Are car rental rates going up? Can car rental providers support my company’s emission reduction goals? How do I get good deals with car rental providers? When is a good time to negotiate car contracts? If those questions have crossed your mind from time to time, it’s a good idea to check out the Ground Monitor 2024-2025 from American Express Global Business Travel (Amex GBT).

The outlook on the car rental industry

The Ground Monitor is chock full of industry trends, sourcing strategies, and forecasts of car rental rates on a global scale to better manage your travel budget and optimise relationships with car rental companies. It was developed by the Amex GBT Consulting team who run one of the world’s leading travel management outsourcing practices. The team’s deep industry knowledge and unrivaled data insights can be invaluable when you want to achieve the best business outcomes through travel.

Factors that guide your planning

We find that an effective travel strategy is often reliant on car rentals. When there are multiple meetings in a single trip or when you need to plan for transportation outside of a metropolitan area, car rentals can make the most sense. So, making sure your car rental program is part of your travel policy is a smart move. Yet there are weighty factors to consider in car rentals like supply chain issues, vehicle types, and service levels that can affect your strategy. Fortunately, the Ground Monitor taps into those areas to put you on the road toward a high-performing travel program. You’ll discover that:

Supply chain issues are expected to ease up

Supply chain issues. Those three words that dominated the car industry in recent years are predicted to have less of an impact in the near future. As more cars become available to buy, prices should moderate, reducing cost pressures for car rental providers. Adding new vehicles may make it less expensive to keep older ones on the road.

What does that mean for electric vehicles (EVs)? In May 2024, the Biden Administration announced plans to raise tariffs on EVs coming from China, the world’s leading manufacturer of EVs. The European Union followed suit, raising tariffs on Chinese EVs from 25% to 100%. Time will tell how those tariffs will impact the car rental industry.

Fuel prices should level off

In 2023, we saw oil prices moderate, and The World Bank expects them to moderate even more in 2025. Lower oil prices should translate into lower prices at the pump but geopolitical tensions and drops in oil refinery capacity could have the reverse effect and drive prices back up.

Younger generations are open to car sharing

A McKinsey Mobility Consumer Pulse Survey involving 4,000 consumers across Europe, revealed that younger consumers have distinct preferences in vehicle types. Whereas private cars are the preferred choice for older generations, the survey found that many younger consumers are less reliant on private cars and more open to shared mobility options like car sharing and public transportation. That explains why car rental companies have expanded their offerings to include ride hail and flexible car subscriptions.

And with 2030 carbon reduction targets getting closer each day, it’s helpful to know:

• Smaller, lighter car types can support emission reduction efforts.
• EVs can be the best choice for quick trips with accessible charging stations.
• Booking platforms that flag EVs and charging stations can influence travellers’ choices.

Since savings and sustainability are pivotal to planning, you’ll learn how to drive value and EV adoption from the ground sourcing specialists at Amex GBT Consulting and Amex GBT’s preferred car rental companies. Providers such as Avis, Enterprise, and Sixt share their views on:

• The biggest trends in the car rental industry.
• Technological advancements in the rental experience.
• The demand for sustainable rental options.
• Smart ways to negotiate terms and pricing with car rental companies.

When negotiating for favorable contract terms, Sixt suggests you review contract details carefully and closely monitor your program costs and performance. You may find that the lowest price isn’t always the best option. Ready to unpack more tips? Breeze through the interactive Ground Monitor 2024-2025 with page after page of key takeaways.