Whether you're visiting a new city for a few days or need a temporary vehicle for local transportation, car rentals offer flexibility and convenience. This article discusses some key aspects of the car rental business and why it has become such a popular transportation option.
History and Growth of the Car Rental Industry
The car rental industry began in the early 20th century with local livery stables and independent rental agencies that allowed travelers to hire horse-drawn carriages or early automobiles. As more people began traveling by car in the post-World War II economic boom, national car rental chains like Hertz, Avis, and Budget emerged to serve the growing demand. By the 1960s and 1970s, these large rental agencies had established locations at major airports across the United States to cater to business and leisure travelers arriving by plane.
Over the past few decades, the car rental industry has grown tremendously due to factors like increased international travel, urbanization trends, and the convenience of renting a car for short periods. According to industry reports, global car rental revenue was over $60 billion in 2019 and is projected to grow steadily through 2025. The top rental agencies have expanded their domestic and international airport locations while also offering convenient neighborhood rental options in many cities. Customers can now easily reserve vehicles online or through mobile apps for pick-up wherever and whenever they need transportation.
Benefits and Convenience of Car Rentals
For travelers who don't have their own vehicle available or don't want to use public transportation, car rentals offer numerous benefits and convenience:
- Temporary Transportation - Car rentals provide a practical solution for transportation needs over a limited period, like a vacation or business trip. This allows travelers independence and flexibility without the costs of long-term vehicle ownership.
- Familiarity - Renting a car is a comfortable option for those unfamiliar with a new city's public transit system. Driving allows people to easily navigate places and schedules at their own pace.
- Activities and Errands - A rental car enables travelers or those relocating temporarily to run errands, go sightseeing, visit attractions, and travel between locations freely based on their schedule.
- Cargo Space - Larger rental vehicles like SUVs, vans and trucks provide ample cargo space for luggage, sports gear, materials for moving, or other cargo hauling needs.
- Airport Convenience - Major rental agencies have locations directly at airports, making car rentals very convenient for arriving travelers who then have transportation waiting at their destination.
- Savings for Groups - Renting one vehicle can be more cost-effective for families or groups than paying for individual taxi, rideshare or public transit fares each day.
- Access to Rural Areas - A rental car may be necessary for traveling to locations not well served by public transportation or taxis.
Policies, Coverage and Customer Service
A key part of ensuring a worry-free rental experience is understanding the Car Rentals agency's policies and available coverage options. Major car rental chains offer helpful online resources detailing rules around minimum rental ages, driving territories, additional driver fees, and vehicle return procedures.
Liability and collision damage waiver insurance coverage through the rental agency can provide protection from costs resulting from accidents, theft or vehicle damage, though some credit cards may already provide certain coverage. Renters should carefully review options and understand terms to avoid unexpected expenses later.
Quality customer service is also important, from the initial reservation process through pick-up, return and resolution of any issues encountered. Large national and international brands strive to provide consistency across locations worldwide with well-trained staff and streamlined processes. However, smaller independent rental outfits may offer more personalized service. Overall reviews can help choose an agency for the best combination of coverage, pricing and support.
New Mobility Options Emerge
While longer-term car rentals remain popular, new mobility trends are emerging. Short-term hourly rentals through services like Car2Go, Zipcar and Getaround provide flexibility for local one-way trips. Peer-to-peer rental marketplaces connect vehicle owners directly with renters. Rideshare services Uber and Lyft and transportation network companies supplement public transit in many cities globally as well.
As autonomous vehicle technologies advance, future car rentals may offer self-driving options requiring no active operation by the renter. For now, car rentals through traditional agencies or innovative startups continue delivering trusted transportation solutions to meet a diverse range of daily and temporary travel needs. With careful planning and agency selection, renting offers a straightforward, cost-effective driving option.
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