CAR HIRE
RENTAL REINVENTED
Car rental’s shift toward broader mobility services is accelerating, but enthusiasm for electric vehicles isn’t keeping pace
Hiring a car used to be relatively straightforward – you would turn up at the airport rental counter, sign a few forms, grab the keys and then head off in your allotted vehicle.
While that may still be the experience for many travellers, there’s now a lot for corporates to think about as rental companies have diversified into 'mobility' specialists offering a wider range of vehicle-based services.
The sector’s big names have expanded to offer corporate car clubs, car-sharing, short-term on-street rental and even ride-hailing – all helping to blur the lines between travel and fleet management.
While not a new development, there are signs of deepening relationships between rental firms and corporates, including working together on sustainability initiatives – particularly the use of electric vehicles (EVs) – to drive down emissions to meet both self-imposed targets and the latest regulations.
JOURNEYING TOGETHER
Photo by Adobe Stock, BullRun
Photo by Adobe Stock, BullRun
“We’re working with global travel buyers and fleet managers to bring a more joined-up approach to employee mobility across the business,” explains Paul McCorkell, assistant vice president of global sales EMEA at Enterprise Mobility. “Better alignment across business travel and fleet management, sometimes even via a single supplier contract, can create further benefits and economies.”
A good example of this is the expanded partnership between Sixt and German engineering giant Siemens, which allows Siemens staff to rent cars and commercial vehicles or book rides through Sixt’s digital platform.
Sixt is also making rental vehicles directly available at several Siemens locations in Germany, with digital key boxes to accelerate the pick-up process. This expanded partnership gives the corporate “access to a truly integrated mobility offering”, says Albert James Kueng, head of global travel management at Siemens AG.
“It not only includes special conditions but also significantly streamlines the entire process from booking to invoicing for our business travellers,” adds Kueng. “The steadily growing share of electric rental vehicles also supports Siemens’ strategy to make business travel emission-free by 2050."
Tom Middleditch, head of B2B marketing at Europcar Mobility Group UK, stresses the flexibility and advantages rental companies can offer to corporates who may previously have leased company vehicles.
“Our focus is on delivering mobility solutions that enable organisations to operate efficiently, effectively and sustainably without being tied into long-term lease agreements,” he says.
“By using rental, business travel and fleet managers can pivot quickly as workload demands and personnel resources change. Corporates can also begin to integrate zero tailpipe emissions into their mobility strategies without being committed to electric technology that will quickly be superseded.”
PRICING STABILITY
Like other areas of travel, buyers faced some significant double-digital car rental rate increases after the Covid-19 pandemic. But thankfully prices have largely stabilised, with forecasts suggesting modest increases in average rates in Europe next year.
BCD Research & Intelligence’s Travel Market Report 2026 Outlook found that average prices in Europe rose by 2 to 4 per cent year-on-year in 2025, with only Italy seeing a higher rise of 6 per cent.
“Car rental rates will generally continue to rise for corporate customers. With it being a seller's market, companies that have already seen prices rise in recent years may expect to face further increases as contracts come up for renewal,” says BCD in its report.
The TMC adds that economic uncertainty is likely to push up rental firms’ acquisition and repair costs, resulting in higher prices. It also notes that more suppliers are now adding a “city surcharge” on top of the daily rate.
American Express Global Business Travel’s Ground Monitor report suggests a “mixed outlook” for prices across Europe in 2026, with rates in the Netherlands and Nordic markets set to be “relatively stable”, while Germany and France face rises of 3 to 5 per cent.
Meanwhile, the UK could see “significant” rises of 5 to 7 per cent year-on-year as EV mandates “put upwards pressure” on rental prices. Although Amex GBT admits ongoing uncertainty around US tariff policies and varying local market conditions have made forecasting “more complex than usual”.
“In Europe, the rental sector is showing ongoing growth, but limited supply can have an impact on availability of cars, while demand continues to grow, rental companies are positioned to maintain higher pricing structures,” adds Sara Andell, director of consulting strategy at Amex GBT Consulting. “The underlying driver of limited vehicle availability is the supply shortage for chips used in the control units of cars, which is a big concern for the whole sector.”
CUSTOMER AMBITIONS
While most innovations to improve the customer experience inevitably focus on technology and using AI to “streamline” booking and rental processes, some major players are also seeking to offer a “higher touch” service to corporate customers willing to pay more.
Avis Budget has just introduced its new Avis First premium service in Europe, which sees travellers met at airport arrivals by an Avis representative and escorted to a BMW rental car. Currently this service is only available at Rome Fiumicino, Geneva International and Zurich airports but it will be expanded to more European hubs.
“Great companies earn pricing power by delivering value worth paying for,” said Avis Budget Group’s CEO Brian Choi on a conference call last month. “When corporate procurement teams choose a rental partner, they know Avis holds itself to higher vehicle standards than they require.
“This is why we launched Avis First. It's that principle in action and it's only the beginning. The same rigour around customer experience will cascade through every brand in our portfolio. The fact that we operate a family of global brands is a competitive advantage that we haven't fully leveraged.”
It will be interesting to see if other rental companies follow Avis’s lead of offering more premium services to corporate clients or whether they continue to primarily concentrate on removing “friction” through technology.
“We focus on how technology can help strengthen a great customer experience, both for drivers and corporate buyers,” says Enterprise’s Paul McCorkell. “The airport rental counter is a good example of where there can be friction when there are long queues at peak leisure travel times. Technology helps us to design solutions that let frequent travellers pre-book, bypass the airport counter and get straight into the car, making for a much faster and seamless experience.”
ELECTRIC AVENUE
It’s not that long ago that offering more sustainable vehicles was the key topic of conversation, but EVs scarcely merited a mention in recent investor calls held by Avis Budget and Hertz, perhaps reflecting the change in political climate in the US. Commercial reality also plays a part for rental firms, with the value of EVs depreciating quickly in the second-hand market.
Despite this, cutting emissions remains a major priority for many corporates, as clearly shown by BTN Intelligence’s Business Travel Sustainability Report 2025, with the adoption of EVs a way to reduce both Scope 1 and Scope 3 emissions.
“Acceptance of EVs among business travellers remains highly individual,” says a Sixt spokesperson. “Many corporate customers already include EVs in travel policies, but adoption still varies widely depending on the country, trip profile and charging infrastructure. Range anxiety and charging convenience continue to be the main challenges.”
Benjamin Park, executive director of travel and sustainability at Parexel International, says: “EV short-term rental demand remains slow, much like last year. The main barrier is still charging – it’s not as seamless as refuelling with gas [petrol]. Credit cards often aren’t accepted and travellers need different apps for different providers. As more companies switch company car fleets to EVs, business traveller familiarity will grow, and with improving battery ranges, we expect demand to pick up.”
While Europe’s charging infrastructure is improving, there’s still a long way to go. Research shows that 60 per cent of all EU public charging stations are in three countries: Germany, France and the Netherlands. Even in Germany, nearly 50 per cent of cities lack charging points, according to the Federal Ministry of Transport.
Europcar’s Tom Middleditch says UK corporate demand for EVs has “undoubtedly improved” in the past year, although concerns persist about the charging infrastructure. He adds: “There’s still a mind shift required for non-EV drivers to book electric in the first instance.”
The electrification of car rental may not be accelerating as quickly as expected, but at least it seems to be heading in the right direction. Although further bumps on this particular road are to be expected.
