Car rental market business has developed rapidly over the past few years due to increasing development in the travel and tourism industry. The increase in the consumers spending limit along with improved roads or highways infrastructure worldwide are the major factors that encourage consumers to opt for leisure and business trips. This trend in turn boosts the tourism business. With the introduction of information technology in the car rental market, major transformations were made over the past few years. Additionally, cyber technology is used for customizing travel trips, online reservations and bookings that has encouraged consumers to make their travel safe, quick, reliable, and easy. Hassle-free process of online reservations and bookings increased the convenience for both the car rental operators and consumers on a global scale.
Mergers, acquisitions and joint ventures are increasing in the global car rental market. The rising crude oil price anticipates a challenge in the car rental market over the next few years. Car rental is the most important service within the urban transport sector. The increasing technology has witnessing an increase in business travellers, demand for car-sharing and growth in megacities. Car rental companies are adding cars that have advanced telematics solutions and navigation functionalities.
Car Rental Industry Analysis states that majority of the global consumers prefer rental cars for local and outstation travelling which witnessed a higher growth in car rental market. Time conservation and route flexibility has attracted many consumers towards rental cars which provide day-to-day intra-city navigation globally. Increasing businesses and cultural events in the corporate industries sector has impacted the growth in the global car rental market with event transportation solutions at affordable costs. These trends help in less environmental pollution and transportation of a large number of passengers.
Majority of the car rentals use 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 due to their low cost and higher mileage. Almost all the business travellers demand for higher product and service quality along with reliability during travelling in a rental car.
According to “Car Rental Business Review”, SUVs and MUVs will exhibit a minor growth over the next decade with a moderate growth in leisure travellers. 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. All the global rental car services operate through a network for pickup or drop-off points. The vehicles are owned by an organization that rents them to consumers for short periods such as a day or for a month or year. The increasing global population demands for effective transportation systems and positive growth is witnessed in the rental cars market over the coming years.
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Ankur Gupta, Head Marketing & Communications