Car Rentals: A Global Outlook
San Jose, California (PRWEB) September 11, 2008
Changing dynamics of car rental in the current scenario requires a re-examination, and re-evaluation of trends and issues. The global market is dominated by the world's most affluent economy, the United States. Increasing globalization, and internationalization has been a key trend shaping the market in the recent past. Globalization has emerged into a major factor steering revenue growth. Over the last decade, there has been considerable growth in the global travel business. Customers who travel extensively are opting for superior quality, and more consistent/well-known travel services. Brand name, therefore, remains a key factor that drives revenue growth in the car rental business. Building up the image of already existing brands and further expansion of brand portfolios remain the prime concerns of car rental companies. Several companies are investing in building brand equity. Several major companies are cashing in on this trend by seizing the opportunity to expand their brands into other geographic markets worldwide. Companies are now using an integrated global car rental system to operate their geographically diversified operations.
Growing sophistication of the car rental business in terms of service enhancements such as increased comfort, better networks, better vehicle condition, availability and improved reservation efficiencies, have contributed to the market's growth in the recent past. Rapid development of the Information Technology sector is additionally expected to aid growth in the upcoming years by de-bottlenecking business processes involving automated booking, payments, marketing, and information retrieval. Online bookings, ushered in by the era of the Internet, are helping open up new business avenues in the car rental market. For instance, purchasing and shopping for rental cars through the internet has helped car rental companies expand businesses, and reduce reservation costs. As competition in this category intensifies, players are expected to slash down online car rental prices, leading to intense pricing pressures.
The global economic scenario today forces several industries to function under restricted budgets and car rentals are no exception. To sustain in a competitive environment, firms are waking up to the dire necessity of reorganizing their operational activities i.e. streaming and reorganization of fleet sizes. Moreover, ever-changing trends put companies in a dilemma as to what their customers prefer. While some firms are luring customers with discounted offers on rental rates, other companies are attempting to capitalize on the premium segment by introducing luxury cars, which demand a higher rent.
Environmental rental cars are forecasted to rise in popularity in developed markets, such as the US, where environmental concerns have thrown the limelight on electric, natural gas, and hybrid low-emission cars. Car rental companies are tiptoeing into this new segment despite the scarcity of funds, and the tough business conditions presently prevalent in the marketplace. As these cars are most suitable for short distance travel, a higher demand for these cars is expected to stem from the business travelers.
Although, sky-rocketing fuel prices and weakening US economy is expected to take a little steam off the market's growth, rising international air traffic offers reasons for optimism over the market's long-term outlook. As against the traditional airport car rental market segment, non-airport market segment is expected to generate opportunities for growth, driven largely by increased use of car rentals for leisure purposes.
The report titled "Car Rentals: A Global Outlook", published by Global Industry Analysts Inc, provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird's eye view of the global car rental industry, with discussions on key up-to-date noteworthy trends influencing the industry, as well as a rudimentary peek into the different sectors of the car rental industry. The report also provides a recapitulation of all recent mergers, acquisitions, and strategic corporate developments witnessed by the industry over the last few years. The report offers a regional-level discussion, along with supporting tables and pictorial representations, on the prevalent scenario in key regional markets such as the US, Canada, Japan, and Europe, among others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 988 companies worldwide.
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