Online reservation concept of car renting has provided the travelers an advantage to plan and book their cars in much quicker and easier way. In addition, travelers have the advantage to evaluate the alternatives before booking the rental cars online. Online car renting is expected to grow further which in turn will reduce the contribution of station renting significantly in future.
Advancement in technology which led to the escalation of internet and broadband services in the UK has transformed the pattern of renting a car. The online booking of car rentals has showcased a tremendous growth in terms of contribution to the overall market revenues, over the last five years (2006-2012) and is expected to incline in future, as compared to station booking of the rentals. In response to the unstable economic conditions, the marketers have implemented innovative strategies in recent years, such as the introduction of electric cars, where reservations provide online customers an opportunity to bid the price they wish to pay for the specific travel related product without prior knowledge of the brand. The brand is disclosed only after the customer makes an online payment. This has enabled the car rental operators to increase their popularity, market share and utilization.
Internet has transformed many aspects of people’s lives. For services such as booking travel or buying tickets, the online access for the same has made the process much easier and efficient. The transformation in the technology has affected booking methods of renting in the recent years as people have started advancing towards online car renting methods. The internet provides a convenient way to access various things by sitting at one place and as people have become increasingly tech-savvy over the past few years, the number of bookings through physical rental stations has declined. The UK car rental market in the near future is expected to receive a strong impetus from the inclining revenues of the online booking segment of the market. The market is expected to achieve revenue of USD ~ million till 2017 growing at a CAGR of 9.04% over the period of 2012-2017.
Internet booking of cars for corporate purposes will expand in the next five years from. Business market segment of the UK car rental industry is estimated to yield USD ~ million in 2015 due to the expansion of business travels in urban areas of the UK. This market is expected to increase over the years with the growing preference of consumers towards car sharing or short term car rental for business purposes. The contribution of business purpose car rental is expected to be ~% by 2017. Moreover, an expected growth in the travel outlay and the number of visits within the country is estimated to drive this segment of the industry.
According to research report, “The UK Car Rental Industry Analysis to 2017: Surging Car Rental for Corporate Purposes”, the UK car rental market is estimated to grow at a CAGR of 3.65% over the period of 2012-2017, because of the significant change in the economic scenario, tremendous growth in car renting for corporate trips and escalation in the demand for off-airport car rentals by British people. Leaning towards geographic expansion in the cities of the UK, the demand for rented cars by native travelers will incline the overall car rental business in the country in future.
The report titled “The UK Car Rental Industry Analysis to 2017: Surging Car Rental for Corporate Purposes” provides detailed overview on the UK car rental industry. This report helps reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, car rental companies to align their market centric strategies according to ongoing and expected trends in the future.