What is the outlook for car rental in 2023?
What is the outlook for car rental in 2023? Revenue in the Car Rentals market is projected to reach US$29.94bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 1.52%, resulting in a projected market volume of US$31.80bn by 2027.
Why are rental cars so expensive 2023?
Why are car rentals so expensive right now in 2023? Car rentals cost more than they did a few years ago due to many different factors, but primarily because of supply chain issues related to the COVID-19 pandemic.
Is the car rental industry growing?
The market size of the Car Rental industry increased 9.6% in 2022. Has the Car Rental industry in the US grown or declined over the past 5 years? The market size of the Car Rental industry in the US has grown 6.9% per year on average between 2017 and 2022.
What are the new trends in the car rental industry?
A number of trends are influencing the car rental market, which include the transition to electric car rental vehicles, the increasing use of rental cars for leisure purposes and the incorporation of shared mobility into the car rental business model.
Why are rental cars so expensive again?
Car rentals cost more than they did a few years ago due to many different factors, but primarily because of supply chain issues related to the COVID-19 pandemic. As demand for rental cars fell, rental car companies sold segments of their fleets to stay in business during the lean times.
How technology is changing the car rental industry?
The most major way that ride sharing innovation is changing the automobile rental industry is by enabling businesses to enter a brand-new market. By leveraging vehicle sharing software, businesses can offer drivers who don't want to use their own vehicles rideshare-compatible vehicle rental services.
Will there be a rental car shortage in 2023?
Through 2023 at least, limited vehicle availability will continue. However, most experts report some recovery on the horizon. There were finally early signs of increased allocation to rental fleet channels in fall 2022. Operators still need to be clever in how they source cars as we inch toward supply recovery, though.
Why are all the rental cars gone?
That is because the shortage of semiconductor chips that has held up auto manufacturing persists, leaving rental car companies to operate with lower inventory after they sold off chunks of their fleets in the early days of the pandemic. Building that stock back up has been more difficult than expected.