Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Car rental revenue recovers from significant drop in 2009
- Enterprise leads rental market in fleet size, locations
- Hertz increases revenue for second straight year as business travel rebounds
- Avis aims to buy Dollar Thrifty despite declining revenue
- Avis–Dollar Thrifty merger signals further industry consolidation
- Fox Rent A Car one of a few growing small operators
- Business travel picks up with improved economy
- Leisure travel increases as consumer confidence returns
- Push for electric and hybrid vehicles as high gas prices return
- Car sharing threatens car rental market…
- …although car rental companies investing more in car sharing
- Over half book cars online; nearly half do so via company website
- Less affluent and Hispanic consumers more likely to rent on-site
- Compact most preferred class for personal and business use
- Those aged 25-34, Hispanics more likely to purchase options
- Nearly half of respondents use social media, suggesting opportunity
Insights and Opportunities
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- Wireless technology can let consumers rent cars anywhere they desire
- Educated, empowered consumers can be won by proactive rental brands
- Social networking: Consumer empowerment has raised the stakes in customer service
- Consumer education: A way to build trust
- Car rental companies can get personal with luggage tag advertising
Inspire Insights
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- Trend: Life Hacking
Market Size
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- Key points
- Car rental revenue recovers from significant drop in 2009
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- Figure 1: Total car rental revenues, at current prices, 2005-10
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- Figure 2: Total car rental revenues, at inflation-adjusted prices, 2005-10
- Fleet sizes stable following sharp decline in 2009
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- Figure 3: Total number of rental cars in service, 2005-10
Market Drivers
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- Business travel picks up with improved economy
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- Figure 4: Number of U.S. business travel trips,* 2006-11
- Leisure travel increases as consumer confidence returns
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- Figure 5: Number of U.S. leisure travel trips,* 2006-11
- Avis—Dollar Thrifty merger signals further industry consolidation
- Push for electric and hybrid vehicles as high gas prices return
- Auxiliary revenue sources vanish as smart phones become standard
- Major car rental companies investing in car sharing initiatives
Competitive Context
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- Car sharing threatens car rentals through accessibility, low cost
- Car rental companies entering car sharing market
- Car sharing taps markets on campuses and in corporations
- Daimler AG first car manufacturer to enter car sharing arena
- RelayRides creates online car rental auctions between individuals
Supply Structure
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- Key points
- Enterprise leads rental market by far
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- Figure 6: Number of rental cars in service by company, 2008 and 2010
- More than one third of nation’s locations owned by Enterprise
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- Figure 7: Number of car rental locations by company, 2008 and 2010
Supplier Profiles
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- Key points
- Enterprise Holdings
- Key points
- Enterprise expands with purchase of Alamo, National Car Rental
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- Figure 8: U.S. revenues for Enterprise Holdings, 2005-10
- With local rental focus, Enterprise picks up consumers
- Enterprise named top brand in satisfaction survey for seventh consecutive year
Hertz
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- Key points
- Hertz increases revenue second straight year as business travel rebounds
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- Figure 9: U.S. revenues for Hertz Holdings, 2005-10
- Outbid for Dollar Thrifty, Hertz looks to expand Advantage brand
- Hertz Rent2Buy lets consumers buy former rental cars
- Hertz major provider of customer loyalty programs
- Avis Budget Group
- Key points
- Avis revenue declines for second straight year, though fleet growing
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- Figure 10: U.S. revenues for Avis Budget Group, 2005-10
- Avis discontinues no-show fee
- Avis outbids Hertz for Dollar Thrifty, making Avis second largest company
- Dollar Thrifty Automotive Group
- Key points
- Dollar Thrifty rebounds after steep decline
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- Figure 11: U.S. revenues for Dollar Thrifty Automotive Group, 2005-10
- Despite pending merger, business as usual for Dollar Thrifty
- Other
- Key points
- Fox Rent A Car one of a few growing small companies
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- Figure 12: Revenues for other car rental companies, 2008 and 2010
- Overall revenue of independents declined
Brand Qualities
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- Hertz makes its green energy initiatives known
- Fox Rent A Car goes blogging
- National focuses on business travelers
Innovations and Innovators
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- Rent Centric links hotels and independent rental companies online
- E-Z Rent-A-Car launches radio frequency tracking
- Avis’ Early Access Program lets dealers buy used cars direct from lots
Marketing Strategies
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- Marketing strategy: Using social media promotions to gain followers
