Market Trends of Indonesia Car Rental Industry
Growing Demand for Online Car Rental Services
An increasing number of smartphone-based online rental car booking apps are being used across Indonesia, significantly boosting the market growth.
Online booking services include booking cars through internet sites and mobile applications, among which renters opting for booking-via-sites is the most common method. The rise in the number of internet users across the country is likely to increase the use of online booking services. For instance, in 2022, internet users witnessed around 66.5% of the country's population, which is expected to grow to 93.2% by 2030.
Renting cars via mobile applications is the second most common online booking type. Mobile applications must be downloaded and can be accessed easily by the car renter to change the booking details, among other services. For instance, in 2022, the number of smartphone users in the country was 187.70 million, which may lead to increased use of online car rental booking services.
With technological advancements, renting a car online has been one of the most popular options for customers in recent years. It offers extra features for real-time monitoring of a rental vehicle's operation, performance, and maintenance. Such features significantly benefit drivers and fleet managers, allowing them to spot dangers and execute timely modifications to their rental services more efficiently and effectively.
Government's Efforts to Boost Tourism Aiding the Market Growth
The tourism industry comprises a significant share of the car rental service market, owing to the rise in international tourist visitors across the country. The industry contributes around 5% of the country's gross domestic product, which helps boost the country's economy.
The Ministry of Tourism and Creative Economy of Indonesia is investing in the country's tourism industry to foster sustainable and community-based tourism. Five super-priority tourism destinations, eight special economic zones, and 12 sustainable tourism projects are expected to benefit from the investments and increase demand for car rental services during the forecast period.
Indonesia's Tourism and Creative Economy Minister, Sandiaga Uno, highlighted in May 2024 that Indonesia's participation in the Seoul International Travel Fair (SITF) 2024, held from May 9-12, aimed to attract more international tourists, particularly those from South Korea.
After promoting tourism in Mumbai in early February 2024, Indonesia’s Ministry of Tourism and Creative Economy attended South Asia’s Travel and Tourism Exchange (SATTE) from February 22 to 24, 2024, at the India Expo & Mart in Greater Noida, New Delhi.
Owing to such investments and government efforts to improve the market conditions for the car rental market, a considerable rise in tourism expenditure is being witnessed in the country and is projected to continue during the forecast period.
