Market Insight on the Indonesian Car Rental Market - a new market research report on companiesandmarkets.com
PR-Inside.com: 2014-04-04 06:05:02
All the key performance indicators suggest that the Indonesian car rental market has been experiencing positive and healthy growth. The market has three types of customers: Retail, corporate, and others. The corporate segment has the highest revenue contribution. Key trends include growth in the corporate segment, luxury cars, and distribution networks as well as aggressive marketing. Key drivers include increasing disposable income, rising volume of tourists/travelers, increasing acceptance among corporates and increase in middle-management customers. Key restraints include restriction on foreign direct investment and possible taxes to curb traffic congestion. The Indonesian car rental market is extremely fragmented with only a few large-scale operators; TRAC is the leading participant, followed by ASSA and MPMR.
Majority of the contracts are long-term; among the leading market participants, share of long-term contracts ranges from to%. Fleet size and revenue is expected to grow. Revenue growth is expected to outpace fleet size growth, primarily due to increase in utilization rate of vehicles, increase in rental rates, and growing demand for luxury cars.
The demand from corporate customers has been growing, particularly among companies in the banking and IT sectors, which use car rental services as a transportation solution for employees. Car rental operators are also increasingly targeting corporate customers as the segment offers stable demand and leads to high fleet utilization.
Operators are targeting a countrywide footprint to follow customers´ geographic expansion. Several deals are sourced in Jakarta and deployment is spread across Indonesia. Leading car rental companies are using a franchise model to expand their car rental businesses in Indonesia. The growing number of business travelers in the country has resulted in increased demand for luxury car rental services. Several local and international car rental operators have started offering premium services and are adding high-end luxury cars to their fleets.
Several operators are carrying out joint marketing activities with airlines and hotel operators to offer special incentives and services. Leading operators are offering various incentives to repeat customers through membership or loyalty cards. For instance, Hertz offers a membership program through which members can enjoy benefits such as faster reservations, discounts, and special offers.
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