- Marketing strategy: Avis becomes leader in mobile apps
- CarRentals.com lets users compare on the go
- Marketing strategy: Provide interactive content with local flavor
- Strategy: Marketing partnership with travel destinations
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- Figure 13: Alamo Rent a Car ad, 2010
- Strategy: Marketing the weekend trip as simple and affordable
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- Figure 14: Enterprise Rent A Car ad, 2010
- Strategy: Marketing to the consumer’s desire for the vehicle
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- Figure 15: Thrifty Car Rental ad, 2010
- Strategy: Praise the seasoned business travelers and offer them priority
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- Figure 16: National Car Rental ad, 2010
Car Rental Participation
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- Key points
- Less than one third of respondents rent cars
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- Figure 17: Vehicle rental, by gender, October 2009–June 2010
- Middle-aged and older respondents most likely to rent cars
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- Figure 18: Vehicle rental, by age, October 2009–June 2010
- Likelihood of car rental increases with household income
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- Figure 19: Vehicle rental, by household income, October 2009–June 2010
Car Rental Brand Preference—Personal Use
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- Key points
- Enterprise most common rental choice for respondents
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- Figure 20: Car rental brand preference for personal use, by gender, March 2011
- Enterprise leads across all age groups; 25-34s most likely to rent
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- Figure 21: Car rental brand preference for personal use, by age, March 2011
- More affluent households choose Hertz, Avis, National over Enterprise
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- Figure 22: Car rental brand preference for personal use, by household income, March 2011
Car Rental Brand Preference—Business Use
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- Key points
- For business use, much less disparity among brands
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- Figure 23: Car rental brand preference for business use, by gender, March 2011
- Hertz’s customer base skews to older business travelers
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- Figure 24: Car rental brand preference for business use, by age, March 2011
- Enterprise, Hertz lead among respondents from most affluent households
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- Figure 25: Car rental brand preference for business use, by household income, March 2011
How Rental Cars are Booked—Personal Use
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- Key points
- Nearly half of respondents rent cars via operator websites
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- Figure 26: Car rental method for personal use, by age, March 2011
- Online booking via website most common among most affluent
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- Figure 27: Car rental method for personal use, by household income, March 2011
How Consumers Book Rental Cars—Business Use
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- Key points
- Majority of business use car rentals reserved online
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- Figure 28: Car rental method for business use, by age, March 2011
- More affluent respondents rent from company websites
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- Figure 29: Car rental method for business use, by household income, March 2011
Length of Booking for Rental Cars—Personal Use
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- Key points
- Personal use rentals average 5.75 days among respondents
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- Figure 30: Length of car rental for personal use, by gender, March 2011
- Length of rental for personal use increased with age
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- Figure 31: Length of car rental for personal use, by age, March 2011
- Respondents from highest-earning households rent cars longest
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- Figure 32: Length of car rental for personal use, by household income, March 2011
Length of Booking for Rental Cars—Business Use
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- Key points
- Respondents most likely to rent for business use for one day
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- Figure 33: Length of car rental for business use, by gender, March 2011
Which Vehicle Class Consumers Rent
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- Key points
- Compact is most preferred class for personal and business use
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- Figure 34: Rental car class chosen for personal or business use, by gender, March 2011
- Key points
- One quarter of respondents rent compact cars for personal use
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- Figure 35: Rental car class chosen for personal use, by gender, March 2011
- Younger respondents more likely to rent SUVs for personal use
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- Figure 36: Rental car class chosen for personal use, by age, March 2011
Which Vehicle Class Consumers Rent—Business Use
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- Key points
- Respondents traveling for business most likely to book compact cars
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- Figure 37: Rental car class chosen for business use, by gender, March 2011
Options Consumers Pay for When Booking Rental Cars
