Knowledge Base for Car Rental Management Software

Car Rental Industry Trends in 2018

Latest car rental industry trends will notably shape the journey of car rental companies in 2018. From carsharing taking the lead in 2017, to changes in customer persona to ‘blessure traveler’, the car rental industry had already tested its limits of flexibility. Following the recent performance, car rental companies must have done something right.

According to Zion Market Research 2017 (source), the future of the global car rental industry is bright. In 2016, the global car rental market was estimated at approximately $58.26 billion USD, and is expected to grow at a CAGR of around 13.55 per cent between 2017 and 2022. By 2022, market is expected to reach approximately $124.56 billion USD.

The global economic recovery played a significant role in the performance of the travel industry. The global GDP growth went from 3.1 per cent in 2016 to 3.5 per cent in 2017 (source).Consequently that lead to an increase in the disposable income for travellers, especially in developing countries. Travel industry prospects seem bright for this year as well, as the International Monetary Fund is expecting 3.6 % global economic growth in 2018. (source)

We can certainly argue that the increase in the buying power of consumers, combined with low-cost airfares in the airline industry, directly influenced the growth in the car rental market. Still car rental companies cannot rely only on global economic growth for future success.

There are few more aspects that will have a disruptive effect on the car rental industry. Some of them bringing opportunities and some of them representing challenges. It is up to the car rental companies to play their cards right in order to ensure positive results in 2018.