Car rental market trends

Car rental market trends

Car rental in Las Vegas under 21 and other cities and ages is a demanded service both among corporate clients and the private sector. At the moment, the car rental market has moved from the stage of dynamic development to moderate, stable growth. Generally, the share of large cities is more than 90% of the total volume of this industry across the country. Although at the regional level, especially in big cities, consumer interest in this area has been steadily growing over the past 5–7  years. So, move on.

The conditions of the car rental market

The increase in the cost of new cars, repair costs and the cost of owning a car in general led to a drop in sales. Against this background, interest in car rental services has significantly increased. Today, clients have higher requirements for the quality and equipment of the cars provided for rent. It is necessary to renew the car fleet with the models of the world car industry leaders with good equipment. All cars must be insured and before issuance to the customer is obligatory inspection, where the level of technical fluids and operation of all parts and components are checked, as well as the filling with fuel, washing, and cleaning of the interior.

Considering the wishes of customers, the company Carngo significantly reduced the life of cars. If earlier the company offered cars no older than three years, today the main part of the fleet is completely new cars no older than one year from the date of manufacture.

What’s important for customers

Now the car rental market in Las Vegas and other cities (both large and small, which is important to note) is characterized by increased competition in all classes of passenger cars (economy, medium, executive). In this connection, the role of the marketing component in a business organization is increasing. Organizations that provide car rental services win in the competition:

  • in convenient locations,
  • at adequate prices,
  • with a good choice of models in different classes,
  • with the good technical condition of the fleet.

The restraints to development, especially in the private sector, are:

  • Lack of habit among the population to use rental cars,
  • Poor awareness of the availability and possible forms of the service,
  • Fears of potential customers about the complexity of the documents and high responsibility in case of an accident,
  • Unsuitable location of rental stations.

How is the vehicle rental market developing

Expanded fleets of cars are in preference. Carngo replenishes them not only with passenger cars but also with light commercial vehicles with increased capacity. For lovers of nature recreation, we offer operational leasing of special vehicles: snowmobiles, quad bikes, swamp buggies, and jet skis.

The European market is also attractive. After all, the popularity of resorts in Spain, Greece, Bulgaria, and Montenegro is not going down for global tourists. And it will be very convenient for them to order and pay for a rental car through Carngo, and receive it abroad under familiar and understandable conditions while accumulating additional bonus points.

What helps the car rental services market grow

According to world statistics, car rental services annually show a growth of about 20% and taking into account the crisis in the market sales of new and used cars. There is a heightened interest in rental services, both for long-term rentals of a day or more and for short-term rental by the minute – carsharing.

A kind of growth driver of car rental services will be an opportunity to use a car without extra costs for its purchase, insurance, maintenance, maintenance, and even finding a parking space in the yard or on city streets.

Minibus rental market: peculiarities of development

Generally, the global market for bus and minibus rental is characterized by the same features as the passenger car rental market, but it still has its own peculiarities. This specificity is dictated by the peculiarities of minibus ordering service as such:

  1. Unlike car rental, oriented primarily to private clients, rental buses and minibusses are oriented to corporate clients. As a rule, “big” technics for passengers’ transportation are ordered by the companies hosting the guests or planning other corporate events with departures;
  1. Buses and minibusses are almost always ordered with a driver. This is due to the fact that clients very rarely have their own driver with the appropriate category of certificate and the necessary skills; – in the vast majority of cases the term of machinery rental is one-two day;

Carngo characterizes the bus rental market as dynamic, but at the same time it is in the initial, chaotic stage of development, and it is impossible to predict the total market volume.

Unfortunately, even some features of a developed service market can be seen only in capitals around the world. That is, it is possible that the market may be completely spontaneous. But it is not safe.

Simple and fast

A variety of companies offer bus rentals in the regions: among them, there are former state bus fleets, as well as individual companies with one or two units, and rapidly consolidating their number.

In some markets, there is a tendency to oligomerization or monopolization of the markets, but on the national scale, it is not very pronounced, though Carngo thinks it is just a matter of time.

The principles of corporate culture are important to Carngo, and a high level of business activity when customers are considering passenger equipment rental services.

Conclusion

A car has long been a necessity in the family. Especially in a big city, it is needed not only on weekdays to go to the office, but also on weekends. So that the whole family can comfortably get to the mall, entertainment center, the movies, or the cottage. Buying a car, even a used one, is beyond the means of most families. A great way out of this situation would be to rent a car.

It is important not only to follow trends.  Considering all the needs, Carngo also follows not only the accepted international standards but also was more comfortable. For example, in Europe, the car rental payment package does not include insurance, and the company has minimized the client’s financial responsibility in case of an insured event already in the basic tariff.