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Feasibility Study
Feasibility Study
B. Location: Maa
Feliz Movimiento Car Rental Services will be located at Riverview Maa, Davao City. The
proponent decided to lease an office space unit that has a garage and security for the
safety of all the renters. It is along the highway and a flood-free. (In front of Forest Lake
Maa) Factor such as proximity to the market, means of transportation and the cost of
land and building were considered in choosing the location.
i. Proximity to the Market – The office of the company can easily be found by the
people since it is located along the highway and there is a guard to guide the clients. It is
also an advantage for the company since there has no competitors near the area.
ii. Means of Transportation – The location is just along the Maa road where routes
coming from the highway always pass. It is also located where all the buses from the
airport will pass by.
iii. Cost of Land and Building – The monthly rental of the chosen unit is Php 10,000
with an area of 150 square meters. The place has a free space parking and security
guard which is an advantage for the company so that it will have lesser expenses. It will
be also the first car rental services within the area.
As a car rental company, Feliz Movimiento’s main target is to provide vehicle unit for
lease to those tourists who needs a car in their trips especially those trips that are far
and for the clients that needs car in their special events and for their everyday use.
To assure the clients quality service, the company will be having a social media account
and telephone number for their recommendations, concerns and feedbacks.
E. Feasibility Criteria
Since the population in the city grow many tourists come and go and it is an advantage
for the business to gain profit. The consideration in operating a car rental company is to
have a good quality service and at the same time safe for all the clients. The purpose of this
business is to generate profit for the proponent so that the business will be maintained and
will grow. Feliz Movimiento believed of a good return because it has a fixed fee and will
always monitor and secure the money.
HISTORY
The earliest known example of cars being offered for rent was 1906. It is a German company
which is Sixt was established in 1912 with three cars for rent. Joe Saunders of Omaha,
Nebraska first started with only one borrowed Model T Ford in 1916, but by 1917, his Ford
Livery Company was renting out 18 Model Ts at 10 cents per mile. By 1926, Saunders had
expanded to 56 cities. Saunders' company was bought by Avis in 1955.
An early competitor to Saunders was Walter L. Jacobs, whose Chicago-based Rent-a-Car opened
in 1918 with 12 Ford Model T. The company was bought in 1923 by John Hertz. In Britain, car
rental started with Godfrey Davis, established in 1920, and bought by Europcar in 1981. The
growth in travel after World War II led to the establishment of several well known international
companies, including National Car Rental (1947), Europcar (1949), Enterprise Rent-A-
Car (1957), Thrifty Rent a Car (1958), and Budget Rent a Car (1958).
Car rental hire in the Philippines is popular among inbound tourists looking to travel around the
city and to and from provinces freely and with the privacy of driving themselves; this is
common for both domestic travellers as well as for business trips. In terms of leisure and tour
activities, car rental to be used during the tour is often included in the travel package. Domestic
tourism will continue to boom, with newly discovered and promoted tourist destinations which
are commonly found in nearby cities and towns to the metro areas as a result of growing
demand for travel among working millennial. This presents an opportunity for car rental
companies as the demand continues to grow and the destinations are within their usual range
of trips.
NATURE OF INDUSTRY
Feliz Movimiento Car Rental Services belongs to the transportation industry. This kind of
industry is to provide transportation of passengers and cargo, warehousing, scenic and
sightseeing transportation, and support activities related to modes of transportation.
Establishments in these industries use transportation equipment or transportation related facilities
as a productive assets.
Car rental industry has grown more strongly in recent time, after previous years of
recession. This was primarily due to the fact that airlines saw a decrease in customers which
have now seen an increase too as compared to recent years, thereby linking air travel to car
rentals. This industry is expected to experience remarkable growth.
MODE OF FINANCING
Feliz Movimiento Car Rental Services will be financed by Banco de Oro which is a private bank
and some will be from the owner’s money from the bank also. It will be used for the acquisition
of three (3) vehicles needed for the business.
OWNER/MANAGER
HR
ASSISTANT MANAGER
AUTO MECHANIC
ADVERTISING
ACCOUNTANT
DRIVERS (3)