Growing Car Rental Companies Mobile Applications coupled with Rise in Number of Tourists will drive the growth of Vietnam Car Rental Market: Ken Research
• Growing mobile applications of the car rental companies will prove to be a growth driver for Vietnam Car rental industry.
• Increase in the number of tourists in the country will drive the demand for car rental services.
• Growth in businesses will further increase the demand for car rental services.
The cab aggregator companies such as Uber and Grab run on the mobile app business model and the popularity of these apps has been rising with elevated internet penetration and increase in number of smart phone users. Various car rental players such as Vinasun, Hertz, Avis and others are also shifting to mobile apps to increase the convenience for customers and to increase the consumer base.
Ken Research in its latest study, Vietnam Car Rental Market Outlook to 2021 suggests that the car rental market in Vietnam is fragmented and nascent, which provides immense opportunity to global and local players to tap the market with technology advancements in the Car Rental industry. This will further lead to various acquisitions and mergers in this industry making a positive impact on the market in terms of revenue generation.
Vietnam Car Rental market is estimated to register a positive CAGR during 2016-2021. Increasing traffic, lack of parking space, convenience, rising tourism, entry of players in the market and promotions and discounts offered to attract the customers will be the key drivers for the growth of the car rental industry in the country.
Tourism industry is on the rise in Vietnam which has made a positive impact on the car rental industry in the country. Few trends that have led to increase in Vietnam tourism include the rise in Chinese and Koreans travelers to the country accounting for 48.0% and 34.0% year on year growth respectively. In addition, 15-day visa-free policy for France, Germany, UK, Spain, Italy and Belarus increased investment in air travel infrastructure. The tourists prefer to use car rental services for travelling to popular destinations and also purchase these services in travelling to and from airport. Tourist destinations in Vietnam including Saigo Notre Dame Cathedral, Temple of Literature, Hoan Kiem Lake, My Khe Beach, Khai Dinh Tomb, Imperial Citadel and others attract visitors leading a positive impact on the car rental services market in the country.
The corporate clients purchase car rental services for meetings with high class individual clients or for employees. These are generally short distance trips. The car rental business has been gaining popularity from this segment over time due to increase in the awareness about the car rental services coupled with the increase in the corporate sector in the country. The popular destinations for the corporate clients include Saigon High Tech Park Entrance, Saigon High-Tech Park, Quang Trunk Software city and KCN VSIP. These clients prefer the medium car and luxury car model. The increase in companies will lead to rise in the corporate clients making a positive impact on the market.
The report provides information on Vietnam car rental market, market segmentation, future growth drivers & competitive landscape of few companies including Vinasun, Mai Linh, Avis, Vina Rent A Car, VN Rent A Car Co. Ltd, Budget, Uber and Grab.
Source: Ken Research