Tourism Vehicle Rental Market Research, Trends and Forecast by 2034

Tourism Vehicle Rental Market Growth and Industry Insights

The tourism vehicle rental market is projected to reach USD 97.35 billion by 2034, growing from USD 73.51 billion in 2025, at a CAGR of 3.17% during the forecast period from 2025 to 2034.

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Introduction

The tourism vehicle rental market is prominent branch of the automotive industry. This market deals in providing rental vehicles for tourism purposes across the globe. There are various types of vehicles used in this sector consisting of sedans, SUVs, Vans, luxury cars, motorhomes and some others. These vehicles are booked through several methods comprising of online, offline and mobile applications. It is designed for numerous consumers including leisure, business, international tourists and some others. The rising urbanization in different parts of the world has boosted the industrial expansion. This market is expected to rise drastically with the growth of the ride hailing services in different parts of the world.

• According to the Our World in Data, around 92% of the people of Argentina lived in urban areas in 2023.

Highlights of the Tourism Vehicle Rental Market

• North America held the largest share of the tourism vehicle market due to the rising adoption of electric vehicles for rental purposes in this region.
• Europe is expected to grow with a significant CAGR due to the presence of fleet operators in this region.
• The sedan segment held the highest share of the industry due to the increasing consumer preference towards luxury tourism.
• The online booking segment led the industry due to the growing demand proliferation of smartphones across the world.

Key Metrics and Overview

Tourism Vehicle Rental: Trends in the Industry

• Several automotive companies are collaborating with fleet management companies to provide superior rental services to tourist around the world.
• The integration of AI and big data analytics in car rental industry has helped in enhancing the business processes.
• Numerous fleet operators are adopting models of flexible ownership for attaining maximum consumer attraction. 
• The rise in number of luxury car rental providers in developed nations have started investing heavily to cater the demands of the elite-class consumers.

Industry Leader Announcement

In January 2025, Christina Allen, the Vice President of Partnerships at FlightHub made an announcement stating that,” At FlightHub, we are dedicated to transforming how Canadians and Americans experience travel,” says Christina Allen, Adding Turo to our diverse network of partners furthers our commitment to offer enhanced travel experiences, allowing our customers to explore the world with greater convenience and choice.”

Geographical Insights

North America held the highest share of tourism vehicle rental market. The rise in number of elite-class travelers in the U.S. and Canada coupled with presence of several fleet operators has boosted the market growth in this region. Also, the rapid urbanization in this region along with rising adoption of EVs for rental purposes has played a crucial role in shaping the industry in a positive direction.

Competitive Landscape

The tourism vehicle rental market is a highly fragmented industry with the presence of several dominating players. Some of the crucial players in this industry consists of Global Holdings, Europcar Mobility Group, Dollar Thrifty Automotive Group, Alamo Rent a Car, Fox Rent a Car, Sixt SE, Trafalgar, Budget Rent a Car, Hertz, Zipcar, Maui Rentals, Avis Budget Group, National Car Rental, Green Motion, Enterprise Holdings and some others. These companies are constantly engaged in providing vehicle rental services for tourism sector and adopting numerous strategies to maintain their dominant position in this industry.

• According to the annual report of SIXT SE, the revenue of the company in 2021 was 2282 million euros that increased to 3621 million euros in 2023.

Market Segmentations

By Vehicle Type

• Sedan
• SUV
• Van
• Luxury Car
• Motorhome

By Booking Method

• Online
• Offline
• Mobile Applications

By Rental Duration

• Short-term
• Long-term
• Monthly

By Customer Type

• Leisure
• Business
• International Tourists

By Regional

• North America
• Europe
• South America  
• Asia Pacific
• Middle East and Africa