Car Rentals - Chile

Chile

Highlights

It is projected that the revenue in the Car Rentals market in Chile will reach US$372.50m by 2024.
Furthermore, it is expected that the revenue will show an annual growth rate (CAGR 2024-2029) of 5.30%, resulting in a projected market volume of US$482.40m by 2029.
The number of users in the Car Rentals market is also expected to increase to 1.99m users by 2029.
In 2024, the user penetration is projected to be 8.4%, and it is expected to increase to 10.0% by 2029.
The average revenue per user (ARPU) is expected to be US$225.50.
By 2029, it is projected that 59% of the total revenue in the Car Rentals market will be generated through online sales.
It is worth noting that in global comparison, United States is expected to generate the most revenue (US$32bn in 2024).
Chile's car rental market is experiencing a surge in demand due to the country's diverse geography and increasing tourism.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Chile has been experiencing steady growth in recent years, driven by several key factors. Customer preferences for convenience and flexibility have contributed to the increasing demand for car rentals, while local special circumstances and underlying macroeconomic factors have also played a role in shaping the market.

Customer preferences: In Chile, customer preferences for convenience and flexibility have been driving the growth of the car rentals market. With an increasing number of tourists visiting the country, as well as a growing domestic travel market, many customers are opting for car rentals as a convenient and flexible mode of transportation. Renting a car allows travelers to explore the country at their own pace and visit remote areas that may not be easily accessible by public transportation. Additionally, car rentals provide the flexibility to plan itineraries according to personal preferences, offering a level of freedom that is highly valued by customers.

Trends in the market: One of the key trends in the car rentals market in Chile is the increasing popularity of online booking platforms. Customers are increasingly using online platforms to compare prices, check availability, and make reservations. This trend is driven by the convenience and transparency offered by online platforms, allowing customers to easily access information and make informed decisions. Additionally, online platforms often offer competitive prices and discounts, further incentivizing customers to book car rentals online. Another trend in the market is the growing demand for eco-friendly and electric vehicles. As sustainability becomes an increasingly important consideration for customers, car rental companies in Chile are expanding their fleets to include electric and hybrid vehicles. This trend is driven by both customer preferences for sustainable transportation options and government initiatives to promote the use of electric vehicles. By offering eco-friendly options, car rental companies are able to attract environmentally conscious customers and differentiate themselves in the market.

Local special circumstances: Chile's diverse geography and natural beauty make it an attractive destination for tourists. From the Atacama Desert in the north to the stunning fjords and glaciers in the south, there is a wide range of landscapes to explore. This unique geography creates a demand for car rentals as customers seek to experience the country's natural wonders. Additionally, Chile's long and narrow shape means that many destinations are spread out, making car rentals a convenient option for travelers to navigate the country.

Underlying macroeconomic factors: Chile has experienced steady economic growth in recent years, which has contributed to the development of the car rentals market. As disposable incomes rise, more people are able to afford travel and leisure activities, including renting cars. Furthermore, the growth of the tourism sector in Chile has also been a driving force behind the expansion of the car rentals market. The government has implemented various initiatives to promote tourism, attracting both domestic and international visitors and creating a favorable environment for the car rentals industry to thrive. In conclusion, the Car Rentals market in Chile is experiencing growth due to customer preferences for convenience and flexibility, the increasing popularity of online booking platforms, the demand for eco-friendly vehicles, the country's unique geography, and the underlying macroeconomic factors such as economic growth and the development of the tourism sector.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of car rental services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.