KiaOra Campervans : Interview Transcript – Frank HibbertSample Page
KiaOra Campervans
KiaOra Campervans is a small campervan rental agency in New Zealand. They are looking to expand
their operations from their current single office business based in Auckland into a distributed
operation with offices in Auckland, Wellington, Christchurch and Queenstown. They think they need
a new IT system to support this expansion. Your firm has been asked to analyse their business and
come up with a proposal for a new rental system.
Extract from Interview with chief executive Frank Hibbert (at this point Megan has already
introduced herself and preliminary polite amenities have been concluded)
MS: So Mr Hibbert, I’d like to get an overall idea of what you are hoping to achieve with the new
system. Could you start by giving me an overall idea of what you want the system to do?
FH: Well, we really want to expand. There are a lot of tourists coming to New Zealand who want to
start in Auckland and finish up somewhere else like Wellington or even Christchurch. We are
missing all that business because we only have one office here in Auckland. So we want to open
depots in the other major cities, and we need be able to pick up and return campervans from
any of those depots.
The other thing we really need to do is make it easier for customers to make a booking with us. At
the moment they need to ring the office or email us, and we develop a quote and email it to
them or tell them over the phone. Then, if they want to make a booking they need to tell Honi
their credit card details and she charges for the deposit. The thing is they need to get in touch
with Honi so she can make the charge and set up the booking. That process just isn’t working for
international visitors; it’s too expensive and inconvenient. I think we are losing business. I’d
really like it if the system would allow customers to get a quote and make a booking without
needing to get the office involved.
MS: OK. Could you explain the rental process a bit more?
FH: Well, I’m not that clear on the details, I leave that to Honi. I focus more on managing the vans
and men. You’ll have to talk to Honi about the rental process.
MS: So what is involved in managing the vans?
FH: Well, it’s mainly making sure we always have enough vehicles to satisfy the hires. You see we
can’t hire out as many vehicles as we own. We always have to keep a couple of each type in
reserve in case there is an accident, or to substitute when one is in for servicing. So we don’t
associate hires with specific vans until just before the pickup. Instead, we reckon a given number
of vehicles can only support a certain number of hires, so we identify ‘hire lanes’ which
correspond to the hires we can support. That way we can pull a vehicle for servicing, or get one
repaired, without having to shuffle everything.
The trick is to make sure that the servicing gets spread out so that you don’t have too many vans
needing to be serviced at once. Every van has a major service every 20,000 kays (kilometres), or
every 6 months, whichever comes first. I like to keep on top of that because it saves trouble in
the long run. We check the mileage after every hire so we know when a vehicle is coming due for
a service. I might pull one early or let it go a little late in order to keep things smooth. Generally,
I’d have three more vehicles than hires for each type of vehicle, but it depends a bit on how
many in the fleet, and how reliable they are.
Apart from that, it’s just making sure the available vans are ready to go out when they are
needed.
MS: How do you keep track of all that?
KiaOra Campervans : Interview Transcript – Frank Hibbert
FH: I have a spreadsheet. For each vehicle I have an entry for mileage, and the date of last service, so
it’s quick to see what is coming due. I also have a file for each van which keeps track of the
service records, and any damage they have accumulated or had to have repaired.
MS: What’s involved in getting vans ready for hire?
FH: Not much. I get a list of hires due out the next day, allocate each of them to one of the available
vehicles, and then assign one of the boys to do the pre-hire check. They make sure the vans have
been serviced, that they’re full of fuel, the tire pressures are right, oils OK, coolant levels are OK,
and they are clean and the waste tank is empty. Also, that the ‘dump kit’ is present and correct,
and the gas bottle is full. We have a checklist. If the after-hire servicing has been done properly,
it’s not a problem. We just do it to catch anything that’s fallen through the cracks.
MS: What does the after-hire servicing do?
FH: Well, it starts with the inspection. We check that the customer has brought the vehicle back
fuelled up, gas bottle full, and the waste tank clear. Mainly they’re pretty good, but sometimes it
doesn’t happen. We care because it costs a lot to fill one of the big vans; over $150 for a tank,
and $40 for a gas bottle. And who wants to clear someone else’s waste tank? Anyway, there’s a
charge for any of those things that hasn’t been done. We also note the mileage and check for
new damage. That’s all part of finishing up the hire paperwork.
After that we take it into the garage and do the standard turn-around service. Mainly the van has
to be thoroughly cleaned and all the bedding changed over – we have contract cleaners and a
laundry for that. We fix up anything the customer forgot to do and go through the pre-hire
checklist. Once that’s all been done it’s ready to go. We generally give ourselves a full day to turn
