Car Rentals - Cyprus

Cyprus

Highlights

Cyprus is expected to witness a significant rise in the revenue of the Car Rentals market, with projections estimating a revenue of US$20.09m in 2024.
This revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.59%, resulting in a projected market volume of US$22.83m by 2029.
Moreover, the number of users in this market is also expected to increase to 127.10k users by 2029.
The user penetration rate is expected to be 8.3% in 2024 and 9.7% by 2029, whereas the average revenue per user (ARPU) is expected to be US$191.00.
It is projected that 84% of the total revenue generated in this market will be through online sales by 2029.
It is interesting to note that in global comparison, United States is expected to generate the highest revenue of US$32bn in the Car Rentals market in 2024.
Cyprus' car rental market is experiencing a surge in demand due to the country's growing tourism industry.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Cyprus is experiencing steady growth, driven by customer preferences for convenience, flexibility, and cost-effectiveness.

Customer preferences: Customers in Cyprus are increasingly opting for car rentals as a convenient and flexible mode of transportation. Renting a car allows them to explore the island at their own pace, without relying on public transportation schedules. Additionally, car rentals provide the flexibility to choose the type of vehicle that best suits their needs, whether it's a compact car for city driving or a larger vehicle for family trips. Moreover, renting a car is often more cost-effective than owning a vehicle, as it eliminates the expenses associated with maintenance, insurance, and parking.

Trends in the market: One of the key trends in the Car Rentals market in Cyprus is the rise of online booking platforms. Customers are increasingly using online platforms to compare prices, check availability, and make reservations. This trend has made it easier for customers to find the best deals and book a car rental in advance, ensuring availability and saving time. Additionally, online platforms often offer discounted rates and promotional offers, further incentivizing customers to book through these channels. Another trend in the market is the growing demand for eco-friendly car rentals. As environmental awareness increases, customers are seeking more sustainable transportation options. Car rental companies in Cyprus are responding to this demand by offering hybrid and electric vehicles as part of their fleet. This trend not only attracts environmentally conscious customers but also helps car rental companies reduce their carbon footprint.

Local special circumstances: The unique geography and attractions of Cyprus contribute to the growth of the Car Rentals market. The island is known for its picturesque landscapes, historical sites, and beautiful beaches, making it a popular tourist destination. Tourists visiting Cyprus often prefer to rent a car to explore the island and visit multiple attractions in a convenient manner. Additionally, the local population also relies on car rentals for their transportation needs, especially in areas with limited public transportation options.

Underlying macroeconomic factors: The growth of the Car Rentals market in Cyprus is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has resulted in a greater willingness among consumers to spend on leisure activities, including car rentals. Additionally, the tourism industry in Cyprus has been thriving, attracting a large number of international visitors who contribute to the demand for car rentals. In conclusion, the Car Rentals market in Cyprus is growing due to customer preferences for convenience, flexibility, and cost-effectiveness. The rise of online booking platforms, the demand for eco-friendly options, the unique geography of Cyprus, and the underlying macroeconomic factors all contribute to the development of the market. As the market continues to evolve, car rental companies in Cyprus need to adapt to changing customer preferences and leverage technology to stay competitive.

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.