Market Trends of France Car Rental Industry
This section covers the major market trends shaping the France Car Rental Market according to our research experts:
Growing Demand for Tour and Travel Activities
France has been the world's leading tourist destination for more than 30 years. With rising tourism in France, demand for effective car rental services is expected to boost the market segment demand during the forecast period. Many of the car rental providers in France are looking forward to effective discounts and offers for tourist to rent their choice of cars during their visits to nearby places. In addition, the fleet operator are regularly revising their fleet in order to make the market more attractive.
However, with the outbreak of COVID-19, the demand fell drastically as international flights were halted and businesses shifted from their offices to working from home mode and travel restrictions on companies to avoid their staff traveling to other countries for their safety. With the opening up of economies, the demand is returning back to the market as offices are coming back to normalcy, and it is expected that the market will witness growth during the second half of 2021.
The segment is popular with local people, visitors for vacations and office goers as it offers economic benefits to the people and saves other costs like maintenance costs and others. The country's tourism industry is one of the major contributors to car rentals, and apart from 2020, the country has witnessed an increase in the number of arrivals of tourists.
Considering these factors, demand for the France car rental services is expected to remain positive side during the long-term forecast period.
Online Booking Services Helping Business to Grow
Car rental provides booking options on a mobile app or website of a cab company. Further, the option of an online mode of payment has eased the process. The prominent factors driving this ecosystem are affordability and ease of access to the services. The demand for car rental is escalating due to on-demand payment from customers for convenience and affordability.
Most renters prefer renting cars online during peak seasons. As the car rental market experiences an increase in demand during peak holiday seasons, people tend to book cars in advance. Only a handful of cars are booked through rental stores, mostly during the off-season.
Online booking has attracted several investments in recent years including business expansion, offering and etc. Demand for online booking has taken a steep rise with ongoing discounts and offers provided by fleet operators.
With growing competition in the market, major companies have adopted strategies, such as partnering or acquiring local companies, to further boost their online rental operations across the country. For instance,
- In February 2022, A future-focused strategic alliance is announced by Accor, one of the world's top hospitality groups, and SIXT, one of the top worldwide transportation suppliers to offer customers of Accor to ear reward points while booking rented cras from SIXT.
Considering the aforementioned factors, demand for online booking modes is expected to witness more prominence during the forecast period.
