The car rental industry today is enjoying a boom amid rising disposable incomes, improved air connectivity across smaller cities, and healthy growth in business and leisure travel. The U.S. market had its best year ever in terms of revenue in 2018, clocking a 4.8% jump in top line to over $30bn. Even more impressive was the fact this record revenue was realized on smaller fleet base, with revenue per unit hitting an all-time high of $1,131 per month.
Historically, car rental pricing has depended on how large an event was: the larger the event, the higher the price and revenue managers knew all the large events well and that made sense.
Gone are the times when buying a car was one of the first investments of a working professional for the sheer ease and convenience a self-owned vehicle gives you. The Digital consumer single-handedly has altered the entire automotive industry’s supply chain by impacting both production and consumption of goods.
2020 is a year that the car rental industry would want to forget. The pandemic and the challenges it brought in terms of lockdowns and social distancing had the industry witnessing an unprecedented slump. Fortunately, with the development of the Covid-19 vaccine, demand for car rentals is now gradually picking up.