5 Car Hire USA Predictions For 2013

Hi all,

2012 has been a bit of a roller coaster ride for the car rental market from natural disasters to major consolidation, but what does 2013 have in store for us.

Below are my 5 predictions for USA car hire in 2013.

Pricing

USA car rental suppliers have been making huge profits in the second hand car market for quite a few years now, however 2013 may see this revenue stream drive up a bit.

The cost to purchase new fleet is set to rise and that will obviously effect suppliers bottom line.

I think its safe to say we will see a rise in car rental prices however the rise of independent car hire firms may actually prevent this rise from being as high as it could of been.

Independent Car Hire Suppliers

The biggest car hire news of 2012 was Hertz’s pursuit and capture of Dollar Thrifty the 2 year saga was finally bought to a close when the FTC agreed to the deal but with a few stipulations. One of the stipulations was the sale of 26 Dollar Thrifty locations including some big airport spots including Orlando International Airport, Miami International Airport and Los Angeles International Airport.

13 of these locations will be given automatically to Hertz’s value brand Advantage Rent A Car, which as part of the deal is being sold off to the  FSNA (Franchise Services of North America) who already operate U-Save and Rent A Wreck, the other 13 will be up for grabs, I would assume that Sixt Rent A Car, who we believe could be the next big thing in USA car hire, will be in for a few of these. I would also guess that Fox Rent A Car who have been expanding quickly across the U.S. will also interested.

The FTC were very worried about competition within the North American rent a car scene and although some fear they haven’t gone far enough the releasing of major airport locations is a massive opportunity for someone to perhaps become a big player in area’s that generally don’t come around to often.

Technology

The car rental industry is notoriously slow at embracing technology, which is so frustrating for a dynamic company like usrentacar.co.uk. It does appear though that perhaps 2013 might be a turning corner for the industry.

The on airport car rental industry in the USA  is worth approximately $10 Billion and is ripe for disruption from new, quick companies this is actually already happening in the city area’s with the rise in popularity of car sharing and suppliers are realising they have to be more proactive in adopting new technologies and ideas.

I believe will will see adoption of personalisation features moving from web 2.0 to 3.0.

Consolidation 

Although there will definitely be no further consolidation within the American market, we could see consolidation within the broker market in the UK. Although there may appear to be quite a few USA car rental brokers, there are actually only a handful of brokers within the UK that are actually producing a large amount of rentals to the U.S.

Now is a prime time for consolidation for key members of the USA broker industry and I would not be surprised to see at least one purchase.

usrentacar.co.uk

We are currently working on version 2.0 of our iPhone app. I’m confident in predicting that the new version will be very successful. I’m also confident in stating that the new concept is a first for the car rental market and we are quite excited about its possibilities.

I’ll keep you posted.

It will be interesting to look back at this post in late 2013 and see how many I got…

Do you have any predications?

regards,

James

 car hire USA

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