Car Rental services provide both individuals and businesses the ease of temporarily accessing a vehicle for transportation needs, be they travel-related or special occasions-related. From economy cars to luxury models like vans or trucks – customers have a range of rental duration options and usually enjoy being able to select an automobile tailored to meet both preferences and budget requirements. Available worldwide and offering mobility without long-term commitment car rental is an invaluable alternative form of mobility!

Car rental allows people to rent cars temporarily for trips, vacations or special events without buying one outright. Car rentals provide flexible transportation solutions when your own car is unavailable; car rental options are widely available worldwide making car rentals the go-to solution when getting around is key.

(Editor’s Choice)

• Volkswagen remains the top choice when renting cars in Lithuania, Norway and Latvia; 68%, 57% and 51% of people renting this brand respectively.
• About 25-30% of car rental industry revenue derives from corporate clients.
• By 2023, it’s estimated that car rental industry revenues could total $99.54 billion.
• Asian car rental market expected to hit 348.9 Million users by 2027
• There are more than two million economy-class rental vehicles operating within the US market.
• By 2026, it’s projected that car rental users could reach 602.2 million.
• Annually, the United States accounts for almost 50% of global car rental industry turnover.
• American car rental users are projected to reach 108.50 million by 2027.
• Most New Zealand and Australian renters prefer Toyota or Hyundai cars when renting cars for rental purposes.
• In 2022, the car rental industry recorded revenue of $81.32 billion.

(Source: Enterpriseappstoday)

Top Car Rental Statistics

Car Rental Industry Statistics:

• In 2022, the US car rental market generated $56.3 billion.
• 2022 saw car rental industry growth of 9.8% when compared with 2021.
• By 2031, it’s estimated that global car rental market will nearly double to reach $121.1 billion.
• Luxury car rentals were estimated to be valued at $29.5 billion in 2022 and projected to more than triple by 2028.
• Over 25% of car rental revenues come from corporate customers.
• North America held more than 37% of the worldwide car rental market prior to pandemic influenza outbreak.
• Car rental businesses have experienced rapid expansion across both Middle Eastern and African regions.
• COVID-19 caused car rental revenues to decrease 31.05% and market size to decrease 37.2% during its pandemic phase.
• Car rental costs have seen an average daily rental increase of 76% since 2014 at certain tourist spots this increase even reached 278%.
• Even during a pandemic’s devastating aftermath, US car rental market experienced an average annual compounded growth rate of 2.8% between 2017-2022.

Surprising Car Rental Facts:

• 2022 saw over 17,000 car rental businesses operating within the US.
• California (1,355), Florida (1,050), and Texas (960). boast the most car rental companies.
• 54% of rental cars in the US belong to domestic brand vehicles.
• 55% of global car rentals are utilized for leisure travel purposes.
• Nearly 50% of global luxury car rentals take place within the US.
• Some states such as New York and Michigan allow underage drivers to rent cars.
• Young drivers under 25 may incur an extra rental car fee when renting.
• Some countries prohibit people aged 70 or 80 from renting cars despite holding valid driving licenses.

(Source: passport-photo.online)

Trends of Revenue Generation for U.S. Car Rental Industry

• In 2020, industry revenue decreased by 27.4% year-on-year – falling from $32 billion to $23.22 billion and reaching its lowest revenue level since 2011. This decline can primarily be attributed to COVID-19 pandemic outbreak.
• 2021 saw some signs of rebound for the industry with 21% revenue increase to $28.1 billion as COVID-19 restrictions eased; however, this did not fully reverse 2020 declines.
• Projections reveal that the U.S. car rental industry will experience annual compound growth of 5.27 % between 2022-2026, reaching annual revenues of $31.43 billion by 2026 and signifying further recovery efforts.
• From 2020-2027, this growth would result in a compound annual growth rate of 6.7% compounded annually; as the industry value in 2020 stood at $58.34 billion. COVID-19 pandemic recovery should play a large role in driving this development.

(Source: zippia)

Best Time To Book

• Booking 91 days ahead: In general, car rentals average at approximately $589 for 7-day rentals across various car brands.
• Booking Seven Days Early: With advanced reservation of just 7 days, an equivalent seven-day rental could cost approximately $513.

(Source: Enterpriseappstoday)

Key Players

Key Players In The Car Rental Industry

• Enterprise Holdings: With more than 6,000 locations nationwide and more than one million cars under its care, Enterprise is the largest car rental provider in America and earned $14.472 Million in revenues during 2020.
• Hertz Group: One of the industry’s major players, known for their worldwide reach and large rental car fleet.
• Avis-Budget Group: Another major player that operates both Avis and Budget brands to offer rental solutions across a wide array of segments.

These three major groups hold nearly 94% of the U.S. car rental market combined and exert significant control due to their extensive networks and fleet sizes.

