the car you rent and other things that are not expected.

Some of the regulations that you can apply include:

1. Enforcement of detention of KTP (Kartu Identity Card) as collateral

2. Tenants are required to fill out a form related to personal data information

3. The rental agreement on stamp duty affixed with a signature

4. Using a tracking device in the form of a GPS on the car

Car Travel Business Benefits

Starting a car travel business can bring multiple benefits. What are the advantages? Here are 4 advantages that you can get through the following business.

1. Sufficient Income

Talking about the amount of income or profit from a business, of course, it depends on the number of consumers who use your services.

As a reference, the ticket for the Jakarta-Yogyakarta route is IDR 300,000. If there are 20 people who use your services, then the profit earned in a day is IDR 6 million. This daily profit when multiplied over a month or 30 days will generate a profit of IDR 180 million. Big enough isn't it?

2. Easy to Manage

The car travel business is one of the simplest businesses in the service industry. The reason is, that this business can be managed from home, making it easier to manage your business and your family.

Vehicle owners can also rent cars from car rental companies for profit. If the car is used by consumers, they will receive a percentage of the profit, either according to the initial agreement or what is known as a profit-sharing scheme. Easy to set up, but you need to limit your rental car so you don't get scammed by irresponsible people. You can request proof of identity. B. You can also issue a photocopy of your KTP, SIM A, and a form or letter agreeing to the terms of your mortgage. This is done to avoid the risk of fraud by the person who rents your car.

3. Wide Market and Many Choices

The car travel business is very competitive, but the market is so wide and profitable that there is still an opportunity to market the business. This is because people feel more comfortable traveling by car for both medium and long distances.

In addition, implementing a strategy of partnership or cooperation with travel agents, online applications, tourist attractions, or even companies can be very promising.

4. Not Affected by Trends

The car travel business is one business that is not affected by trends. During the pandemic, we are forced to keep our distance to minimize the spread of the Covid-19 virus, one of which is by not jostling on public transportation. Therefore, the small capacity of the travel car makes many people feel safer using it compared to other transportation services. Besides, the need to travel from one place to another will never go away.