The last global pandemic greatly hit the car rental market in the US, just like most businesses. However, the market has witnessed a great boost after the pandemic. Experts in the industry have also projected a sharp increase in the value of the market in the next couple of years.
But what are the trends that have led to these projections? There are several of them, with technology and customer satisfaction at the top of the chain.
In this post, we’ll be discussing seven major trends in the US car rental market. Read along to learn more!
1. Advancement in Technology
Technology has changed how companies do their business worldwide, and the United States car renting business is not left behind. Leasing automobiles has become easier, and many customers have taken advantage of this.
With mobile apps, people in the United States can do this from the comfort of their homes, hotels, or anywhere without going to the rental dealership. All they need to do is open the app on their mobile phones, provide some information, make payment, and the vehicle can be delivered to their chosen location.
The use of technology has been a growing trend, and many companies, such as TravelPerk, Hertz, and National Car Rental, have incorporated it into their businesses.
2. Better Customer Experience
Businesses want to stand out, and one of the best ways to do that is to give their customers maximum satisfaction and comfort.
Many of these businesses have adopted different tactics to give their customers an unforgettable experience that will get them to patronize them again. These include a mobile-friendly app that is secure, responsive, consistent, and easy to use whenever the customers want to lease an automobile online.
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Also, many businesses now have vehicles of all sizes and classes to meet customers’ needs and tastes. These range from minivans, SUVs, economy vehicles, compacts, convertibles, luxury, full-size cargo vans, and many more.
Some companies even go as far as leasing sports and electric autos. Other companies offer hourly services or subscription services to meet all customer needs. Better customer experience has helped to increase the demand for rented vehicles across all US states.
3. Utilizing Electric Powered Cars
Because of growing environmental concerns, many companies are gradually shifting from gas-powered vehicles to electric ones. Tesla, Rivian, and General Motors are some of the leading producers of electric autos adopted by most car rental companies.
Aside from the environmental factor, most customers and companies prefer these electric automobiles because they’re easier to maintain and more comfortable. Besides, they’re quiet compared to gas autos. And very importantly, they’ve proven to outperform automobiles that use fossil fuels.
4. More Demand
The United States Census Bureau projected an increase in the population, and with this increase comes an increase in the demand for goods and services, including car rentals.
Today, we have more people traveling for pleasure and business. More and more people are opting to lease vehicles for these trips because of the cost of buying and maintaining one. Plus, sometimes you must go somewhere, but your automobile will suddenly develop a fault. The option available for most people will be to lease one.
Due to these factors, the market has become saturated, and many companies are adding more vehicles to their fleets to meet the demand.
5. Partnership With Other Sectors
Although there has been an increase in the demand for these vehicles, the competition is high. Several rental companies are springing up, and the existing ones compete to remain at the top of the market. As a result, some of these companies have shifted from the conventional way of doing business.
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Before now, they mostly waited for the customers to come to them to lease vehicles, but now they take the vehicles closer to the customers through partnerships with other businesses.
The greatest demand for these services comes from hotels and airports. Instead of waiting for customers to book one, the companies form partnerships with hotels and airports. A customer may not necessarily call the companies, but the airport or hotels can book on behalf of their customers.
Today, rental company owners need to actively seek opportunities for collaboration. And contact database providers like Leadar can be very helpful in this regard, offering leads for partnerships, sales, or marketing.
When the customer is ready to go anywhere, the vehicle is already outside waiting for them.
6. Merger
To control the market, one trend that has come to stay in the rental business has been the merger of smaller companies to form bigger ones or the buying of smaller companies by the big ones.
For example, Enterprise Car Rental Company owns National and Alamo Car Rental Companies. At the same time, Hertz Car Rental Company owns Thrifty and Dollar Car Rental Companies. Meanwhile, Avis owns Zipcar and Budget Car Rental Companies.
The essence is expanding their service and meeting the increasing demand while staying relevant in the competitive market.
7. Government Policies
Government policies have greatly impacted the car rental business in the US. Depending on the State, laws are now in place to checkmate them due to safety concerns or the environment.
Some government requirements include registering the business, obtaining the employer identification number, opening a bank account, purchasing insurance, and making tax payments.
These policies have hampered newcomers to the business and forced the old ones who cannot keep government policies to close the doors of their business.
Final Thoughts
The car rental market has witnessed several changes, mostly after the pandemic. Trends like advanced technology have caused many companies to adopt mobile apps instead of allowing customers to access a physical office. Another one is the use of electric instead of fossil fuel vehicles.
Population growth has also caused a sharp increase in the demand for automobiles, and those who can’t afford one or are far from home use the services of these companies.
To stay relevant in the market, businesses have formed partnerships and alliances with hotels and airports and improved customer experience. Some bigger brands have bought smaller ones, while others have merged to form bigger companies.
Although the market is going up, regulations have made it difficult for new businesses to enter the market and have forced some established companies to close their doors, as they were unable to comply with government policies and safety and environmental standards.
