Travelling to unexplored locations with friends and family members is everyone’s desire. Seeing new destinations with your own vehicle is the most popular way. Not everyone is able to buy their own vehicle and travelling through rough patches require SUV’s. The most practical and cost effective way is cars rental. Renting cars with different car body type to reach destination in most comfort is most convenient. Car rental industry changed the vision of people around the world to explore their favourite destination with vehicle type as per the need. North America being the leader market for car rental industry with $28.63B revenue in 2018 including 2187 thousand units of car fleet. According to Zion Market Research report, car rental market is expected to reach $125.6B market by 2022 with CAGR of around 13.55% between 2017-2022.
Several car renting companies are competing in the industry providing customer the mobility solution at a reduced cost. Users are free from the concern of ownership and maintenance cost of vehicle. Car renting services platform provide the flexibility to customer to choose vehicle that meet their need. With increase in customer interest, car rental companies are focusing on streamlining their business operations. Fleet management software are the backbone of car rental industry. Real time tracking of vehicle with auto assigning of vehicle on booking made easy to manage and organize the business.
Global Market Leaders
Europcar Groupe SA in Indonesia is on top in car rental service marketplace with maximum average number of transaction per car of 833.3 followed by Carzonrent, Avis and Zoomcar in India. US car rental market dominate in terms of most transactions. Enterprise Rent A Car dominates the global market by huge margin with 48787.1 thousands transactions. Hertz in USA has 18141.7 thousands transactions. Japan comes second with 14142.5 thousand transactions by Toyota Rent a Car. US market has the most number of fleet of vehicles but still average rental duration is only 4 hours.
North America dominates the global market with more than 30% market share. Although the transactions per car are not enough in US. But the overall number of transactions are the most with maximum number of fleet available to customer.
Why car rental online marketplace is successful?
Changing of consumer’s perception of changing the vehicle depending upon the requirement and convenience is the most influencing factor for the success of renting car marketplace. Furthermore, car rental services removes the burden of ownership cost including insurance, maintenance and repair cost. Availability of wide range of fleet to choose from further attracts customer to shift to renting cars instead of buying cars.
Advancement in technology and diffusion of technology into car renting marketplace for car bookings or reservations made it simpler and easy to adapt for customer. In regions like APAC, car rental is well accepted due to increase in disposable income coupled with well connected roads to travel to different locations.
With rise in tourism industry in regions like Singapore and India, renting a car to reach destination became the most favourable solution. Car rental services offer various choice to customer from Economy cars to luxury cars and recreational vehicles. Economy cars are dominating the market worldwide due to low budget options. Car rental marketplace is expected to grow faster with economy cars monopolising the industry.
Role of Fleet Management Software
Tookan fleet management software include all modules for fleet management, online reservation and real-time tracking. Fleet management software also allocates vehicle on booking to customer. Information about available cars, price and discount to customers can be made available instantly. Documentation work can be done on platform itself. Generation of bills and invoices made it easy for manager to manage all the business operations, cash flow and real time tracking of fleet.
Various challenges of fleet management can be deal with fleet management software. Most critical issue in managing fleet for car rental services is buffer time to clean and checkup of vehicle between consecutive bookings. Tookan is a fully customized fleet management solution platform to cater different industry and business needs. Integrating a fleet management software into car rental business enhance the customer experience with reduction in cost by task optimization.
Data Source: Euromonitor