Kai Sannwald (57), founder (in 1991) and owner of Sunny Cars, has been at the helm of the car rental specialist for more than three decades. The 33rd anniversary will be celebrated extensively at the end of this month in its hometown of Munich. A conversation about 33 years of Sunny Cars and about the future. ‘My ambition? Just quietly carry on with what we’re doing.’
Fiscal year 2024 seems to be going even better for Sunny Cars than was thought at the beginning of this year. Sunny Cars expects 35 percent more bookings and 18 percent more turnover. This brings the number of bookings to almost 1 million. Where does this success come from? Sannwald: ‘Success always has many reasons, and if you have been active in the market for as long as we have, you obviously know how to balance the success factors well. We have a good product that meets the customer’s need of ‘no hassle’, with the aim of achieving absolute customer satisfaction. We serve many different sales channels and can adapt well to individual wishes. We have employees who have been working at Sunny Cars with heart and soul for years. And last but not least, we are an economically healthy company. This creates a high level of trust among customers and partners.’ You were once inspired by Holiday Autos by Clive Jacobs, who launched the all-inclusive concept in the UK. You decided to take a different approach. Holiday Autos no longer exists. Sunny Cars is still around. What did you do differently? Sannwald: “Holiday Autos used to be a company that did a very good job and made good money. Until the day, in early 2000, when different investors with different interests came in, so that the ‘customer first’ focus was increasingly lost. Sunny has always been an owner-run business. The interests of the two shareholders were and always are 100 percent identical to the company’s strategy and actions.” What obstacles did you encounter in the beginning?
Sannwald: ‘A big challenge in the beginning was the typical chicken-and-egg problem. Building a wide range of products was a challenge because I first had to gain the trust of the car rental companies, who had to leave the collection to me. However, a wide range of products was the basis for winning B2B customers; With ‘gaps’ in the offer, you were always number 2. Another challenge was that money was always tight, and sometimes tighter than tight. The word ‘scaling’ has not only been around since today. At the time, I also wanted to reach a relevant volume quickly in order to be competitive in terms of price. In the winter of 1996/97 this almost became my downfall. Since then, I have known the difference between turnover and liquidity and I know that only money that is present in the company can help overcome crises.’
Do you regret anything? Sannwald: “Sunny Cars has developed tremendously, but mistakes have obviously been made along the way, as happens with every company. But I preferred “learning by doing” to a college degree, and so it made sense that not everything went smoothly. Learning from mistakes has contributed to today’s success. And that’s still the case.’ In recent years, there has been a shortage of rental cars in some destinations. Is this over? Sannwald: ‘These are always snapshots because, especially given the current, very difficult situation in the world, everything could be different tomorrow. As in 2023, no major general bottlenecks are expected for 2024, although it may be difficult in special vehicle segments, such as minivans/minibuses, station wagons and convertibles.” 
What are the prices this season? Sannwald: ‘The general price level is slightly lower than in 2023, but still higher than before the pandemic. In addition, prices at some hotspots may still be higher in times of high demand.’ Due to the all-inclusive concept, Sunny Cars seems at first glance more expensive than other rental companies that charge extra costs later. This makes it difficult to compare prices online. Is the travel agency (almost) indispensable because Sunny Cars is a consultancy product? Sannwald: “In recent years, consumers have increasingly understood my favorite saying ‘There are reasons for miracles’, often under the influence of bad experiences they have had with supposedly cheap landlords. Of course, it is always more difficult to distinguish a more complex all-in product from a ‘Corsa for only 9 euros per day’. But our success in all sales channels shows that we can do it pretty well.” The electric rental car has still not broken through. The purchase price is high and the resale value is low. Moreover, the customer does not want it because there are not enough charging points. What does it take to make electric driving attractive and how long does it take?Sannwald: ‘First of all, solutions need to be found for the so-called ‘setup time’. That’s the time after returning the car that’s needed for cleaning and checking, and now potentially hours of charging too. But it’s also about the charging infrastructure at the rental stations, such as Schiphol with its fast chargers.
‘As in previous years, we are not planning big bangs, we just want to continue to expand our product and service consistently’
In addition, there is the problem of insufficient charging stations along the way. No customer wants to be stranded in the mountains at night. Cooperation of all stakeholders is important here, such as landlords, energy suppliers and local authorities and hoteliers. A good ten years in which no significant progress has been made is over. Hopefully we won’t need another ten years.’ What would you do differently if you could start over? Sannwald: ‘One of my daughter’s teachers once said to me: ‘Some children take a detour, but detours increase local knowledge.’ That saying has also shaped the company for the past 33 years. Looking back, some things could have been easier and quicker, but some detours helped me a lot with later challenges.’ Where will Sunny Cars be in three years? Sannwald: “As in previous years, we are not planning big bangs, we just want to continue to expand our product and service consistently. And that is based on values that we have laid down in writing since 2007 and that everyone who deals with Sunny Cars can rely on. Do I have any wishes? As long as I enjoy it, I’ll keep going.’ Let’s get back to the news: what impact will the collapse of FTI have on the travel industry? Sannwald: ‘The number 3 in Germany (and Europe) has now ceased operations. I don’t believe in a rebirth in the old form. The claims in the tour operator section are already being actively distributed. Volumes will also be distributed in the car rental sector, where FTI also had its own broker. Some bookings will certainly end up with us as well. The short-term consequences for vacationers and travel sellers are severe, and especially for the many employees who don’t know what will happen next. In the medium term, however, I assume that the FTI activities will be shared among other market participants. There are plenty of them that are successful and economically healthy. I don’t share the fear that “everything will become much more expensive now” because of the broad competition. The fact that no one is prepared to respond with price dumping can only be welcomed, because the bankruptcy also costs the taxpayer a lot of money.’