(Source: zippia)

Demographics and Statistics:

• A significant percentage of car rental agents are female and Spanish speakers.
• U.S. car rental sector witnessed 12.1% employee expansion in 2021 and 18.4% employment increase during pandemic times, as evidenced by annual workforce increases of 12.1% and 18.4%, respectively.
• Since 2010, average wage levels for car rental workers have seen an annualized growth rate of 1.0%.
• 2022 saw approximately 150,000 employees working within the car rental industry across America.
• Female car rental agents comprise 50.5% of the workforce and have an average salary of $22,759 – slightly below that of their male colleagues who earn $25,100 on average.
• Car rental industries employ an increasingly diverse workforce: 57% are Caucasian 22% Hispanic or Latino and 12% Afro with an average age of 40+ workers and around 36% holding high school diplomas while 62.5 speak Spanish as their native tongue.
• According to car rental statistics, approximately 53.4% of car rental agents globally are female while 46.6% are male agents.

(Source: passport-photo.online and enterpriseappstoday)

Statistics by Revenue.

• In 2017, the industry generated $85.89 billion in revenues.
• In 2018, revenue had skyrocketed to an astounding total of $88.55 billion.
• In 2019, revenue continued to expand, reaching $89.33 billion.
• However, in 2020 there was a marked decrease in revenues, down to $56.63 billion likely as a result of COVID-19 pandemic effects.
• 2021 witnessed some recovery with revenues increasing to an impressive $70.62 billion.
• In 2022, the car rental industry generated $81.32 billion in revenues.
• 2023 is projected to see expected revenues reach $99.54 billion.
• Following is our projected revenue projections for the upcoming years:

  2024: $109.30 billion

  2025: $113.00 billion

  2026: $116.30 billion

  2027: $119.40 billion.

(Source: enterpriseappstoday.com)

Car Rental Consumers:

• Car Rental Consumers: In 2019, approximately 44.5 million cars were rented in the U.S.; by 2020 this figure had fallen to 17.3 million before rebounding with 29.2 million car rentals expected by 2024 – this total will likely surpass 46.8 million rentals as planned by rental providers.
• Car rental customer satisfaction dropped 11 points since August 2020 on a 1000-point scale scale due to higher rental prices and understaffed rental locations, the overall customer satisfaction rating currently standing at 830 (compared with 841 last August).
• Enterprise stands out with an outstanding 861 customer satisfaction rate, followed by National and Alamo with scores of 852 and 837 respectively.
• On average, car rentals from Enterprise were taken out for roughly 18.4 days on average in 2022 for various uses (i.e. not just leisure or business travel).

(Source: zippia)

Advantages and Disadvantages of Car Renting

Advantages of Car Rental

Cleanliness and Flexibility : With car rentals, you have complete freedom over when and where you travel.

Variety of Vehicles: When it comes to finding the ideal vehicle for you and your needs, the selection can be extensive.

Cost-Efficiency: Renting can be cost-efficient for short trips or when you don’t own your car.

No Car Maintenance/Repair Costs to Consider: No need for costly vehicle maintenance and repair bills when renting.

Avoid Depreciation: By leasing, the responsibility for its long-term value rests solely with you and not with the vehicle itself.

Disadvantages of Car Rental:

Costs Can Build Up Quickly: Rental fees, insurance policies and fuel expenses can quickly add up.

Limited Mileage: Some rentals contain mileage restrictions that must be observed during their tenure.

Insurance Issues Can Be Complicated: Navigating and managing insurance can be complex.

At peak times, finding your desired vehicle may prove challenging.

Responsibilities for Damage: Any damages done to the rental car could fall under your responsibility.

By Country

Car rental statistics in India from 2022 demonstrate the following preferences among its population:

• Four out of ten Zoomcar users rented their vehicle.
• 21% of individuals booked rental cars through Drivezy.
• 21% of individuals preferred Eco Rent a Car as the car rental option of choice.
• Other rental companies were chosen according to various percentages of the population: MyChoize (20%), Savaari (19%), Europcar (15%) and Avis/Hertz/14% were selected, along with Carzonrent/North India Car Rental/13% for Vroom Drive, Revv/SS Travels/11% Myles Travelocar/10% Volercars (9) Zyppys (7%) as well as other rental companies (18%) for consideration.

(Source: enterpriseappstoday.com)

Conclusion

Car rental industry is an ever-evolving sector with global reach, offering various vehicle choices to cater to different customer preferences and needs. While COVID-19 had an immense effect on the industry and caused temporary revenue decreases, signs are emerging of its recovery and further growth can be expected in coming years. Enterprise Holdings, Hertz Group and Avis-Budget Group dominate the U.S. car rental industry and have seen workforce expansion while simultaneously increasing diversity. Customers appreciate the versatility and selection of vehicles available through car rentals; however, costs and insurance complexities can present obstacles for consumers. Regional preferences – such as Volkswagen being extremely popular in certain countries – demonstrate this industry’s adaptability to local markets; car rental remains a vital solution to temporary mobility needs worldwide as it continues its recovery and expansion efforts.

ABOUT AUTHOR

by Kundan

Kundan Goyal possesses a wealth of experience in Digital Marketing, offering valuable insights to businesses of all sizes. He actively contributes to industry-specific PR, news outlets, and forums, shaping discussions and driving forward-thinking strategies. Outside of work, HE enjoys carrom and has a deep passion for news editing and research. His strength lies in helping companies make informed, strategic decisions and predicting future trends. With his dedication and innovative approach, he is a versatile professional who brings a unique blend of skills and expertise to the ever-evolving digital landscape, enabling businesses to thrive in this dynamic environment.