a vehicle around. If the van needs a service, or needs repair, then we pull it from the available
pool until that’s complete. That’s when I have to worry about having enough vehicles to satisfy
hires.
MS: Have you got a copy of that checklist?
FH: Sure. Here. (See Attachment 1)
MS: I think we’ve covered van management for the moment. What about managing the men?
FH: Oh, look, I don’t think the rental system has to worry about that. Wages and stuff is pretty
separate from the rentals. I’ve got a couple of permanent staff, but a lot of it is just casual labour
I hire on during peak periods. Besides, each of the branches will be dealing with staff locally; I
don’t want to do it. Don’t worry about managing people.
MS: OK. Couple more questions and we are through. First: how are you going to deal with hires
starting in different locations from where they are returned?
FH: It doesn’t take that long to get from one end of the country to another, so we can absorb the
time it takes to move vehicles into the after-hire servicing period.
MS: Anything else you think might be a concern?
FH: Oh yes. I’m worried about incomplete or duplicate hires. What happens on the new system if
someone pays their deposit, but the system crashes before the booking processing is complete?
We don’t want to make the booking before we get the money, but if we do get the money then
the booking should definitely go through. How are we going to deal with that? Will they lose
their booking? What do we do with the deposit?
Then, what happens if two people book the last available hire at the same time? One of them
should get knocked back, and the other one should be successful. But we don’t want them both
to succeed or both to fail.
KiaOra Campervans : Interview Transcript – Frank Hibbert
In the same vein, I’m worried about keeping track of transactions. There are a lot of points in the
rental process where we deal with money, and it’s important that we don’t lose track of any of
those transactions, even if the system crashes. We really don’t want a bad reputation in that
area.
Finally, I’m worried about security. Customers will be making bookings over the internet and I
don’t want hackers getting in and mucking things up. Also, the other branches will need to see
and update data relating to hires and vehicles, and once again I don’t want anybody else to be
able to see that information, or do anything to it.
Oh yes, another thing. If this expansion works out like I hope, we should get a lot more business,
and when the other branches open up, that should increase even more. I don’t want the system
to grind to a halt just because we are getting more business. That wouldn’t be any use to us at
all.
MS: Yes, I can see that those issues are a concern. However, I am sure we can find a solution that
meets your requirements. I think I’ve got enough to begin with. Can I contact you again to follow
up on any issues we run into?
FH: Yeah, sure, that will be fine. It’s been great talking to you Megan, and I’m really looking forward
to the new system. It’s absolutely essential to the expansion, and it’s going to bring us in a lot of
new business.
MS: OK. Sure. It will take us a few days to come up with an initial proposal, and then we’ll be back in
touch.
FH: Yes, Keep in touch. Bye.
MS: Bye.
<end of transcript>
KiaOra Campervans : Interview Transcript – Honi Awatere
Extract from Interview with office manager Honi Awatere (once again preliminary introductions
have been completed)
MS: OK, Honi, could you tell me a little about the process of hiring a van?
HA: We’ve got a range of vans: 2, 4 and 6 berths. We hire these out at different rates depending on
the capacity, and the season. We also apply a discount depending on the length of hire.
MS. Have you got those figures and dates handy?
HA: Yes, I’ve got a schedule somewhere … ah – here it is. (See Attachment 2)
HA: OK, a customer begins to make a hire by ringing the office. They tell me what sort of vehicle they
want and when they want it, and I look in the ledger to see if we can satisfy that request. If we
can, I give them a quote for the hire. If they want to take up the hire, I start a new hire form, take
down their personal and banking details, and charge them a holding deposit. I record what type
of van they’ve booked on the hire form and update a hire lane in the ledger to show a van has
been booked for that period. Finally, I send them an email with the details of the hire, and
confirmation that we’ve got their deposit.
MS: How much is the deposit? And could I see a hire form, please?
HA: The deposit is 10% of the total hire charge. Here’s a hire form. (See Attachment 3)
MS: What happens next?
HA: A week before they have to confirm, I contact them via email to let them know that the balance
of the hire charge is due. They contact me that week to authorize a second credit card charge, or
make a direct funds transfer. I confirm this payment while they are on the phone, or by checking
our banking records each morning. Once I’ve confirmed the full payment, I update the hire form
to note that the hire has been confirmed, and send them another email acknowledging receipt
of the full payment.
MS: How long is the confirmation period?
HA: 30 days.
MS: What if they don’t confirm?
HA: Well, first I send them another email telling them that they have to, or they will lose the hire.
Then if they don’t confirm within the next week, I cancel the hire. If I have to do that, they forfeit
their deposit.
MS: How would they cancel a hire?
HA: It’s pretty simple. They just ring up or email me with the hire number, and I return their deposit,
