Car Rental Business: A Global Strategic Business Report
San Jose, California (PRWEB) February 29, 2012
Follow us on LinkedIn – The travel industry is one of the biggest industries in the world, comprising a vast array of businesses such as airlines, railways, cruise lines and car rentals, along with travel operators, agents and suppliers. The car rental market which forms an integral part of this industry consists of two primary sectors namely General (which includes airport and non-airport segments) and Insurance Replacement. While the General car rental market includes numerous key companies, which rent cars mainly to business and leisure travelers, the Insurance Replacement segment rent cars primarily to people who have lost their vehicles due to theft, accidents, or breakdowns. A significant chunk of the market’s revenues are derived through rentals at airports, given that industry largely dependent upon travel and tourism, particularly air travel.
Globalization and the ensuing rise in global travel, over the decades, have supported the growth and development of the car rental industry worldwide. Demand for reliable and quality rental services resulted in the expansion of car rental brands globally. Internationally known brands, such as, Hertz have successfully integrated their geographically dispersed operations to provide customers with familiar travel services anywhere in the world. In the upcoming years, information technology will continue to result in the evolution of a new breed of car rental companies capable of leveraging technologies like GPS/Satellite Navigation/Telematics, and Internet to optimize the efficiency of fleet management, reduce fleet costs, increase revenue-per-rental, enhance booking/reservation efficiencies and provide superior service enhancements in terms of increased comfort, and better rental networks. To survive in an increasingly competitive marketplace where players fight for a slice of the market pie with cold eyed focus on profit margins, companies are expected to focus on expanding brand portfolios to include truck rental brands, and value-oriented leisure brands for the recession chastised cost wary consumers and cost conscious corporate customers.
Even as the car rental business as a whole recovers from the consumer and corporate cutbacks on travel which brutalized the industry during the 2007-2009 recession, the industry in Europe is being bogged down by fears of Eurozone debt crisis impacting tourism and travel in the debt-ridden economies. Optimism is nevertheless expected to prevail with the year 2011 ending on an encouraging note with tourism performance as indicated by the level of airline bookings and hotel occupancy rates posting encouraging growth. Also, political conflicts and unrest in Middle East and Northern Africa is re-channeling tourist traffic to Southern Europe. While stock markets’ rally up encouraged by guarded optimism over the government’s latest attempts to rein in the debt crisis, the yet lack of a permanent solution to the mounting financial problem can yet weaken travel/tourism/air travel industry in the region in the immediate future and send knock on effects into the car rental market. In the United States, while short-term market sentiments/confidence levels remain constrained by concerns over the state of the economy, repercussions of the euro debt crisis on the domestic economy, slower economic activity and fluctuating GDP growth, long term growth prospects remain strong.
A key noteworthy trend in the global car rental market is the increase in the number of online transactions. In line with the trend, car rental companies are leveraging the internet to provide customers with easy online payment and booking options. The market is also witnessing a shift towards greener, more enviromentally cars like electric, natural-gas, and hybrid cars. Sustainable business practices are being implemented despite the scarcity of funds. These low emission cars are most suitable for short distance travel, and higher demand therefore comes from business travelers.
As stated by the new market research report on Car Rental Business, United States dominates the world market. Europe will continue to remain as one of the fastest growing regional market with a projected 3.7% growth over the analysis period. Growth in the developing countries will be driven by the rise of recession tourism, as a result of the 2007-2009 world economic crisis, which encouraged a shift in preference for holiday hotspots away from popular generic retreats to low-cost countries/regions like China, India, Australia, and the Middle East. In addition, growth in part will also be driven by privatization and deregulation of the car rental industry in these countries, growing personal disposable income and hosting of mega sporting events like 2014 FIFA World Cup and the 2016 Olympic Games that create a hub for tourism. Airport Car Rental is forecast to witness the fastest growth of 4.0% over the analysis period.
Major players in the market include Avis Budget Group, Dollar Thrifty Automotive Group, Enterprise Holdings, Europcar, Payless Car Rental, Rent-A-Wreck of America, Sixt AG, and The Hertz Corporation.
The research report titled “Car Rental Business: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US$ Million for major geographic markets including the US, Canada, Japan, France, Germany, the UK, Italy, Spain, Russia, Asia-Pacific, Latin America and the Middle East. Segments analyzed by rental locations include airport and non-airport, and segments analyzed by sectors include Leisure, Business and Insurance Replacement.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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