|
|
Automobile Rental and LeasingPublished by: First Research, Inc. Published: Mar. 17, 2008 - 10 Pages Table of Contents
AbstractThe auto rental and leasing industry in the US includes 5,000 companies with combined annual revenue of about $50 billion. Large companies include Hertz, Enterprise, Vanguard, Avis Budget Group, U-Haul, and Dollar Thrifty. The industry is highly concentrated: the 50 largest companies hold more than 80 percent of the market.COMPETITIVE LANDSCAPE The industry depends highly on the general state of the US economy because most customers are business or vacation/leisure travelers, whose numbers can rapidly fall during an economic slowdown. The big companies have economies of scale in acquiring vehicles and customers. Small companies typically operate a single rental location, but can compete effectively with larger companies by providing better service, alternative products, or lower prices. Individual rental locations typically have annual revenue of about $1 million and eight employees, but may have revenue over $10 million and 200 employees. Revenue per employee ranges from $100,000 at a small location to $200,000 at a large one. PRODUCTS, OPERATIONS & TECHNOLOGY Operations are similar for car, truck, or specialty vehicle rental operations. A typical car rental operation has to acquire, maintain, clean, fuel, and repair cars, and dispose of older cars, and must operate a reservation system to acquire customers. Efficient operations are crucial for profitability, because the value of the rental asset is high. The difference between the acquisition price of cars and their residual value when disposed of is crucial in determining the profitability of rental ... Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||