After a dip in 2020 and 2021, car rental is back on track and continues to grow year after year. It must be said that new features have appeared to make rental even more attractive. According to INSEE, worldwide, car rental represents nearly $120 billion in 2021. Since then, turnover has exceeded $138 billion in 2023 and could reach $223 billion by 2027.
Technology enables new features
Among the trends that are still fragile is the rental of electric vehicles. After strong enthusiasm, some rental companies have significantly reduced their EV fleet. The main reason for this was the residual (resale) value which was not up to par and higher maintenance costs than expected. However, the demand seems to be there and the rental of an electric car should pick up again in the coming years. Sustainable mobility is a strong trend that is spreading in our societies.
New technological services, which appeared a few years ago, are increasingly in demand by consumers. This is the case for 100% digital car rental like Virtuo. No paperwork or waiting at the counter, everything is done via the mobile application: from booking, to inventory, to starting the vehicle.
This new way of renting a car on demand allows greater flexibility thanks to simple, practical rental accessible 24/7. The possibility of having your car delivered to your doorstep is even possible in certain cities, which allows you to optimize your time even further.
Still on the flexibility of rental, some brands offer “one way” rentals. Instead of returning your vehicle to the departure station or agency, you can leave it at your destination. Practical when you are moving, for example, or leaving for several weeks in a place without needing a vehicle on site.
Always more flexibility and services
You can even go further in the service and find rental companies who take the vehicle to the desired location (home, work, other). This way, you can avoid the trip to the rental agency and ask to leave the vehicle at a particular airport or train station. The rental company is responsible for recovering the vehicle. Obviously, these services have a cost and it is up to you to decide whether it is worth it. Time is money, but also personal comfort.
One of the criticisms regularly made about car rental is that we often have another vehicle than the one reserved. When it’s a “superior” vehicle, you can make do with it, but when you have reserved, for example, a 7-seater vehicle and you only have 5, it can get stuck. This is why we now have rental companies who guarantee the reserved vehicle. A firm commitment and widening ranges of vehicles, from the city car to the large SUV, including the sports car or the luxury car for a special occasion.
Rental continues to offer older, more widespread features like the ability to book a multi-modal trip. For example, it is a car rental to a station, coupled with a train ticket then a rental at the destination. These agencies take care of triple booking for you. A kind of concierge service to, once again, simplify your life.
With technology, rental between individuals is growing strongly. This allows you to reduce your own carbon footprint by renting your vehicle to someone else, in addition to the financial aspect. For the tenant, this allows a more attractive price and the possibility of finding an individual close to where they live. This possibility of rental between individuals is all the more facilitated by the new electronic openings of cars via smartphone. We give access to the vehicle for such a day, at such a time and we can remove it at the end of the rental. No more key exchange. Here again, great flexibility.
Companies also have advanced services available such as monthly rentals. This makes it possible to supply company fleets and adapt the number of vehicles fluidly.
These innovations are largely driven by technological advances and changes in consumer behavior, who are seeking greater flexibility, convenience and sustainability in their transportation options.