• Guide to Car Rental Companies in Costa Rica

    Industry Overview

    The automobile hire market is really a multi-billion buck sector of the US economy. The US portion of a averages about $18.5 thousand in revenue a year. Today, you will find approximately 1.9 million hire vehicles that company the US portion of the market. Additionally, there are numerous hire agencies besides a leaders that subdivide the full total revenue, namely Dollar Thrifty, Budget and Vanguard. Unlike other mature company industries, the hire vehicle market is extremely consolidated which normally places potential new comers at a cost-disadvantage since they face large feedback costs with paid off possibility of economies of scale. More over, a lot of the revenue is developed by a few firms including Enterprise, Hertz and Avis. For the fiscal year of 2004, Enterprise developed $7.4 thousand altogether revenue. Hertz came in 2nd place with about $5.2 thousand and Avis with $2.97 in revenue.

    Amount of Integration

    The hire vehicle market looks a totally different atmosphere than it did five years ago. According to Business Journey Information, vehicles are being rented until they've accumulated 20,000 to 30,000 miles until they are banished to the applied vehicle market while the turn-around usage was 12,000 to 15,000 miles five years ago. Due to gradual market growth and slim revenue margin, there is no imminent danger to backward integration within the industry. Actually, among a participants only Hertz is vertically integrated through Ford.

    Range of Competition

    There are many factors that form the competitive landscape of the car hire industry. Competition arises from two major resources throughout the chain. On the vacation consumer's conclusion of the selection, competition is intense not only since industry is saturated and effectively guarded by market chief Enterprise, but rivals work at a high price disadvantage alongside smaller industry shares since Enterprise has recognized a network of dealers over 90 % the leisure segment. On the corporate portion, on the other hand, competition is quite strong at the airports since that portion is under limited guidance by Hertz. Because a underwent a massive economic problem in recent years, it's improved the degree of competition within a lot of the firms that survived. Reasonably talking, the hire vehicle market is really a war-zone because so many hire agencies including Enterprise, Hertz and Avis one of the significant participants take part in a struggle of the fittest.


    Over the past five years, many firms have already been working towards increasing their fleet shapes and increasing the level of profitability. Enterprise presently the organization with the largest fleet in the US has added 75,000 vehicles to their fleet since 2002 that really help raise their quantity of services to 170 at the airports. Hertz, on the other hand, has added 25,000 vehicles and broadened their global existence in 150 areas instead of 140 in 2002. Additionally, Avis has improved their fleet from 210,000 in 2002 to 220,000 despite new economic adversities. Over the years following economic downturn, even though many companies throughout a were struggling, Enterprise among a leaders have been growing steadily. For example, annual income reached $6.3 in 2001, $6.5 in 2002, $6.9 in 2003 and $7.4 thousand in 2004 which translated into a growth charge of 7.2 % annually รถเช่าเชียงใหม่ for days gone by four years. Because 2002, a has started to regain their footing in the sector as over all income grew from $17.9 thousand to $18.2 thousand in 2003. According to market analysts, the higher times of the hire vehicle market have yet to come. On the course of another several years, a is estimated to have accelerated growth respected at $20.89 thousand each year subsequent 2008 "which equates to a CAGR of 2.7 % [increase] in the 2003-2008 period.”


    Over the past several years the hire vehicle market has built a great deal of progress to facilitate it distribution processes. Today, you will find approximately 19,000 hire locations containing about 1.9 million hire cars in the US. Because of the significantly abundant quantity of vehicle hire locations in the US, proper and tactical techniques are taken into consideration in order to guarantee appropriate distribution throughout the industry. Distribution happens within two interrelated segments. On the corporate industry, the cars are spread to airports and lodge surroundings. On the leisure portion, on the other hand, cars are spread to organization possessed services that are easily positioned within many significant highways and urban areas.

    Previously, managers of hire vehicle companies applied to rely on gut-feelings or instinctive guesses to produce conclusions about exactly how many cars to have in a certain fleet or the utilization level and efficiency standards of maintaining certain cars in a single fleet. With this strategy, it had been extremely tough to maintain a level of balance that would meet consumer need and the required amount of profitability. The distribution method is pretty simple throughout the industry. To start with, managers must establish how many cars that must be on inventory on a regular basis. Because a really obvious problem arises when a lot of or insufficient cars are available, many vehicle hire companies including Hertz, Enterprise and Avis, work with a "pool” which is really a band of separate hire services that share a fleet of vehicles. Generally, with the pools in position, hire locations work more proficiently since they reduce the chance of reduced inventory if not remove hire vehicle shortages.

    Industry Segmentation

    Many companies throughout the string produce a gain centered of the sort of cars that are rented. The hire cars are categorized into economy, lightweight, intermediate, premium and luxury. One of the five types, the economy sector produces the absolute most profit. For instance, the economy portion on it's own is accountable for 37.7 % of the full total industry revenue in 2004. Additionally, the lightweight portion accounted for 32.3 % of over all revenue. The remaining other types covers the residual 30 % for the US segment.

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