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The car rental market in Vietnam has experienced various mergers and acquisitions over the years. Moreover, international players have expanded by entering in Vietnam car rental market. Enterprise Holding Inc. has announced its plans to enter Vietnam market with its flagship brand Enterprise Rent-A-Car as well as its National Car Rental and Alamo Rent-A-Car in partnership with MP Logistics. There is a transformation of Vietnam car rental market from unorganized market to the organized market. The demand from car pooling services has been rising over the years in Vietnam. The traffic congestion in the country has led to the popularity of these services, making a positive impact on the car rental services industry in the country. Until recently, carpooling services of cab aggregators were banned.

Vietnam car rental companies have been introducing discounts and promotion in order to retain the old consumer base in the country. The increasing competition and number of players in the market has led to a competitive scenario which has led the companies to introduce competitive pricing and to have an edge over competitors. The firms such as GrabCar have been giving discounts to the customers which have encouraged new customers to try their services. Various companies use promotions and discounts to have a competitive edge over other players. For instance, Avis Rent a Car had a summer promotion program with the service package for Self-drive car rental while Vietnamcarrentaldeals.com offered discount on the online booking.

The cab aggregator companies such as Uber and Grab run on the mobile app business model and the popularity of these apps has been rising with elevated internet penetration and increase in number of smart phone users. Various car rental players such as Vinasun, Hertz, Avis and others are also shifting to mobile apps to increase the convenience for customers and to increase the consumer base.

The report titled “Vietnam Car Rental Market Outlook to 2021 – Rising Tourism and Trend of Mobile Booking for Rental Cars to Drive Market” by Ken Research suggests a robust CAGR of 12.0% in revenue terms and 14.1% in terms of fleet size for the Car Rental market in Vietnam in the next 5 years till 2021.

Source: https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/vietnam-car-rental-market/137557-100.html

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

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

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

Indonesia is still characterized by a low taxi penetration ratio at only 1.4 taxicabs per 1,000 people as compared to other South East Asian countries such as Malaysia and Singapore, these figures are much higher at 3.1 and 5.2, respectively. The Greater Jakarta area which has the highest taxi penetration rate in the country is not saturated yet and during certain times of the day it can be very difficult to get a taxi. Outside of Jakarta, the lack of taxis poses an even greater challenge.

In 2015, the Ministry of Transport released an updated plan on infrastructure development in Indonesia, outlining locations of new airports. After lacking government funding for years, in addition to land-related disputes hindering the expansion and upgrading of airports, the government announced plans to finance the construction of 165 airports in various cities across the archipelago. Furthermore, 103 existing airports will undergo renovation in the years to come with 29 being outfitted to handle international arrivals.

Indonesia contains not only a large population (over 250 million people) but also a population that has become increasingly urbanized, giving rise to higher taxi services demand in the urban regions. Approximately, 140 million Indonesians lived in the country's urban areas as of 2016. Moreover, foreign tourist arrivals into Indonesia have grown considerably over the past years and the government targets to welcome 20 million foreign tourists by 2019 (from nearly 11.5 million in 2016). The government of Indonesia exempted visa requirements for 169 countries during 2015 to boost inflow of tourists. The number of international tourist arrivals is expected to grow at an impressive CAGR of 7.5% during the next five years. This is going to result in significant rise in demand for car rental services in the country in the near term.

The car rental market in Indonesia is highly fragmented with over 5,000 taxi service firms actively operating across the country and a vast majority of them extended their services in the urban environments of Indonesia.

The report titled “Indonesia Car Rental Market Outlook to 2021 - Rising Tourism and Growing Middle Class Population to Foster Future Growth” by Ken Research suggested the car rental market is anticipated to grow at a CAGR of 8.4% during the period 2016-2021. The cab aggregator market which is currently dominated by three players is expected to witness price war and will result in marginal slowdown of the overall market, in terms of overall revenue.

Source: https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-car-rental-market/136319-100.html

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

Indonesia is a very popular tourist destination in Southeast Asia consisting of 17,000 islands (6,000 inhabited). Sumatra, Java, Bali and Kalimantan are some of the largest islands and most frequently visited places by domestic and international tourists. Due to its extraordinary geography and lack of investment in public transportation, renting car is very popular and convenient way to travel in and around the city. Indonesia is the most populous country in Southeast Asia, with over 260 million people, and the practice of renting cars has been going on since decades.

The car rental industry in the country has flourished in recent times owing to significant growth in tourism. Over 5,000 car rental companies existed in the market and over ~ taxis ran across the streets in the country, as of 2016. Cars were rented both for business or leisure purpose and for short or long term requirements. Although a large number of car rental companies operated in the country, passengers had faced difficulty in getting a taxi from anywhere in the city. In addition, companies lacked professional service as drivers often took longer routes to fool passengers and taxi services were scarce in rural areas.

Increase in domestic and international tourism, improvements in airport infrastructure and increase in passenger flow at airports were addressed as primary reasons towards the growth of car rental sector in Indonesia.

Rapidly expanding middle class population of the country resulted in increased consumer spending, rising fuel prices and subsequent rise in rental tariffs and incline in number of vehicles in the car rental industry, all resulted in the positive growth of the car rental market.

The car rental market in Indonesia grew from USD ~ million in 2011 to USD ~ million in 2016 at a CAGR of ~% during the period 2011-2016.

Which Segments are Doing Well in Car Rental Market in Indonesia?

In terms of revenues, the car rental market was dominated by organized players. The organized sector held a share of ~% in terms of revenues in 2016. Taxi accessibility, reliability, security, predetermined rate and reasonable tariff are some of the factors which had led to higher adoption and passenger trust on organized companies operating in this space.

The organized players in the market dominate in terms of fleet size and are present abundantly in the most demanded locations. Organized car rental companies have a pre-fixed tariff rate, which varies depending on the location. There is a very less possibility of change in fares amongst taxis of the same company unlike unorganized players

Most tourists visiting Indonesia and domestic nationals preferred renting out car on a daily or monthly basis and drive around the city themselves. Since the market for car rental services in Indonesia is tourist driven, it is the most convenient option for tourists who wish to travel to different locations around the city without the necessity to book multiple cabs from several points.

Non-chauffer driven car rental services are charged lesser than a chauffeur driven service and a customer retains the possession of the car for the entire contract term. The trend of non-chauffer car rental services has witnessed an incline in recent times since latest technologies are available to the passengers which help them in locating places with ease. Now people can easily locate their destination with the help of a GPS enabled mobile phone. In the light of these facilities the customers, especially tourists, prefer to opt for a leasing cars and driving it themselves.

Source: https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-car-rental-market/136319-100.html

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