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Car Rental - US - May 2007

SCOPE AND THEMES
What you need to know
Definition
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Key facts:
Emergence of new markets for traditional players
Opening of new revenue channels
Relationship with Detroit in flux
Evolution in distribution channels changing how cars are rented
Income and age drive rental frequency
The future: market growth, player consolidation in-store
MARKET DRIVERS
Key points:
Travel expenditure
Figure 1: Travel expenditures in the U.S., at current and constant prices, 2002-07
Business travel expenditure
Figure 2: Total spending on U.S. domestic business travel, at current and constant prices, 2002-07
Airline passenger volume
Figure 3: Domestic and international enplanements, 2001-06
Fuel costs
Figure 4: Motor gasoline retail price per gallon, U.S. city average, 2001-06
Trip preference
Income trends
Figure 5: Car rental incidence and frequency, by household income, 2006
Figure 6: Median household income, by age of householder, 2005
Age trends
Figure 7: U.S. population projections, by age group, 2001-11
Figure 8: Car rental incidence and frequency, by age, 2006
Fees and taxes
Car manufacturers’ misfortunes—impact on car production, cost of new cars, fleet management
MARKET SIZE
Key points:
Figure 9: Total U.S. sales of car rentals, at current and constant prices, 2002-07
Figure 10: Average U.S. car rental fleet size, total of all rental companies, 2002-07
MARKET SEGMENTATION
Key points:
 OVERVIEW
Location of rental: airport and off-airport sales
Figure 11: Total U.S. car rental sales on-airport and off-airport, 2004 and 2006
Reason for rental: business and leisure sales
Figure 12: U.S. car rental sales, for business and leisure purposes, 2004 and 2006
 AIRPORT AND OFF-AIRPORT SEGMENTS
Airport rentals
Figure 13: Total U.S. retail sales of car rentals at airport locations, at current and constant prices, 2002-07
Off-airport rentals
Figure 14: Total U.S. retail sales of car rentals at off-airport locations, at current and constant prices, 2002-07
 BUSINESS AND LEISURE SEGMENTS
Business rentals
Figure 15: Total U.S. retail sales of car rentals for business purposes, at current and constant prices, 2002-07
Leisure and replacement rentals
Figure 16: Total U.S. retail sales of car rentals for leisure and replacement purposes, at current and constant prices, 2002-07
SUPPLY STRUCTURE
Key points:
Figure 17: Car rental sales, by company, 2004 and 2006
Figure 18: Average fleet size, by company, 2004 and 2006
 COMPANY PROFILES
Enterprise
Hertz
Avis Budget Group
Overview
Avis
Budget
Vanguard
Overview
National
Alamo
Dollar Thrifty
Overview
Dollar
Thrifty
Smaller players
Advantage
U-Save
Rent-A-Wreck
ADVERTISING AND PROMOTION
Key points:
 MEDIA EXPENDITURES
Figure 19: General media expenditures by selected car rental brands, 2005
Keyword search
Strategic partnerships
Loyalty programs
Social networking websites
 MARKETING EFFORTS BY CAR RENTAL COMPANIES
Enterprise
Figure 20: Enterprise Car Rental—TV ad, 2006
Hertz
Figure 21: Hertz—TV ad, 2006
Figure 22: Hertz—TV ad, 2006
Avis
Figure 23: Avis—TV ad, 2006
Figure 24: Avis—TV ad, 2006
Budget
National
Figure 25: National Car Rental—TV ad, 2006
Alamo
Dollar Thrifty
RETAIL DISTRIBUTION
Key points:
Figure 26: Car rental sales, by distribution channel, 2004 and 2006
 PROFILES OF RETAIL CHANNEL SERVICE PROVIDERS
 CAR RENTAL COMPANIES
Figure 27: Percentage of car rentals booked online, by rental car company, 2006
 BRICK-AND-MORTAR TRAVEL AGENCIES
American Express
Carlson Wagonlit Travel
BCD Travel
 ONLINE TRAVEL SERVICES
Figure 28: Online travel agency market share, by volume, 2004
Expedia and Hotwire
Travelocity
Orbitz and Cheap Tickets
Priceline
 META-SEARCHERS
Sidestep.com
Kayak.com
Mobissimo.com
 OTHER ONLINE TRAVEL SUPPLIERS AND CAR RENTAL WEBSITES
Vacation.com
Onetravel.com
CarRentals.com
A word about Global Distribution Systems
THE CONSUMER
Key points:
The demographics of the car rental consumer
Figure 29: Number of times in last 12 months rental car was purchased, March 2007
Figure 30: Incidence of renting a car, and number of rentals in last 12 months, by key demographics, March 2007
Leisure travel involving rental cars
Figure 31: Number of leisure trips in last 12 months involving a car rental, by key demographics, March 2007
Figure 32: Time (in hours) willing to drive to a destination before preferring to fly, for leisure travel, by key demographics, March 2007
Purpose of car rental
Figure 33: Purpose of most recent car rental, by gender, March 2007
Figure 34: Purpose of most recent car rental, by age, March 2007
Figure 35: Purpose of most recent car rental, by household income, March 2007
Figure 36: Purpose of most recent car rental, by race/Hispanic origin, March 2007
Booking car rental
Figure 37: Booking method used to purchase most recent rental car, by gender, March 2007
Figure 38: Booking method used to purchase most recent rental car, by age, March 2007
Figure 39: Booking method used to purchase most recent rental car, by household income, March 2007
Figure 40: Booking method used to purchase most recent rental car, by race/Hispanic origin, March 2007
Key criteria when renting a car
Figure 41: Criteria considered when purchasing a rental car, by gender, March 2007
Figure 42: Criteria considered when purchasing a rental car, by age, March 2007
Figure 43: Criteria considered when purchasing a rental car, by household income, March 2007
Figure 44: Criteria considered when purchasing a rental car, by race/Hispanic origin, March 2007
Attitudes toward car rental
Figure 45: Attitudes toward car rental, by gender, March 2007
Figure 46: Attitudes toward car rental, by age, March 2007
Figure 47: Attitudes toward car rental, by household income, March 2007
Figure 48: Attitudes toward car rental, by race/Hispanic origin, March 2007
THE FUTURE
Key points:
Consolidation expected
Dependence on air travel
Growth in local, neighborhood rentals expected
Differentiation through streamlined service, variety of cars available, and onboard technology
Hybrids gain space on rental lots
Economic conditions
Interest rates
 MARKET FORECAST
Car rentals
Figure 49: Forecast of total U.S. sales of car rentals, at current and constant prices, 2007-12
Leisure and replacement car rentals
Figure 50: Forecast of U.S. sales of leisure and replacement car rentals, at current and constant prices, 2007-12
Business car rentals
Figure 51: Forecast of U.S. sales of business car rentals, at current and constant prices, 2007-12
Forecast factors
APPENDIX: TRADE ASSOCIATIONS

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