Insights from the International Car Rental Show in Las Vegas 2024
This was a private show, news is only a summary
According to the experts, the car rental industry will experience moderate growth, driven by strong travel demand and increasing fleet availability.
However, operators will face challenges around pricing pressures and the evolving dynamics of electric vehicles (EVs).
The industry’s profitability will hinge on efficient fleet management, particularly as competition grows and off-lease vehicles return to the market by late 2025-2026. Adaptability and pricing strategies will be essential for navigating these mixed conditions.
Some of their observations:
- TSA screenings at airports are still strong, with a growth rate above that of GDP
- More vehicles will become available to the industry this year and on better financial terms.
- Strong returns in 2021-2022 will continue to attract more competitors to the rental car industry, increasing pricing pressure.
- Low-rate offers currently available remain a significant challenge for pricing in the rental car companies.
- Limited lease returns in 2024/2025, but a surge in off-lease vehicles will crowd the market by late 2025-2026. Residual values are stable for the next 12-18 months.
- Vehicle resale volatility will depend on remarketing strategies.
- Rental companies should focus on accurate demand forecasting and keep fleet decisions as flexible as possible.
- EV adoption varies by region, influenced by charging infrastructure and climate. Many customers avoid EVs due to charging concerns in unfamiliar areas.
- The used EV market capacity is in question in in terms of added supply, battery valuations, and consumer interest