AUSTRALIA’S car rental industry is booming, with prices soaring to record levels and companies like Kiihei and Hyundai touting that their car rental business is the best in the world.
But is it worth your time and money?
Key points:The car rental sector is expected to generate $2.3 billion in 2018 in the US and Europe alone, according to the National Association of Car Rental Companies (NACROC)The NACRCC predicts car rental businesses could generate $6 billion in the next 12 monthsThe industry is already facing challenges from competition from the growing internet of things and the rise of car sharing.
But with so many people opting for car sharing, will this be enough to boost demand?
Kiihei car rentals are already well established and have been around for decades.
Owner John Wilson says the industry is just getting started, but he’s been seeing strong growth since the launch of the first KiiHouses in 2013.
“I’ve been seeing a lot of people coming into the industry now that we have this big boom,” he said.
“People are starting to get into the car sharing game, it’s very, very exciting.”
The only downside is there’s not a lot you can do to get people into a rental car, you just have to pay up.
“Mr Wilson said it was still early days for the industry and the new car rental rules needed to be considered before any changes could be made.”
It’s a new thing in the car rental market.
It’s definitely not the norm for us to have a rental company in a rental property,” he explained.”
We’re not yet the industry where people are renting cars, we’re a car rental company, so we’ve got to get it right.
“The car rentals industry is growing rapidly, but the NACCC says it will be a challenge to boost car rental demand.
Mr Wilson says there are a number of challenges facing the industry.”
There’s the cost of doing business, the cost, the logistics, the drivers, the security, the car safety, the maintenance, the insurance and the maintenance of the car,” he says.”
So there’s a lot to overcome.
“Mr Hamilton said the industry was facing many challenges.”
As a car driver I’ve got about eight months on my car, I have a couple of weeks off, and the car is being serviced about every two weeks.
So the drivers are going to need to look at a lot more than just the cost,” he added.”
Also, the vehicles are not the same size as they used to be.
So if you’re in your 50s you’re going to have to be a bit bigger to fit in that space.
“Mr Johnson said the car rentals boom would depend on the state of the economy and how quickly the economy recovers.”
One of the things we’re seeing is the economy really picking up, and you have more jobs coming in, so it’s going to make a lot less difference to the rental market,” he told ABC News Breakfast.”
But at the same time, we’ve also seen that we’re getting into a big wave of people buying a car to get away from home, and we need to get that out of the rental business.
“Topics:business-economics-and-finance,consumer-fairs,business-unions,housing-industry,housing,government-and/or-politics,industry-and_entertainment,jobs,cars,united-statesFirst posted September 20, 2018 15:26:51Contact Emily Green: [email protected]