Turkey Car Rental Market was led by Increasing Number of Mobile Purchases, Growing
Internet Penetration and Portfolio Diversification of Large Car Rental Companies: Ken
Research
Growing customer awareness about car rental markets, increasing prominence of app-based
bookings and increasing number of car rental firms have been major growth drivers of Turkey
car rental market during the review period.
The car rental market in Turkey is highly fragmented with the presence of large number of
unorganized and small players in the industry. The lack of legal regulations on car rental has
led to further fragmentation with a proliferation of small car rental offices. However, the
international brands such as Avis and Budget Rent a Car continue to gain share from the
small car rental offices due to their extensive penetration in terms of extensive fleet size,
outlets, higher-quality services and their stronger and more consumer-friendly service
provision. The car sharing platforms are increasingly gaining prominence in Turkey as
brands such as Yoyo and Zipcar continue to gain popularity among the millennial
population. Additionally, growing consumer awareness about online shopping and
payments, increasing penetration of online and mobile internet and ongoing investments by
the companies to improve their services continued to boost online sales of car rental during
the review period.
Car rental continues to perform well owing to increasing numbers of airline passengers and
successful penetration of car rental companies in leading airports. An increasing number of
long-term car rental companies which mainly focus on business car rental activities have
added short-term car rental services to their portfolios which aided the growth of car rental
market in Turkey. Additionally, increasing passenger preference for car rental due to
convenience compared to other types of transportation continues to have a positive impact
on car rental industry. It was witnessed that car rental companies have been investing in
mobile based bookings to benefit from the increasing consumer preference for mobile
purchases. Due to the decreasing number of incoming tourists as a result of the increasing
frequency of terrorist attacks and political instability, negatively affected the overall market