Category Analysis – Car Rentals
Expansion in tourism and travel industry has led to a boom in car rental industry in Europe. Car rental market is expected to register a compound annual growth rate of around 6%, during 2018 – 2023. This report gives insight into the important features that users look out for before hiring a car for their leisure or work related trips.
The analysis is based on customer reviews and conversations online in the segment. The analysis results presented are completely unbiased and not based on any subjective judgement. The source data used for the analysis are user conversations available publicly online like public forums and social media.
Total number of customer conversations analyzed
Car Rental Industry in Europe: An Overview
- Global Car Rental Market Analysis shows a significant growth rate of 14% by 2023.
- User penetration is 4.7% in 2020 and is expected to hit 5.1% by 2023.
Car rental services allows customers to hire a car on rental basis for a specific period of time. Car rental services can be availed on offline and online platforms. Car renting includes hiring vehicles on a per hour or per kilometer basis. Car rental companies extend their services to tourists and other customers for a specific period ranging from days to months.
Car Rental in Europe: Key Growth Drivers
The growth of travel and tourism industry has fueled the car rental business in Europe. With more number of tourists visiting Europe per month, the car rental business has seen greater business opportunities.
Furthermore, Europe has made it easy to procure visa for tourists thereby attracting tourists from the international markets, like the United States, Japan, Canada, and Australia. This relaxation in visa has propelled the tourism in Europe thereby driving the vehicle rental market. As per studies, international tourist arrivals in Europe was 713 million in 2018 an increase from 628.31 million in 2017.
In addition, European car rental companies have offered online and walk-in booking services. Online services are much simpler making car rental booking more simple and accessible.
Other factors that are contributing to the growth of car rental market is the economic growth in Europe, availability of easy cr rental services, entry of new car rental players, and government policies that favor the customers. Rise in purchasing power of the consumers, growing urbanization, higher awareness regarding environmental protection, and the higher disposable income of the consumers is leading to growth of car rental industry.
Customer experience analysis is a powerful strategy used by brands to identify significant factors that improve customer experience. By analyzing the key drivers of customer experience, brands can create robust business strategies that can help a brand to improve upon its offerings to customers.
Today customers are well informed, have higher disposable income and also want to travel around the world. Customers are demanding topnotch car rental services for their business and leisure tours. Most of the car rental companies in Europe are not sure of what the customers expect in a car rental service.
Based on the analysis of 4,368 online customer conversations, Clootrack has shortlisted key drivers of customer experience:
1. Anywhere Drop Offs
Customers in Europe want to explore and experience unforgettable driving journey. They prefer picking up a car from a destination and dropping it off in another since it gives more flexibility during their trip.
2. Multi Language/Accurate Navigation
Europe has more than 23 officially recognized languages and is a home to hundreds of languages. Customers in Europe ask for car rental features that allow them to customize and translate any language content into their preferred language. Customers are looking for a navigation device that offers them freedom and confidence to explore unfamiliar territories. Customers feel that free navigation services in multi-languages should be one of the features of a car rental services.
3. Better Long Term Prices
Can a customer rent a car for 6 months for a reasonable price? Yes! Customers are looking for long term car rentals at reasonable prices. They are looking for options where the longer you rent a car, the more they save! Long-term car rentals are preferred by customers who love the ease and flexibility while exploring, and moving around without having to re-book a rental car each week.
4. Car Running Condition
Your long awaited well planned trip should not become a nightmare due to the bad car that you rented, Right? Customers have discussed this as one of their top factors while renting a car in Europe. Customers expect that the car rental companies offer cars that are checked for brakes, fluid levels, tires and all other things that could cause problems. Nobody wants to spend extra time and money for car repairs.
5. Car Cleanliness
A leisure trip can never be enjoyed in an unclean car. A customer who spends a lot of time in the car during their trips does not like to travel in cars that stink and are not washed and cleaned. Customers are looking for car rental companies that have a clean fleet of cars. Though this one is a very obvious feature, customers are discussing this in their online conversations. This shows the amount of importance that customers are laying on car cleanliness.