Tourism Vehicle Rental Market Forecasts to 2030 - Global Analysis By Type (Luxury Vehicle and Economy Vehicle), Vehicle Type, Rental Mode, Rental Duration, Booking Channel, Application, End User and By Geography

According to Stratistics MRC, the Global Tourism Vehicle Rental Market is accounted for $81.4 billion in 2024 and is expected to reach $144.3 billion by 2030 growing at a CAGR of 10.0% during the forecast period. Tourism vehicle rental services provide travellers with a range of vehicles for exploring destinations independently. Offerings typically include cars, vans, RVs, and motorcycles, catering to diverse travel preferences and group sizes. These services are convenient for tourists seeking flexibility in itinerary planning and accessibility to remote or scenic locations. Rentals often include options for GPS navigation, insurance coverage, and roadside assistance, ensuring peace of mind during travel. Providers may also offer additional amenities like camping gear or child seats to enhance customer convenience.

According to the US Travel Association, the number of domestic leisure trips accounted for 1,676.2 million in 2021 and is expected to reach over 1,998 million by 2024.

Market Dynamics:

Driver:

Increasing international travel and tourism activities

More travelers explore new destinations, the demand for rental vehicles rises, driven by the need for flexible transportation solutions. This trend stimulates market growth, encouraging rental companies to enhance service offerings and expand their fleet to meet diverse traveler preferences. Additionally, international tourists often require reliable and convenient transportation options, further fueling the demand for rental vehicles.

Restraint:

Compliance with varying local regulations and licensing requirements

Non-compliance with varying local regulations and licensing requirements can creates barriers to market entry and expansion, increasing operational costs due to fines or legal penalties. Inconsistent regulatory environments across different regions also lead to compliance complexities, affecting operational efficiency and customer service quality. Moreover, regulatory uncertainties can hinder fleet management and standardization efforts, limiting the ability to scale operations effectively hampering the market growth.

Opportunity:

Rising awareness of sustainable travel practices

Consumers increasingly favor eco-friendly options such as electric or hybrid vehicles, pushing rental companies to expand their sustainable vehicle offerings. This trend encourages innovation in fleet management and operations to reduce carbon footprints. Further companies that adopt and promote sustainable practices enhance their brand reputation and appeal to environmentally conscious travelers. Thus there's a growing demand for transparent information on vehicle emissions and environmental impact, influencing rental decisions boosting its market growth.

Threat:

High insurance premiums and liabilities

High insurance premiums and liabilities contribute to increased operational expenses, affecting pricing strategies and profitability for rental companies. Higher premiums may necessitate passing costs onto customers, potentially reducing affordability and competitiveness. Moreover, stringent insurance requirements can limit fleet expansion and diversity, constraining rental options available to consumers impeding market growth.

Covid-19 Impact:

Travel restrictions, lockdowns, and reduced tourist flows led to plummeting demand for rental vehicles. Rental companies faced fleet management challenges, with vehicles sitting idle and revenue streams disrupted. Health and safety concerns further deterred travel, prolonging the recovery period for the industry. Despite gradual reopening and recovery efforts, uncertainty and changing travel restrictions continue to affect rental operations and consumer confidence.

The luxury vehicle segment is expected to be the largest during the forecast period

The luxury vehicle is expected to be the largest during the forecast period as they cater to affluent travellers seeking premium experiences, thereby expanding the market segment for high-end rentals. This increases revenue potential and profit margins for rental companies. However, operational costs such as maintenance, insurance, and depreciation are higher for luxury vehicles, impacting profitability.

The leisure/tourism segment is expected to have the highest CAGR during the forecast period

The leisure/tourism segment is expected to have the highest CAGR during the forecast period because travelers often require flexible transportation options to explore destinations at their own pace, driving up rental demand. This sector encompasses a wide range of customers, from families on vacation to solo travelers and group tours, each seeking suitable vehicles for their specific needs encouraging the market.

Region with largest share:

North America is projected to hold the largest market share during the forecast period by serving a wide range of travellers from domestic tourists to international visitors. Key factors driving this market include the region's vast landscapes, popular tourist destinations, and a strong culture of road trips and leisure travel. Further rental companies in North America offer a variety of vehicles, including cars, SUVs, RVs, and motorcycles, catering to different preferences and travel styles drive the market growth.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period owing to competitive, with major players providing extensive service networks, technological integration for booking and navigation, and customer-focused amenities. Challenges include regulatory compliance and seasonal demand fluctuations, requiring adaptive strategies for sustained growth.

Key players in the market

Some of the key players in Tourism Vehicle Rental market include Alamo, Autoeurop, Avis, Carzonrent, Easycar, Enterprise Holdings Inc, Europcar Mobility Group, Europe Luxury Car Hire, Hertz Global Holdings Inc, Kemwel, National car rental, Sixt SE, Thrifty and Zoomcar

Key Developments:

In March 2024, Europcar Mobility Group expands in India, with Satguru Travel becoming its new Europcar franchisee As part of its new strategic framework EXCEED, Europcar Mobility Group reinforces its global footprint thanks to a franchise agreement with Satguru Travel in India, one of the fastest-growing mobility markets in the world.

In October 2023, Enterprise holdings accelerate toward next era of mobility with diverse portfolio & growing global footprint. Millions of customers around the world use business to meet mobility needs, driving best year on record.

Types Covered:

• Luxury Vehicle
• Economy Vehicle

Vehicle Types Covered:

• Luxury Cars
• Economy Cars
• SUVs
• Vans
• Trucks
• Electric Vehicles
• Other Vehicle Types

Rental Modes Covered:

• Chauffeur-driven
• Self-drive

Rental Durations Covered:

• Long-term Rentals
• Short-term Rentals
• Leasing

Booking Channels Covered:

• Online Booking
• Offline Booking

Applications Covered:

• Leisure/Tourism
• Business Trips
• Adventure & Outdoor Activities
• Other Applications

End Users Covered:

• Individual Customers
• Corporate Customers
• Travel Agencies & Tour Operators
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances