Industry Analysis & Industry Trends
The Car Rental industry has changed gears over the past five years, growing strongly after being forced into reverse during the recession. Given that air travelers represent the industry's primary market, growth in air travel over the past five years has been most important in driving revenue expansion. Moreover, the industry is anticipated to continue growing through 2021, driven by an increase in the number of air travelers, rising per capita income and rising corporate profit. The industry's largest companies are expected to retain their competitive advantages over smaller players, such as maintaining strategic alliances with airlines and hotels... purchase to read more
Industry Report - Starting a New Business Chapter
Rental fleet investment is a significant capital outlay. For example, Hertz and Avis Budget both spent substantial amounts on car purchases over the past five years. Even if small companies do not spend as much on their fleet as the largest companies do, the companies still need to invest in fleet maintenance and fleet storage, and they need to operate and staff a rental location.
The major companies enjoy strong brand recognition. Brand recognition eases customer acquisition and can stimulate repeat business if a customer associates a given brand with a good rental experience. Potential new entrants would have difficulty establishing a brand identity because the current brands are heavily entrenched... purchase to read more