Report: Car Rental - US

Scopes and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Executive Summary
Car rental market on sound footing, though gas prices worrisome
The ups and downs of the business environment
The grass is greener--on-airport vs. off-airport/local rentals
Changing market forces
U.S. auto manufacturers' decline
The structure of the car rental industry
Government fees
An aging population
Four companies own the market
Innovations--green, luxury, and off-airport business create opportunities
The advertising landscape
Consumer profile--older, married, richer (but there' s more to the story)
Consumer attitudes--much room to improve
The role of race and ethnicity
Ending on a high note
Market Size and Forecast
Key points
Market size
- Figure 2: Total U.S. sales and forecast of the passenger car rental business, 2002-12
- Figure 3: Total U.S. retail sales and forecast of car rental revenues, at inflation-adjusted prices, 2002-12
Another view of market size (Auto Rental News)
- Figure 4: Total U.S. retail sales and forecast of car rental revenues (ARN), 2002-12
- Figure 5: Total U.S. retail sales and forecast of car rental revenues (ARN), at inflation-adjusted prices, 2002-12
Competitive Context
Fleet size
- Figure 6: Average U.S. car rental fleet size, total of all rental companies, 2002-07
Rising fuel costs
- Figure 7: U.S. regular conventional retail gasoline prices, 2002-07
Ailing airline industry
- Figure 8: Total U.S. domestic passengers enplaned, 2002-07
Alternative models
Membership-based short-term rentals
Driver services
Privately owned vehicles
Public transportation
Changing workplace technology
- Figure 9: Work-related attitudes of travelers: importance of business travel and use of alternative methods, by number of business trips taken in past year, November 2007
Segment Performance--Personal Rentals
Key points
Sales and forecast of rentals for personal use
- Figure 10: Total U.S. retail sales of car rentals for personal use, 2002-12
Segment Performance--Rentals for Business
Key points
Sales and forecast of rentals for business
- Figure 11: Total U.S. retail sales of car rentals for business reasons, 2002-12
- Figure 12: Share of Avis, Budget, and Hertz car rental revenue that is business vs. leisure, 2007
- Figure 13: Hertz car rental sales, for business and leisure purposes, 2007
Segment Discussion: Airport vs. Off-Airport/Local
Key points
- Figure 14: Hertz car rental sales, on- and off-airport, 2007
- Figure 15: Share of company car rental revenue, on- and off-airport, 2007
Retail Channels
Key points
Current distribution channels
Hertz
- Figure 16: Hertz car rental sales, by distribution channel, 2007
Dollar Thrifty
- Figure 17: Dollar Thrifty car rental sales, by distribution channel, 2007
Avis Budget Group
- Figure 18: Avis Budget car rental sales, by distribution channel, 2007
Market Drivers
Market still counting heavily on Baby Boomers
- Figure 19: Number of car rentals in 2007, by age, projection for 2012
- Figure 20: Car rental incidence and frequency, by age, 2007
Car manufacturers' misfortunes
Industry structure: mergers and acquisitions
Pressure to go greener
Demographic trends: the silver tsunami
Leading Companies and Brand Share
Key points
Market share
- Figure 21: Car rental sales, by company, 2005 and 2007
- Figure 22: Average fleet size, by company, 2005 and 2007
Brand Qualities
Customer satisfaction
Loyalty clubs
Innovation and Innovators
Green initiatives
- Figure 23: General attitudes toward environmental concerns, December 2007
In-vehicle technology
GPS
Tolls
Speed and ease of purchase
Increased technology streamlining for rentals
Custom collections
Advertising and Promotion
Overview
- Figure 24: General media expenditures by selected car rental brands, 2005-06
Avis Budget
Avis
Recent promotions--connecting with independent music lovers
Web presence
Television commercials--catering to those who enjoy the car rental experience
- Figure 25: Avis Car Rental television ad: "Driveway," March 2008
Dollar Thrifty
