Tourism Vehicle Rental Market - Growth, Trends, and Forecast (2019 - 2024)

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Sep 11, 2019, 21:15 ET

NEW YORK, Sept. 11, 2019 /PRNewswire/ --

Market Overview
The tourism vehicle rental market is anticipated to register a CAGR of about 3.66%, during the forecast period (2019 – 2024).

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- Over the decades, tourism has been rapidly growing, while experiencing deepening ?diversification and becoming one of the fastest-growing economic sectors in the world. ?Modern tourism is closely linked to development and encompasses a growing number ?of new destinations. These dynamics have turned tourism into a key driver for socio-economic progress. As tourism is a huge market, the demand for vehicle rentals is growing around the world.
- The major growth is expected to come from the Asia-Pacific countries, like Vietnam, the Philippines, India, and China, where tourism is expected to grow sharply. Organized vehicle rental services are still in their nascent stage in the emerging economies, and they offer significant opportunities for growth. The tourism sector in Iran is expected to boom, following the lifting of sanctions. Iran has a rich cultural heritage, important monuments, and tourist destinations. The number of foreign tourists is expected to rise exponentially. The local vehicle e-rental market in the country is underdeveloped and offers tremendous opportunities to the players.
- With increasing environmental pollution, vehicle rental players are considering electric vehicles as an ideal solution for the tourism industry. These vehicles are anticipated to play an important role in minimizing the greenhouse emissions by a significant percentage, provided all the rental vehicles are converted to electrical vehicles. The already existing electrical vehicles for tourists can be fully utilized, by increasing the awareness regarding their presence.

Scope of the Report
The tourism vehicle rental market has been segmented by vehicle type, booking mode, end-user, and geography.

Key Market Trends
Increase in Tourism Worldwide

At present, the business volume of tourism equals or even surpasses that of oil exports, ?food products, or automobiles. Tourism has become one of the major sectors in ?international commerce, and, at the same time, represents one of the main income ?sources for various emerging economies. This growth goes hand-in-hand with ?increasing diversification and competition among destinations.

According to the World Tourism Organization (UNWTO), in 2018, the international tourist arrivals grew by 6% and reached 1.4 billion. The tourism industry is growing rapidly due to various factors, such as stronger economic growth, affordable air travel, new business models, and easier access to visas. The aforementioned factors are likely to continually drive the tourism industry.

For instance, Salvador, the second city of tourism after Rio, with a metropolitan area of over 3 million people, is Brazil's eighth most populous city. Fortaleza is home to another 3.5 million Brazilians and is the fifth largest city, with a strong tourist appeal, as well as a strong industrial base. The Brazilian vehicle rental companies cater specifically to tourists looking to explore Brazil in their own time, with online and walk-in booking services making vehicle rental more simple, accessible, and efficient

The rental market for luxury vehicles may grow at the fastest pace, during the forecast period, due to increased travel budgets of tourists around the world. Moreover, tourists from developed nations and emerging markets who are increasingly exploring new destinations prefer to rent luxury and high-end cars, which may boost the market for these cars.

North America - Leading the Tourism Vehicle Rental Market

The tourism vehicle rental market is dominated by North Ameica, followed by Asia-Pacific and Europe. According to the US Travel Association, the number of domestic leisure trips accounted for 1,821.2 million in 2018 and is expected to reach over 1,900 million by 2022.Currently, both the people coming to the country and the people in the country touring to other parts of the country are opting for road trips during their vacations, which is a driving factor for the rising demand for car rentals in the country

In the United States, tourism vehicle rental services are present across the country. Major car-renting companies have their fleets in almost all the major cities. The size of the fleet for any player depends on the number of tourists preferring to rent a car locally and the volume of foreign passengers visiting to a city.

Canada has a large domestic and foreign tourism industry. Being the second-largest country in the world, Canada's incredible geographical variety and the presence of around 20 world heritage sites are significant tourist attractions for the country. Much of the country's tourism is centered in regions, like Toronto, Montreal, Vancouver/Whistler, Niagara Falls, Vancouver Island, Calgary/Canadian Rockies, British Columbia's Okanagan Valley, and the national capital region, Ottawa. Therefore, these regions are some of the major hotspots for car renting in the country.

Competitive Landscape
The tourism vehicle rental market is consolidated and dominated by few players, such as Enterprise Holdings Inc, Hertz Global Holdings Inc, Avis, Europcar Mobility Group, Sixt SE, Budget and among others. The companies are expanding their fleet size and launching. For instance:
- Avis Budget Group Inc. added 6,000 Peugeot, Citroën, and DS vehicles to its connected car rental fleet in Europe. These vehicles may operate across the company's Avis and Budget brands in Austria, Belgium, the Czech Republic, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, Spain, Switzerland, and the United Kingdom, along with the Maggiore brand in Italy.
- Hertz Europe launched free mobile Wi-Fi and other exclusive benefits for qualifying car rentals in more than 200 locations across Europe.

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