The car rental industry in Europe will be driven majorly by the increasing expansion of tourism and travel industry in various European countries, buoyed by the government initiatives. The popularity of medical tourism is also expected to incline in future which will positively affect the market for car rentals in the region. The rising household income of travelers will continue to fuel increasing demand for leisure trips. Additionally, thriving international trade in the European region will continue to sustain demand from business travel in different countries of Europe. This will further strengthen the market for car rentals in Europe.
Car rental industry in Europe is anticipated to grow at a higher pace over the span of 2012-2017, strengthened by positive economic situation, growing off-airport car rental market and inclining trend of business and leisure trips by the European people. The demand for cars is expected to increase in the coming years, with a surge in spending on building extensive road networks, thereby resulting in an incline in the demand for cars for rent. Though rising fuel costs would continue to challenge the industry growth, the future of the industry seems optimistic, on account of the market leaders implementing new strategies and increasing focus on car sharing among travelers, which is a growing service segment in the industry.