The Car Rental industry is anticipated to healthily grow to over $29 billion in the next five years. Growth is forecasted to be driven by the increase in number of air travelers, rising per capita income and improved corporate profit.
Per capita disposable income will grow at an annualized rate of 1.5% over the next five years. This, coupled with growth in consumer spending, will lead to consumers increasing their level of spending on car rentals for leisure trips.
The number of inbound trips by non-US residents is projected to increase an annualized 37%. As US airports experience more traffic, demand for car rental services is also forecast to rise to the benefit of industry operators. The industry’s largest companies are expected to retain their competitive advantage over smaller players by maintaining strategic alliances with airlines and hotels. Such partnerships will likely provide rental car companies with a steady stream of referral business, with coordinated rewards programs adding loyalty incentives for consumers.