GBT Predicts Car Rental Rates Will Remain Stable

American Express Global Business Travel (GBT) released its Ground Monitor 2019 survey, which looks at ground transportation trends, and forecasts stable rental car rates as well as the continuing growth of ride-hail services.

The Ground Monitor predicts that car rental rates in the U.S. and Canada will increase just 1 percent. This is driven rising demand after a long period of minimal growth.

In Latin America, that number will be slightly lower at just .75 percent.

Rental rates are expected to fall in Europe. The research showed that renters in many key business destinations should expect to see rates dip .5 percent in the U.K. and 4.5 in Belgium.

However, in France and Switzerland, rates are forecast to increase slightly, rising .5 percent and 2.5 percent respectively.

Car rental companies are facing higher costs as demand for more safety features, such as for rear cameras and sensors, grows and vehicles cost more money. However, GBT research finds that car rental rates are expected to be stable globally.

App-based ground transportation providers such as Uber and Lyft are now firmly established in in the managed travel landscape, and the GBT report discusses how travel buyers can anticipate further impact from app-enabled innovation, driven by traveler demand and tightening environmental regulation.

“Ground transportation is often overlooked in managed travel programs, but this dynamic and evolving sector is a key part of the traveler experience,” said Joakim Johansson, GBT vice president, Global Business Consulting. “Our consultants and analysts have developed the Ground Monitor 2019 to help clients optimize their ground programs, gaining more control over spend and better experiences for the traveler.”

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