Car Rental in World

After a year of solid growth in 2012 which saw car rental value sales increasing by 3%, growth in car rental in world slowed only marginally in 2011 as the category increased by 3% to A$1.2 billion. The failure of car rental to post higher growth in 2012 was due to the decline in domestic travel and tourism, particularly with regards to domestic leisure tourism and, in particular, with regards to leisure tourism in remote rural areas, where leisure tourists are more likely to require car rental. Much of the success of car rental in Australia over the review period was due to the ongoing rise in the influence of low-cost carriers, which has led to a shift away from domestic Australian tourists taking their own vehicles on road trips towards holidays which include air travel, requiring travellers to rent a car at their destination, so-called ‘fly-drive’ holidays. However, the influence of the rise of low-cost carriers peaked in 2007 and as Australian consumers are now increasingly travelling overseas for their leisure holidays, no significant factor has developed to drive demand for car rental. With domestic travel and tourism in Australia increasingly geared towards short weekend getaways, for which travellers generally make use of their own vehicles for transportation, demand for car rental in Australia continues to fade.