Growing popularity of Thailand as an affordable tourist destination and increased traffic congestion in the major cities of Thailand has contributed to the growth of car rental market in Thailand.
Thailand is known for its tourist attractions. People from different countries visit Thailand for spending their vacations. There are many ways through which the tourists can explore the country such as airlines that connect the major provinces, airport shuttles, bus and coach rentals, custom transfers such as limousine services with professional drivers, car and other vehicle rentals, trains, boats and yachts, motorcycle and scooter rentals, cycling and many other modes. Car rental services are existent in the country from more than three decades, but the market was quite unorganized. Since, Thailand is one of the most attractive tourist destinations, the demand for convenient transport options have kept on growing. Year after year by meeting the demand of customers with utmost satisfaction, the services offered by the car rental companies kept on improving and upgrading. During the review period the market has displayed a consistent growth at a CAGR of ~%. Increasing number of business customers, low priced second hand cars and similar other factors have led to the growth in the fleet size.
Government initiatives to reduce the carbon emissions are expected to include more of hybrid-electric vehicles (HEVs), plug-in hybrid vehicles (PHEVs) and battery electric vehicles (BEVs) into the car rental fleets.
The growing demand for external transport services has also surged the demand for the cab aggregator services in the country. Since, the market is established in the country it has gained a widespread popularity among the people. The market has experienced a tremendous growth supported by the cheaper trips offered by the cab aggregators in comparison to other taxi services, inhospitable services from traditional taxi services, traffic congestion in the major cities of Thailand and similar other factors.
The report titled “Thailand Car Rental Market Outlook to 2021– Increasing Traffic Congestion and Rising Number of Corporate Clients to Amplify the Market Growth” by Ken Research suggested a positive CAGR of over 10% in terms of revenues in car rental market in the next 5 years till 2021.
Ankur Gupta, Head Marketing & Communications