Leisure bookings keep car rental afloat

DESPITE the weak economy, car
rental has demonstrated growth in
the leisure space, according to Avis
Budget Southern Africa executive of
sales, Lance Smith.
“In the current economic climate,
the car rental industry in South
Africa remains under pressure,”
he says. “Last year, there was no
growth in the overall fleet size and
number of rental days, however,
local and international leisure has
bucked this trend.”
Of the four main segments in
the car rental market – namely the
corporate/government, insurance
replacement, foreign inbound, and
leisure markets – only the latter two
have shown growth. “The largest
segment, corporate/government,
is down 5,5% year-on-year, which
reflects the weak economy, while
the insurance replacement market
is down 12,6% due to 2014’s
hail storms in Gauteng,” Lance
says. “Yet foreign and domestic
leisure continues to provide an
air of positivity with every province
experiencing growth in this
segment.”
Avis Budget figures indicate
that local and international
leisure has grown at 9,5% and 10,8% respectively.