European Car Rentals May Be More Affordable in 2020 Due to Economic Slowdown
Photo Credit: A traffic jam in Paris, France. Flickr / Christian Scheja
Skift Take
Car rental companies are desperate to raise rates, but the reality is that reduced demand due to ridesharing and an expected slowdown will keep prices from rising significantly in 2020. This is good news for companies and vacationers alike.
Global car rental companies have been desperate to raise rates in recent years, but a drop in demand has made it challenging.
The latest Ground Monitor report from American Express Global Business Travel crunched the numbers on the last seven years’ data from clients to predict the outlook for the rental car sector in 2020.
“Looking at the price forecasts and combining them with insights from GBT subject matter experts, the traditional car rental model appears to be under pressure across much of the world," reads the report. "Costs are rising, but the car rental companies are restricted in their ability to respond by raising rates: overcapacity — and competition between the rental companies —
