Rental Cars Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location and nature of the business play a vital factor in analyzing the rate benchmarking of rental cars category. For example, car rental services in the U.S. are typically more expensive than services in India. For instance, in U.S the average per day rate of cars ranges from USD 48, as compared to India which is around USD 35. This is due to a number of factors, including the availability of cheaper cars and associated services. The cost of rental services varies depending on the type of car that is being rented. For example, a small car with a limited luggage space will likely cost less than a luxury car with roomier seating and bigger luggage space. For instance, a small car may cost between USD 400 – 800 whereas a luxury car may cost from USD 800 to more than USD 3,000 for a four day period.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, fleet managers at Avis Budget Group, and Europcar receive a 15% - 20% higher average salary compared to the salary received by fleet managers working in companies such as Enterprise Holdings Inc., and The Hertz Corporation. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the rental cars category over the last two years:

In June 2023, more than 300 business professionals who operate and support the Enterprise Rent-A-Car, National Car Rental and Alamo brands globally across the Latin America (LAC); Europe, Middle East and Africa (EMEA); and Asia-Pacific (APAC) regions came together for a series of in-depth informational presentations and networking events, designed to accelerate the global growth of the Enterprise Holdings brands internationally. Their end goal is to align themselves on achieving Enterprise Holdings’ vision to be the world's best and most trusted mobility company

In March 2023, Woodford Group and Enterprise Holdings signed a collaboration agreement. Enterprise Holdings declared launching its service in South Africa as part of the cooperation. The business provides point-to-point services, long-term subscriptions, and short-term car rentals with chauffeurs.

In January 2023, Hertz signed a public-private partnership with the regulatory body of Denver, Colorado, to accelerate the transition of EVs in the rental industry. The company will switch towards providing rental electric cars contributing towards sustainability.

In October 2022, Autohellas, a leading car rental company in Greece, has acquired more than 85% share in Portuguese company HR Aluguer de Automóveis S.A. This acquisition is part of Autohellas' strategic plan to double its revenue from the international rentals segment. 

In April 2022, SIXT, a leading global mobility provider, has announced the opening of two new branches in Charlotte and Baltimore, expanding its presence on the East Coast. The new branches offer customers a wider range of rental choices and provide SIXT with a stronger foothold in this region.