What is hot in today’s rental marketplace industry?
Car rental service!
With the advent of technology and an increase in the number of mobile phone users, car renting business which existed in brick and mortar form updated to an online renting platform.
A car rental business can be started by focusing on a small niche rental service to slowly scaling offering a wide range of rental services helping people around.
Future scope of car rental business
According to Statista, the revenue generated in the car rental business globally this year is US$59,518M. By 2022, the revenue generated would be $124.56 billion dollars.
If we talk about user engagement, at present it is 197M and expected to be 291.5M by 2023.
And the data also culminated the top five countries where the car rental business soars higher in the United States, China, Germany, Canada and Japan.
By this data, you can gather the car rental business is one of the lucrative rental businesses to invest.
Ideas for car rental business
Luxury car rental business
Luxury car rental business can be a profitable venture if anyone well aware of the market size and depreciation value of the car.
The people who usually rent a luxury car is the one who can’t afford to buy a luxury car but can rent it for a short period. Occasionally, a posh person may rent the car for travelling purposes.
Start this kind of car rental business at the right location where people understand the value of exotic cars, which raises the demand for exotic cars.
Car rental service for big events
Big events such as weddings, funerals, parties, baby showers and other occasions need a car for transportation.
The booking happens in bulk numbers to accommodate huge people, thus spinning considerable money. Plus, these kinds of business wouldn’t get vanished soon.
Setting a price package is important for this business. You can formulate different packages and price based on the value of the car, number of days/hours rented and based on the type of event.
Corporate car rental service
Corporate companies use a car rental service for employee transportation or a business trip. Usually, a luxury or spacious vehicle rented accommodating five-six people when going on a business trip outside the city.
Car rental companies which are in business offer no third party liability insurance and motor vehicle tax. To give a tough competition, some companies provide an online booking tool integrating into the company’s intranet site.
Electric car rental service
The new swift in the automobile industry is the increase in the production of electric cars. It all started when Tesla Motors began development in 2004 and released in 2008. Soon, other brands joined the race and people considered of replacing conventional cars.
Eco-travellers have easily adopted to electric cars as they are into saving carbon fuel. But others are slowly beginning to consider test driving to get a practical idea of their preference. The common response from the people is they are willing to use an electric car for daily commute to work or for a two days short trip.
People feel the advantage of renting electric cars over conventional cars due to the following factors,
- Low maintenance
- Low rental cost compared to gasoline-run vehicles
But, it is limited by the city and region and by the number of charging stations. Study your neighbourhood on their knowledge about electric cars and the number of charging stations present.
This is just a start. You can imagine the future of the electric car rental business replacing the gasoline-run cars and people start adopting it.
Tourism car rental service
According to the Global Tourism Vehicle Rental Services Market is expected to grow at a CAGR of 12.08% during 2016-2021. Canada and the USA have abundant companies who operate in this business. Asia-Pacific countries like Vietnam, the Philippines, India, and China have tremendous space for the growth of tourism, inferred from the study done by Mordor Intelligence.
But if you are planning to start, consider the geographical area.
- Does the area you start have an attraction spot to crowd many tourists or a special event happen in your town/city?
- Do people in your town/city travel often to nearby city and rent a vehicle for travelling?
Observe, verify and consult before you jump in.
There is a positive growth in the car rental industry globally, considering the immense growth opportunities in the travel and tourism industry and the outburst of the sharing economy. Plan your logistics, operational cost, marketing and predict the revenue generated. Also, find out how to build your car rental service from scratch in our upcoming post.