Car Rental Industry Report
Volatile air travel conditions and low traveler numbers in recent years continue to have the greatest affect on rental car services and leasing operators.
The primary activities of firms in this industry are:
- Passenger car rental
- Passenger car leasing
Three types of risk are recognized in Car Rental Industry: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk). Rent a Car Baneasa Airport. Things should pick up speed as the economy begins recovering and consumers start traveling again.
Car Rental Trends 2010
World tourism could grow moderately next year after a single-digit decline of about 5% this year, leading international organisations predicted this week.
Companies within Car Rental Industry rent or lease passenger cars to customers.
The renting of cars is typically for a short duration (30 days or fewer), while leasing agreements are for a longer period of time (12 months or more).
The industry does not include the rental or leasing of cars with drivers. In the meantime, off-airport markets, such as insurance replacement rentals and car sharing, are expanding as companies big and small look to other revenue streams and less volatile markets.
The car rental market is generally categorised either by the type of customer (Leisure, Corporate, Replacement/Insurance) or by the location of rental (airport, non-airport). Low cost Car Rental in Romania. Estimation are 54% of the market to be leisure, 40% corporate and 6% being replacement business.
Car Hire Profitability
Business travel as the main purpose of trip decreased by 3.2 percent in 2009 from the previous year, but leisure travel increased by 3.4 percent.The global car rental industry is undergoing a radical transformation. Leading this transformation has been the $16 billion US car rental industry. Four years ago, virtually all of the major US car rental companies were owned by automobile manufacturers. Today only Hertz (80% owned by Ford) remains in auto manufacturer control.New owners have brought additional standards to the management of the leading car rental companies. The difference is that the new owners are interested in maximizing profits as opposed to smoothing out the new car sales cycle. This ownership shift has driven most of the leading car rental companies to evaluate how they can thrive in this new, highly competitive environment. Car Rental companies realize it is imperative to reinvent the way they operate. Car rental in Otopeni Airport. Although each of the leading car rental companies has their own strategy to fuel growth.READ MORE