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Rental Car industry riding on business market

September 19, 2013 Motoring No Comments Email Email

The business market has been propping up the Australian car rental industry since the global financial crisis, the Roy Morgan Rental Car Monitor reveals.

Measuring all the crucial dimensions of the rental car market including brand awareness, advertising, image and intention, Roy Morgan’s latest research indicates that while more people hired cars for leisure than for business, it’s the lucrative business market that’s holding up best.

In the 12 months to July 2013, 5.3% of Australians hired a rental car for business purposes, up from 3.2% six years earlier.

By contrast, the percentage of Australians hiring a rental car for leisure purposes has fallen to 14.8%, after peaking at 18.5% in the 12 months to June 2009.

Overall, 17.2% of Australians (or 3.3 million people) used a rental car for business or leisure in the last 12 months, a similar percentage to rental car use in New Zealand (17.7%).

Purpose for hiring a rental car in the last 12 months

5187-rental-vs-leisure-car-rental

Source: Roy Morgan Single Source (Australia), August 2006 – July 2013, average annual sample n = 20,043.

Jane Ianniello, International Director of Tourism, Travel & Leisure, Roy Morgan Research, says:

“Since the GFC, Australian consumers have cut back their spending and are taking fewer domestic holidays. Consequently, fewer people are hiring a rental car for leisure purposes. However, the percentage of Australians hiring rental cars for business has increased.

“It remains to be seen whether the combination of a falling Australian dollar and a sense of certainty post-election will inspire more Aussies to take a domestic holiday in the coming year.

“The Australian rental car market is dominated by a few key players: the Avis/Budget group, Hertz/Thrifty and Europcar. Avis is the leading brand, with Hertz and Budget also popular.

“Rental car companies need to be familiar with the demographics, attitudes and behavioural profile of the business market, quite separately to their target leisure market, so as to tailor appropriate messages which resonate with existing and potential customers.”

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