Growing demand of rental cars for business & leisure purpose, increasing popularity of car sharing schemes and increasing penetration of online bookings will be the major growth drivers of Netherlands car rental market in upcoming years.
Car rental industry in Netherlands has been consistently growing since four years on the back of growing Dutch economy with the healthy increase in inbound travel to the Netherlands. Competitors such as Uber, car-sharing companies and various forms of public transport have posted value growth over the years and this has affected the car rental market in the country. During the review period, Netherlands witnessed increasing demand for leasing contracts for cars which posted partial growth in car rental market. On 1st January 2016, Netherlands simplified the legislation with regard to obtaining a taxi drivers’ permit which resulted in substantial increase in the number of people with a taxi permit. The legislation has aided cab aggregators such as Uber to grow in the country as these companies work with independent taxi drivers. The rising penetration of the smartphones has enabled the major players in the market to offer app-based booking services to their customer making it more convenient for the customers.
Car bookings both online and via mobile are increasingly important within the category of car rental industry and major international players have an advantage over small-scale domestic players in this segment. Large car rental players have invested in development of tools and infrastructure for online & mobile booking to attract more customers and provide better services. Another reason, the larger players have an advantage is that they are better able to form partnerships with other major travel companies and organizations. Year after year by meeting the demand of customers with utmost satisfaction, the services offered by the car rental companies kept on improving and upgrading. Recently, growing number of customers have shown preference for online car booking over offline bookings owing to price, convenience and transparency. As the penetration of online car bookings increase, it will positively affect the growth of car rental industry in upcoming years.
The report titled “Netherlands Car Rental Market by Market Structure (Organized and Unorganized Sector), by Mode of Booking (Online and Offline), by Clients (Leisure and Business), by Pick-Ups (Airport and Off-Airport), by Car Type (Hatchback, Sedan and SUV) and by Major Regions – Outlook to 2022” by Ken Research suggested that growing demand for app-based booking services will majorly account for the overall revenue growth of Netherlands car rental market in next 5 years till 2022.
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Ankur Gupta, Head Marketing