The global car rental market business development in the most recent years was credited to the expansion and progression of the overall travel and tourism industry. The increase in the consumers spending limit along with improved roads or highways infrastructure are the major factors that encouraged the leisure and business trips, in a way boosting the tourism business. The introduction of information technology in the car rental market industry has driven for a major transformation in the past few years. Also, the addition of advance technology to use internet for customizing travel trips, online reservations and bookings has encouraged consumers to makes the whole process of travel safe, quick, reliable, and easy. Hassle-free process of online reservations and bookings increased the convenience for both, the operators and consumers in the car rental market business that witnesses a strong growth.
Leading competitors in the car rental market are increasing while undergoing mergers, acquisitions and forming joint ventures. This growth represents expansion in the competitors business territory, gain new emerging market potentials, and enhance the overall profitability in the car rentals market. With the rise in the crude oil prices worldwide it is anticipated to challenge the car rental market over the coming years.Car rentalis the most important services in theurban transportindustry. With the growing technology, increase in the business travellers is expected; demand forcar-sharingand with the growth of megacities. Car rental companiesare adding cars that have advancedtelematicssolutions andnavigationfunctionalities.
According to the research report “Car Rental Global Industry Guide_2017”, majority of the consumers prefer rental cars for local and outstation travelling that is supposed to witness a higher growth in this market. The lack of time and route flexibility by the public transport has diverted consumers towards rental cars which provide day-to-day intra-city navigation worldwide. The outstation travelling during weekends is expected to contribute to the significant growth in this market along with the inter-state business transport needs. Increase of businesses and cultural events in the corporate industries sector has also impacted the growth in the car rental market by providing transport to the employees and event transportation solutions at affordable costs. This process helps in less pollution and transportation of a large number of passengers.
The types of vehicles used in the car rental market are Multi Utility Vehicles (MUVs), Sports Utility Vehicles (SUVs), economy cars, executive cars, and luxury cars. Economy cars are dominating the car rental industry and will continue to dominate in the next decade. Economy cars are low cost and deliver higher mileage than other cars. The rental cars market is primarily driven by the cost-effectiveness of the economy cars. It was observed that the executive cars will witness a significant growth over the next decade due to the rising demand from the corporate industries. There is a rise in business and leisure trips among the global population. Majority of the business travellers typically demand for higher product and service quality along with reliability during travelling in a vehicle.
SUVs and MUVs are expected to exhibit a minor growth over the next decade with a moderate growth in the number of leisure travellers. The growing economy in the developed countries is an added advantage for the growth in the car rental market with increased leisure and recreational activities among consumers. The leading competitors in the global rental cars are Avis Budget Group, Enterprise Rent-A-Car, Europcar, The Hertz Corporation, Sixt, Localiza Rent a Car, Eco Rent A Car, Carzonrent India Private Limited (CIPL), and Al-Futtaim Vehicle Rentals Company. The rental cars market is categorised based on the vehicle type such as economy, executive, luxury, SUV, and MUV cars, by rental category such as airport, local, outstation, and other transport, and geographically, Asia Pacific, Europe, North America, and rest of the world.
Rental car services operate through a network for pickup or drop-off points. Also, vehicles are owned by an organization that rents them to consumes’ for short periods such as a day or for a monthly or annual plan. With the increasing in the global population and demand for effective transportation systems will surely witness a positive growth in the rental cars market over the coming years.
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