Car Rental Franchise Opportunities

The reasons why consumers need a rental car can vary—maybe their own car is in the shop, perhaps they don't own a car and want to drive to a travel destination, and, of course, there is the need to rent a car when you have flown to another city.

Regardless of the reason, most consumers will - at some point in their lives - require the services of a rent-a-car company. Fulfilling that need can be a lucrative business opportunity for the right entrepreneur.

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Did You Know?

Revenue in the Car Rentals segment will amount to more than $18 million in 2017

SOURCE: Statista

Revenue is expected to grow annually at 3.7%, resulting in a market volume > $20 million in 2021

SOURCE: Statista

In the Car Rentals segment, the number of users is expected to amount to 80.2 million by 2021

SOURCE: Statista

By 2020, car rental revenue in the U.S. is projected to reach about $30.64 billion

SOURCE: Statista

SOURCE:
Statista

SOURCE:
Statista

SOURCE:
Statista

SOURCE:
Statista

Types of Auto Rental Franchises

The category of car rental franchises offers several diverse opportunities, from general use car rentals, to luxury automobile offerings to budget options. There are even rental agencies that specialize in renting motor homes, motorcycles or limousines. As modes of transportation and travel continue to evolve with technology, additional types of car rental franchises that specialize in more environmentally friendly car rentals are sure to grow in importance.

Why Buy a Rental Car Franchise?

There are many avenues for success in the car rental industry. With the U.S. Travel Association’s latest Travel Trends Index (TTI), showing ongoing growth, the market for car rentals should also continue to increase to meet travelers demands. Potential franchisees should be open to considering niche market segments, too, as consumers express more of an interest in specialized offerings.

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Car Rental Opportunities:

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Running a Successful Car Rental Franchise

In any major city, and even most smaller cities, there will be existing competition in place for a new rental car company to overcome. As you get started, be sure to think about the various ways that you can find an edge in the market:

Identify Your Niche

Perhaps the most important thing you can do in the early stages of your rental car operation is to identify the specific customers you are trying to serve. Simply trying to serve anyone who wants to rent a car will make it difficult to stand out, and you might get lost in the crowd.

Instead, you might consider targeting niches like customers who need a rental while their car is being repaired, business travelers, or road trippers who need a vehicle for exploring. You don’t have to pick just one niche, but being specific with who you’d like to serve can go a long way toward finding plenty of customers.

Be Flexible

People don’t always expect to need a rental car, so they might not make arrangements in advance or even call during business hours. As a rental car franchise owner, going above and beyond what is expected to offer excellent service is another great way to stand out and make a name for your business. If you’re not willing to be flexible, you might miss out on an opportunity to impress a customer and earn some referrals. 

Choose the Right Location

It’s no secret that many car rental businesses are located around airports. People coming and going often need to rent vehicles. But that’s not the only place in town you should consider. Customers of auto shops also need rentals frequently, so finding the hub of auto repair in your area and setting up shop nearby there could also be a successful plan.

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