A $16.5 billion market in 2003, the car rental market has experienced a 4% decline in current revenues since 1998. Sales grew through 2000 when they peaked at $19.4 billion, but since then the market has been in decline. Estimates for 2003 suggest that the decline has ended, with sales virtually static in 2002.

The reason for this trend is that the car rental market has been caught in the same turmoil as the rest of the travel industry as a result of terrorism. For some of the major rental car suppliers, the slump forced some into bankruptcy, while others were bought by competitors. The hardest hit were those that depended mainly on leisure airport rentals. Companies with a more diversified base, especially those tied to vehicle replacement rentals, have been less severely impacted. In terms of market segmentation, two parts of the business have shown promising trends over the review period, replacement cars and the off-airport/local rentals, although only the replacement rental market has in fact shown real growth.

Fewer travelers, both leisure and business, has caused loss of revenue through fewer rentals and increased price competition. The market in 2003 remains close to 2002 revenue levels, but there is a cautiously optimistic outlook for car rentals, and travel in general, beginning in 2004.

This report addresses all the key issues affecting the car rental market, such as changing travel patterns, the overall reduction in travel spending and the increased importance of the Internet. Mintel’s original consumer research penetrates attitudes about the category and examines purchasing behavior by age, gender, ethnicity and income. A six-year trend analysis predicts future growth for the market, helping you form a long-term marketing strategy.

For the purposes of this report, rental cars includes various sized and valued cars, and small (pickup) trucks that are rented by consumers for leisure/personal or business purposes.

Outside the scope of this report are moving or cargo vans, U-Haul and similar moving truck rental services, and other types of rentals for the transportation of goods.

A number of U.S. reports covering related sectors have been published, are planned, or are in preparation, including:

1. Internet Travel—U.S., consumer intelligence, June 2004
2. Short Breaks—U.S., consumer intelligence, April 2004
3. Changing Attitudes to Travel—U.S., consumer intelligence, October 2003
4. Travel Loyalty Programs—U.S., consumer intelligence, July 2003
5. Inbound Tourism—U.S., consumer intelligence, April 2003
6. Cruises—U.S., consumer intelligence, January 2003
7. Tours—U.S., consumer intelligence, November 2002
8. Airlines—U.S., consumer intelligence, August 2002
9. Hotels—U.S., consumer intelligence, August 2002
10. Post-Family Leisure—U.S., consumer intelligence, July 2002
11. Outdoor Activities Vacations—U.S., consumer intelligence, June 2002
12. Short Vacations—U.S., consumer intelligence, March 2002
13. Snow Sports Vacations—U.S., consumer intelligence, February 2002