The car rental market is just a multi-billion dollar field of the US economy. The US phase averages about $18.5 billion in revenue a year. Nowadays, you will find approximately 1.9 million rental vehicles that service the US phase of the market. Furthermore, there are lots of rental agencies besides the leaders that subdivide the total revenue, specifically Dollar Thrifty, Budget, and Vanguard. Unlike other mature service industries, the rental vehicle market is extremely consolidated which sets potential newcomers at a cost disadvantage simply because they face large feedback prices with a reduced probability of economies of scale. Furthermore, the majority of the profit is created with several firms including Enterprise, Hertz, and Avis. For the fiscal year of 2004, Enterprise created $7.4 billion in total revenue. Hertz got in the second position with about $5.2 billion and Avis with $2.97 in revenue.

The rental vehicle market looks a different atmosphere than it did five decades ago. According to Company Journey News, vehicles are now being hired till they've accumulated 20,000 to 30,000 miles till they're directed to the used vehicle market whereas the turn-around mileage was 12,000 to 15,000 miles five decades ago. Because of gradual market growth and a thin profit margin, there's no imminent risk to backward integration within the industry. In fact, among the players, only Hertz is vertically incorporated through Ford.

Numerous facets shape the competitive landscape of the car rental industry. Competition originates from two principal resources throughout the chain. On the vacation consumer's conclusion of the spectrum, the opposition is brutal not just because the marketplace is unhealthy and well guarded by market leader Enterprise, but opponents perform at a high price drawback along with smaller industry shares since Enterprise has recognized a system of sellers around 90 % the leisure segment. On the corporate phase, on another hand, the opposition is very good at the airports since that phase is under a small direction by Hertz. Since the underwent an enormous financial problem in recent years, it has upgraded the degree of opposition within the majority of the firms that survived. Reasonably speaking, the rental vehicle market is just a war-zone as most rental agencies including Enterprise, Hertz, and Avis one of the key players take part in a challenge of the fittest. Auto verkaufen

Over the past five decades, many firms have been functioning towards enhancing their fleet measurements and increasing the level of profitability. Enterprise currently the business with the largest fleet in the US has included 75,000 vehicles to their fleet since 2002 which help raise their number of services to 170 at the airports. Hertz, on another hand, has included 25,000 vehicles and broadened their international existence in 150 counties in place of 140 in 2002. Furthermore, Avis has increased their fleet from 210,000 in 2002 to 220,000 despite recent financial adversities. Through the years after the financial downturn, though many companies for the duration of the were striving, Enterprise among the leaders have been rising steadily. For instance, annual income achieved $6.3 in 2001, $6.5 in 2002, $6.9 in 2003, and $7.4 billion in 2004 which translated into a growth rate of 7.2 % per year for the past four years. Since 2002, they have begun to restore their ground in the field as overall income grew from $17.9 billion to $18.2 billion in 2003. According to market analysts, the better times of the rental vehicle market have yet to come. 

Over the past couple of years, the rental vehicle market has built a lot of development to facilitate its circulation processes. Nowadays, you will find approximately 19,000 rental places producing about 1.9 million rental cars in the US. Because of the increasingly abundant number of vehicle rental places in the US, proper and tactical techniques are taken under consideration to ensure appropriate circulation throughout the industry. Circulation happens within two interrelated segments. In the corporate industry, cars are distributed to airports and hotel surroundings. On the leisure phase, on another hand, cars are distributed to agency-owned services that are conveniently based within many key highways and metropolitan areas.

Before, managers of rental vehicle companies used to rely on gut feelings or intuitive guesses to produce choices about exactly how many cars to possess in a certain fleet or the operation stage and efficiency standards of maintaining certain cars in one single fleet. With this methodology, it was very difficult to keep an amount of balance that will satisfy consumer needs and the required amount of profitability. The circulation method is fairly simple throughout the industry. In the first place, managers should establish the number of cars that must be on the catalog daily. Just because a noticeable problem arises when a lot of or insufficient cars can be found, many vehicle rental companies including Hertz, Enterprise, and Avis, work with a "pool” which is a group of independent rental services that reveal a fleet of vehicles. Basically, with the pools set up, rental places perform more effectively simply because they reduce the chance of low catalog if not remove rental vehicle shortages.