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CAR RENTALS - US - JULY 2018

Published By :

Mintel

Published Date : Jul 2018

Category :

Travel Services

No. of Pages : N/A

The car rental industry is a nearly $30 billion industry in the United States, providing rental cars to consumers across the country. Car rental agencies thrive in the travel industry, where they provide vehicles to consumers in places or situations where they may not have access to a vehicle. Thus the majority of car renters rent a car while traveling, either for vacation or business. Rental car brands must continue to engage travelers while fighting off emerging alternative mobility solutions like ride sharing.

Table of contents

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Car rental industry forecasted for stalled growth
Figure 1: Total US revenues and forecast for car rentals, at current prices, 2013-23
Most car renters do so infrequently
Figure 2: Car rental frequency, March 2018
Ride sharing services encroach on car rental space
Figure 3: Attitudes toward vacation rentals, March 2018
The opportunities
Business travelers are the whales of the car rental industry
Figure 4: Car rental frequency, by car rental reasons, March 2018
Millennials like to road trip
Figure 5: Generations, by vacation renters, March 2018
Younger women more likely to upgrade to a flashy car
Figure 6: Vehicle type rented, by gender and age, March 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Car rental industry revenue reached a record $28.63 billion in 2017
One in five consumers rented a car in the past 12 months
Ride sharing participation erodes car rental territory
Positive macroeconomic indicators point to increase in travel
MARKET SIZE AND FORECAST
Car rental revenue forecasts for minimal growth
Figure 7: Total US revenues and forecast for car rentals, at current prices, 2013-23
Figure 8: Total US revenues and forecast for car rentals, at current prices, 2013-23
MARKET BREAKDOWN
Around two in 10 shoppers rented a car in the past 12 months
Figure 9: Car rentals in the past 12 months, by rental purpose, Fall 2017
Business renters are high-volume customers
Figure 10: Number of car rentals in the past 12 months, by rental use, Fall 2017
Figure 11: Rental use, by number of car rentals in the past 12 months, Fall 2017
MARKET PERSPECTIVE
Ride sharing solutions encroach on car rentals
Figure 12: Mobility services used, April 2016-March 2018
Figure 13: Ride sharing behavior, November 2017
MARKET INDICATORS
Increasing gas prices raise costs and deter travel for vacation and business travelers
Figure 14: US gasoline and diesel retail prices, January 2007- June 2018
Economic conditions give consumers confidence to travel
Figure 15: Consumer confidence and unemployment, 2000-May 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW
Avis partners with Waymo to manage self-driving fleet
Enterprise Holdings grows market share in 2017
Revenue per vehicle in service increases in the industry
USave Auto Rental System revenue falls significantly in 2017
US CAR RENTAL MARKET
Enterprise is the leading car rental provider in the US
Figure 16: 2017 car rental market, by number of locations and revenue, 2016-2017
WHAT’S WORKING?
Enterprise Holdings most ubiquitous rental provider
Enterprise’s email marketing program largest among rental agencies
Figure 17: Email marketing performance, by car rental agencies, 2017
Figure 18: Enterprise consumer acquisition email, April 2018
Hertz business email marketing shows returns for business travelers
Figure 19: Hertz business rewards email, March 2018
WHAT’S STRUGGLING?
Avis Budget Group and Hertz have estimated revenue decline in 2017
U-Save Rental faces uncertain future after tumultuous 2017
WHAT’S NEXT?
Avis partners with Waymo to manage fleet of self-driving cars
E-Z Rent-A-Car offers cryptocurrency as rewards
THE CONSUMER – WHAT YOU NEED TO KNOW
Men aged 35-54 are the prime car rental audience
Majority of car renters are infrequent customers
Millennials like to rent a car for road trips
Business travelers are the whales of the car rental industry
MOBILITY SERVICES USED
Third of consumers have rented a car in the past year
Figure 20: Mobility services used, March 2018
Men 35-54 have highest rates of car rental use
Figure 21: Mobility services used, by gender and age, March 2018
Figure 22: Mobility services used, by gender and parental status, March 2018
CAR RENTAL FREQUENCY
Majority of car renters rent only up to twice a year
Figure 23: Car rental frequency, March 2018
Men more likely than women to rent a car three or more times
Figure 24: Car rental frequency, by gender and age, March 2018
Figure 25: Car rental frequency, by gender and parental status, March 2018
CAR RENTAL REASONS
Majority of renters do so on vacation
Figure 26: Car rental reasons, March 2018
Destination rental on vacation are the top reasons
Figure 27: Car rental reasons, March 2018
Nearly three in 10 business renters are moderate or heavy users
Figure 28: Car rental frequency, by car rental reasons, March 2018
Income correlates with replacement vehicle renters
Figure 29: Car rental reasons, by household income, March 2018
VACATION RENTERS
Majority of car renters reserve transportation for their vacation destination
Figure 30: Vacation renters, by car rental reasons, March 2018
Millennials make up more than half of road trip renters
Figure 31: Generations, by vacation renters, March 2018
Younger women over index among road trip renters
Figure 32: Gender and age, by vacation renters, March 2018
Figure 33: Enterprise loyalty email, May 2018
Pricing remains paramount in vacation rental decision making
Figure 34: Attitudes toward vacation rentals, March 2018
Younger renters prefer to rent to drive to their destination
Figure 35: Attitudes toward vacation rentals, by age, March 2018
Business and vacation renters provide more lucrative opportunities
Figure 36: Attitudes toward vacation rentals, by car rental reasons, March 2018
BUSINESS RENTERS
Quarter of business renters show varied car renting behavior
Figure 37: Business car rental reasons, March 2018
Men make up bulk of business renters
Figure 38: Gender and age breakout, by type of renter, March 2018
Figure 39: Enterprise online display ad, May 2018
Business renters have more diverse rental history
Figure 40: Rental companies used, by rental car reasons, March 2018
Figure 41: Repertoire analysis of rental companies used, by car rental reasons, March 2018
Only four in 10 business renters get to choose their preferred provider
Figure 42: Attitudes toward business rentals
Business renters more likely to rent smaller vehicles than vacationers
Figure 43: Vehicle type rented, by rental car reasons, March 2018
VEHICLE TYPE RENTED
Sedan remains a mainstay option for car renters
Figure 44: Vehicle type rented, March 2018
Younger women seek fun cars to rent
Figure 45: Vehicle type rented, by gender and age, March 2018
RENTAL COMPANIES USED
More than half of car renters used Enterprise in the past 12 months
Figure 46: Rental companies used, March 2018
Third of car renters use multiple agencies
Figure 47: Repertoire analysis of rental companies used, March 2018
Figure 48: Car rental reasons, by repertoire analysis, March 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Direct marketing creative

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