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Friday, 27 August 2021 21:44

U.S. Car & Truck Rental Revenues to Return to Growth as Consumer, Business Travel Rebounds

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Nominal revenues generated by the U.S. car and truck rental industry are expected to see annual growth of 11% through 2025 from a depressed base in 2020, according to Car & Truck Rental: United States, a report recently released by Freedonia Focus Reports.

Excluding the anomalous year 2020, revenues are projected to increase 2.1% per year from 2019 through 2025. Ongoing increases in disposable personal income levels and consumer willingness to spend on recreation services such as travel and vacation experiences will drive growth, as will the return of travel for business purposes.

 

Car and truck rental services will continue to face competition from ridesharing services such as Uber and Lyft, traditional taxi services and other public transport providers.

 

Revenues generated by car rentals are expected to expand 13% per year through 2025 from a depressed base in 2020. Excluding 2020, revenues are projected to increase 1.9% per year from 2019 to 2025.

 

Gains will be driven by increasing disposable personal income as well as the release of pent-up demand for travel following the relaxation of restrictions in place during the COVID-19 pandemic.

 

Further gains will be restrained by the low quantity of available rental cars---a result of a mass fleet sell-off during the 2020 downturn and the ongoing microchip shortage, leaving rental companies struggling to meet demand.

 

Revenues generated by truck rentals are expected to expand 4% per year from 2020 to 2025; excluding 2020, projected increases stand at...


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