Advertising expenditures
- Figure 26: Advertising expenditures, Dollar Thrifty Group, 2005-07
Web presence
Enterprise
The Enterprise brand
Web presence
Case study: negative publicity
Television commercials
- Figure 27: Enterprise Car Rental "Friends Go On Trip" television ad, April 2007
- Figure 28: Enterprise Car Rental "Man Goes to Business Meeting" television ad, November 2007
- Figure 29: Enterprise Car Rental "Pledge to Plant Trees" television ad, January 2008
National
Web presence
Alamo
Web presence
Television commercials
- Figure 30: Alamo Car Rental "Happy Trails" television ad, August 2007
Hertz
Web presence
Television commercials
- Figure 31: Hertz Car Rental "Forest Animals Driving Prius" television ad, November 2007
Car Rental Demographics
Key points
- Figure 32: Incidence of car rentals, 2001-07
- Figure 33: Incidence of car rentals in the past year, by demographic groups, May 2006-June 2007
Car Rental Frequency
Key points
- Figure 34: Frequency of car rentals, by gender, May 2006-June 2007
- Figure 35: Frequency of car rentals, by age, May 2006-June 2007
- Figure 36: Frequency of car rentals, by income, May 2006-June 2007
Brand Selection and Car Rental Clubs
Key points
- Figure 37: Brand selection of car rentals, May 2006-June 2007
- Figure 38: Brand selection of car rentals, by gender, May 2006-June 2007
Frequency of Leisure Travel
Key points
- Figure 39: Trips taken in the past year that involved a hotel stay, car rental, plane flight, or packaged tour, March 2008
- Figure 40: Trips taken in the past year that involved a hotel stay, car rental, plane flight, or packaged tour, by age, March 2008
- Figure 41: Trips taken in the past year that involved a hotel stay, car rental, plane flight, or packaged tour, by income, March 2008
Length of Driving Time that Makes Flying Preferable
Key points
- Figure 42: Length of driving time that makes flying preferable, by gender, March 2008
Main Reason for Car Rental
Key points
- Figure 43: Purpose of most recent car rental, by income, March 2008
- Figure 44: Purpose of most recent car rental, by age, March 2008
How Car Rentals are Booked
Key points
- Figure 45: How car rentals are booked (usually or always), March 2008
- Figure 46: How car rentals are booked (usually or always), by age, March 2008
- Figure 47: How car rentals are booked (usually or always), by income, March 2008
Considerations that Lead to Rental
Key points
- Figure 48: Considerations that lead to rental, by gender, March 2008
- Figure 49: Considerations that lead to rental, by income, March 2008
Car Rental Attitudes
Key points
- Figure 50: Car rental attitudes*, by gender, March 2008
- Figure 51: Loyalty to certain car rental companies, March 2008
Rental Car Companies Used and Brand Perception
Key points
- Figure 52: Rental car companies used, by age, March 2008
- Figure 53: Car rental attitudes, March 2008
Consumers--Race and Ethnicity
Key points
- Figure 54: Incidence of car rentals, by race/ethnicity, May 2006-June 2007
- Figure 55: Number of car rentals in the past year, by race/ethnicity, March 2008
- Figure 56: Frequency of car rentals, by race/ethnicity, May 2006-June 2007
- Figure 57: Considerations that lead to rental, by race/ethnicity, March 2008
- Figure 58: Purpose of most recent car rental, by race/ethnicity, March 2008
- Figure 59: How car rentals are booked (usually or always), by race/ethnicity, March 2008
Appendix: Other Useful Consumer Tables
Number of leisure trips taken
- Figure 76: Number of leisure trips taken in the past year, by race/ethnicity, March 2008
Rental frequency--Mintel survey data
- Figure 77: Number of car rentals in the past year, by gender, March 2008
- Figure 78: Number of car rentals in the past year, by age, March 2008
- Figure 79: Number of car rentals in the past year, by income, March 2008
Main purpose of rental, by gender
- Figure 80: Purpose of most recent car rental, by gender, March 2008
Appendix: Trade Associations

Car Rental - US - May 2008

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