The car rental industry is really a multi-billion money segment of the US economy. The US segment of the averages about $18.5 million in revenue a year. Nowadays, there are around 1.9 million rental vehicles that service the US segment of the market. In addition, there are many rental agencies besides a leaders that subdivide the sum total revenue, namely Money Thrifty, Budget and Vanguard. Unlike other mature service industries, the hire vehicle market is very consolidated which obviously sets possible new comers at a cost-disadvantage given that they face large input fees with decreased chance for economies of scale. Moreover, all the gain is generated by way of a several firms including Enterprise, Hertz and Avis. For the fiscal year of 2004, Enterprise created $7.4 billion as a whole revenue. Hertz got in 2nd position with about $5.2 million and Avis with $2.97 in revenue. เช่ารถอัลพาร์ด
Amount of Integration
The rental car business faces a different environment than it did five years ago. According to Organization Vacation News, cars are increasingly being leased till they've gathered 20,000 to 30,000 miles until they are banished to the applied car industry although the turn-around distance was 12,000 to 15,000 miles five years ago. Because of slow business growth and slim gain margin, there's no certain risk to backward integration within the industry. In fact, among a people just Hertz is vertically integrated through Ford.
Range of Competition
There are numerous factors that form the competitive landscape of the car rental industry. Opposition comes from two major resources throughout the chain. On the holiday consumer's conclusion of the selection, competition is brutal not merely since industry is unhealthy and effectively guarded by industry head Enterprise, but rivals operate at a cost drawback alongside smaller industry gives because Enterprise has recognized a network of retailers over 90 percent the discretion segment. On the corporate part, on the other hand, competition is quite strong at the airports since that portion is under limited supervision by Hertz. Because the underwent a huge financial downfall in recent years, it has improved the scale of opposition within most of the firms that survived. Competitively talking, the hire vehicle market is just a war-zone since many hire agencies including Enterprise, Hertz and Avis one of the significant players participate in a challenge of the fittest.