What Is The Biggest Car Rental Company In The World

Overview

The biggest car rental companies in the world are Avis Budget Group (Avis), Enterprise Rent-A-Car (Enterprise), and Hertz Global Holdings, Inc. (Hertz). Car rental companies offer an array of services from hourly, daily, weekly, monthly, and long-term rental, as well as car sales and vehicle financing. They keep up withconsumer demand, shifting trends in the economy, and technological innovation to provide the best service and products.

Market Share of Big 3 Car Rental Companies

In 2020, the big three car rental companies accounted for a market share of over 60%. Avis had a market share of 19.6%, followed by Enterprise at 19.5%, and Hertz with 21.6%. This year, due to the effects of the pandemic, the three companies saw their market shares contract, with Avis having a share of13.2%, Enterprise having 11.9%, and Hertz at 16.1%. Despite the drop in market share, the big three still remain the biggest car rental companies in the world.

Car Rental Industry Impact

The car rental industry is an important contributor to the global economy. In 2020,the car rental industry estimated global revenue of around $60 billion in 2020,which was down from the $65 billion estimation for 2019 due to the COVID-19 pandemic restriction-related impact.

The three biggest car rental companies have been impacted differently by the pandemic. Hertz filed for bankruptcy in 2020, Avis looked to reduce headcount by 15-20%, and Enterprise used its financial strength to acquire National Car Rental in a $2.6 billion deal.

Technological Affect on Car Rental Industry

The pandemic has accelerated various technological trends that companies within the car rental industry have adapted. For instance, the contactless rental service to cut down time spent at rental locations, allow rental cost previews, facilitate rental agreements through digital systems, and develop customer loyalty programs has become essential for customers.

Digital disruption has also driven companies to invest in up-skilling employees. Employees need to be well-equipped with the technical know-how to communicate with customers through digital channels, and be able to use the technology that companies are introducing.

Market Drivers and Trends in Car Rental Space

The biggest car rental companies globally are driven by factors such as fleet size, financial performance, customer service, good customer relations, and advanced technology. Companies focus on providing innovative customer experiences through mobile technology, customer service, and customer loyalty programs.

In 2021, the car rental companies will continue to face challenging market conditions due to the pandemic and the resulting travel restrictions. Firms will have to focus on providing quality customer service to retain customers and make projections for long term market growth.

Environmental Impact of Car Rental Industry

The biggest car rental companies are making efforts to reduce their environmental impact in order to remain competitive in the market. Companies are investing in research and development to produce and offer hybrid and electric cars for rental. Vehicle hybrids and electric cars produce lower emissions and have reduced fuel consumption.

The industry is coming up with sustainable initiatives and initiatives to reduce the carbon footprint. For example, the biggest car rental companies are focusing on reducing their water usage and turning to eco-friendly cleaning and disinfecting products.

Secure Payment Solutions

Biggest car rental companies have started to offer secure payment solutions to facilitate convenient and more secure digital transactions. Companies are investing in technology that enhances customer experience and reduces processing time.

Loyalty programs and rewards are being offered to customers as a tool to encourage them to return to companies and provide them with flexibility. Online account management has become the norm when it comes to car rental, making it easier for customers to book cars and manage purchases.

Sustainability Initiatives by Biggest Car Rental Companies

The biggest car rental companies are taking initiatives to remain sustainable and support local communities. For instance, Avis Budget Group has established a corporate responsibility platform, which aims to reduce greenhouse gas emissions and increase diversity and inclusion.

Enterprise Holdings supports the ‘Return on Community’ program, which focuses on providing financial aid, housing assistance, and employment opportunities to local communities. The company also launched a program to donate cars to Community Emergency Response Teams.

Hertz Global Holdings has launched the ‘Hertz By Bus’ program, which will use Hertz vehicle fleets to boost public transportation. The company has also rolled out a car sharing program and is focusing on solar and wind power investments.

Impact on Local Host Communities

As the biggest car rental companies continue to grow and expand, their presence has an impact on the local communities in which they function. The companies are taking measures to ensure their activities do not harm communities. For instance, Enterprise is implementing strategic plans to navigate through emergencies and minimize the negative impacts of their activities.

Hertz has joined hands with the National Association for the Advancement of Colored People (NAACP) and other organizations to provide employment opportunities and boost education in underserved communities. Avis has joined hands with the National Urban League to focus on diversity, sustainability, and education.

Social Media Presence

Social media plays a big role in the car rental industry. Avis and Enterprise have both created dedicated websites, which allow customers to book cars and manage their reservations. They have also invested in social media marketing activities to promote their services. Hertz, on the other hand, has focused on digital channels such as Google Ads, Facebook Ads, and Twitter.

The biggest car rental companies also use social media to keep customers updated on the latest news, develop customer loyalty, and gain feedback. They are constantly engaging with customers on social media and responding to their queries with timely resolutions.

Customer Reviews & Ratings

Reviews and ratings from the customers serve as an important metric for the biggest car rental companies to understand how their services are perceived. Companies are investing in customer feedback to understand customer needs. Reviews from customers help companies understand areas that need improvement and develop strategies to improve customer experience.

Hertz, Avis and Enterprise have online feedback portals for customers to submit reviews, and employees also contact customers for feedback. Companies routinely review customer feedback to ensure their services meet the needs of the customers and make improvements.

Marjorie Turcios is a seasoned leader and management expert with over 25 years of experience. She has held various leadership positions in private industry, government, and education. She is an advocate for creating win-win solutions and has worked to create successful, lasting change in corporations and organizations. Marjorie is an award-winning author of several books on leadership, mentoring and coaching, and effective communication skills. Her passion is to help others discover their potential and reach new heights in their professional life through her writings. Marjorie resides in Dallas, Texas where she enjoys spending time with her family, traveling to different places around the world, and speaking at conferences about her areas of expertise.

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