Car Rentals - Czechia

Czechia

Highlights

It is projected that the revenue of the Car Rentals market in Czechia will reach US$91.36m in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.73%, resulting in a projected market volume of US$104.60m by 2029.
By that year, the number of users in the Car Rentals market is expected to amount to 335.40k users.
User penetration is projected to increase from 2.8% in 2024 to 3.2% by 2029.
The average revenue per user (ARPU) is expected to be US$307.20.
Additionally, it is estimated that 75% of the total revenue in the Car Rentals market will be generated through online sales by 2029.
It is worth noting that in global comparison, United States is expected to generate the most revenue in the Car Rentals market, with a projected revenue of US$32bn in 2024.
Czechia's car rental market has seen a rise in demand for eco-friendly vehicles in response to increasing environmental concerns.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Czechia is experiencing significant growth due to changing customer preferences and favorable macroeconomic factors.

Customer preferences: Customers in Czechia are increasingly opting for car rentals instead of purchasing vehicles due to several reasons. Firstly, car rentals provide flexibility and convenience, allowing individuals to choose a vehicle that suits their specific needs for a particular period of time. This is particularly appealing to tourists and business travelers who require transportation during their stay but do not want the hassle of owning a car. Additionally, car rentals offer a cost-effective solution for individuals who do not use a vehicle frequently, as they can avoid the expenses associated with car ownership, such as maintenance, insurance, and parking.

Trends in the market: One of the key trends in the Car Rentals market in Czechia is the growing popularity of online booking platforms. Customers are increasingly using online platforms to compare prices, check availability, and make reservations, making the process more convenient and efficient. This trend is driven by the increasing internet penetration and the rising use of smartphones, which enable customers to access car rental services anytime and anywhere. Furthermore, online platforms often offer competitive prices and discounts, attracting a larger customer base. Another trend in the market is the rising demand for eco-friendly and electric vehicles. As sustainability becomes a global concern, customers in Czechia are showing a preference for environmentally friendly options. Car rental companies are responding to this demand by expanding their fleet to include electric and hybrid vehicles. This trend is also supported by government initiatives to promote electric mobility and reduce carbon emissions.

Local special circumstances: Czechia is a popular tourist destination, attracting millions of visitors each year. The country's rich history, cultural heritage, and natural beauty make it an ideal location for travelers. Many tourists prefer to explore the country at their own pace, and car rentals provide them with the flexibility to do so. Additionally, Czechia's central location in Europe makes it a convenient starting point for road trips to neighboring countries, further driving the demand for car rentals.

Underlying macroeconomic factors: The overall economic growth in Czechia is positively impacting the Car Rentals market. A growing economy translates to increased business activities, both domestic and international, which in turn leads to higher demand for car rentals. Furthermore, rising disposable incomes and improving living standards are enabling more individuals to afford car rentals for leisure and business purposes. In conclusion, the Car Rentals market in Czechia is witnessing significant growth due to changing customer preferences, such as the preference for flexibility and cost-effectiveness, as well as the increasing demand for eco-friendly vehicles. The market is also influenced by local special circumstances, including the country's popularity as a tourist destination and its central location in Europe. Additionally, favorable macroeconomic factors, such as economic growth and rising disposable incomes, contribute to the market's development.

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.