Car Rental industry in Australia Industry Market Research Report Now Available from IBISWorld

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Consumers have become more adept at using the internet to book rental cars, causing increasing price competition within the industry. For this reason, industry research firm IBISWorld has added a report on the Car Rental industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Industry profit has been tightened by consumers' ability to compare prices through car rental aggregator websites.

Operators in the Car Rental industry in Australia have cruised along at a slow speed over the past five years as it has recovered following the global financial crisis. Largely positive consumer sentiment and business confidence have allowed for greater certainty in household and business income streams, which has led to more domestic holidays being taken and more corporate travel occurring. According to IBISWorld industry analyst David Whytcross, “With more travel occurring throughout Australia, demand for rental cars has been boosted.” Coupled with growing international travel to Australia, industry revenue is forecast to rise by a compound annual rate of 1.3% over the five years through 2014-15, to reach $1.21 billion. Growth of 0.6% is forecast for the current year.

The recovery over the past five years has been limited by a strong Australian dollar, which has discouraged some international travel to Australia. The composition of tourists coming to Australia has changed. “Tourists are increasingly coming from Asia rather than western countries, and this trend has proved less lucrative for the industry,” says Whytcross. On top of this, profit margins have been tightened by consumers' ability to compare prices through car rental aggregator websites. Consumers have become more adept at using the internet to book rental cars, causing increasing price competition within the industry. These websites have also provided greater opportunities for new entrants, as marketing expenditure becomes less vital in attracting customers. The industry exhibits a high level of market share concentration. Major companies include WTH Pty Limited, Hertz Investment (Holdings) Pty Limited, Europcar Holding Pty Ltd and National Roads and Motorists’ Association Limited.

Car sharing programs present a threat to the industry. While car sharing does not yet provide major competition to the Car Rental industry, it is expected to expand rapidly over the next five years. Domestic tourists are expected to enjoy the flexibility of car sharing arrangements, particularly with multiple inner-city pick-up points and renting by the hour. The falling Australian dollar is also expected to attract more international tourists, boosting demand for rental cars. However, competition within the industry due to aggregator websites and competition from car sharing are expected to constrain industry revenue over the next five years.

For more information, visit IBISWorld’s Car Rental industry in Australia report page.

Companies in the industry are involved in renting out cars. The industry includes car rental companies that also rent out trucks, vans and buses. The industry excludes commercial and fleet leasing.

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IBISWorld Industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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