A new high for the U.S. car rental industry
Car rental in the U.S and abroad
In recent years, the car rental industries all around the world have grown rapidly. While the economic crisis of 2007 and the follow-up recession did cause some harm, recovery was smooth. Many companies from the car rental industry are adapting to the changing environment and are achieving success. People are gradually building trust with them.
But expectations are also rising. Companies that fail to keep up with the new trends or do not use internet marketing cannot satisfy their clients’ needs. “Everything must be perfect.” Some companies are falling behind and are having difficulties with their recovery.
Another major issue for the car rental industry is the informal market. Many small businesses or individual drivers are using the large, online social media websites to find clients. While this is common carpooling, its widespread use is affecting taxi drivers, bus companies, and car rental companies. Trying to compete with local carpoolers who evade tax and thus offer cheap services is hard.
The Car Rental Industry in 2017
The last year has brought some change to the industry. As of the end of December, the overall U.S revenue is slightly above 28.6 billion dollars. Compared to 2016, there is a small increase.
While these are good news, it is important to note that the number of active vehicles is drastically lower. More than 2,186,000 vehicles are conducting services in the industry in 2017. But in 2016, that number was slightly above 2.3 million.
When compared with 2015, the number of vehicles this year is the same as that of 2015, but the overall earnings are significantly higher.
It is not a question of quantity but quality.
Two good reasons for all this can be the tense competition and the achieved efficiency by most active companies. Some car rental service providers are falling behind. But those that achieve higher levels of efficiency can not only win more money but even do it with a smaller number of active cars. Overall revenues are growing even in these times of change.
The new 2018 will surely provide opportunities for the industry, but nothing is guaranteed. The competition coming from the informal economy will be a challenge for any company willing to grow and expand its reach.
What the future holds for the Car Rental Industry
It is clear that the current trends will continue to shape the market. We can make one simple conclusion about it.
If the amount of companies/vehicles is smaller, but the market’s revenue is higher, it is safe to say that the existing providers are doing a better job. What this means is that the active companies are more than capable of fulfilling their clients’ needs.
The market participants will have to keep their skills sharp and collaborate with each other if they are to succeed.
Some good tips for companies that are aiming to grow are: trying to cover a wide territory for operations, being present in the most vital locations within a given city, having a large online presence, and conducting online services such as booking.