Introduction: The global car rental market research report has had immense competition from car sharing and peer to peer rental companies like Uber, Lyft and Turo which has made the competition scenario highly complex and increased customer expectations as well as supplier power. Aside from the competition there has been volatility in terms of regulations with different companies having to work under their own set of rules despite being indirect or in most cases, direct competitors with each other. Companies like Turo and HeyaCar do not undergo the extent of regulation and safety and equipment standards checks that companies like Enterprise and Avis undergo making it easier for platforms like Turo to gain customers. Despite the competitive scenario and the level of regulatory intervention occurring there is still major progress happening for the car rental market with the global market for car travel expected to grow from its 2017 value of about USD 65 Billion to over USD 104 Billion by 2022 with a CAGR of about 9%. This is mainly driven by the increasing demand for rental cars through business travelers and increased holiday based tourism. And while the main segment expected to gain value is the economy segment owing to the price conscious mentality of economic travelers, the major profit contributor and the segment with the most potential is expected to be the luxury segment
Overview: The global luxury car rental segment is expected to grow with a CAGR of 14% for the period between 2014 and 2022 growing from its 2014 value of about USD 8.1 Billion to over USD 23 Billion by 2022. The increasing popularity of luxury cars is owing to a growing disposable income of travelers looking for comfort and ease while traveling, but also owing to an increasing number of High Net worth Travelers increasing the amount of tourism for holiday and recreational purposes. A majority of marketing activities done for luxury car rentals is to appeal to the largest 1-5% of the population which belong in the highest level income groups and aiming to offer added value instead of discounts and concessions on price . The companies focusing on luxury cars handle a database of clients which is extensively maintained and updated just like in the services industry and use that as a means for customer relationship management by prioritizing their customers. The growing need for business based travel by high level executives is another factor contributing to the growth of the luxury car market. Circular economy strategies are helping luxury car rental firms to invest in the business.
Competition Scenario : The most prominent players of the luxury cars rental market include Avis Budget Group, Inc., Sixt Rent-A-Car, Enterprise Rent-A-Car, The Hertz Corporation, Europcar, Al-Futtaim Group, Carzonrent, Localiza Rent A Car, Eco Rent A Car, and others.
Outlook: The Compact luxury cars segment is expected to dominate the luxury cars rental market over the forecast period among other luxury car type segments including midsize luxury cars, full-size luxury cars, luxury crossovers & minivans, and luxury SUVs. The Compact luxury cars segment is estimated to expand at a relatively high growth rate compared to the remaining segments with a CAGR of 14.2% over the forecast period. The Airport transport segment is expected to account for relatively high share with a significant growth rate of 14.4% over the forecast period. Other segments of the luxury cars rental market by end-users segmentation include local usage, outstation, and others. The Online segment is expected to expand at a relatively high CAGR the offline segment over the forecast period, attributed to increasing trend of e-commerce across the globe and ease of availing the service through the online platform. The Online segment is expected to account for a share of 70.2% by 2022 end. The luxury cars rental market is fragmented on the basis of the region as North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among the above-mentioned regions, the Asia Pacific luxury cars rental market is expected to expand at a relatively high growth rate over the forecast period owing to the emerging economies in Asian countries. However, the luxury cars rental market in North America is expected to dominate the global market in terms of value with 46.7% revenue share by 2022 end.
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Ankur Gupta, Head Marketing & Communications