September 2017 Vietnam Car Rental Market Outlook to 2021
revenue share in the car rental market in Vietnam during 2016. This segment is driven by the tourists travelling to the country and the short trips made by the commuters for travelling inside the city for daily needs or leisure time. The chauffeur driven car segment accounted ~% revenue share from on airport pickup and drop offs in Vietnam. By Type of Trips( Leisure and Business): Car rental hiring for leisure purposes generated higher revenue as compared to car rental services opted for business purposes because of high number of domestic and international tourists preferring car rental services over public transport. In 2016, this segment accounted for ~% of the total car rental market revenue in Vietnam. By Car Type( Luxury, Medium and Small): Small cars generated the highest revenue share of ~% from car rental services in Vietnam during 2016 as customers preferred to rent small cars for travelling to short destinations. Medium sized cars grabbed the second highest revenue share of ~% in the car rental services in Vietnam. Luxury cars added up third highest revenue share of ~% in the car rental market in Vietnam owing to this segment catering to niche audience including the HNI customers. By Region( Ho Chi Minh, Hanoi, Da Nang, Hue and Others): Ho Chi Minh dominated the car rental market in Vietnam in terms of revenue generation. Being the most populous city with population of ~, it accounted for highest demand of car rental services having a revenue share of ~% in 2016. Hanoi added the second highest revenue share of ~% in the car rental market in Vietnam due to tourist attractions in this city including Temple of Literature, Hoan Kiem Lake that attract high number of domestic and international tourists. Present Cab Aggregator Market Dynamics Vietnam Cab Aggregator market has witnessed a robust growth in past few years. The market has grown at a five year CAGR of ~% during the period 2011-2016 owing to the cab aggregator players entering the market. Cab aggregator market increased during the period 2013-2016 owing to the cab aggregators entering the market. In 2013, EasyTaxi entered into the country followed by GrabTaxi and Uber in 2014, creating a positive impact on the cab aggregator market in the Vietnam. The cab aggregator segment was dominated by the on airport location pickups and drop offs with ~% revenue share. This segment is driven by tourists and people travelling for professional purposes to and from airport. Vietnam cab aggregator market currently has three major players including Grab Taxi, Uber and Easy Taxi operating in two cities namely Ho Chi Minh and Hanoi. Positioning of Major Players in Vietnam Car Rental Industry Vietnam car rental market is fragmented market with various organized and unorganized players operating in the space including Vina rent a Car, Budget, Avis, Vinasun, Mai Linh and VN Rent a Car. The car rental market was dominated by
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