Car Rentals - Cuba

Cuba

Highlights

The projection for the Car Rentals market in Cuba shows a significant growth in revenue, with an expected amount of US$2.47m by 2024.
This growth is expected to continue with an annual growth rate of -0.16% (CAGR 2024-2029), leading to a projected market volume of US$2.45m by 2029.
Additionally, it is anticipated that the number of users will increase to 781.40k users by 2029, with a projected user penetration of 6.4% in 2024 and 7.1% by 2029.
The average revenue per user (ARPU) is expected to be US$3.43.
In terms of online sales, 70% of the total revenue in the Car Rentals market is projected to be generated through online sales by 2029.
It's worth noting that in global comparison, United States is expected to generate the most revenue in the Car Rentals market, with a projected amount of US$32bn by 2024.
Despite the increasing demand for car rentals in Cuba, limited availability and high prices remain a challenge for tourists.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Cuba has been experiencing significant growth in recent years. Customer preferences for car rentals have shifted towards more flexible and convenient transportation options, leading to an increase in demand for rental cars. Additionally, local special circumstances and underlying macroeconomic factors have also contributed to the development of the Car Rentals market in Cuba.

Customer preferences: One of the main reasons for the growth of the Car Rentals market in Cuba is the changing preferences of customers. With the increase in tourism and business travel, more people are looking for flexible and convenient transportation options. Renting a car allows travelers to explore the country at their own pace and visit remote areas that are not easily accessible by public transportation. Additionally, renting a car provides a sense of freedom and independence, allowing travelers to have more control over their itinerary.

Trends in the market: The Car Rentals market in Cuba has seen a number of trends that have contributed to its growth. One trend is the rise of online booking platforms, which have made it easier for customers to compare prices and book rental cars. This has increased competition among car rental companies, leading to lower prices and better service. Another trend is the increasing popularity of eco-friendly and electric cars. As sustainability becomes a more important factor for travelers, car rental companies are offering a wider range of environmentally friendly options.

Local special circumstances: Cuba is a country with a unique set of circumstances that have contributed to the development of the Car Rentals market. One important factor is the limited public transportation infrastructure. While public transportation options exist in major cities, they are often crowded and unreliable. This has created a need for alternative transportation options, such as rental cars. Additionally, Cuba's natural beauty and diverse landscapes make it an attractive destination for travelers who want to explore the country's beaches, mountains, and countryside. Renting a car allows travelers to easily access these areas and experience the country's natural beauty.

Underlying macroeconomic factors: Several macroeconomic factors have also contributed to the growth of the Car Rentals market in Cuba. One factor is the increase in international tourism. Cuba has seen a significant rise in the number of tourists in recent years, with visitors coming from all over the world. This has created a larger customer base for car rental companies. Another factor is the improving economic conditions in Cuba. As the country's economy continues to grow, more people have disposable income to spend on travel and transportation. This has increased the demand for rental cars among both domestic and international travelers. Overall, the Car Rentals market in Cuba is developing due to changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As more travelers seek flexible and convenient transportation options, the demand for rental cars is expected to continue to grow in the coming years. Car rental companies in Cuba will need to adapt to these changing preferences and market trends in order to remain competitive in the industry.

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.