The Car Rental 4×4 Rental Iceland Industry.February 15, 2017
The vehicle rental industry is a multi-billion dollar sector of the US economy. The United States segment of the industry averages about $18.5 billion in revenue a year. Today, there are approximately 1.9 million rental vehicles that service the United States segment from the market. Additionally, there are many rental agencies besides the industry leaders that subdivide the total revenue, 4×4 Rental Iceland, Budget and Vanguard. Unlike other mature service industries, the car rental industry is highly consolidated which naturally puts potential newbie’s at a cost-disadvantage since they face high input costs with reduced possibility of economies of scale. Moreover, most of the profit is generated by a number of firms including Enterprise, Hertz and Avis. For that fiscal year of 2004, Enterprise generated $7.4 billion as whole revenue. Hertz came in second position about $5.2 billion and Avis with $2.97 in revenue.
Level of Integration the rental car 4×4 Rental Iceland industry faces a completely different environment of computer did five years ago.
According to Business Travel News, vehicles are now being rented until they’ve accumulated 20,000 to 30,000 miles until they are relegated to the used car industry whereas the turn-around mileage was 12,000 to 15,000 miles five years ago. Due to slow industry growth and narrow profit, there is no imminent threat to backward integration within the industry. In fact, among the industry players only Hertz is vertically integrated through Ford. There are lots of factors that shape the competitive landscape of the car rental industry. Competition originates from two main sources throughout the chain. Around the 4×4 Rental Iceland end from the spectrum, levels of competition are fierce not just since the marketplace is saturated and well guarded by leader in the industry Enterprise, but competitors operate at a cost disadvantage together with smaller market shares since Enterprise has built a network of dealers over 90 % the leisure segment