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Tourism Vehicle Rental Market Size

Report ID: GMI11820
Published Date: Oct 2024
Report Format: PDF

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Tourism Vehicle Rental Market Size

The global tourism vehicle rental market size was valued at USD 81.5 billion in 2023 and is projected to grow at a CAGR of 8.3% between 2024 and 2032. According to the UN Tourism, an estimated 790 million tourists travelling internationally in the first seven months of 2024, indicating a growth of around 11% than in 2023. This rising travel trend is significantly driving demand for the market by reshaping how people approach their travel experiences.

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Travelers are increasingly seeking personalized and flexible experiences, moving away from traditional structured tour packages. This shift has led to a higher demand for vehicle rentals, as tourists value the freedom to create their own itineraries.

Tourism Vehicle Rental Market Report Attributes
Report Attribute	Details
Base Year:	2023
Tourism Vehicle Rental Market Size in 2023:	USD 81.5 Billion
Forecast Period:	2024 to 2032
Forecast Period 2024 to 2032 CAGR:	8.3%
2032 Value Projection:	USD 162.3 Billion
Historical Data for:	2021 - 2023
No. of Pages:	200
Tables, Charts & Figures:	180
Segments covered:	Vehicle, Rental Duration, Booking Channel, Pricing Model, Service, End Use
Growth Drivers:	Rising traveling trends Flexibility and convenience Rise of remote and hybrid work Expansion of tourism infrastructure
Pitfalls & Challenges:	High rental costs Vehicle maintenance and management issues

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For instance, in September 2024, Uber launched a new car rental service, aimed at providing travelers with a more flexible and convenient way to access vehicles during their trips. This initiative allows users to rent cars directly through the Uber app, catering to both tourists and business travelers. Users can rent vehicles for periods ranging from 1 to 15 days, allowing for tailored rental experiences based on individual needs. The service includes a variety of vehicle types, from SUVs to vans accommodating larger groups.

The tourism vehicle rental market is experiencing increased demand also due to the importance of flexibility and convenience in modern travel. Today's tourists prefer personalized and adaptable travel experiences. Renting a vehicle offers travelers the freedom to customize their journeys, unlike traditional travel options with fixed itineraries. This allows tourists to select their own routes, determine the duration of stays at various destinations, and explore less accessible locations that may not be included in standard tour packages.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of tourism vehicle rental reached USD 81.5 billion in 2023 and is set to grow at a CAGR of 8.3% from 2024 to 2032, driven by rising travel trends.

The short-term rental segment is projected to exceed USD 110 billion by 2032, supported by the growing popularity of weekend getaways and impromptu trips.

The online booking segment held around 76% of the market share in 2023, attributed to its convenience and alignment with consumer preferences for digital interactions.

The U.S. market is projected to exceed USD 40 billion by 2032, led by the country's diverse landscape and attractions.

Major players in the industry include Alamo, Avis, Booking.com, Budget Rent A Car, CarTrawler, Cruise America, Dollar Rent A Car, Enterprise Rent-A-Car, Europcar, and Expedia.