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How Car Rental Market is Positioned in Thailand?

Posted on 08 September 2017 by KenResearch Automotive, Transportation and Warehousing ,

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. Earlier the travelling needs of the tourists as well as the Thai people were met by the public transport facilities such as buses, trains, airlines and other public modes. Increasing number tourists and rising traffic congestion in the major cities of the country have raised a demand for an alternative transport option.

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. Earlier the cars were rented out with a driver but gradually the customers started demanding for a car without driver that led to the rise of non-chauffeur driven cars in the rental business. The competition in the market was increasing every year and the services offered to the customers improved at each level of competition. For instance, to withstand the competition in the current market the companies offer additional features such as GPS facility, company apps through which the bookings and other required operations can be carried out, cash, card as well as wallet payments and similar other technology up gradations.

Organized or Unorganized Segment Dominates the Car Rental Market

In terms of revenues, the car rental market is dominated by organized players. Organized car rental market in Thailand represents the players in the market who own a fleet size of more than ~ cars. The organized sector held a share of ~% in terms of revenues in 2016. The major factors that supported the domination of organized market are rental charges, accessibility, reliability, quality of services, popularity and similar other factors. The organized players in the Thailand car rental market dominate in terms of fleet size as they are abundant in the most demanded rental locations namely, Bangkok, Pattaya, Phuket and similar other locations. It increases their customer base as they are easily accessible and reachable. The price charged by the organized car rental companies is generally pre-fixed.

During 2016, the unorganized car rental market segment held a share of ~% in the market in terms of revenues. Unorganized market consists of the players who hold a fleet size of less than or equal to 20 cars. This is one of the major reasons for its low share. The number of trips generated is directly proportional to the number of cars on road. As it is less, the revenue generated from this segment shall remain low.

Chauffeur Driven or Non-Chauffeur Driven Cars Which is Most Preferred in Thailand?

The car rental companies in Thailand offer both non-chauffeur and chauffeur driven car services. Thailand car rental market is dominated by the non-chauffeur driven segment as of 2016 that held a share of ~% in terms of revenues. The major factors that support the domination of non-chauffeur driven services are the domination of retail clients in the market, rental charges, long distance trips, feasibility, convenience and other factors. Additionally, the car rental companies offer GPS facilities for the customers that make it convenient for them to locate their destinations easily without the help of a driver. The customers have to pay additional charges for these GPS services.

Chauffeur driven car rental services held a share of ~% in the market as of 2016. The major customer segment for chauffeur driven services represents the business and corporate customers who choose a daily pickup and drop services from their offices on a monthly rent basis. Chauffeur driven cars are best suitable for those who have a fixed time of pick up and drop. Chauffeur driven services are also in special occasions such as wedding and others.

Business or Leisure Trips Dominates the Car Rental Market in Thailand?

In terms of revenue generation, the leisure clients dominate the car rental market as of 2016 with the share of ~% in the market. Leisure trips refer to the trips taken by the domestic and international tourists as well as the local Thai customers to meet their casual or leisure travel needs. The major customer segment of the car rental market in Thailand represents the international and domestic tourists. Average length of tourists stay in Thailand is 10 days. Some tourists visit the country for a month and some come for a week. The length of tourists’ stay is a major factor that positively influences the revenue growth for car rental services; longer the stay, higher the revenue.

Business or corporate trips for a car rental service represents the trips taken by the business or corporate clients to meet their corporate travel needs. They include both individuals and corporate houses. The car rental companies assists the business clients with all their requirements whether, one car is required by an individual or an entire fleet for a group. Business clients held a share of ~% in terms of revenues in 2016. It includes all the trips for which the rent is paid by a corporate entity.

What is the Major Trends and Developments in Thailand Car Rental Market?

 

Advent of Information Technology: The introduction of trip booking through mobile apps by the cab aggregators have led to the advent of information technology into the car rental market. The advent of information technology in this industry has made the entire procedures of booking and reserving trips quicker, safer, easier and reliable for the customers. The local car rental companies have recently started providing the convenience of online booking and have introduced their mobile apps.

Increased Competition: The level of competition in the car rental industry is consistently increasing alongside the increased demand from the customers. The car rental companies are facing a tough competition from the cab aggregators as they are available at every location in just a booking away. Thus, the Thailand car rental industry has become highly competitive. With the entry of foreign players in the market, price has become one of the primary competitive factors in the market.

Electric Vehicles: 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) in the car rental fleets.

Promotional Activities: Increasing competition in the car rental market has induced the car rental companies to provide more number of promotional offers to the customers. For instance recently Sixt has joined hands with Air Asia and announced a promotional offer of THB 100 off on rent if the baggage is pre-booked. These offers are generally seasonal.

 

Source: https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/thailand-car-rental-market/137098-100.html

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
ankur [@] kenresearch.com
+91-9015378249
www.kenresearch.com

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Rising Number of Tourists and Increased Number of Business Travelers Supported the growth of Thailand Car Rental Market: Ken Research

Posted on 08 September 2017 by KenResearch Automotive, Transportation and Warehousing ,

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.

Source: https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/thailand-car-rental-market/137098-100.html

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

...

Read more…