Tourism Vehicle Rental Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Tourism Vehicle Rental Market is segmented By Vehicle Type (Passenger Cars, Luxury/Premium, Tourist Van, Others), By Booking Type (Online, Offline), By End-user (Self-driven, Rental Agencies), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Tourism Vehicle Rental Market Overview

[150 Pages Report] Global Tourism Vehicle Rental Market is expected to grow at a high CAGR 8% during the forecasting period (2023-2030). Tourism vehicle rental is serving the people who want to travel to the selected location. Growing trends in traveling among people all over the world drive demand through online travel booking for tourists. Tourism vehicle rental is becoming common in institutes, universities, corporate companies, and insurance companies worldwide. Many tourism companies provide online and offline booking services to grow their revenue due to the rising popularity of travel. 

Tourism Vehicle Rental Market Summary

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Tourism Vehicle Rental Market Dynamics

The market is driven by the rising demand for vehicles with growing tourism trends due to rising consumer spending. Furthermore, rising international tourist travel around the globe also drives the demand for tourism vehicle rental. According to the World Tourism Organization, in 2018, around 1.4 billion international tourists increased by 7% compared to 2017.

There is a rise in digital technology adoption for increasing tourism trends among the people and raising new End-users and services by leading companies and raising the investments. For instance, on 14th June 2019, Hertz Company had been launched car rental subscription services. This service is available monthly with a car subscription service that can be provided car every weekend.

Tourism Vehicle Rental Market Segmentation Analysis

The global tourism vehicle rental market is segmented on vehicle type, booking type, End-users, and region. The global Tourism vehicle rental market is bifurcated into passenger cars, luxury/premium, tourist vans, and others in terms of vehicle types. Among these, the passenger car segment has the highest market share in 2019 owing to the increasing number of travelers due to rising consumer spending. According to the Sustainability Accounting Standards Board Organization in 2014, the global rental car industry has been generated around USD 50 billion in revenue, including publicly traded companies revenue of USD 37.5 billion worldwide.

Similarly, luxury/premium and tourist van segments are also growing faster due to rising funding by the leading players worldwide. For instance, in 2016, Zoomcar, a leading car rental company, received USD 24 million in funding.

Depending on the booking type, the global tourism vehicle rental market is divided into online and offline. Among these, the online segment had the highest share in 2019. This is primarily due to the rising adoption of digital technology and raising the number of internet users and smartphone users.  According to the Global System for Mobile Communications (GSMA), in 2018, there were around 3.5 billion people connected to the internet via smartphones.

Similarly, offline segments are also growing faster due to a surge in global travel & tourism agencies and employment worldwide, with a surge in tourists' number due to rising consumer spending. According to the World Travel & Tourism Council’s (WTTC), the global contribution for travel and tourism was around USD 8.8 trillion. This industry was employed more than 319 million people around the globe in 2018.

 Depending on the end-users, the global tourism vehicle rental is segmented into self-driven, rental agencies, and others. Among these, the rental agencies segment had the highest market share in 2019. This growth is anticipated due to the rise in the popularity of rental vehicle agencies among the people. According to the European Commission and the World Tourism Organization (UNWTO), in 2016, international tourism visitors reached 1,239 million, generating around Euro 1,107 billion revenue worldwide.

Similarly, the self-driven segment is also growing faster due to increased demand for tourism, a surge in the global population, and rising private vehicle rental services.

Tourism Vehicle Rental Market Geographical Share

By region, the global tourism vehicle rental market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America is the dominant region for the global tourism vehicle rental market and expected to grow at the highest CAGR during the forecasted period due to the growing adoption of online vehicles booking, rising tourist destinations due to a surge in consumer spending for traveling followed by Europe region. According to U.S. domestic travel Organization, in 2019, the total number of personal trips was increased by 1.7% compared to the previous year reached a total of 2.3 billion people. This Organization also stated that the United States contributed around USD 2.6 trillion in 2019 for the total travel-related output. Furthermore, in North America, there are many tourist destinations, including Niagara Falls from Toronto, Canada, Banff National Park & the Rocky Mountains from Alberta Canada, Ottawa's Parliament Hill, and many others. These destinations have attracted tourists in North American region which directly propels the tourism vehicle rental market.

Europe and the Asia Pacific are also growing faster for the tourism vehicle rental market, owing to increasing tourism and traveling among the people due to rising consumer spending in this region. According to the European Commission and the World Tourism Organization (UNWTO), tourism has been generated around 26 million jobs and contributed 10% to Europe’s GDP.

Tourism Vehicle Rental Companies and Competitive Analysis

The global tourism vehicle rental market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Avis, Kemwel, Easycar, Sixt, Enterprise, Carzonrent, Zoomcar, Europe Luxury Car Hire, Autoeurop, Europcar, Hertz, and Budget Rent A Car System Inc. are the leading market players with significant market share.

Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance, on 24th Feb 2020, the SIXT Company’s 42% stake was acquired by Hyundai Capital Services for around USD 170 Million. Further on 3rd June 2020, SIX, T, a leading German-based international provider of high-end mobility service, hasn't built a new partnership with the car rental, leasing, and limousine subsidiary Alturki Holding Saudi Arabia.