The rapid decline in domestic and international travel caused by the pandemic has created a drastic knock-on impact for the car rental industry. With the temporary collapse of tourism flows, many car rental firms have been forced to grapple with suppressed demand and, causing many to rapidly streamline operations in order to navigate the pandemic. However, several are adapting and adopting new technologies and strategies in a bid to cater to changing consumer preferences.
- The car rental market is set to increase in size even after accounting for the challenges faced from the COVID-19 pandemic. GlobalData forecasts that in the years to come, the number of car rental days will increase with a CAGR of 3.2% between 2019 and 2024.
- The online car rental market share is set to increase and may have been accelerated due to the COVID-19 pandemic. In 2019 online sales accounted for 54% of car rental sales. As consumers are now more concerned about the spread of the virus, they are actively looking to reduce their interaction with others and renting a vehicle through an online channel addresses this concern
- Technology will drive change in the industry with touchless technology becoming one of the most important short term innovations. Although not new technology, the implementation of touchless technological solutions in traditional car rental has been limited. It has almost become the industry standard in car sharing and it has started to migrate across into the car rental market.
- The popularity of ride-hailing companies such as Uber and Lyft threaten the existence of car rental companies.
- This report provides analysis of key market trends, M&A deals, and company strategies in the car rental industry.
- Major car rental companies are assessed, along with an analysis of different market segments to provide valuable insight. Challenges along with opportunities in the industry are explained in relation to industry examples.
Reasons to Buy
- Gain an insight into the car rental industry's leading players.
- Understand the key traveler types car hire companies can look to attract
- Look at the impact of the COVID-19 pandemic on this industry
- Gain a detailed understanding of the key trends, issues and challenges facing car rental companies