Cruising: Higher domestic and international tourist numbers are driving industry growth

IBISWorld’s Passenger Car Rental and Hiring market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.


Industry Threats & Opportunities

  • Revenue has grown due to positive economic and business conditions, and increased tourist numbers
  • Tourist numbers have grown strongly, improving the performance of car rental operators
  • The increasing popularity of low-price car sharing networks is expected to limit revenue growth

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    Industry Analysis & Industry Trends

    The Passenger Car Rental and Hiring industry has recorded stable growth over the past five years on the back of positive economic and business conditions. Businesses provided largely stable demand for operating leases, which are generally a necessary expenditure for many firms. The private and government sectors have increasingly outsourced their fleet management operations over the past five years. As economic conditions improved over the period, demand from domestic businesses and tourists grew, increasing demand for car rentals. Significant growth in tourism has also contributed to the industry's growth, with revenue expected to increase at an annualised 2.2% over the five years through 2016-17, to reach $3.5 billion...

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    Industry Report - Starting a New Business Chapter

    The Passenger Car Rental and Hiring industry is characterised by moderate barriers to entry. Traditionally, companies needed access to a large vehicle fleet or have the facilities to lend directly to clients to enter the vehicle-leasing segment. As a result, it was challenging for some companies to enter the industry. However, the recent adoption of peer-to-peer business models has made it possible for new players to enter the industry without a large vehicle fleet.

    Entry into the airport market, especially at major airports, is difficult due to policies that control the number of companies that are permitted to operate at these locations. In contrast, suburban, country and remote markets are relatively easier to enter, although they have much smaller markets. The..

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    Additional Insights for the Passenger Car Rental and Hiring Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Passenger Car Rental and Hiring Industry are

  • Qualified workforce
  • Being part of a franchising chain
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Air passenger movements through capital city airports in the Passenger Car Rental and Hiring industry impact industry performance..

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    Industry Products

    What is the Passenger Car Rental and Hiring Industry?

    Companies in this industry are involved in leasing, hiring or renting out passenger cars without drivers. Passenger cars include sedans, hatchbacks, station wagons, SUVs and minibuses. Novated leasing is not included within this industry.

    Industry Products
    Short-term car rental
    Long-term car rental
    Operating vehicle leasing
    Other industry services
    Industry Activities
    Leasing, hiring or renting out cars
    Leasing, hiring or renting out campervans
    Minibus rental
    Car sharing network operation

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Air passenger movements through capital city airports
  • Consumer sentiment index
  • International travel to Australia
  • Motor vehicle price index

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Participation and profit
  • Vehicle affordability
  • Tourism trends
  • Aggregator websites
  • Table: Passenger Car Rental and Hiring Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Passenger Car Rental and Hiring Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Tourism
  • Consumers

  • Key Selling Industries
  • Fuel Retailing
  • General Insurance
  • Motor Vehicle Body, Paint and Interior Repair
  • Motor Vehicle Dealers
  • Motor Vehicle Electrical Services
  • Motor Vehicle Engine and Parts Repair and Maintenance
  • Motor Vehicle Manufacturing
  • Motor Vehicle Wholesaling

  • Products & Services
  • Operating vehicle leasing
  • Short-term car rental
  • Long-term car rental
  • Other industry services
  • Chart: Passenger Car Rental and Hiring Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses - SMEs
  • Businesses - large corporations
  • Government
  • International tourists
  • Chart: Major Market Segmentation for the Passenger Car Rental and Hiring Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Passenger Car Rental and Hiring

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Passenger Car Rental and Hiring Industry

  • Industry Globalization
    Major Companies
    Avis Management Pty LimitedHertz Investment (Holdings) Pty LimitedLeasePlan Australia Limited
  • Table: Avis Management Pty Limited - financial performance
  • Table: Hertz Investment (Holdings) Pty Limited - financial performance
  • Table: LeasePlan Australia Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Passenger Car Rental and Hiring Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Passenger Car Rental and Hiring Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • A car that uses both electricity and petrol to power the motor.
  • Novated Lease
  • A leasing arrangement that provides a salary packaged vehicle for staff, and usually includes vehicle servicing and maintenance.
  • Suv
  • Stands for sports utility vehicle, a type of rugged vehicle similar to a station wagon by built on a light truck chassis.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Passenger Car Rental and Hiring:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Passenger Car Rental and Hiring market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Passenger Car Rental and Hiring, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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