Car Rentals Significantly Influence the Travel and Tourism Industry

Introduction

According to Car Rentals Statistics, Car rental services are crucial in the transportation industry, meeting the diverse needs of tourists and business travelers alike.

Customers have a range of choices, from international chains to online platforms, offering vehicles from economy to luxury models.

Booking can be done online or directly with agencies, requiring essential documentation like identification and a driver’s license.

Pricing varies based on vehicle type and rental duration, with extra services available for additional fees. Insurance options help manage financial risks, while return procedures involve meeting fuel and cleanliness standards.

Technological innovations like mobile apps and vehicle tracking are reshaping the industry, with a growing emphasis on sustainability through electric and hybrid fleets.

Editor’s Choice

• In 2023 the global car rental market revenue stood at $133 billion.
• Projections for 2025 and beyond indicate that offline channels will continue to dominate, with market shares of 70% in 2025.
• Enterprise Holdings Inc. leads with a market share of 15%
• The global car rental market exhibits varied regional market shares, with the Asia-Pacific (APAC) region leading at 33.8%.
• Car rental users worldwide are expected to expand to 644.4 million by 2028.
• As of December 2023, the U.S. car rental market is dominated by Enterprise Rent-A-Car, which holds a significant 39% share of bookings.
• As of December 2023, Zoomcar leads the car rental market in India with a commanding 49% share of bookings.
• The demographics of car rental owners reveal a slight majority of female owners, accounting for 53.40% of the total.

Car Rental Market Overview

Global Car Rental Market Size

• The global car rental market has demonstrated significant growth from 2022 to 2032 at a CAGR of 8.70%.
• In 2022, the market revenue stood at $122 billion. This figure increased to $133 billion in 2023 and is projected to continue its upward trajectory, reaching $143 billion in 2024.
• By 2031, the market is projected to achieve $250 billion, culminating in a substantial $275 billion by 2032.

Global Car Rental Market Share – By Distribution Channel

• The global car rental market has shown a clear trend in its distribution channels from 2017 to 2027, with a growing preference for offline channels over online.
• In 2017, the market share for offline channels was 61%, compared to 39% for online channels. This trend continued, with offline channels increasing to 62% in 2018 and 63% in 2019.
• Projections for 2025 and beyond indicate that offline channels will continue to dominate, with market shares of 70% in 2025, 71% in 2026, and 72% in 2027.
• Consequently, online channels have seen a gradual decline in market share, decreasing from 39% in 2017 to an anticipated 28% by 2027, reflecting the sustained preference for offline booking methods in the car rental industry.  

Competitive Landscape of the Global Car Rental Market

• The global car rental market is characterized by a diverse distribution of market shares among leading companies.
• Enterprise Holdings Inc. leads with a market share of 15%, followed by Avis Budget Group and Toyota Rent-a-Car, each holding 12%.
• The Hertz Corporation commands an 11% share, while Europcar and Sixt SE account for 10% and 9% of the market, respectively.
• Alamo Rent-a-Car LLC holds an 8% share, and Carzonrent India Pvt Ltd also captures 9% of the market.

Regional Analysis of the Global Car Rentals Market

• The global car rental market exhibits varied regional market shares, with the Asia-Pacific (APAC) region leading at 33.8%.
• North America follows closely, holding a 30.1% share of the market. Europe accounts for 25.4% of the market share, demonstrating significant participation.
• Latin America and the Middle East & Africa (MEA) regions hold smaller portions, with market shares of 6.9% and 3.8%, respectively.

Number of Users of Car Rentals Worldwide

• The number of car rental users worldwide has experienced significant fluctuations and growth from 2019 to 2028.
• In 2019, the global user base was 450.5 million.
• The user base is expected to expand to 624.92 million in 2027 and 644.4 million by 2028, reflecting a robust recovery and sustained growth in the global car rental market.  

Car Rentals Bookings by Brand

United States

• As of December 2023, the U.S. car rental market is dominated by Enterprise Rent-A-Car, which holds a significant 39% share of bookings.
• Budget and Avis follow with 28% and 22%, respectively, while Hertz also captures 22% of the market.
• ACE Rent-A-Car accounts for 18% of bookings, and Alamo holds a 17% share.
• Dollar and Advantage Rent-A-Car have 15% and 14% of the market, respectively.
• Thrifty and National Car Rental each command 10% and 9% of bookings, respectively, with Rentalcars.com also at 9%.
• Turo, a peer-to-peer car rental service, accounts for 8% of bookings, while Fox Rent a Car has a 7% share.
• Europcar and Sixt each hold a 6% share, and Green Motion accounts for 5%.

India

• As of December 2023, Zoomcar leads the car rental market in India with a commanding 49% share of bookings.
• Drivezy follows with 21%, and both Eco Rent a Car and MyChoice each capture 20% of the market.
• Savaari holds a 19% share, while Europcar accounts for 15%. Avis and Hertz each have a 14% share, and Carzonrent, North India Car Rental, and Vroom Drive each account for 13% of bookings.
• Revv and SS Travel each hold 11% of the market, with Myles and Travelocar each capturing 10%.
• Volercars and Zyppys account for 9% and 7% of bookings, respectively.

