France Car Rental Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)

France Car Rental Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)

France car rental was valued at USD 1.10 billion in 2021 and expected to surpass a net valuation of USD 2.25 billion by 2027 end, registering a solid CAGR growth of 12.7% during the forecast period.

During the pandemic, demand for car rental services in France has witnessed a downfall amid the lockdown measures instructed by the government. The country's one of the economic booster sector remains the tourism witnessed a decline in revenue generation. This was attributed to reduced tourist crowds at several tourist spots in France. Although, the market has regained its growth phase again amid the lifting of covid-19 measures across the globe.

Digitalization, changing consumer preferences, and expansion in the fleet has been key growth propeller for the rising car rental business in France. In the long run, the demand is likely to be driven by the planned expansion of the France tourist industry. Key player investments, existing robust infrastructure, and a big customer base may help the industry swiftly recover from the pandemic and capitalize on the sector's development possibilities.

Internet penetration among the generation has been identified as a key pivot role in driving the demand for the car rental market in France. Several players in the car rental business operating in the segment are expanding their roots in countries to elevate the demand for the same. Players are offering electric vehicles for car renting to gauze consumer prefernces. For instance;

Key Highlights

• In Jul 2022, Stellantis auto maker introduced electric as you go which is longer term car rental programm offered in Frnace to lease and rent electric cars to consumers. Company introduced Peugeot e-208, Opel Corsa-e and Opel Mokka-e EV's for the same.

Thus, rising leisure and tourism activties in the country has helped market to grow positively during the forecast period.

Key Market TrendsGrowing Demand for Tour and Travel Activities

France has been the world's leading tourist destination for more than 30 years. With rising tourism in France, demand for effective car rental services is expected to boost the market segment demand during the forecast period. Many of the car rental providers in France are looking forward to effective discounts and offers for tourist to rent their choice of cars during their visits to nearby places. In addition, the fleet operator are regularly revising their fleet in order to make the market more attractive.

However, with the outbreak of COVID-19, the demand fell drastically as international flights were halted and businesses shifted from their offices to working from home mode and travel restrictions on companies to avoid their staff traveling to other countries for their safety. With the opening up of economies, the demand is returning back to the market as offices are coming back to normalcy, and it is expected that the market will witness growth during the second half of 2021.

The segment is popular with local people, visitors for vacations and office goers as it offers economic benefits to the people and saves other costs like maintenance costs and others. The country's tourism industry is one of the major contributors to car rentals, and apart from 2020, the country has witnessed an increase in the number of arrivals of tourists.

Considering these factors, demand for the France car rental services is expected to remain positive side during the long-term forecast period.

Online Booking Services Helping Business to Grow

Car rental provides booking options on a mobile app or website of a cab company. Further, the option of an online mode of payment has eased the process. The prominent factors driving this ecosystem are affordability and ease of access to the services. The demand for car rental is escalating due to on-demand payment from customers for convenience and affordability.

Most renters prefer renting cars online during peak seasons. As the car rental market experiences an increase in demand during peak holiday seasons, people tend to book cars in advance. Only a handful of cars are booked through rental stores, mostly during the off-season.

Online booking has attracted several investments in recent years including business expansion, offering and etc. Demand for online booking has taken a steep rise with ongoing discounts and offers provided by fleet operators.

With growing competition in the market, major companies have adopted strategies, such as partnering or acquiring local companies, to further boost their online rental operations across the country. For instance,

• In February 2022, A future-focused strategic alliance is announced by Accor, one of the world's top hospitality groups, and SIXT, one of the top worldwide transportation suppliers to offer customers of Accor to ear reward points while booking rented cras from SIXT.

Considering the aforementioned factors, demand for online booking modes is expected to witness more prominence during the forecast period.

Competitive Landscape

Some of the prominent players in the France Car Rental Market are SixtSE, The Hertz Corporation, and AVIS Rent a Car, among others. Players are partnering with key hospitality providers to elevate the business of car renting in France.

As the rental car demand is growing in the country, car rental service providing companies are expecting development in terms of online and offline services to felicitate the consumer shifting behaviors.

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