JAKARTA (TheInsiderStories) – The rising of tourism and middle class population can spur car rental business to 2021, according to Research and Market’s report.
The report provides a comprehensive analysis of the organized and unorganized, chauffer driven and non-chauffer driven car rental segments.
The report includes snapshots on ride sharing or carpooling market, self-driven car market and bike rental market in Indonesia and covers aspects such as off-airport and on-airport bookings, corporate and retail clients, and demand by major regions.
The publication also includes competitive landscape which discusses the major market players along with the detailed discussion about the organizations and their respective market share.
The report also provides in depth analysis of the taxi aggregator market including detailed company profiles of the stakeholders. The future analysis of overall Indonesia Car Rental Market has also been discussed along with recommendations from analyst view.
Among major players in Indonesia car rental market are including ASSA Rent, owned by listed company PT Adi Sarana Armada Tbk (IDX:ASSA), Blue Bird Group, PT Express Transindo Utama Tbk (IDX:TAXI), Go-Jek Group, Grab, HipCar, MPM Rent, TRAC Astra Rent Car, Tunas Rental, Tripves and Uber.
Indonesia car rental market has showcased a consistent growth trend during the review period, 2011-2016 at a CAGR (compound annual growth rate) of 8.7 per cent in terms of revenue generated from the trips.
The major factors that augmented market growth are the arrival of international and domestic tourists, traffic congestion and inclining consumer spending on transportation. Indonesia had always been an affordable destination for international tourists.
The increasing demand for car rental services in the country has increased competition in the market. The fleet size of car rental industry has grown at an impressive CAGR of 15.3 per cent. Inclining demand and availability of cheaper second hand cars have led to the growth in the fleet size.
In terms of revenue generation, Indonesia car rental market has been dominated by the organized players. Fixed rental tariffs, ease of accessibility, reliability and security are some of the factors which led to the dominance of organized sector over the unorganized sector in the country.
In 2016, the non-chauffeur driven segment has dominated the market over chauffeur driven services. This was primarily due to preference of international and domestic tourists to rent cars and drive it themselves across the country.
The growth in the car rental market shall be driven by the increasing number of international tourists, increased focus of car rental on corporate clients, increasing fleet size, incline in number of both on-airport and off-airport locations by the car rental companies.
The existing players in the car rental market are in the process of launching new services and enhancing entertainment options including the addition of LED screen for customers so that they do not get exhausted in traffic jams of Indonesian cities and GPS tracking of the trip.
Since the companies providing car rental services are increasing in number every year, the type and quality of these services is improving in the market to withstand the competition.
Written by Elisa Valenta, email: elisa.valenta@theinsiderStories.com