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Global Car Rental Market growth

SOURCE – OOST WEST

 

The current trends of the car rental industry will be shaping the future of all the vehicle rental companies. Carsharing took its lead in the year or 2017. Blessure traveller, the term used for those individuals who combine leisure and business when travelling has created another new trend itself. The industry itself has tested out its limits in order to grow. Based on the recent performance, it can be identified that car rental organisations had implemented the right strategies to survive. It was estimated that the market of the global rental car industry would be approximately at 58.26 billion American dollars. The growth rate was estimated to be around 14% during 2017 and 2022. It has been speculated that by the end of 2022, the market will reach approximately 124.56 billion American dollars.The car rental market is influenced by the growth of the buying power of the consumer and also combining the budget airfares. However, this industry cannot depend on the economic growth of the world for the success of the industry.

 

Biggest challenge in the car rental industry

One of the biggest challenges in the car rental industry is to provide excellent customer service. This service is vital even when handling complaints from customers. There are many reasons as to why the company will have to deal with dissatisfied customers. The reasons could be waiting time to get a vehicle that was booked prior, lack of information or charging excess payments. Due to such reasons it is very important to systemize the entire process with a software like Navotar. Navotar is specifically designed for car rental companies with features such as online reservation plugin, mobile application, car rental system and also chat bots. All of these together will help a car rentals company to operate in an efficient and effective manner.
Nowadays the rental car companies are very transparent and continue to use technology to improve the booking process, which has improved the quality of the service. The only aspect that has not been eradicated is the physical car rental desk. However, thanks to the Internet, customers post reviews about their experience with the rental company. Reviews are a big part of building a brand and an image for the business. The positive reviews will help potential consumers to trust an unknown brand and therefore, make a purchase. Without the car rental desk, the experience would be seamless. Nevertheless, all rental companies have a long way to go and regardless of having high-end technology, the car rental desk cannot be removed at once.

 

The sharing of cars

The carsharing concept has become very popular which has made the traditional car rental companies very nervous. There are continuous strategies and opportunities that are chased in order to keep up with the changing trends of the customers. The reason why carsharing became so popular is because it only charges by the hour and does not charge a daily fee unlike traditional rental car companies. Navotar, the advance car rental software is also focusing on this concept and hoping to release it very soon in the market.

 

Oil prices and inflation

There is a constant demand for oil and experts estimated that the prices for petrol and oil would increase each year. The increase in demand means that this will affect the rental industry as it will only increase the rental and sharing fees that is shared from the passengers.

 

Going green

With the ongoing issues with the oil prices and inflation, going green has been suggested by many experts. This will help to save money for consumers and reduce the negative impact on the environment. There’s still a lot of study and research ongoing in order to perfect this concept and there are many prototypes being tested currently.

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