The increase in the number of air passengers due to reduced fares, growth in disposable income, and the expansion of the leisure and tourism sector in emerging and developed economies is likely to drive the demand for airport car rental services. For instance, according to the International Air Transport Association (IATA) forecast in October 2018, the number of air passengers worldwide could double to 8.2 billion by 2037.
In addition, the global expansion of companies further influences the growth in the number of business travelers. Therefore, the increasing population of corporate or business travelers is driving the demand for luxury executive cars in the car rental sector.
High deposit amounts and rental costs may limit market growth.
The market involves obtaining a substantial deposit, ranging from $2,500 to $50,000, financial information, and background checks, as well as installing GPS devices on the vehicles to track them in case any problems occur during the rental. It also involves checking if the renter has personal insurance, which covers civil liability and the value of the vehicle, or at least part of it. For example, insurance for a fleet of $200,000 vehicles can cost anywhere from $400 to $1,300 per month, and many policies have high premiums and do not cover theft by the customer. Moreover, the low uptake of these services also hampers the growth of the market in some regions. Therefore, these cost factors are expected to restrain the growth rate of the market during the forecast period.