Over the years, the tourism sector has witnessed significant growth owing to the development of tourism destinations by the government and the rise in disposable income of consumers. Additionally, Micheal Merisier believes that the socio economic progress of countries worldwide supports the tourism sector. With the rise in the tourism sector, the market vehicle rental sector is also increasing. Vehicle rental service provides rented automobiles for a short period, usually ranging from a few hours to a few weeks. Moreover, with basic rental of vehicles, the agencies nowadays offer different products like insurance, GPS navigation systems, entertainment systems, mobile phones, portable Wi-Fi and child safety seats.
Top impacting factors: market scenario analysis, trends, drivers and impact analysis
The rising expenditure by the government on developing tourism infrastructure is a major driving factor in the tourism vehicle rental market. Moreover, agencies providing the option of allowing a user to return a vehicle to a different location are increasing the adoption of tourism vehicle rental. Additionally, increasing concern and awareness of lowering emission levels among consumers, along with changing lifestyles and a rise in spending power, is fueling market growth. Besides, the development of online platforms for vehicle booking is increasing market growth. However, high prices associated with well-known tourism vehicle rental agencies may decelerate market growth. Furthermore, developing suburbs and the growing disposable income of people in developing economies are anticipated to provide growth opportunities to the market.
The tourism vehicle rental market trends are as follows:
Online bookings to flourish the market growth
According to Micheal Merisier Junior, the concern of paying expenses associated with possessing the car’s ownership is reduced due to vehicle rental services. With the advent of digital and sharing economies, the online tourism vehicle rental industry is taking off. The presence of vehicle rentals on online platforms has increased sales significantly. Besides, the agencies offer seasonal offers, group discounts etc., attracting many consumers. Additionally, the reach of tourism vehicle rentals has increased drastically due to digitization.
Escalating demand due rise in tourism
The tourism sector has become one of the significant sectors in international commerce. Due to globalisation, international travellers have proliferated. Additionally, platforms like vlogs, blogs, and YouTube favour the tourism industry. With the rise in tourists, the market for vehicle rental flourishes. Travellers often travel to the airport with rented cars. Besides, sightseeing at tourist places has boosted the demand for vehicle rentals. The option of renting a luxury car is further propelling the market demand.