Cruise control: Growing domestic travel is projected to increase demand for industry services

The Car Rental industry in Canada has expanded at a steady pace over the five years to 2019. Air travellers, the industry's primary source of revenue, have increased in number alongside gains in per capita disposable income and declining rates of unemployment. During the five-year period, the industry has continued to consolidate, leaving three dominant global brands with various degrees of strong market share. Growing domestic travel, bolstered by an expanding Canadian economy, is projected to increase demand for industry services in coming years. In addition to rising air travel, industry growth will be underpinned by growth in personal income and generous corporate travel budgets...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
3.3%
Forecast Growth 19-24
Profit
Employment
17,294
Businesses
1,795

Industry Threats & Opportunities

  • Declining corporate profit has constrained downstream business expenditures
  • Consolidation among larger operators has continued to shape the industry
  • Business and leisure travellers are anticipated to continue spending
  • Industry Report - Industry Analysis Chapter

    The Car Rental industry in Canada has exhibited consistent revenue growth over the five years to 2019. Since 2014, the national unemployment rate has slowly improved, levels of disposable income have increased and consumers have resumed spending. More importantly, consumers have been spending more on leisure activities, such as domestic travel. These trends have been important drivers for the industry’s growth, as air travellers represent the industry’s primary market, and strong growth in inbound international travel has bolstered revenue from airport car rental in recent years. As a result, industry revenue is estimated to grow at an annualized rate of 3.3% to $4.7 billion over the five years to 2019, including projected growth of 0.7% in 2019 alone...purchase to read more.

    Additional Insights for the Car Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car Rental Industry are

  • Being part of a franchising chain
  • Access to niche markets
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Inbound international travel and Per capita disposable income in the Car Rental industry impact industry performance..

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    What's in this report

    What is the Car Rental Industry?

    Operators in this industry rent and lease passenger cars without drivers, which are often used for short periods of time. Car rental agencies provide hearses, limousines and passenger cars, including automobiles, minivans and sport-utility vehicles (SUVs). Car rentals typically last 30 days or fewer, while leasing agreements typically last 12 months or longer. The industry excludes the rental or leasing of cars with drivers.

    Industry Products
  • Airport rental services
  • Off-airport rental services
  • Leasing services
  • Industry Activities
  • Passenger car rental
  • Passenger car leasing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Inbound international travel
  • Per capita disposable income
  • Corporate profit
  • Demand from transportation and warehousing
  • World price of crude oil

  • Current Performance
  • Strong consumer conditions
  • Profit trends
  • Consolidating companies
  • Alternative growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing revenue
  • Rising competition hinders profit growth
  • Expansion
  • Table: Car Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance & Annuities in Canada
  • Car Body Shops in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Auto Mechanics in Canada
  • Automobile Wholesaling in Canada
  • Car Body Shops in Canada
  • SUV & Light Truck Manufacturing in Canada

  • Products & Services
  • Airport rental services
  • Off-airport rental services
  • Leasing services
  • Chart: Car Rental Industry Products and Services Segmentation

  • Demand Determinants
  • The number of air travellers
  • Disposable income
  • Corporate profitability
  • Exchange rates

  • Major Markets
  • Commercial consumers
  • Household consumers
  • Government clients
  • Chart: Major Market Segmentation for the Car Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Car Rental

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Rental Industry

  • Industry Globalization
    Enterprise Holdings Inc., Avis Budget Group Inc., Hertz Global Holdings Inc.,
  • Table: Enterprise Holdings Inc. - financial performance
  • Table: Avis Budget Group Inc. - financial performance
  • Table: Hertz Global Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Car Rental Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Car Rental Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per capita disposable income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Airport Rentals
  • The segment for car rental services at or near airports, which is made up almost entirely of air travellers and is historically the industry's primary market.
  • Car Sharing
  • A very short term car rental where customers pay an annual fee plus hourly rental rate to rent cars from specified locations in participating cities.
  • Concession
  • An agreement between car rental companies and airports specifying how many counters a rental company can operate at an airport.
  • Off-Airport
  • The segment of car rental services away from airports, usually in cities, suburbs or rural areas, which includes car sharing and insurance replacements.
  • Residual Value
  • The value that car rental companies receive when they sell a rental car back to a car manufacturer or a car wholesaler.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Car Rental market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Car Rental:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Car Rental market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Car Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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