Rental Car Pricing Statistics

Price of Car Rentals Brands Across Various Destinations

• As of the latest data, the price of car rentals for seven days varies significantly across different brands.
• Enterprise offers a competitive rate of $480, making it one of the more affordable options.
• Budget follows with a price of $542, while Hertz and Dollar rentals are slightly higher, priced at $552 and $555, respectively.
• Thrifty’s rental rate is $569, closely followed by Avis at $570.
• Alamo presents a higher price point at $589, and National is the most expensive option, with a seven-day rental costing $695.

Percentage Increase in Rental Car Prices

• When reserving a rental car three months in advance compared to one week out, the price differences vary across different companies.
• Enterprise shows the highest increase, with customers paying 38.63% more for early reservations.
• Thrifty follows with a 14.77% increase, and Alamo’s prices rise by 13.56%.
• Hertz customers will pay 11.01% more, while National sees a 6.23% increase.
• Budget and Avis have similar increases of 6.21% and 5.68%, respectively.
• The dollar exhibits the smallest increase, with prices rising by only 2.09%.

The Best Time to Book a Rental Car

Rental car cost by booking time frame

• The cost of renting a car for seven days varies depending on the booking time frame.
• When booking 91 days in advance, the average price is $589. In contrast, booking just seven days in advance results in a lower average cost of $513.

Car Rental Statistics – By Region

Asia

• The projected data indicates that the Asian car rental sector is poised for substantial growth, with an estimated increase of approximately 348.9 million users by 2027.
• Online sales are anticipated to play a significant role, accounting for 68% of the industry’s revenue by the same year.
• Forecasts suggest a robust compound annual growth rate (CAGR) of 6.08%, resulting in a market value of approximately USD 51.71 billion by 2027.
• On average, each user is expected to contribute USD 141.40 in revenue.

Europe

• The projected user penetration for 2023 stands at 6.4%, with an anticipated increase to 7.5% by 2027.
• By 2027, the total number of users in the car rental industry is estimated to reach 63.4 million.
• Online sales are expected to dominate the European market, accounting for 72% of the car rental segment by 2027.
• The average revenue per user is projected at USD 279.60.
• In 2023, the European car rental market is forecasted to reach USD 15.11 billion.

Africa

• By 2023, the expected car rental revenue in Africa is USD 3.57 billion, with an average revenue per user of USD 53.90.
• Online sales are forecasted to contribute 56% of the total revenue by 2027.
• Projections for the African car rental sector indicate a user base of 91 million by 2027, with user penetration set to increase from 5.3% in 2023 to 6.6% by 2027.

Americas

• In 2023, the anticipated revenue in the American car rental industry was USD 38.50 billion, with projections indicating a rise to 108.50 million users by 2027.
• User penetration is forecasted to increase from 9.8% in 2023 to 10.4% by 2027, with an average revenue per user expected to be USD 0.39K.
• By 2027, online sales are predicted to account for 77% of the car rentals segment’s revenue.

Demographics of Car Rental Owners

By Gender

• The demographics of car rental owners reveal a slight majority of female owners, accounting for 53.40% of the total.
• Male owners comprise 46.60% of the car rental ownership demographic.

By Race/ Ethnicity

• The demographics of car rental owners by race and ethnicity show that the majority are White, representing 56.60% of the total.
• Hispanic/Latino owners account for 21.70%, while Black/African-American owners make up 12%.
• Asian owners constitute 5.90% of the demographic.
• Additionally, 2.80% of car rental owners fall under the “Unknown” category, and 1% are American Indian and Alaska Native.

The Impact of COVID-19 on Car Rental Services

• The car rental industry underwent significant upheaval due to the COVID-19 pandemic, witnessing a substantial drop in revenues by approximately 30% between 2019 and 2020 in the United States.
• This downturn prompted major players to downsize their workforce and offload a significant portion of their vehicle fleets, with up to 770,000 cars sold, representing one-third of their rental inventory. Additionally, approximately 40,000 jobs were cut within the industry.
• Notably, Hertz, a prominent player, sought refuge in Chapter 11 bankruptcy for its U.S. operations on May 22, 2020.
• However, by June 30, 2021, the company successfully navigated through its bankruptcy proceedings and emerged restructured.

Impact of Car-sharing Services

• Car rental firms are promoting car-sharing as an alternative to ride-hailing services like Uber.
• Car-sharing allows consumers to rent vehicles for short periods, typically at hourly rates ranging from $5 to $15. Some services, like Turo, operate on a peer-to-peer model, enabling car owners to rent out their vehicles.
• Car-sharing is praised for its affordability compared to traditional rentals and ride-hailing. Services like Zipcar may offer additional perks, such as dedicated parking spaces. However, drawbacks include insurance issues, as some policies exclude coverage for car-sharing.
• Major rental companies like Enterprise and Hertz have integrated car-sharing into their offerings. Hertz reported a significant growth in car-sharing volume during the third quarter of 2023.

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