If you’re in the car rental business, you’re likely well aware of your market’s various challenges. That being said, you shouldn’t feel threatened by these challenges. Although you should prepare for them, you also need to better understand what opportunities a changing marketplace gives you and how you can take advantage of those opportunities.
For example, there is ample evidence to show that the luxury rental market is growing. What does that mean for your business, and how can you best position yourself to take advantage of those trends?
The Stats Behind the Luxury Rental Boom
The opportunity for major market expansion has arrived.
According to the latest research:
- In 2021, the luxury car rental market was valued at almost $30 million, with estimates showing the market jumped to $39.54 million a year later. By 2029, estimates hold that the market will be valued at $65.42, growing at a 7.5% rate yearly.
- This growth has occurred despite the impact of COVID-19, which unquestionably damaged rental demand across the globe.
- Expansion is expected despite the increase in working from home, which has had a negative impact on many business operations.
- A variety of ancillary services — including growth in real-time feedback, vehicle tracking, and concierge operations — must be present to meet the expectations of luxury customers.
- Much of this growth is being fueled by the rise in airline passengers, who will need luxury car rentals when they arrive at their destinations.
- A majority of this luxury rental increase — roughly 60% — will occur thanks to increased business demand.
What Does This Mean for Your Business?
Simply put, it means an opportunity to grow in the future. Luxury customers — whether they’re traveling for leisure or business — tend to have valuable stability and guarantees beyond the flexibility and thriftiness that less expensive options can offer. These expectations mean you can potentially enter this market with an advantage over traditional ride-sharing opportunities.
Furthermore, you can use luxury rentals as a key business differentiation tool. Look again at the statistics: If these projections are right, it’s clear that the car rental market has ample room for growth. This means you can jump in on a market that customers are actively seeking. To that end, you can view this information as an opportunity. The biggest question is whether you’re well-positioned to take advantage of it.
First and foremost, you must ensure you’re ready to take advantage of this trend by examining the data. Who are your customers? What market do you serve, and where can you expand your marketplace? How do you need to expand your fleet to match any potential demand?
Answering these questions can be difficult, and doing so accurately requires data.
How Can You Prepare Yourself for Continued Growth?
To take advantage of these trends, you must be willing and able to invest in your business operations and fleet. This means investing in systems that will give you the data you need, support your existing operations, and protect your luxury brand. At Zubie, we have an array of tools that allow you to expand into this marketplace and monitor the health, safety, and location of your costly assets.
- Vehicle Inventory & Utilization: Inventory management is critical in any circumstance, but it becomes even more important when dealing with luxury cars. After all, if a customer requests a luxury rental, they don’t want a substitution. Our vehicle inventory and utilization capabilities allow you to monitor your vehicle inventory across multiple locations and optimize vehicle usage. This can enable you to quickly and easily determine the status of your fleet and when you may need to make updates.
- Fleet Safety & Breakdown Alerts: Luxury car customers will also demand luxury customer service. To that end, you’ll need to be prepared to monitor the health and safety of your entire fleet. Thanks to our custom alerts — including DTC alerts and proactive maintenance scheduling — you can always know when a car in your fleet has a problem, then quickly reach out to customers and offer support. You can also preemptively manage any potential vehicle maintenance issue, allowing you to make necessary repairs and get your car back on the road as quickly as possible.
- Counter Systems Intelligence: Zubie allows you to integrate vital data points with your existing counter systems intelligence. This integration lets you get the data you need on your customers and vehicles, including GPS location, odometer recordings, fuel consumption, and more. You can use this information to determine driving patterns and locations, then update your marketing materials to better reflect customer driving habits and patterns.
Partner With Zubie
As you know, entering or expanding your business presence in a new area requires the appropriate business structures. At Zubie, we excel in working with rental operations of all shapes and sizes, helping them maximize their fleet inventory and ensure they’re prepared for business growth. Platforms like Zubie Rental Connect provide everything you need to integrate security protections, manage inventory, and track vehicle health. Zubie Rental Connect — as well as all its related systems — can help you prepare for the future.
Want to learn more, or are you ready to take your next steps? Contact Zubie today and learn how we can help you position your business for success.