December 02, 2020
Key Trends and Forecasts for the Global Car Rental Market to 2024
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. The publisher 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.
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