U.S. car and truck rental revenues return to growth as business and consumer travel rebound
Nominal revenue generated by the US car and truck rental industry is expected to grow 11% annually through 2025 compared to a depressed base in 2020, according to Car & Truck Rental: United States, a recent report published by Freedonia Focus Reports.
If we exclude the anomalous year 2020, incomes are expected to increase by 2.1% per year from 2019 to 2025. The continued increase in levels of personal disposable income and the willingness of consumers to spend on leisure services such as that travel and vacation experiences will drive growth, as will the return to business travel.
Car and truck rental services will continue to face competition from carpooling services such as Uber and Lyft, traditional taxi services and other public transport providers.
Revenue generated from car rental is expected to increase by 13% per year through 2025, compared to a depressed base in 2020. Excluding 2020, revenue is expected to increase by 1.9% per year from 2019 to 2025.
The gains will come from increased personal disposable income as well as the release of pent-up travel demand following the relaxation of restrictions in place during the COVID-19 pandemic.
Further earnings will be limited by the small amount of rental cars available — due to a massive fleet sale during the 2020 downturn and the current shortage of microchips, leaving rental companies struggling to respond to. Requirement.
Revenue generated from truck rental is expected to increase by 4% per year from 2020 to 2025; outside 2020, the projected increases amount to …