and cancel the hire. We’ve got their banking details on the hire form from when they first
booked. As long as they ring up before the confirmation date it’s OK.
MS: Assuming they confirm, what happens the next time you are in contact with them?
HA: That’s when they come in to pick up the van. Although they often ring or email a few days
before to let us know they are still coming.
MS: OK. That’s good. When they arrive, what happens?
HA: Well, first they come into the office, and we finish filling out the hire form. That’s to note who
the designated drivers are, check licenses, and go through things like insurance, and any travel
restrictions. Then one of the garage boys takes them out to familiarise with the vehicle with, and
fill out the previous damage report. When they come back in they sign both the damage report
KiaOra Campervans : Interview Transcript – Honi Awatere
and the hire form, and so do I. Once everything is signed, they are free to take off with the van. I
attach the damage report to the hire form and file it with current hires.
MS: OK. Why the previous damage report? Can I see one?
HA: It saves argument when they return the vehicle. Customers pay a bond you see, to cover
damage. If they return the vehicle undamaged, then they get that back, but if they ran over a
rock or broke something inside then we charge them for that and take it out of the bond. We
don’t like to argue with customers about whether they did the damage or whether it was already
like that when they hired the van, so it works out best if everyone agrees on the state of the
vehicle before they take it away. Here’s a blank form (See Attachment 4)
MS. I see. What happens when they bring the van back?
HA: Well, they come into the office, and one of the boys goes out and inspects the van for fuel, gas,
and waste. They are meant to refill the tank and the gas bottle and empty the waste tank before
they return the van. The boys note the mileage, and check the van for new damage. If everything
is OK, we just complete the hire form, and return the bond. If they haven’t refilled the tank, or
the gas bottle, or haven’t emptied the waste tank, then there is a standard charge we take out of
the bond for each of those items, but we just do that on the spot, and still complete the hire.
However, if there is new damage then it gets a bit more complicated.
MS: Why? What happens then?
HA: If there is new damage and it’s not just normal wear and tear, then we don’t return the bond
just yet. Instead we keep it until we get quotes for the repair. Then we make the appropriate
charges and return the balance. If the repair cost exceeds the bond, we keep the bond, but we
don’t charge the customer any more. Instead we file an insurance claim. The bond basically
covers the excess for the insurance.
HA: I see. How does a van get returned to service?
MS: They have to be cleaned and serviced. It’s only after that’s done that they can go out again. We
always schedule at least one full day for service time after a hire before the van can become
available again. If a major service is due, or they have been damaged, then they are marked as
unserviceable and don’t become available again until they come back from the garage or repair
shop.
MS: Tell me about the ledger. It seems to be really important.
HA: Oh, it is! It tells me everything about the operation. Basically, it’s a big spreadsheet. I have dates
across the top, and there is a row for every hire ‘lane’ – that is every hire we can support. When
a customer makes a booking, I put their name down on the date when I need to send a
reminder, the date they need to confirm, and the date when the hire starts in the row for the
hire lane. That way I can see quickly what hires are available on what dates and I can see just by
looking down a column everyone I need to contact that day.
MS: What do you think of the expansion?
HA: Oh, it’s going to be so much better! So much more business! And I can’t wait for the new
booking system. It’s so much bother checking the ledger for what’s available and taking down all
the banking details. And really there is no reason why the customers can’t do that for
themselves. I mean, I shop on line all the time. I told Frank we needed a proper website where
people can see what we have, make bookings, and pay for them all online. I won’t have to spend
all my time sending emails. I’ll be able to sit with customers and complete their pickups or
returns without the phone going off in the middle all the time.
MS: Do you have any concerns?
KiaOra Campervans : Interview Transcript – Honi Awatere
HA: Well, it won’t just be Frank, me, and the boys here anymore. We’ll be sending out vehicles and
they’ll be returned somewhere else, and we’ll be getting vehicles from the other depots. So
sharing the information in the hire forms is going to be important. Also, it’s going to be tricky
making sure all the vans are at the right place at the right time. I think it’s going to be very
different, but we are going to make a lot more money, so I guess it’s a good thing.
MS. Thank you Honi. You have been extremely helpful. Do you mind if we contact you to clarify any
details?
HA: No, no, that should be fine.
MS: OK. Bye for now.
HA: Bye.
<end of transcript>
KiaOra Campervans : Attachment 1 – Pre Hire Checklist
KiaOra Pre-Hire Checklist
Van Number: ________________________ Van Type: 2 / 4 / 6 Berth Mileage: ________________
Hire Number: ____________________ Hire Date: _______________ Pickup Time: _____________
Maintenance:

