Car Rentals - Lebanon

Lebanon

Highlights

Lebanon's Car Rentals market is expected to reach a revenue of US$111.60m by 2024, with a projected market volume of US$129.00m by 2029, showing an annual growth rate of 2.94%.
The number of users in this market is predicted to reach 587.90k users by 2029, while user penetration is anticipated to increase from 10.9% in 2024 to 12.3% by 2029.
The average revenue per user (ARPU) is expected to be US$195.80.
By 2029, 53% of the total revenue in this market is predicted to be generated through online sales.
It is worth noting that in the 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.
Despite the unstable political situation in Lebanon, the car rental market continues to thrive due to high demand from tourists and expats.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Lebanon has been experiencing steady growth in recent years, driven by various factors such as increasing tourism, changing consumer preferences, and a growing economy.

Customer preferences: In Lebanon, there is a strong demand for car rentals among both domestic and international tourists. Tourists prefer the convenience and flexibility offered by renting a car, allowing them to explore the country at their own pace. Additionally, many locals also opt for car rentals for special occasions or when they need a temporary vehicle.

Trends in the market: One of the key trends in the car rentals market in Lebanon is the growing popularity of online booking platforms. Customers now have the option to compare prices, read reviews, and book their rental cars online, making the process more convenient and transparent. This trend has also led to increased competition among car rental companies, forcing them to offer competitive pricing and improve their services. Another trend in the market is the increasing demand for eco-friendly and fuel-efficient rental cars. With growing awareness about environmental issues, customers are becoming more conscious of their carbon footprint. As a result, car rental companies in Lebanon are expanding their fleet with hybrid or electric vehicles to cater to this demand.

Local special circumstances: Lebanon is known for its diverse and picturesque landscapes, including stunning coastlines, mountains, and historical sites. This makes it an attractive destination for tourists, driving the demand for car rentals. Additionally, Lebanon has a well-developed road infrastructure, making it easy for visitors to navigate the country. However, the political and economic instability in the region has had an impact on the car rentals market. Fluctuating exchange rates, inflation, and security concerns have affected the purchasing power of both locals and tourists. This has led to some fluctuations in the demand for car rentals, particularly during periods of uncertainty.

Underlying macroeconomic factors: The growth of the car rentals market in Lebanon can be attributed to the overall economic development of the country. Despite facing challenges, Lebanon has a relatively stable economy compared to some of its neighboring countries. The government has been investing in infrastructure development, including roads and highways, which has improved accessibility and boosted tourism. Furthermore, Lebanon has been actively promoting tourism as a key sector for economic growth. This includes initiatives to attract international tourists through marketing campaigns and the development of tourist-friendly policies. As a result, the number of visitors to Lebanon has been increasing, leading to a rise in the demand for car rentals. In conclusion, the car rentals market in Lebanon is experiencing growth due to factors such as increasing tourism, changing customer preferences, and government initiatives to promote the sector. The convenience and flexibility offered by car rentals, coupled with a well-developed road infrastructure, make Lebanon an attractive destination for both domestic and international travelers. However, the market is not without challenges, as political and economic instability in the region can impact the demand for car rentals. Nonetheless, the overall outlook for the car rentals market in Lebanon remains positive, driven by the country's economic development and focus on tourism.

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.