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

The Passenger Car Rental and Hiring industry has recorded modest growth over the past five years. International and domestic travellers represent a major market for industry operators. A weak Australian dollar over the period has encouraged international travel to Australia, as the country has become relatively cheaper compared with other travel destinations. As a result, international tourism to Australia has increased significantly over the period. Furthermore, the weaker Australian dollar has made international travel more expensive for Australians, encouraging domestic tourism. Consequently, industry revenue is expected to increase at a compound annual rate of 1.7% over the five years through 2017-18, to reach $3.5 billion. This includes anticipated growth of more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

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
  • Industry Report - Industry Investment Chapter

    The Passenger Car Rental and Hiring industry exhibits high capital intensity. For every dollar paid as wages, an estimated $0.80 is spent on capital investment. The industry's major revenue generators are the vehicles that industry operators rent or lease, which are depreciated over their useful life. Industry operators must invest significant capital in such vehicles. Operators also tend to rent and lease high-value new vehicles, which requires them to regularly update their fleets. However, cars have become more affordable over the past five years, which caused depreciation to decrease as a share of revenue. Furthermore, the use of more advanced computer technology, which requires highly skilled IT professionals, has increased wages as a share of revenue over the period. Con...purchase to read more.

    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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    What's in this report

    What is the Passenger Car Rental and Hiring Industry?

    Industry firms 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 in the 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
  • Minibus rental
  • Car sharing network operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Participation and profit
  • Vehicle affordability
  • Tourism trends
  • Aggregator websites
  • 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

  • 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
  • Small- to medium-size enterprises
  • 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
    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
    Avis Management Pty Limited, Hertz Investment (Holdings) Pty Limited,
  • Table: Avis Management Pty Limited - financial performance
  • Table: Hertz Investment (Holdings) Pty Limited - financial performance

  • 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
    Table: Industry Data for the Passenger Car Rental and Hiring Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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 vehicle similar to a station wagon but built on a light truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Passenger Car Rental and Hiring market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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