Asia Pacific Tourism Vehicle Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia Pacific Tourism Vehicle Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The tourism vehicle rental market is anticipated to register a CAGR of over 10%, during the forecast period (2020 – 2025).

Key Highlights

• Over the decades, tourism has been rapidly growing, while experiencing deepening ‎diversification and becoming one of the fastest growing economic sectors in the world. ‎Modern tourism is closely linked to development and encompasses a growing number ‎of new destinations. These dynamics have turned tourism into a key driver for socio-economic progress. As tourism is a huge market, the demand for vehicle rentals is growing around the world.
• Tourism Car rental companies are developing strategic partnerships with corporates, airlines, insurance companies and universities to reduce the percentage of single occupancy vehicles while touring. Global car rental company Sixt SE is a trusted last mile rental partner for many Asian Airlines such as China Airlines, Thai Airways, etc.
• Increased concern and awareness of lower emissions have primarily led to an increase in car rental options. Additionally, vehicle rental also provides the option of increased mobility, without the concern of paying the costs associated with car ownership. These services are offered via websites and through other online platforms, which has helped the growth of the tourism vehicle rental market.

Key Market TrendsRise in Tourism Sector and Leisure Travelling

The global travel and tourism sector grew at 3.9%, contributing a record of USD 8.8 trillion to the world economy, during 2018. The global tourism industry grew faster than the global economy for the eighth successive year (3.9% for travel and tourism versus 3.2% for the global GDP).

In 2018, travel and tourism increased its share of leisure spending to 78.5%, from 77.5% in 2017. Additionally, spending from international tourists increased to 28.8% in 2018. Asia-Pacific is the major tourist destinations for both domestic and international travels with Asia-Pacific seeing 343 million tourists, in 2018. In 2018, India had 17.42 million foreign tourist arrivals registering a growth of 7.7% over 2017. The growth rate for 2019 was 2.2% for first six months till June.

Increase in disposable income in emerging economies such as China and India has allowed customers to spend on travel. Outstation rentals and SUV rentals are expected to significantly grow during the forecast period.

China to Exhibit the Highest Growth Rate

With the growing trend in technology, the ease of renting a vehicle through online booking has been the most preferred choice of customers over the past few years. As it provides the additional facilities to monitor a rental vehicle’s operation, performance, and maintenance in real-time. These features made tremendous assets for drivers and fleet managers, enabling them to better and more efficiently identify risks and implement timely improvements of their rental services.

The above new system features are expected to serve 1,500 leasing partners by the end of 2019. DiDi launched its financial services hub in its main China app in January 2019, covering a diversified portfolio of insurance, wealth management, and payment services to riders, drivers and car-owners across its ride-hailing and auto-solutions businesses. As of 2019, Didi Chuxing offers a full range of app-based transportation options for nearly 550 million users in the country.

Competitive Landscape

The Asia Pacific Tourism Vehicle Rental Market is fragmented and dominated by few organized players such as Zoomcar, Drivezy, Sixt SE, Shouqi Car Rental, etc. The companies are expanding their fleet size and launching. For instance:

• Didi Chuxing teamed up with BAIC in March 2020 to introduce car leasing service in the country. However this move has been criticized because ride hailing is eating up the automotive sales in the country.
• In February 2020, Yamaha Motor corporation invested USD 35 million in Indian car rental company Drivezy further strengthening the Indian mobility space.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
eHi Car Service Limited
Beijing China Auto Rental Co. Ltd.
The Hertz Corporation
Zoomcar India Private Limited
Carzonrent India Private Limited
Drivezy India Travels Private Limited
Uber Technologies
Shouqi Car Rental
Shenzhen Top One Car Rental Co. ltd.

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