Car Rentals - Peru

Peru

Highlights

It is anticipated that the Car Rentals market in Peru will experience an upsurge in revenue, with a projected value of US$787.50m by 2024.
Moreover, a Compound Annual Growth Rate (CAGR 2024-2029) of 3.88% is expected to further boost the revenue, leading to an estimated market volume of US$952.50m by 2029.
The number of users in this market is also expected to rise and reach 5.66m users by 2029.
It is projected that the user penetration rate will increase from 13.0% in 2024 to 15.6% by 2029.
The Average Revenue Per User (ARPU) is expected to remain at a steady US$174.30.
Furthermore, it is anticipated that 33% of the total revenue in the Car Rentals market will be generated through online sales by 2029.
It is noteworthy that United States is projected to generate the highest revenue in this market, with a value of US$32bn in 2024, in comparison to other countries worldwide.
Peru's car rental market is seeing a rise in demand from tourists looking to explore the country's diverse landscape.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Peru has been experiencing steady growth in recent years. Customer preferences have shifted towards renting cars for various purposes, including tourism, business travel, and transportation needs. This trend can be attributed to several factors, including the convenience and flexibility that car rentals offer compared to other modes of transportation. Additionally, the increasing number of tourists visiting Peru has contributed to the growth of the car rental market.

Customer preferences: Peruvian customers have shown a growing preference for renting cars instead of relying on public transportation or taxis. This shift can be attributed to the convenience and flexibility that car rentals offer. Renting a car allows customers to have control over their travel plans and explore different destinations at their own pace. Moreover, car rentals provide a comfortable and private mode of transportation, which is especially appealing to tourists and business travelers.

Trends in the market: The car rental market in Peru has witnessed a significant increase in demand due to the growing number of tourists visiting the country. Peru is known for its rich cultural heritage and natural beauty, attracting tourists from all over the world. As a result, there has been a surge in the demand for rental cars to explore popular tourist destinations such as Machu Picchu, the Nazca Lines, and the Amazon rainforest. Another trend in the market is the rise of online car rental platforms. Customers now have the option to book rental cars online, making the process more convenient and accessible. This has led to increased competition among car rental companies, forcing them to offer competitive prices and improve their services to attract customers.

Local special circumstances: Peru's diverse geography and vast landscapes make car rentals an attractive option for both domestic and international travelers. The country offers a wide range of attractions, including historical sites, natural wonders, and vibrant cities. Renting a car allows tourists to explore these attractions at their own pace and venture off the beaten path. Additionally, Peru has a well-developed road infrastructure, making it easier for tourists to travel around the country. The Pan-American Highway, for example, connects major cities and tourist destinations, providing easy access to different regions of Peru.

Underlying macroeconomic factors: The growth of the car rental market in Peru can be attributed to several macroeconomic factors. The country's stable economic growth has led to an increase in disposable income, allowing more people to afford rental cars. Additionally, Peru's growing middle class has contributed to the rise in domestic tourism, further fueling the demand for car rentals. Furthermore, the government's efforts to promote tourism have played a significant role in the development of the car rental market. Peru has implemented various initiatives to attract tourists, including the improvement of infrastructure, the simplification of visa procedures, and the promotion of cultural events and festivals. These efforts have not only increased the number of tourists visiting Peru but also encouraged them to explore the country by renting cars. In conclusion, the car rental market in Peru is growing steadily due to customer preferences for convenience and flexibility, the increasing number of tourists, the rise of online car rental platforms, Peru's diverse attractions and well-developed road infrastructure, and underlying macroeconomic factors such as stable economic growth and government initiatives to promote 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.