U.S Car Rental Industry

Introduction

Car rental in the 21st century forms an integral part of the global travel and transportation market worldwide. Following a three year slide in revenues and growth the car rental industry in parts is going through a recovery period. The scope within the car rental market industry consists of the leisure, business and insurance replacement and furthermore, looks upon the short term aspect of car rentals.

The main integral aspect of the downfall within the market was due to the impact upon the global financial crisis. This was deem the main challenge faced by the car rental industry as it opposed a negative impact on car rental sales as consumers started cutting down travel cost and looking for cheaper alternatives (Euromonitor International, 2011).

Current Overview of Industry

The car rental industry is a multi-billion dollar sector of the US economy. Alone the US segment of the car rental industry market makes on average $18.5 billion in revenues per year. Today, there is an expanding growth of approximately 1.9 million rental vehicles that service the US segment (Monestime, 2006).

There are three large major leading companies in the United States car rental market which have established high returns of revenue; Enterprising Holding, Hertz and Avis Budget Group.

In 2010, Enterprise Holding leads the market in value shares at 51.5%; Hertz currently in second with 17.5% and third Avis hold 15.4% (Euromonitor International, 2011). All three market share leaders recorded declining sales due to the financial crisis in 2009, but are steadily making grounds in their abilities to further increase revenues and market share.

Appendix 1 illustrates the amount of revenue earned by the leading companies in the US car rental market.

Appendix 2 Analysis of car rental market share in USA from 2006-2010.

Political, Economical, Social-Cultural, Technological, Legal and Environmental (PESTLE Analysis)

Political

United States...