Product Code: 49189
The global vehicle tourism Market is anticipated to register a CAGR of about 12.37% during the forecast period (2019 - 2024).
- Over the decades, tourism has been rapidly growing and experiencing deepening diversification and becoming one of the fastest growing economic sectors in the world. Modern tourism is closely linked to development and encompasses a growing number of new destinations. These dynamics have turned tourism into a key driver for socio-economic progress. As tourism is a huge market the demand for vehicle rentals is growing around the world.
- The major growth is expected to come from Asia-Pacific countries, like Vietnam, the Philippines, India, and China where tourism is expected to grow sharply. Organized vehicle rental services are still in their nascent stage in the emerging economies and offer significant opportunities for growth. The tourism sector in Iran is expected to boom, following the lifting of sanctions. Iran has a rich cultural heritage and important monuments, and tourist destinations and the number of foreign tourists are expected to rise exponentially. The local vehicle rental market in the country is underdeveloped and offers players tremendous opportunities.
- With increasing, environmental pollution vehicle rental players are considering electric vehicles are an ideal solution for the tourist industry. They are anticipated to play an important role in minimizing the greenhouse emissions by a significant percentage provided all the rental vehicles are converted to electrical vehicles. The already existing electrical vehicles for tourists can be fully utilized by them by increasing the awareness about their presence.
Scope of the Report
The global tourism vehicle rental market has been segmented by vehicle type, booking mode, end-user, and geography.
Key Market Trends
Increase in Tourism Worldwide
At present, the business volume of tourism equals or even surpasses that of oil exports, food products, or automobiles. Tourism has become one of the major sectors in international commerce, and represents, at the same time, one of the main income sources for various emerging economies. This growth goes hand-in-hand with an increasing diversification and competition among destinations.
According to the World Tourism Organization (UNWTO), in 2018, the International tourist arrivals grew by 6% and reached 1.4 billion. The tourism industry is growing rapidly due to the various factors such as stronger economic growth, affordable air travel, new business models, and easier access to visa's accelerated that date by two years, all these factors are likely to continually drive the tourism industry.
For instance, Salvador, the second city of tourism after Rio and with a metropolitan area of over 3 million people, is Brazil's eighth most populous city. Fortaleza is home to another 3.5 million Brazilians and is the fifth largest city with a strong tourist appeal, as well as a strong industrial base. Brazil vehicle rental companies cater specifically to tourists looking to explore Brazil in their own time, with online and walk-in booking services making vehicle rental more simple, accessible, and efficient
The rental market for luxury vehicles will grow at the fastest pace during the forecast period due to increased travel budgets of tourists around the world. Also, tourists from developed nations and emerging markets who are increasingly exploring new destinations prefer to rent luxury and high-end cars and this will boost the market for these cars.
Europe - Leading the Tourism Vehicle Rental Market
The global tourism vehicle rental market is dominated by Europe, followed by Asia-pacific and North America respectively. European vehicle rental companies cater specifically to tourists looking to explore the destinations in their own time; with online and walk-in booking services, making vehicle rental more simple, accessible, and efficient.
In 2017, in Europe, tourists spent approximately EUR 87 billion, showing an increase of 12.4% compared to 2016.
- Additionally, in 2017, tourists spent EUR 1,061 on an average, a 3.1% increase compared to 2016.
- Spain became the second largest tourist attraction in the world, the market for rental cars has also increased. In 2017, foreign tourism demand increased by 9.8%, accounting for 45% of the market, while domestic tourism increased by 4.3% and accounted for 22% of the market.
- In 2017, tourists spent about EUR 735.75 million on an average on car rental.
In 2018, France witnessed the largest footfall of international tourists of more than 90 million followed by Spain at 82.8 million footfall. In 2017, Italy, the United Kingdom, and Germany witnessed 52.4, 35.8, and 35.5 million tourist visits, respectively.
- The number of tourists is directly proportional to the vehicle rental market as these countries, holding the top five spots in terms of market revenue.
Apart from Europe, the US tourism vehicle rental services are present all across the country. Major car-renting companies have their fleets in almost all major cities. New York has more than 25 notable airports, with total passenger traffic of over 50 million per annum.
- The airports also provide a wide selection of car rental service providers to their commuters.
- The state is one of the most expensive locations to rent a car, with a daily average of around USD 76.
- This can increase with the rise in rent for luxury cars or renting cars at intercity or interstate travel.
The global tourism vehicle rental market is fragmented and dominated by various players which includes, Carzonrent, Easycar, Europcar, Hertz, Avis, Europe Luxury Car Hire, Kemwel, Sixt, Zoomcar, Autoeurope amongst others. The companies are expanding their fleet size and launching. For Instance;
- Avis Budget Group Inc. added 6,000 Peugeot, Citroen and DS vehicles to its connected car rental fleet in Europe. These vehicles will operate across the company's Avis and Budget brands in Austria, Belgium, the Czech Republic, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, Spain, Switzerland, and the United Kingdom, along with the Maggiore brand in Italy.
- Hertz Europe has launched free mobile Wi-Fi and other exclusive benefits for qualifying car rentals in more than 200 locations across Europe.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
- 4.3 Industry Attractiveness - Porter's Five Force Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Vehicle Type
- 5.1.1 Economy
- 5.1.2 Luxury/Premium
- 5.2 By Booking Type
- 5.2.1 Online
- 5.2.2 Offline
- 5.3 By End-user Type
- 5.3.1 Self-driven
- 5.3.2 Rental Agencies
- 5.4 Geography
- 5.4.1 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 220.127.116.11 Rest of North America
- 5.4.2 Europe
- 18.104.22.168 Germany
- 22.214.171.124 United Kingdom
- 126.96.36.199 France
- 188.8.131.52 Spain
- 184.108.40.206 Rest of Europe
- 5.4.3 Asia Pacific
- 220.127.116.11 China
- 18.104.22.168 Japan
- 22.214.171.124 India
- 126.96.36.199 Rest of Asia-Pacific
- 5.4.4 South America
- 188.8.131.52 Brazil
- 184.108.40.206 Argentina
- 220.127.116.11 Rest of South America
- 5.4.5 Middle East and Africa
- 18.104.22.168 United Arab Emirates
- 22.214.171.124 Saudi Arabia
- 126.96.36.199 South Africa
- 188.8.131.52 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Company Profiles
- 6.2.1 Autoeurope
- 6.2.2 Avis
- 6.2.3 Budget Rent A Car System, Inc.
- 6.2.4 Carzonrent
- 6.2.5 Easycar
- 6.2.6 Enterprise
- 6.2.7 Europcar
- 6.2.8 Europe Luxury Car Hire
- 6.2.9 The Hertz Corporation
- 6.2.10 Kemwel
- 6.2.11 Sixt Inc.
- 6.2.12 Zoomcar
7 MARKET OPPORTUNITIES AND FUTURE TRENDS