The car rental industry has been growing at a very fast rate and the global demand in this segment has sky rocketed to new heights over the past years. The current scenario of the global car rental industry looks insanely good and is booming with so many opportunities in this sector. The increase in international tourism coupled with a fast moving work culture and the rotational shift jobs makes this an interesting choice for transport. There are several factors that have contributed to the growth and development of the car rental business, however here are some of the prominent reasons behind the success of the car rental industry.

Ease of availability

Because of car rentals, consumers are easily able to identify the best vehicular options based on their requirements. Consumer’s needs vary from time to time such as traveling to another city or attending a reunion or even a musical event or business meeting, today’s car rental services offer a diverse range of vehicles suited for every need of an individual.

Big car for a big group

Gone are the days where people had no options and had to choose only a particular brand or a segment of a car. These days car rentals are offering a wide variety of cars suitable for most of the needs and most of the car rental service providers allow their customers to pick the vehicles of their choice. Some car rental providers have gone one step ahead and are hiring an in-house team of dedicated professionals to assist users in choosing their preferred vehicle.

Limited liability regarding vehicle maintenance or repair

There is limited scope for repair and maintenance in rented cars and perhaps this is one of the biggest reasons why people basically prefer rented cars. But most car rental companies have their own set of guidelines which are effective in case of accidental damages caused to the vehicle by the customers. To avoid any mishaps on the road, car rental companies usually collect a premium or in other words an advance security deposit.

Cost effective and value for money

Rental cars are comparatively cost effective and despite this segment is being relatively new, rental cars have a massive advantage over personally owned cars. Traveling has become very cost effective and this allows customers to save up a lot of money, making way for a hassle-free travel experience.

Impact of technology on car rental services :

Tech-enabled car rental services are taking the market by storm. Due to the abundance of smartphones in the current market, online car rental services can be accessed from anywhere and at any time, all with a touch or a tap of a button. Many car rental business enterprises have integrated intriguing technological aspects, so in reality booking, a rental car is as easy as booking an Uber.

Online platforms have enabled car rental industries to accelerate their growth rapidly in the recent years and even many offline service providers have upgraded their technology. They are currently trying to adapt to the latest strategies and are exploring more options to gain a larger customer base using technology.

Technology boosted car rental business

Since the demand for alternative modes of transportation in upcoming Metropolitan cities is rising, technology has become imperative to create more focus on the business aspect. Having your own website to link your own online booking system will definitely please the customers. Having features such as reservation and an informational system is driving the car rental business to the peak of this business world. Here is an in-depth analysis of the business model for a car rental marketplace.

A one-stop, well-crafted platform for booking rented cars

There is no shortage of people with smartphones these days, creating a responsive website will boost your business in the entire market. Mobile app integration will lead to faster, smoother booking process and this will also enable a secure transaction process.

What the future holds for the Car rental business?

Since the inception of car rental business, its growth has been exceptional, a 2015 report by ‘Cognizant Technology’ has stated that the growth of this segment is bound to increase as the companies will figure out more ways to acquire visibility and Competitive Edge. This is possible in the future through the process of Retailification.

Retailification of car rental services will involve introducing retail-based business concepts into this segment. This usually includes a lot of steps such as Omni-channel market base; using location-based and real-time technologies, social media integration, and a 24/7 customer support. With an increasing number of firms already following this concept in our country, in the future that there is a possibility that there will be new entrants in this particular segment.

If you want to know more about this specific segment and planning to start your own car rental business in the future, you must check out Agriya’s Rent&Ride – Car rental script, which is a ready-made script developed after a careful market analysis. It is modernized, user-friendly and completely customizable according to your needs.

Car rental script