In the modern era, the car rental industry is undergoing with the major changes from factors such as advancing consumer preferences and new innovative technologies. Additionally, the increasing concern of global warming have a major influence on the car rental industry. Furthermore, more efficient technologies in the car rental industry has been undertaking to produce rental options that will appeal to customers with an environmental conscience. Not only has this, many companies who are actively changing the way of operating the car rental industry to meet the demands of the ever-growing environmentally friendly market. According to the report analysis, ‘CAR RENTAL INDUSTRY ANALYSIS’ suggests that the industry of car rental will grow in the forecasted period with the development technologies such as the installation of GPS tracking system which can be connected with cellphone GPS tracking devices.
Technologies are changing in the cars thus industry has recognized the importance of providing quality car rental options for travelers. Many other technologies introduced by some progressive thinking of car rental companies which are changing in the way rates are applied. Occasionally, many companies had begun to charge on an hourly rather than daily basis. Additionally, Car rental companies are also introducing black box recorders to their fleets. This is a technology that through GPS tracking can ascertain where a car is at any one moment. Not only has this, introduction of technology in the car rental industry has been the recording of biometric data from customers. With the involvement of local police forces, procedures are now in places to record a thumbprint of a customer seeking an electronic record is taken of their details. Recording of thumbprint means a lot when a theft occur, it make possible to hand over the rightful information to the police. Moreover, car rental industry has now aiming through online platforms by simple means of application or websites. This makes the car rental industry more attractive for consumers. In the coming years, the report, ‘CAR RENTAL BUSINESS REVIEW’ states that the global car rental industry market is expected to hit a CAGR of 17.3% which makes the market more competitive with the more advancement in the technology and expansion of businesses. The new key players are aiming, with more development in the technology which will lead to an industry that is both friendly to the environment and also secure for the firms.
The car rental industry is expected to grow significantly with the increase in disposable of customer, increasing urban population, rising economy, significant increase in the tourism and others. In the Asia-Pacific region it is expected that this industry is going to grow rapidly as in the other regions the GPS technology and recording of thumbprints is not currently possessing due to less development in the technology. Whereas, in the developed countries of Asia are playing dominant role as they are having enhanced technology with better services and there is no financial constraints. New players in this market are mainly focusing on the innovations, installation of new technology and providing better experience to the customer. The growth of car rental industry is always based on one simple thing – how the service provider deal with each customer.
The competition in this industry very much lucrative as majority of the car has its own specification and is equipped with special technology. In the term of competition this industry is truly a war zone with many key players such as Hertz, Avis, Enterprise, and others. Whereas, it is observed that Hertz is a prominent player or this market and dominate handsome amount of share in this industry. Car rental industry revolves around commercial and non-commercial segment in which all types of cars can be hired ranging from sedans to SUVs. Moreover, under non commercial segment, the competition is led by Enterprise which has highest share in the market.
In the Asia-Pacific region, the dull days never be seen by the car rental industry in the developed countries due to urban population and increase in disposable income. Moreover, in USA and Europe the growth in the car industry showing excessive number in the customer preference. The technology of GPS and thumbprint is benefitted for the user and company. Emerging of technologies in developing countries and entrants of new market players will lead the growth in the car rental industry in a significant manner over the decades as tourism is also increasing positively.
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Ankur Gupta, Head Marketing & Communications