Enterprise Rent-A-Car program may shift motorcycle rental market

Renting motorcycles does not attract hordes of participants — likely less than 1 percent of the 40 million visitors a year. So it has remained the province of specialty shops and dealers. Some rental companies have built themselves into regional or national chains, but have no name recognition with people who see two wheels as just one axle of a car.

That changed Oct. 16, when giant Enterprise Rent-A-Car became the first major car and truck renter to venture into motorcycles. The company launched a pilot program to initially offer five different Harley-Davidson models from its off-Strip location on West Flamingo Road. Enterprise even came up with a new logo and slogan for motorcycles.

Enterprise’s move could change the niche industry’s dynamics.

“I think them getting into it is a great thing,” Racy Rentals owner Dan Cregin said. “It brings a lot of exposure because of their big name. So I don’t see it as a threat since they will grow the market.”

But that market power exerted by Enterprise, a unit of privately held Enterprise Holdings, could put heavy pressure on a number of local motorcycle rental shops.

“You are going to find out who was running a good operation and who wasn’t,” said Steve Boyce, manager of Las Vegas Motorcycle Rentals in Henderson. “They (Enterprise) is going to come at this gangbusters.”

Locals say renting motorcycles is starkly different from renting cars.

“It just seems like they are out of their market,” said Ralph Schaub, the owner of Escape Eagles.

For example, the liability profiles and coverage are much different. Motorcycle coverage is much pricier because there is no such thing as a fender bender. That contributes heavily to rental rates generally running $100 to $200 day, double or more than most car classes.

“When something bad happens on a motorcycle, you usually don’t walk away from it,” Boyce said.

Harley-Davidsons are particularly heavy, making it hard for riders to wriggle free if one lands on top of them.

Further, the independent companies say, maintenance is much different for motorcycles than for cars.

Consider oil changes. Oil change intervals extended beyond 3,000 miles won’t bother cars; many engines can run well for at least twice as many miles between changes. But failure to change motorcycle oil every 3,000 miles will likely cause problems.

Las Vegas Harley-Davidson believes that having a dealership shop that can also service its rental fleet will give it an edge over Enterprise, rental manager Eric Ruffin said.

Enterprise spokesman Greg Phillips said the company will provide helmets for all renters and passengers and require them to carry liability insurance. But he did not address what the company had to do differently to keep the bikes on the road compared with cars.

Observers agree that a combination of elements have built Las Vegas into one of the nation’s largest motorcycle rental markets, although statistics to support that notion are scarce.

“We chose to pilot motorcycle rental in Las Vegas because we saw an opportunity to serve a large segment of travelers who are interested in renting motorcycles to visit nearby attractions,” Enterprise Vice President Steve Short said in a statement.

Within a day’s radius, riders can reach the Grand Canyon, Death Valley, Lake Mead, or national parks in Utah. They can also just cruise lightly traveled highways to no place famous.

Several independent companies, notably Los Angeles-based Eagle Rider, organize group tours, some retracing legendary Route 66. Eagle Rider has a nationwide branch network that includes Las Vegas.

“This is like a dream come true for (foreign tourists) to get to ride to these places,” Ruffin said. “To many from outside the U.S., the West is America.”

To attract the European customers, the Escape Eagles website notes in its small print: “Wir sprechen Deutsch/nous parlons francais.”

The Motorcycle Industry Council reported that motorcycle and scooter sales hit 450,000 units in 2012, up 3 percent from 2011.

However, a broader look at the numbers shows the industry has just started to crawl out of a steep plunge. In 2005, the council reported 1.1 million in sales.

So far, the competition appears not to focus on price. At a rate of $149 a day, Enterprise falls roughly in line with the other shops and has so far eschewed trying to grab sales through heavy discounting. Instead, the company says it will try to build a customer base through referrals from resort concierges, signs at other locations and sticking to its long-standing “We’ll pick you up” slogan by sending cars to bring people to the rental counter.

Some other shops, several miles off the Strip, also run courtesy shuttles.

The direct rivalry may be limited by the different shops specializing in one or a few brands other than Harleys. Enterprise will not carry European or Asian brands such as Ducati, BMW or Suzuki or the sport bikes known as crotch rockets for the way riders bend over in the seat. Sport bikes appeal to younger people; older people tend to prefer while cruisers like Harley-Davidson, where riders sit back and put less pressure on the arms and wrists.

“If I were Eagle Rider or Las Vegas Harley-Davidson, I’d be worried big time,” Boyce said. “But Enterprise doesn’t have the same bikes I do.”

However, Las Vegas Harley-Davidson’s Ruffin said, “We are the only authorized dealer here, so it really doesn’t faze us.”

Enterprise hasn’t said what will mark success or failure for its pilot program, or how long the evaluation will take.

“We want to ensure that we listen to our customers and exceed their expectations,” Phillips said. “We’ll announce plans for future growth based on that feedback.”

Ruffin said, “God bless ’em. But it’s going to be a learning curve for them, definitely a learning curve.”

Contact reporter Tim O’Reiley at toreiley@reviewjournal.com or at 702-387-5290.