AmexGBT Says Car Rental Rates Stable As App-Based Disruptors Grow
Bruce Parkinson, Open Jaw
The Ground Monitor 2019, published by American Express Global Business Travel (GBT), finds that car rental rates will remain stable around the world for the next 12 months. Any price changes that occur are likely to be minimal.
In the U.S. and Canada, the Ground Monitor 2019 predicts a 1% increase in car rental rates, driven by rising demand after a long period of minimal growth. In Latin America, buyers in Argentina, Brazil, Chile and Mexico can expect to see prices increasing by up to 0.75%.
In Europe, car rental rates are predicted to fall slightly in many key business destinations, with declines ranging from -0.5% in the UK to -4.5% in Belgium. France and Switzerland are forecast to face small rises of 0.5% and 2.5% respectively.
Globally, car rental rates are expected to be stable despite car rental companies facing higher costs as new technology and safety features – such as rear cameras, sensors and collision-prevention automatic breaking – make cars more expensive to buy and maintain.
The report also explores the rise of disruptive app-based ground transportation providers. Ride-hail services, such as Lyft and Uber, are now firmly established in the managed travel landscape. In a section on how travel buyers can optimize ground transportation in their managed program, the report discusses how travel buyers can anticipate further impact from app-enabled innovation, driven by traveller demand and tightening environmental regulation.
Joakim Johansson, GBT Vice President, Global Business Consulting, said: “Ground transportation is often overlooked in managed travel programs, 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 optimize their ground programs, gaining more control over spend and better experiences for the traveller.”
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.