In the automotive industry, technology is outstripping everything that stands in its way. Even traditional powerhouses have to adapt and adjust, as seen by Porsche announcing its version of the electric car. With mod cons at a premium, it would suggest the likes of rental vehicles, perceived as the most basic models on the market, would be at risk. However, it isn’t – growth is expected to bump by 2% in the years up to 2023 with user penetration increasing by 0.5%.
The numbers are small but they show one thing, and it’s that car rentals aren’t on the decline. The question is: why?
Accidents Are Staying Steady
Driverless cars and artificial intelligence was supposed to revolutionize the automotive industry and make it safer. However, the technology is still rusty and the gains haven’t been implemented as of yet. At this moment, car accidents in the United States are steady at 6 million per year. It doesn’t matter if you’re not at fault or you are because you need a replacement ASAP. Life gets more challenging without one, and it’s not a smart move to be without one when car rental companies have cheap offerings. So, when the car is out of commission, which is often in the US, motorists turn to rental firms.
The Planet Is Pushing Consumerism
People are more wary of their purchases and how they impact the world, and businesses are reacting. Rental companies are some of the most proactive because their products and services are the most at risk. As a result, Enterprise Car Share was born. On-campus at Princeton University, students and faculty can leave their vehicles at home and rent a car for an hour, day or week depending on their needs. What it does is help to reduce carbon emissions, and that’s a massive invitation for motorists to hire a car.
Businesses Are Teaming Up
Businesses are teaming up with each other to boost their bottom line, and rental companies make for great partners. After all, a car is a necessity is yours is out of commission, especially if it’s cheap. That’s why the likes of Expedia offer car rental services to their customers, and they’re not alone. Almost every airline and online travel agency pedals rental cars, as do the airports themselves. With millions of Americans going on an annual family vacation, not to mention the tourists who visit the US, the rental game is in a healthy place.
Space Is Limited
You might think that a car is for driving and driving only, but the residents of Japan would like to disagree. Car rental companies in the Orient have worked out why people hire their products without using them to drive, and the answers are shocking. One is the need for space – it’s so limited that they use rental vehicles for storage. Others need a place to unwind, and they find that their rental is made for the pastime, while it’s also an excellent place to take a nap, apparently. If you think the numbers are minimal, around one in eight doesn’t hire a car to drive it in Japan.
That’s why the car rental business is in good shape and won’t go anywhere anytime soon.