Consumables:

Interior:

Linen:

Cutlery:

Crockery:

Cooking:

Optional Extras:

Notes:
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
Pre Hire Checklist Completed:
Name:____________________________________ Supervisor:______________________________
Date:_______________________
KiaOra Campervans : Attachment 2 – Rental Rate Schedule
Hire Rates

Discounts:

Optional extras:

Terms and Conditions.
A deposit of 10% of the total hire charge is payable when a booking is made. The balance must be
paid on confirmation of the hire 30 days prior to the beginning of the hire.
The deposit is fully refundable if a hire is cancelled prior to the confirmation date, but is forfeit if a
hire is cancelled after that date.
The bond is fully refundable, unless significant non wear and tear damage occurs to a vehicle during
the hire period.
All drivers must be over 25.
No travel on beaches or on designated 4WD only tracks is permitted.
Vehicles must be fully refuelled when returned.
Gas bottles must be refilled before vehicle return.
Waste tanks must be emptied before vehicle return.
KiaOra Campervans : Attachment 3 – Hire Agreement
KiaOra Campervans Hire Agreement

Charges:

Terms and Conditions.
Bonds are fully refundable, unless significant non wear and tear damage occurs to a vehicle during the hire period.
Only designated drivers may drive the vehicle.
All drivers must be over 25.
No travel on beaches or on designated 4WD only tracks is permitted.
Vehicles must be fully refuelled when returned.
Gas bottles must be refilled before vehicle return.
Waste tanks must be emptied before vehicle return.
I have read and understood the terms and conditions, and I agree to abide by them.

KiaOra Campervans : Attachment 4 – Pre Hire Damage Report
KiaOra Pre-Hire Damage Report
I have inspected the vehicle, and agree that the above table describes all damage identifiable on the
vehicle prior to commencement of rental.
Name:____________________________________ Supervisor:______________________________
Date:_______________________