Car Rental - US - May 2008

SUMMARY

The car rental market is competitive and rapidly evolving in a way that can help marketers and retailers plot a course for growth. Mintel delves into the specifics of what's driving the car rental industry including, its sales patterns and how current trends are impacting the future. Mintel provides analysis on the following:

• Why prospects for the rental car industry are not as dire as for airlines and what drives market conditions
• The impact on car rentals from fluctuations in adjacent industries, such as air travel and auto manufacturing
• Sales patterns by individuals and businesses, with discussion of the airport/off-airport market
• Brand identities of the leading companies
• Recent new product introductions, including hourly rentals and the continuing proliferation of "green" rental options
• Detailed analysis of advertising campaigns and promotions on TV and web

TABLE OF CONTENTS

• Scopes and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Executive Summary
• Car rental market on sound footing, though gas prices worrisome
• The ups and downs of the business environment
• The grass is greener--on-airport vs. off-airport/local rentals
• Changing market forces
• U.S. auto manufacturers' decline
• The structure of the car rental industry
• Government fees
• An aging population
• Four companies own the market
• Innovations--green, luxury, and off-airport business create opportunities
• The advertising landscape
• Consumer profile--older, married, richer (but there's more to the story)
• Consumer attitudes--much room to improve
• The role of race and ethnicity
• Ending on a high note
• Market Size and Forecast
• Key points
• Market size
  • Figure 2: Total U.S. sales and forecast of the passenger car rental business, 2002-12
  • Figure 3: Total U.S. retail sales and forecast of car rental revenues, at inflation-adjusted prices, 2002-12
• Another view of market size (Auto Rental News)
  • Figure 4: Total U.S. retail sales and forecast of car rental revenues (ARN), 2002-12
  • Figure 5: Total U.S. retail sales and forecast of car rental revenues (ARN), at inflation-adjusted prices, 2002-12
• Competitive Context
• Fleet size
  • Figure 6: Average U.S. car rental fleet size, total of all rental companies, 2002-07
• Rising fuel costs
  • Figure 7: U.S. regular conventional retail gasoline prices, 2002-07
• Ailing airline industry
  • Figure 8: Total U.S. domestic passengers enplaned, 2002-07
• Alternative models
• Membership-based short-term rentals
• Driver services
• Privately owned vehicles
• Public transportation
• Changing workplace technology
  • Figure 9: Work-related attitudes of travelers: importance of business travel and use of alternative methods, by number of business trips taken in past year, November 2007
• Segment Performance--Personal Rentals
• Key points
• Sales and forecast of rentals for personal use
  • Figure 10: Total U.S. retail sales of car rentals for personal use, 2002-12
• Segment Performance--Rentals for Business
• Key points
• Sales and forecast of rentals for business
  • Figure 11: Total U.S. retail sales of car rentals for business reasons, 2002-12
  • Figure 12: Share of Avis, Budget, and Hertz car rental revenue that is business vs. leisure, 2007
  • Figure 13: Hertz car rental sales, for business and leisure purposes, 2007
• Segment Discussion: Airport vs. Off-Airport/Local
• Key points
  • Figure 14: Hertz car rental sales, on- and off-airport, 2007
  • Figure 15: Share of company car rental revenue, on- and off-airport, 2007
• Retail Channels
• Key points
• Current distribution channels
• Hertz
  • Figure 16: Hertz car rental sales, by distribution channel, 2007
• Dollar Thrifty
  • Figure 17: Dollar Thrifty car rental sales, by distribution channel, 2007
• Avis Budget Group
  • Figure 18: Avis Budget car rental sales, by distribution channel, 2007
• Market Drivers
• Market still counting heavily on Baby Boomers
  • Figure 19: Number of car rentals in 2007, by age, projection for 2012
  • Figure 20: Car rental incidence and frequency, by age, 2007
• Car manufacturers' misfortunes
• Industry structure: mergers and acquisitions
• Pressure to go greener
• Demographic trends: the silver tsunami
• Leading Companies and Brand Share
• Key points
• Market share
  • Figure 21: Car rental sales, by company, 2005 and 2007
  • Figure 22: Average fleet size, by company, 2005 and 2007
• Brand Qualities
• Customer satisfaction
• Loyalty clubs
• Innovation and Innovators
• Green initiatives
  • Figure 23: General attitudes toward environmental concerns, December 2007
