Download this Essay in word format. The work is divided into two tasks. Critically evaluates key factors e.
The globally rising disposable incomes together with enhanced road infrastructure are regarded to be the key factors that have propelled the number of leisure and business trips, thereby boosting the industry growth. Intense competition and exigent economic conditions prevalent across the globe have driven transformation in the industry over the historical period.
The operators have undergone a significant change in their business models to remain competitive and enhance profitability. The impact of information technology in the industry has driven the transformation of the car rental services. The implementation of technology in these services makes the whole process safe, quick, reliable, and easy for consumers.
In addition to this, the hassle-free process of online reservations and bookings increases convenience for both, the operators and customers.
An emerging trend in the industry is the advancement of global operators towards industry consolidation as the top five key companies accounted for a substantial share of the overall industry in Prominent operators are increasingly undergoing mergers and acquisitions as well as forming joint ventures in order to expand their business territory, capture new emerging market potentials, and enhance the overall profitability.
The global car industry essay, the tightening stringent vehicle emission regulations and high volatility in the crude oil prices worldwide are anticipated to challenge the growth over the forecast period.
Application Insights The applications are primarily categorized into on-airport and off-airport rentals. The on-airport application includes airport transport, whereas off-airport applications include outstation, local usage, and others comprising primarily leisure activities.
The airport transport segment is anticipated to remain the highest revenue generating segment in the coming years. The growth in this segment can be attributed to the rise in air travelers among the global population. The increase in the number of air travelers is expected to propel the demand for car rentals in the airport transport.
The local travel and outstation applications are presumed to witness a high penetration into the market over the forecast period. The growth in the local travel can be attributed to the lack of timing and route flexibility exhibited by the public transport, which has culminated in people turning toward rental service providers for the day-to-day intra-city navigation.
The outstation segment is expected to contribute to the growth significantly as it caters to the weekend traveling activities of the population as well as facilitates the inter-state business transport needs.
The other application segment includes employee transportation solutions and event transportation solutions. Increased proliferation of businesses and cultural events in the leisure segment are expected to impact the growth of this segment positively in the coming years.
Economy cars dominated the overall industry share in and are expected to retain their dominance over the next eight years. Users opting for rental cars for the inter-city transport or for a shorter time span generally prefer economy cars over others.
Economy cars are comparatively cheaper and deliver higher mileage than others. The growth in this segment is primarily driven by the cost-effectiveness of these cars. Executive cars are presumed to witness a significant growth over the next eight years owing to the rising demand originating from corporates.
There has been a rise in business and leisure trips among the global population. Business travelers typically demand higher product and service quality as well as reliability in their travel and vehicle.
This rising need among business travelers is predicted to boost the demand for rental executive cars worldwide. There has been a moderate growth in the number of travelers for recreational and leisure purposes.
Furthermore, the rising economies of the developing regions, coupled with the growing disposable income levels among the general population, have led to an increase in the leisure and recreational activities.
This rise in the disposable income levels among the general population is presumed to drive the demand for SUVs and MUVs in the coming years.
Regional Insights North America is envisioned to emerge as a predominant region over the forecast period owing to the favorable consumer preferences coupled with the presence of a large number of key operators in the region. Increasing number of air travelers along with leisure and business trips, both domestic and international, has led to an increase in the demand for such services in the region.
A steep rise in tourism is presumed to drive the significant growth over the forecast period. Japan and Korea are key regional markets, albeit the services are penetrating rapidly in China and India as well. South America and MEA are poised for substantial growth prospects in the near future owing to the increasing number of individual and corporate consumers in the region.
In addition to this, the regions are witnessing an increasing demand from foreign tourism, which is anticipated to drive the regional demands over the next eight years.
Competitive Market Share Insights The present global market is relatively fragmented in nature and is on the verge of consolidation as the top five players tend to dominate the overall market share.
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Car rental market size was valued at USD billion in The industry’s growth over the last few years can be attributed to the expansion and progression of the worldwide travel and tourism industry.
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