While the broader car rental market is forecast to grow in low single digits through 2029, the United States market grew modestly in 2025 as operators navigated weaker international demand, vehicle recalls and evolving booking behavior, according to Phocuswright's newly released U.S. Car Rental Market Brief 2026.

A decline in international demand left a mark. Airport locations generate the bulk of revenue for the major operators, which made 2025's inbound travel slump particularly painful. The U.S. saw a sharp decline in international visitors, with Canadian arrivals falling dramatically. In an industry where two thirds of revenue is airport-derived, that exposure directly affects rental-day volumes and pricing power.

Supplier-direct online already commands the largest share of gross bookings, and that share is growing. Meanwhile, reservation and call center channels are in steady decline. Large operators are investing heavily in apps, digital keys and personalized offers to deepen the direct relationship and reduce distribution costs. Smaller independent operators, meanwhile, are increasingly relying on OTAs to expand their reach.