Rental Cars Procurement Intelligence Develop at a CAGR of 6.95% Till 2030

Posted on By Editorial Team

Rental Cars Procurement Intelligence

In this rental cars procurement intelligence report, we have estimated the pricing of the key cost components. Asset depreciation, fuel, accident insurance, and maintenance form the largest cost component of car rental businesses. Together, they account for more than 80% of the total cost. The cost also depends on the type of vehicle such as sedans, SUVs, or compact cars. For instance, a lifecycle analysis of a typical fleet sedan with an annual mileage of 20,000, an interest rate of 2.8%, and a depreciation rate of 2.25% shows that the cost per mile bottoms out at 48 months, with a value of USD 0.329. This is the optimal time to cycle the vehicles as the cost per mile will start to increase after this point.  

Further, the application such as local usage, airport transport, or outstation use also determines the price of the car rental service. When examining airport rental locations, the results were generally consistent with the overall averages, with only minor variations. In the United States, Orlando International Airport, Charlotte Douglas International Airport, and Dallas/Fort Worth International Airport had the lowest average rental car prices, with weekly rental prices of less than USD 600. Chicago O’Hare International Airport had the highest average price of USD 743 for a weekly rental.

Order your copy of the Rental Cars category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities – Rental Cars

  • Industries Served – 20%
  • Years in Service – 15%
  • Revenue Generated – 15%
  • Employee Strength – 15%
  • Geographic Service Provision – 15%
  • Certifications – 10%
  • Key Clients – 10%

Functional Capabilities – Rental Cars

By vehicle type:

  • Economy cars – 40%
  • MUVs – 25%
  • SUVs – 20%
  • Executive cars – 10%
  • Luxury cars – 5%

Rate Benchmarking

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location and nature of the business play a vital factor in analyzing the rate benchmarking of rental cars category. For example, car rental services in the U.S. are typically more expensive than services in India. For instance, in U.S the average per day rate of cars ranges from USD 48, as compared to India which is around USD 35. This is due to a number of factors, including the availability of cheaper cars and associated services. The cost of rental services varies depending on the type of car that is being rented. For example, a small car with a limited luggage space will likely cost less than a luxury car with roomier seating and bigger luggage space. For instance, a small car may cost between USD 400 – 800 whereas a luxury car may cost from USD 800 to more than USD 3,000 for a four day period.

Supplier Newsletter

In June 2023, more than 300 business professionals who operate and support the Enterprise Rent-A-Car, National Car Rental and Alamo brands globally across the Latin America (LAC); Europe, Middle East and Africa (EMEA); and Asia-Pacific (APAC) regions came together for a series of in-depth informational presentations and networking events, designed to accelerate the global growth of the Enterprise Holdings brands internationally. Their end goal is to align themselves on achieving Enterprise Holdings’ vision to be the world’s best and most trusted mobility company

In March 2023, Woodford Group and Enterprise Holdings signed a collaboration agreement. Enterprise Holdings declared launching its service in South Africa as part of the cooperation. The business provides point-to-point services, long-term subscriptions, and short-term car rentals with chauffeurs.

In January 2023, Hertz signed a public-private partnership with the regulatory body of Denver, Colorado, to accelerate the transition of EVs in the rental industry. The company will switch towards providing rental electric cars contributing towards sustainability. 

List of Key Suppliers

  • Sixt SE
  • Localiza
  • Avis Budget Group
  • Europcar
  • Enterprise Holdings Inc.
  • The Hertz Corporation
  • Toyota Rent-a-Car
  • Alamo Rent-a-Car LLC
  • Carzonrent India Pvt Ltd
  • ANI Technologies Pvt. Ltd 

Browse through Grand View Research’s collection of procurement intelligence studies: 

Rental Cars Procurement Intelligence Report Scope 

  • Rental Cars Category Growth Rate : CAGR of 6.95% from 2023 to 2030 
  • Pricing Growth Outlook : 3 – 7% (annual) 
  • Pricing Models : Cost plus pricing, tier-based pricing 
  • Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
  • Supplier Selection Criteria : Vehicle type, booking options, technical expertise, security measures, cost and value, support and maintenance, regulatory compliance, and others 
  • Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to): 

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Business

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