• In-vehicle technology
• GPS
• Tolls
• Speed and ease of purchase
• Increased technology streamlining for rentals
• Custom collections
• Advertising and Promotion
• Overview
  • Figure 24: General media expenditures by selected car rental brands, 2005-06
• Avis Budget
• Avis
• Recent promotions--connecting with independent music lovers
• Web presence
• Television commercials--catering to those who enjoy the car rental experience
  • Figure 25: Avis Car Rental television ad: "Driveway," March 2008
• Dollar Thrifty
• Advertising expenditures
  • Figure 26: Advertising expenditures, Dollar Thrifty Group, 2005-07
• Web presence
• Enterprise
• The Enterprise brand
• Web presence
• Case study: negative publicity
• Television commercials
  • Figure 27: Enterprise Car Rental "Friends Go On Trip" television ad, April 2007
  • Figure 28: Enterprise Car Rental "Man Goes to Business Meeting" television ad, November 2007
  • Figure 29: Enterprise Car Rental "Pledge to Plant Trees" television ad, January 2008
• National
• Web presence
• Alamo
• Web presence
• Television commercials
  • Figure 30: Alamo Car Rental "Happy Trails" television ad, August 2007
• Hertz
• Web presence
• Television commercials
  • Figure 31: Hertz Car Rental "Forest Animals Driving Prius" television ad, November 2007
• Car Rental Demographics
• Key points
  • Figure 32: Incidence of car rentals, 2001-07
  • Figure 33: Incidence of car rentals in the past year, by demographic groups, May 2006-June 2007
• Car Rental Frequency
• Key points
  • Figure 34: Frequency of car rentals, by gender, May 2006-June 2007
  • Figure 35: Frequency of car rentals, by age, May 2006-June 2007
  • Figure 36: Frequency of car rentals, by income, May 2006-June 2007
• Brand Selection and Car Rental Clubs
• Key points
  • Figure 37: Brand selection of car rentals, May 2006-June 2007
  • Figure 38: Brand selection of car rentals, by gender, May 2006-June 2007
• Frequency of Leisure Travel
• Key points
  • Figure 39: Trips taken in the past year that involved a hotel stay, car rental, plane flight, or packaged tour, March 2008
  • Figure 40: Trips taken in the past year that involved a hotel stay, car rental, plane flight, or packaged tour, by age, March 2008
  • Figure 41: Trips taken in the past year that involved a hotel stay, car rental, plane flight, or packaged tour, by income, March 2008
• Length of Driving Time that Makes Flying Preferable
• Key points
  • Figure 42: Length of driving time that makes flying preferable, by gender, March 2008
• Main Reason for Car Rental
• Key points
  • Figure 43: Purpose of most recent car rental, by income, March 2008
  • Figure 44: Purpose of most recent car rental, by age, March 2008
• How Car Rentals are Booked
• Key points
  • Figure 45: How car rentals are booked (usually or always), March 2008
  • Figure 46: How car rentals are booked (usually or always), by age, March 2008
  • Figure 47: How car rentals are booked (usually or always), by income, March 2008
• Considerations that Lead to Rental
• Key points
  • Figure 48: Considerations that lead to rental, by gender, March 2008
  • Figure 49: Considerations that lead to rental, by income, March 2008
• Car Rental Attitudes
• Key points
  • Figure 50: Car rental attitudes*, by gender, March 2008
  • Figure 51: Loyalty to certain car rental companies, March 2008
• Rental Car Companies Used and Brand Perception
• Key points
  • Figure 52: Rental car companies used, by age, March 2008
  • Figure 53: Car rental attitudes, March 2008
• Consumers--Race and Ethnicity
• Key points
  • Figure 54: Incidence of car rentals, by race/ethnicity, May 2006-June 2007
  • Figure 55: Number of car rentals in the past year, by race/ethnicity, March 2008
  • Figure 56: Frequency of car rentals, by race/ethnicity, May 2006-June 2007
  • Figure 57: Considerations that lead to rental, by race/ethnicity, March 2008
  • Figure 58: Purpose of most recent car rental, by race/ethnicity, March 2008
  • Figure 59: How car rentals are booked (usually or always), by race/ethnicity, March 2008
• Appendix: Other Useful Consumer Tables
• Number of leisure trips taken
  • Figure 76: Number of leisure trips taken in the past year, by race/ethnicity, March 2008
• Rental frequency--Mintel survey data
  • Figure 77: Number of car rentals in the past year, by gender, March 2008
  • Figure 78: Number of car rentals in the past year, by age, March 2008
  • Figure 79: Number of car rentals in the past year, by income, March 2008
• Main purpose of rental, by gender
  • Figure 80: Purpose of most recent car rental, by gender, March 2008
• Appendix: Trade Associations