The Car Rental Industry Takes Flight Aries Car Rental 166 Adelaide Terrace, East Perth, WA 6004 08 9218 9944
The car rental industry has grown over the past 40 years. In 1975, the Australian car rental industry has generated profits amounting to over $2.5 million. Over the next 11 years, the figure increased almost 10 times the amount, reaching more than $210 million. Statistics from 1975 through 1986 claim that the dramatic growth of the industry resulted from the increased accessibility to Commonwealth airports in the country. Now, three decades after the industry first boomed, it still continues to be a profitable business. Over the recent years, revenues for car rental services all over the world have reached billions. Car rentals in the United States have an average fleet size of 1,200 vehicles. In 2013, rental cars comprise about 10 % of all vehicles in the U.S. For its part, China is home to the world’s biggest car rental service, which boasts of over 26,000 cars.
Popular car models for rentals are subcompact cars, minivans, compact cars and mid-sized cars. Last year, over 20% of all compact cars, and 21% of all mid-sized cars, have been sold to car rentals. Size is a primary consideration for choosing a car to rent. In 2015, the most popular rental car models were the Chevrolet Cruze, Chrysler 200, Nissan Altima, Toyota Camry and Toyota Corolla. Twenty-five percent of all Camry sales were to auto rentals. SUVs are also popular among car rental owners, having sold 11% of its type to rentals in the first quarter of 2015.
The popularity of the models can be attributed to the client demographics of car rental services. Over 53% of clients rent cars for business purposes, so the high sales of subcompact vehicles to rentals do not come as a surprise. SUVs are usually rented for leisure and family vacations. Airports are lucrative avenues for car makers and rental services. Less popular auto models serve as rental cars and shuttles to the rental services near the airports. The car rental industry is poised to grow even bigger in the following years. More businessmen are venturing into the industry, and car makers need even more places to put their models on. Airports are also becoming even more accessible and accommodating to such services. The car rental industry has every reason to take flight.
Sources:
http://www.futuremarketinsights.com/reports/car-rental-market-forecast-period-2015-2025
http://www.wsj.com/articles/u-s-auto-industry-develops-a-weak-spot-1434364381
http://www.ariescarrental.com.au/about/cheap-airport-car-hire