Car Rentals - Guatemala

Guatemala

Highlights

By 2024, it is projected that the Car Rentals market in Guatemala will reach a revenue of US$110.50m.
Furthermore, this revenue is expected to grow annually at a rate of 4.21%, resulting in a projected market volume of US$135.80m by 2029.
The number of users in this market is expected to increase to 1.78m users by 2029, and user penetration is projected to be 7.4% in 2024 and 9.0% by 2029.
Additionally, the average revenue per user (ARPU) is expected to be US$81.74.
By 2029, 62% of the total revenue in the Car Rentals market is projected to be generated through online sales.
Finally, in comparison to other countries, United States is projected to generate the most revenue with an estimated amount of US$32bn in 2024.
Guatemala's car rental market is growing due to the increasing number of tourists visiting the country.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Guatemala has experienced significant growth in recent years, driven by several factors including increasing tourism, a growing middle class, and improved infrastructure.

Customer preferences: In Guatemala, customers have shown a preference for renting cars for various reasons. One of the main reasons is the convenience and flexibility that car rentals offer. Tourists visiting the country often opt for car rentals to explore the diverse landscapes and cultural sites at their own pace. Additionally, locals also prefer renting cars for special occasions or when traveling to different regions within the country.

Trends in the market: One of the key trends in the car rentals market in Guatemala is the rise of online bookings. With the increasing availability of internet access and the growing use of smartphones, customers now have the option to easily book their car rentals online. This trend has not only made the booking process more convenient for customers but has also allowed car rental companies to reach a wider audience. Another trend in the market is the increasing demand for eco-friendly and fuel-efficient cars. As sustainability becomes a global concern, customers in Guatemala are also seeking environmentally friendly options when it comes to car rentals. Car rental companies are responding to this trend by offering a range of hybrid and electric vehicles, catering to the growing demand for greener transportation options.

Local special circumstances: Guatemala is known for its diverse landscapes, including lush rainforests, volcanoes, and ancient Mayan ruins. This unique geography attracts a large number of tourists, both domestic and international, who are eager to explore the natural beauty and cultural heritage of the country. The availability of car rentals provides these tourists with the freedom to travel to remote areas and visit multiple destinations during their stay. Furthermore, Guatemala has made significant investments in improving its road infrastructure in recent years. This has not only made it easier for locals to travel within the country but has also attracted more tourists who are confident in navigating the roads. The improved infrastructure has also led to the development of new tourist destinations, further driving the demand for car rentals.

Underlying macroeconomic factors: The growth in the car rentals market in Guatemala can also be attributed to the country's improving economy and rising middle class. As the economy continues to grow, more Guatemalans have disposable income to spend on leisure activities, including renting cars for vacations or special occasions. This increase in disposable income has contributed to the overall growth of the car rentals market. Additionally, the government of Guatemala has implemented policies to promote tourism in the country, recognizing its potential as a key driver of economic growth. These policies include incentives for investment in the tourism sector, as well as efforts to improve safety and security for tourists. As a result, the number of tourists visiting Guatemala has been steadily increasing, leading to a higher demand for car rentals. In conclusion, the Car Rentals market in Guatemala has experienced significant growth due to increasing tourism, a growing middle class, improved infrastructure, and customer preferences for convenience and flexibility. The rise of online bookings and the demand for eco-friendly cars are also shaping the market. With the country's unique geography and improving economy, the car rentals market in Guatemala is expected to continue its upward trajectory in the coming years.

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.