Industrie News
Date: 04-10-2011
Customer Favor Car Rental over Public Transport When on holiday Abroad:
Industry research shows that people who travel abroad would prefer to rent a car rather than use public transport to get around when on holiday. As many as 58 percent of people questioned cited numerous reasons why they would choose car rental over trains, trams and tubes when on holiday, including safety, language issues and comfort.
• 58 percent of people would hire a car than use public transport when abroad
• 21 percent find foreign public transport systems too confusing to use
• 21 percent use a hire car on holiday due to the language barrier
Even when it comes to comfort the more mature adults would happily take a bumpy ride, with only 14 percent saying this was an issue with public transport compared to more youthful holiday makers.
The Road to Growth for Auto Rental in China:
Corporate analysts and industry insiders say the auto rental market could become China's next big hope, with one leasing company executive saying the prospects for car rental businesses are "enormous," according to China Daily.
By 2015, China's car rental market is expected to hit 400,000 vehicles and produce $2.8 billion in annual revenue, according to the China Taxicab and Livery Association. Consulting firm Roland Berger goes even further, estimating annual revenue at $5.9 billion.
China was once known as the bicycle kingdom, but now it is one of the world's largest automobile consumers. Civilian automobiles went from 31.6 million in 2005 to 91 million last year, and that number is expected to hit 200 million by 2020.
Frozen credit markets, recessions and US automaker bankruptcies since 2008 coincided with a boom in China's own car rental sector. And as market conditions improved, foreign capital started to return to China.
But the promises of growth are accompanied by various problems. At the end of last year, about 80 percent of China's 5,000 registered auto rental companies each had fewer than 50 cars.
Renting Antique Cars on the Rise:
The business of antique car rental for weddings and parties is becoming popular on the market, now competing with limousine rentals.
Representatives of insurance companies said that they don't have a special service for antique cars but if a case presented itself they wouldn't reject it as they can calculate price and therefore properly insure an antique vehicle.