Taken for a ride: Aggregator websites and car sharing constrain industry revenue

IBISWorld’s Car Rental 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

  • Strong business confidence has enabled companies to loosen their travel budgets

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    Industry Analysis & Industry Trends

    The Car Rental industry has grown steadily over the past five years, supported by increasing international travel to Australia. Positive business confidence over much of the five-year period has encouraged corporate travel activity, with many companies expanding their travel budgets. Increased travel throughout Australia has in turn supported demand for rental cars. Industry revenue is anticipated to increase at an annualised 2.3% over the five years through 2016-17, to reach $1.26 billion. This performance includes expected growth of 0.9% in the current year.

    Over the past five years, the depreciating Australian dollar has made international travel to Australia more attractive, resulting in growing demand for industry services...

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    What is the Car Rental industry?

    The Car Rental industry exhibits a high level of market share concentration, with the four largest players projected to account for over 70% of revenue. The industry fares well in Australia due to the country's large landmass and low population density, which necessitates travel by car and ensures demand. However, it is difficult for large industry players to build economies of scale across such a vast landscape and compete with each other. As a result, concentration is expected to vary, with large capital cities such as Sydney, Melbourne and Brisbane being dominated by the large players and showing signs of very high concentration.

    Industry concentration is anticipated to rise over the next five years. As...

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    Additional Insights for the Car Rental Industry

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

  • Ability to control stock on hand
  • Easy access for clients
  • Company's product has low running costs
  • IBISWorld analysts also discuss how external factors such as Air passenger movements through capital city airports and Business confidence index in the Car Rental industry impact industry performance..

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    Products & Brands

    Major products in this industry
    Small passenger cars
    Medium and larger passenger cars
    Trucks and vans
    Buses and other vehicles
    Examples of brands in this Industry
    Avis Australia
    Budget Rent a Car

    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
  • Air passenger movements through capital city airports
  • Business confidence index
  • Consumer sentiment index
  • International travel to Australia
  • Number of housing transfers

  • Current Performance
  • Rising profit
  • Industry participation
  • Business confidence
  • Tourism
  • Competition and opportunities
  • Chart: Revenue Growth

  • Industry Outlook
  • Aggregator websites and profit
  • Car sharing
  • Improved conditions
  • Table: Car Rental Industry Revenue Outlook

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

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

  • Key Selling Industries
  • General Insurance
  • Motor Vehicle Body, Paint and Interior Repair
  • Motor Vehicle Engine and Parts Repair and Maintenance
  • Motor Vehicle Manufacturing
  • Motor Vehicle Wholesaling

  • Products & Services
  • Small passenger cars
  • Medium and larger passenger cars
  • Trucks and vans
  • Buses and other vehicles
  • Chart: Car Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Tourists
  • Businesses
  • Other markets
  • Chart: Major Market Segmentation for the Car Rental 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 Car Rental

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Major Companies
    Avis Management Pty LimitedHertz Investment (Holdings) Pty LimitedNational Roads and Motorists' Association LimitedEuropcar Holding Pty Ltd
  • Table: Avis Management Pty Limited - financial performance
  • Table: Hertz Investment (Holdings) Pty Limited - financial performance
  • Table: National Roads and Motorists' Association Limited - financial performance
  • Table: Europcar Holding Pty Ltd - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Car Rental 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 Car Rental 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
    Aggregator Websites
  • These websites pull information from a variety of vendors for price comparison purposes, with comparisons based on a consumer's search parameters.
  • Hybrid Vehicle
  • A vehicle powered by two or more sources, typically electricity and petrol.
  • Ultra-Short Term Rental
  • Rental with a duration of less than one day. These rentals are often charged by the hour.
  • 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 Car Rental:
    • 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 Car Rental 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 Car Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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