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Ground Transport

Car rental rates stall as ride hailing grows

By Molly Dyson / 24 May 2019 / Contact Reporter
Share

Car rental rates are will remain stable around the world over the next 12 months as the use of ride-hailing services continues to grow, according to a new report.

The Ground Monitor 2019, published by American Express Global Business Travel (GBT), predicts a modest 1 per cent increase in car rental rates in the US and Canada, driven by a rise in demand following a period of minimal growth.

However, rates are expected to fall slightly in key European business destinations, with declines ranging from 0.5 per cent in the UK to 4.5 per cent in Belgium. France and Switzerland are forecast to decrease 0.5 per cent and 2.5 per cent, respectively.

GBT says global rates will remain stable despite car rental companies facing higher costs related to an increase in the price of vehicles with the introduction of new technology and safety features such as rear cameras, sensors and automatic braking.

The report also explores the rise of app-based ground transportation providers such as Uber and Lyft, which GBT says are “firmly established in the managed travel landscape”. It discusses how corporate travel buyers can anticipate further impact from app-enabled solutions driven by travellers demand and tightening environmental regulation.

Joakim Johansson, GBT vice president of Global Business Consulting, said: “Ground transportation is often overlooked in managed travel programmes, but this dynamic and evolving sector is a key part of the traveller experience. Our consultants and analysts have developed the Ground Monitor 2019 to help clients optimise their ground programmes, gaining more control over spend and better experiences for the traveller.”

The Ground Monitor 2019 is the latest in a series of regular reports designed by the Global Business Consulting team to help travel buyers optimise their travel policy and programme. The next edition will analyse the hotel sector and will be published in July.

Read the full Ground Monitor 2019 here

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