Growing customer awareness about car rental markets, increasing prominence of app-based bookings and increasing number of car rental firms have been major growth drivers of Turkey car rental market during the review period.
The car rental market in Turkey is highly fragmented with the presence of large number of unorganized and small players in the industry. The lack of legal regulations on car rental has led to further fragmentation with a proliferation of small car rental offices. However, the international brands such as Avis and Budget Rent a Car continue to gain share from the small car rental offices due to their extensive penetration in terms of extensive fleet size, outlets, higher-quality services and their stronger and more consumer-friendly service provision. The car sharing platforms are increasingly gaining prominence in Turkey as brands such as Yoyo and Zipcar continue to gain popularity among the millennial population. Additionally, growing consumer awareness about online shopping and payments, increasing penetration of online and mobile internet and ongoing investments by the companies to improve their services continued to boost online sales of car rental during the review period.
Car rental continues to perform well owing to increasing numbers of airline passengers and successful penetration of car rental companies in leading airports. An increasing number of long-term car rental companies which mainly focus on business car rental activities have added short-term car rental services to their portfolios which aided the growth of car rental market in Turkey. Additionally, increasing passenger preference for car rental due to convenience compared to other types of transportation continues to have a positive impact on car rental industry. It was witnessed that car rental companies have been investing in mobile based bookings to benefit from the increasing consumer preference for mobile purchases. Due to the decreasing number of incoming tourists as a result of the increasing frequency of terrorist attacks and political instability, negatively affected the overall market but the car rental market witnessed a positive growth rate during the overall review period 2012-2017.
The report titled “Turkey 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 rising middle-class population with its high level of disposable incomes will majorly account for the overall revenue growth of Turkey car rental market in next 5 years till 2022.
For more information on the research report, refer to below link:
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Ankur Gupta, Head Marketing