Car rental prices saw a significant increase during the peak of the pandemic as providers faced supply chain issues and reduced fleets. However, a new report from American Express Global Business Travel suggests that price hikes are expected to moderate in the coming year as supply chains recover.
In the Ground Monitor 2024-2025 report released by Amex GBT, rate changes for select countries in North America, Europe, Latin America, Africa, and Asia-Pacific were projected. The report highlighted some key forecasts for different regions.
In the UK, Amex GBT expects car rental rates to increase by 6% through March 2025, with prices slightly higher in London. This increase is attributed to the recovery of car supply and an increase in demand, especially due to recent rail disruptions encouraging business travelers to opt for car rentals.
Germany is forecasted to see a 5% increase in rental rates, with disruptions in rail travel leading to a rise in rental volumes. Similarly, France is expected to experience a price growth rate of 0.5%, with varying rates across different car types.
For the Nordics, prices are predicted to remain stable, with some fluctuations in different categories. In the US, average car rental rates are projected to grow by 2.5% year over year, with higher increases expected for larger cars.
Amex GBT suggested that with the moderation in the car rental sector, it might be a good time to revisit car contracts or consider switching providers. The company noted that car rental companies are now more open to long-term fixed rate agreements, which could lead to better deals for consumers.
Furthermore, the report recommended renegotiating contracts that were negotiated during the period of sharp price increases in 2022 to 2023. For those with fixed year-over-year increase agreements, there may be opportunities for better deals through new negotiations as prices stabilize.
Amex GBT utilized Prophet time series modeling to generate its car rental price forecasts, drawing data from its extensive data sources and incorporating inflation and GDP forecasts from the International Monetary Fund.
Overall, the report provides valuable insights into the future trends of car rental prices across different regions, highlighting opportunities for consumers to secure better deals and make informed decisions in a changing market landscape.