Car Rental Services Are Witnessing Massive Demand among Consumers Worldwide Due To Affordability and Convenience

 

In the car rental business, luxury or premium cars are preferred for the traveling style. These cars are manufactured by high-end brands with luxury features such as plush interior, exquisite design, comfortable seats, and powerful engine. Generally, a luxury car will fit five people plus two small suitcases. People prefer luxury cars on rental when they require plenty of trunk space for luggage and wide-leg rooms for comfortable seating. The advent of value-for-money car rental services has increased the popularity of car rental services across the globe. Market players are focused on introducing low-cost services, especially in the leisure market. Furthermore, these players are offering lucrative schemes at affordable prices, in order to expand their customer base.

Increasing dependence of users on smartphones to carry out a plethora of activities has helped to grow the rental car business. Industry players such as Uber, Lyft, Sixt SE, and Avis have launched their mobile apps through which customers can easily choose vehicles from a portfolio and carry out bookings. However, volatile prices of petrol and diesel are posing a severe challenge to the car rental business. North American region has witnessed significant growth in the car rental industry as there is rising trend of business trips in the region.

Besides, emerging economies such as India, China, South Korea, and Japan are witnessing a massive surge in car rental services, typically due to growing availability of high-end luxury cars for rent in the above-mentioned countries. Various car rental companies are introducing innovative services and patterning with technology experts to expand their business portfolios. For instance, in January 2021, Tribecar, a Singapore-based car-sharing platform, partnered with NTUC Income and CARRO to provide next-generation smart city insurance for cars. Furthermore, in Germany, Sixt SE expanded its car rental service in the U.S. with a concession offer for airport car-rental counters.