Trisha Mathur

Rental Cars Global Systematic Thriving4

Trisha Mathur 6/18/2018 7:24:52 AM

Rental Cars,
Global Systematic Thriving Business : Ken Research

Car rental
market business has developed rapidly over the past few years due to increasing
development in the travel and tourism industry. The increase in the consumers
spending limit along with improved roads or highways infrastructure worldwide
are the major factors that encourage consumers to opt for leisure and business
trips. This trend in turn boosts the tourism business. With the introduction of
information technology in the car rental market, major transformations were
made over the past few years. Additionally, cyber technology is used for
customizing travel trips, online reservations and bookings that has encouraged
consumers to make their travel safe, quick, reliable, and easy. Hassle-free
process of online reservations and bookings increased the convenience for both
the car rental operators and consumers on a global scale.

Mergers,
acquisitions and joint ventures are increasing in the global car rental market.
The rising crude oil price anticipates a challenge in the car rental market
over the next few years. Car rental is
the most important service within the urban transport
sector. The increasing technology has witnessing an increase in business
travellers, demand for car-sharing
and growth in megacities. Car rental companies are
adding cars that have advanced telematics
solutions and navigation
functionalities.

Car
Rental Industry Analysis states that majority
of the global consumers prefer rental cars for local and outstation travelling
which witnessed a higher growth in car rental market. Time conservation and
route flexibility has attracted many consumers towards rental cars which
provide day-to-day intra-city navigation globally. Increasing businesses and
cultural events in the corporate industries sector has impacted the growth in
the global car rental market with event transportation solutions at affordable
costs. These trends help in less environmental pollution and transportation of
a large number of passengers.

Majority
of the car rentals use Multi Utility Vehicles (MUVs), Sports Utility Vehicles
(SUVs), economy cars, executive cars, and luxury cars. Economy cars are
dominating the car rental industry and will continue to dominate in the next
decade due to their low cost and higher mileage. Almost all the business
travellers demand for higher product and service quality along with reliability
during travelling in a rental car.

According
to “Car
Rental Business Review”, SUVs and MUVs will exhibit a minor growth over the
next decade with a moderate growth in leisure travellers. The leading
competitors in the global rental cars are Avis Budget
Group, Enterprise Rent-A-Car, Europcar, The Hertz Corporation, Sixt, Localiza
Rent a Car, Eco Rent A Car, Carzonrent India Private Limited (CIPL), and
Al-Futtaim Vehicle Rentals Company. The rental cars
market is categorised based on the vehicle type such as economy,
executive, luxury, SUV, and MUV cars, by rental category such as airport,
local, outstation, and other transport, and geographically, Asia Pacific,
Europe, North America, and rest of the world. All the global rental car services
operate through a network for pickup or drop-off points. The vehicles are owned
by an organization that rents them to consumers for short periods such as a day
or for a month or year. The increasing global population demands for effective
transportation systems and positive growth is witnessed in the rental cars
market over the coming years.