Dublin, March 01, 2024 (GLOBE NEWSWIRE) -- The "Car Rental Industry in South Africa 2023" report has been added to ResearchAndMarkets.com's offering.
The car rental industry has recovered since the pandemic in line with tourism and business travel. Revenue increased in 2021 and 2022, and there are expectations of another significant increase in 2023. Car rental companies are looking at taking advantage of a growing trend of people renting rather than owning cars. Ride-sharing, car subscriptions, online platforms and digital aggregators are providing car rental businesses with alternative revenue streams.
Opportunities
- Electric and hybrid vehicle rental services.
- Formation of partnerships and alliances with airlines, hotels, and travel agencies.
- Formation of partnerships with ride-hailing services.
- Provision of long-term rentals.
- Subscription-based car rental services.
- Targeting corporate clients by offering tailored services, such as dedicated packages and loyalty programmes.
Challenges
- Access to prime locations, particularly at major airports and city centres.
- Building and maintaining trust and credibility with customers.
- Changing customer behaviours and shifts in preferences, including the shift to remote work and online meetings, can affect business travel and the demand for rental vehicles.
- Competition from ride-hailing and ride-sharing services.
- Continuous vehicle maintenance and repairs.
- Economic conditions can affect consumer spending and travel, impacting demand for rental vehicles.
- Establishing and sustaining strong brand recognition and customer loyalty.
- The industry is highly competitive, with many players vying for market share. The need to invest in technology for reservation systems, online booking platforms and fleet management.
- Vulnerability to unforeseen global and local events which led to travel restrictions and reduced demand.
Trends
As business travel recovers, vehicle rental companies are adjusting their services and pricing to meet the needs of corporate clients and travellers. Connected car technology, such as in-car Wi-Fi and real-time vehicle tracking, is becoming more common in rental vehicles. Including additional products such as GPS devices, Wi-Fi and insurance packages. Investment in technology to enhance customer experiences. More flexible long-term rental options and subscription services are gaining popularity. Optimising vehicle fleets to include more fuel-efficient models and alternative fuel vehicles. Some rental companies are exploring partnerships and integration with ride-hailing services to offer customers seamless transport solutions. Strategic partnerships and alliances with airlines, hotels and travel agencies.
Outlook
The outlook for the car rental industry is subject to local and global economic conditions, evolving customer preferences, technological advancements and global events. The industry is expected to return to pre-pandemic levels by 2024 and grow further thereafter. The significant increase in international inbound and local tourist travel and business travel in 2023 provide growth opportunities.
The supply of new vehicles has improved and enabled the industry to acquire more rental fleet to take advantage of higher business activity. Diversification strategies continue to bear fruit. The industry continues to face challenges in the form of economic uncertainty, regulatory challenges on emissions standards and safety requirements, and meeting consumer demand for eco-friendly vehicles. The industry remains highly competitive, leading to pricing pressures and the need for differentiation.
Report Coverage
This report on the car rental industry in South Africa provides a comprehensive overview of the sector and information on the size and state of the industry including fleet size and utilisation, rental car purchases and top selling vehicles sold to the industry, second hand sales, major players and corporate actions.
It includes information on relevant influencing factors such as tourism trends, crime and safety and infrastructure and road conditions. There are profiles of 15 companies including CMH, Motus and Zeda, who between them own some of the major rental brands, as well as other notable players such as Pace, RentMyRide, Woodford Group and Bluu.
Key Topics Covered:
1. INTRODUCTION
2. DESCRIPTION OF THE INDUSTRY
2.1. Industry Value Chain
2.2. Geographic Position
2.3. Size of the Industry
3. LOCAL
3.1. State of the Industry
3.2. Key Trends
3.3. Key Issues
3.4. Notable Players
3.5. Corporate Actions
3.6. Regulations
3.7. Enterprise Development and Social Development
4. AFRICA
5. INTERNATIONAL
6. INFLUENCING FACTORS
6.1. Unforeseen Events
6.2. Economic Environment
6.3. Labour
6.4. Environmental Issues
6.5. Electric Vehicles
6.6. Crime and Road Safety
6.7. Cyclicality
6.8. Tourism Trends
6.9. Infrastructure and Road Conditions
6.10. Technology, R&D, Innovation
6.11. Government Support
6.12. Input Costs
7. COMPETITIVE ENVIRONMENT
7.1. Competition
7.2. Ownership Structure of the Industry
7.3. Barriers to Entry
8. INDUSTRY SUMMARY
9. OUTLOOK
10. INDUSTRY ASSOCIATIONS
COMPANY PROFILES
- Bluu Car Rental (Pty) Ltd
- C M H Car Hire (Pty) Ltd
- Car Hire Brokers (Pty) Ltd
- CFAO Mobility (Pty) Ltd
- FlexClub ZA Technologies (Pty) Ltd
- Gage Car Rental (Pty) Ltd
- Genissis 1 Cash Car Rental CC
- Inclusion South Africa (Pty) Ltd
- Motus Holdings Ltd
- Pace Car Rental (Pty) Ltd
- RentMyRide (Pty) Ltd
- Springs Car Wholesalers (Pty) Ltd
- Woodford Group (Pty) Ltd (The)
- Zeda Ltd
- Zenith Car Rental (Pty) Ltd
For more information about this report visit https://www.researchandmarkets.com/r/l0ytwj
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