Industry Analysis & Industry Trends
The fortunes of the Passenger Car Rental and Hiring industry have been mixed over the past five years, as growth in travel spending and tourism numbers slowed and business and consumer confidence fluctuated. Industry revenue is estimated to increase an annualised 0.2% over the five years through 2012-13 to reach $2.6 billion. The global economic downturn is the primary reason for the industry's poor performance in the early years of the period, with demand for passenger car rental and hiring collapsing during the crisis. Customers cut back on travel expenses by either travelling less or choosing less convenient transport modes. Improved economic conditions from 2010-11 benefited the industry, with a revenue jump of 12.7%. Revenue is expected to grow 2.5% over 2012-13... purchase to read more
Industry Report - Starting a New Business Chapter
To enter the vehicle leasing segment, companies need access to a large vehicle fleet or have the facilities to lend directly to clients. It can therefore be difficult for companies that are lacking in these areas to start operating within the industry. Companies also need a large number of major clients to achieve economies of scale in minimising operational costs and maximising profit levels.
Entry into the airport market, especially at major airports, is difficult due to policies governing the number of companies permitted to operate in these facilities. In contrast, suburban, country and remote markets have relatively easy entry. There are few inherent obstacles to entry other than the need to obtain licences or other permits from any regulatory authority... purchase to read more