Market Research Reports - Ken Research Car rental Market in Australia

Australia Car Rental Market Growth was led by Increasing Inbound Arrival, Growth of Cab
Aggregators in the Country and Growing Online Bookings: Ken Research
Encouraged corporate travel activity, largely positive consumer sentiment and rising
penetration of internet and Smartphone will be the major growth drivers of Australia car rental
market in upcoming years.
The report titled “Australia Car Rental Market by Market Structure (Organized and
Unorganized Sector), by Mode of Booking (Online and Offline), by Clients (Leisure and
Business), by Pick-Ups (Airport and Off-Airport), by Car Type (Hatchback, Sedan and SUV) and
by Major Regions - Outlook to 2022” by Ken Research suggested that growing online
distribution channels for car rental services backed up with further adoption of mobile and
development of seamless online booking applications will majorly contribute to the overall
revenue growth of Australia car rental market in next 5 years till 2022.
Australia car rental industry is relatively concentrated with the top five players in the industry
majorly accounting for 70% of total transaction value during 2017. In terms of transaction
value, the Australian car rental market grew by 4.0% from the previous year majorly owing to
increasing inbound arrival by 5.0% to 8.7 million trips due to high flow of international tourists
from Asian countries. Ride sharing market has increasingly gained prominence in the market as
the number of Uber users doubled in the year to March 2017, reaching 2.7 million (14% of the
population). The cab sharing market has grown over the years with the growth in the number
of players in the industry backed up with increasing preference of renting a car for personal
use. The growing number of small and large businesses in the country has also surged the
demand for car rental services in Australia.
Increasing competition in the market has raised the quality of services offered by car rental
companies in the country which has attracted more number of customers. The car rental
market has witnessed increasing presence of multinational companies growing their presence
in untapped markets and consistently focusing on increasing their fleet size. Over the years,
industry has witnessed cut-thought competition owing to short profit margins which has
resulted in the companies to improve their service portfolios, for instance providing door to
door pick up and drop facilities for the customers and others. The car rental process has been
made very agreeable including the convenience of online booking and payment, among other
alternatives. Growth in the online channel is driven by growing sales through major
intermediaries, such as Drive Now, Expedia and Webjet. Major players have mobile-optimized
websites and Smartphone apps, which allow users to book and change booking details online,
offering more flexibility in services.
Key Topics Covered in the Report