Prospering Travel and Tourism Sector Driving Car Rental Market

The growth in the travel and tourism sector, need for a convenient commuting option, and increasing concern for the environment are driving the popularity of car rental services. In 2018, the worldwide car rental market valued $78.7 billion, from where it is predicted to advance at a CAGR of 7.9% during 2019-2024 (forecast period), to reach $122.6 billion in 2022. Car rental refers to the hiring of cars for a longer period, compared to everyday commute, for which users are charged on the basis of the distance traveled and journey time.

Get a sample copy of the report: https://www.psmarketresearch.com/market-analysis/car-rental-market/report-sample

When segmented on the basis of vehicle type, luxury, executive, and economy are the various categories. Among these, the economy category led the car rental market in 2018, in terms of value, as owing to their higher fuel economy and lesser carbon emissions, they are preferred by service providers. During the forecast period, the luxury category is projected to experience the fastest growth, due to the increasing disposable income, which would allow users to pay the higher price charged for mobility services via these cars.

The growing travel and tourism sector is also one of the key factors driving the growth of the market. The World Travel and Tourism Council said that the tourism industry grew by 3.9% between 2017 and 2018, which was higher than the growth rate of the worldwide gross domestic product (GDP), to which it contributed $8.8 trillion. With the expansion in this sector, driven by the rise in the disposable income of people, the demand for car rental services is also increasing.

Make enquiry before purchase: https://www.psmarketresearch.com/send-enquiry?enquiry-url=car-rental-market

Another important growth driver for the car rental market is the fact that such services offer convenience of traveling. To own a car, one has to pay the heavy purchase cost and spend on insurance, fuel, parking (at certain places), and regular servicing. Car rental allows people to enjoy all the benefits of a personal vehicle without actually owning one, with the charges only levied on the basis of the journey time and distance. Further, rented cars are available almost throughout the day, round the year, thereby making anyplace, anytime travel possible.

Competitive Landscape of Global Car Rental Market

The car rental market is consolidated in nature with just three companies accounting for over half of the market share. Enterprise Holdings Inc. was the market leader in the global car rental market, with 30.6% share in 2018. The company is presently operating in over 100 countries across North America, Central America, South America, Europe, the Caribbean and parts of Middle East and APAC. The other two dominant players in the global car rental market are Hertz Global Holdings Inc., and Avis Budget Group Inc.

The other major players operating in the market includes Europcar Mobility Group S.A., Sixt SE, and Localiza Rent a Car SA.

Recent Strategic Developments of Major Car Rental Market Players

In recent years, major players in the car rental market have taken several strategic measures such as new service launches and partnerships to gain a competitive edge in the industry. For instance, in April 2019, Enterprise Holdings Inc. announced to launch its own car subscription service. Under this service, the customers are required to pay monthly fees to select from six different vehicle classes -- small and mid-sized Sports Utility Vehicle (SUVs), full-size and premium sedans, and small and medium-sized trucks.

In March 2019, Avis Budget Group signed a deal with Etihad Aviation Group to be its exclusive car rental service provider. This deal will provide Etihad Airways Group's guests a greater travel experience.

Contact:
P&S Intelligence
International: +1-347-960-6455
Email: enquiry@psmarketresearch.com
Web: https://www.psmarketresearch.com

About P&S Intelligence

P&S Intelligence is a provider of market research and consulting services catering to the market information needs of burgeoning industries across the world. Providing the plinth of market intelligence, P&S as an enterprising research and consulting company, believes in providing thorough landscape analyses on the ever-changing market scenario, to empower companies to make informed decisions and base their business strategies with astuteness.

This release was published on openPR.