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- Key points
- Respondents’ option choices indicate consumer education lacking
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- Figure 38: Chosen personal use rental car options, by gender, March 2011
- Respondents aged 25-34 more likely to purchase options
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- Figure 39: Chosen personal use rental car options, by age, March 2011
- Respondents from most affluent households less likely to purchase add-ons
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- Figure 40: Chosen personal use rental car options, by household income, March 2011
Vacation Rental, Social Media Usage, Smart Phone Ownership, and Familiarity with Car Sharing Programs Among Car Renters
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- Key points
- Nearly half of respondents who rented a car visit social network sites
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- Figure 41: Vacation rental, social media usage, smart phone ownership, and familiarity with car sharing programs among car renters, by gender, March 2011
- Nearly half of respondents aged 25-34 who rented a car own smart phones
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- Figure 42: Vacation rental, social media usage, smart phone ownership, and familiarity with car sharing programs among car renters, by age, March 2011
Rental Car Loyalty Club Participation
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- Key points
- Hertz is industry leader in loyalty club participation
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- Figure 43: Rental car loyalty club participation, by gender, March 2011
- Age as an indicator of membership varies among industry clubs
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- Figure 44: Rental car club participation, by age, March 2011
- Club participation highest among most affluent households
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- Figure 45: Rental car loyalty club participation, by household income, March 2011
Impact of Race and Hispanic Origin
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- Key points
- Asian respondents most likely to have rented a car
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- Figure 46: Vehicle rental, by race/Hispanic origin, October 2009–June 2010
- Hispanic respondents more likely to rent from Enterprise and Hertz
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- Figure 47: Car rental brand chosen for personal use, by race/Hispanic origin, March 2011
- Hispanic respondents renting for business use choose Enterprise
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- Figure 48: Car rental brand chosen for business use, by race/Hispanic origin, March 2011
- Hispanics surveyed more likely to rent on-site
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- Figure 49: Car rental method for personal use, by race/Hispanic origin, March 2011
- Black respondents twice as likely to rent in-person for business use
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- Figure 50: Car rental method for business use, by race/Hispanic origin, March 2011
- Black respondents more likely to upgrade when renting for personal use
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- Figure 51: Rental car class chosen for personal use, by race/Hispanic origin, March 2011
- Hispanic respondents more likely to purchase add-ons
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- Figure 52: Chosen personal use rental car options, by race/Hispanic origin, March 2011
- Hispanics more likely to use social media and own smart phones
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- Figure 53: Vacation rental, social media usage, smart phone ownership, and familiarity with car sharing programs among car renters, by race/Hispanic origin, March 2011
Cluster Analysis
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- Navigators
- Demographics
- Characteristics
- Opportunity
- Savers
- Demographics
- Characteristics
- Opportunity
- Minimalists
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 54: Car rental clusters, December 2010
- Figure 55: Length of time rental cars are booked, by car rental clusters, December 2010
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- Figure 56: Vehicle class chosen, by car rental clusters, December 2010
- Figure 57: Options consumers pay for when renting cars, by car rental clusters, December 2010
- Cluster demographics
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- Figure 58: Car rental clusters, by gender, December 2010
- Figure 59: Car rental clusters, by age group, December 2010
- Figure 60: Car rental clusters, by household income, December 2010
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- Figure 61: Car rental clusters, by race, December 2010
- Figure 62: Car rental clusters, by Hispanic origin, December 2010
- Cluster methodology
Appendix: Other Useful Consumer Tables
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- Length of car rental and race/Hispanic origin
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- Figure 63: Length of car rental for personal use, by race/Hispanic origin, March 2011
- Chosen class for rental for personal use by household income
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- Figure 64: Rental car class chosen for personal use, by household income, March 2011
- Vacation rental, social media usage, smart phone ownership, and familiarity with car sharing programs among car renters and household income
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- Figure 65: Vacation rental, social media usage, smart phone ownership, and familiarity with car sharing programs among car renters, by household income, March 2011
Appendix: Trade Associations
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