Impact of Technology on Car Rental Industry

3rd September 2020

Impact of Technology on Car Rental Industry

Primarily, the car rental industry is driven by the increasing growth of the tourism industry. It comes to the common sense of the tourists for them to rent a car when they travel for a few days on a trip rather than buying a car and selling it for such short periods of time. In the UAE, with companies like Autorent providing long-term leasing and rental options it has become very popular even for the locals to opt for such options as it is more economical and safer for their personal wants and needs to lease or rent a car for short periods of time and change it after their leasing period ends. The ease of access through technology, the companies allow travelers to book their cars online prior to their trips for a convenient trip experience. According to expert’s reports, it is predicted that the car rental business will boom even more in 2025. The introduction of smartphones has completed revolutionized how the companies reach the customers especially in the car rental industry. The business of carpooling, ridesharing, and ride-hailing have joined the car rental sector and it is forcing the big players to innovate even more.

The companies with the help of IT partners are increasingly implementing advanced digital technologies and it is considered as a key driving factor for the market. With the I.o.T. (Internet of Things) and high-speed internet along with the increased demand for cell phones is impacting the rental industry at its best. With the help of ease of access for all individuals, companies are easily able to reach the customers on firsthand basis without any middle-men technologies. It has helped to establish communication with clients to know the areas, real-time car tracking, coupons and discounts, and the availability of rental cars. The implementation of these services has also instilled a sense of safety and reliability in the customers mind through these processes. Customers are easily able to view cars online using their phones, tablets, or laptops and book cars without any hassle. In the 4G era, increased use of the internet is also playing an important role in the rise of the car rental business especially in the UAE. With the rise of 3G, 4G and now 5G, clients can book the car rental services without any human interaction making it a seamless process start to end without minimal human assistance due to which the process has become more streamlined, faster, easier, and efficient for the customers as well as very productive and efficient for the company to handle.

Another key player that has changed the landscape of the car rental business are creation of websites. Many car rental companies are quite desperate to showcase their business in front of thousands of customers. Many car rentals companies like RentalcarsUAE and Autorent have a fully professional website that allow users to book their cars online. Every single type that the business deals with is showcased on the website, with the specifications of the same. The customers can easily choose their favourite vehicle from the website for how long they want. In addition, some companies also their official apps for car booking purposes. The changed behaviour of the customers has also revolutionized the car rental markets. The customers nowadays are smarter, and they investigate and research on every minute decision that they take as information has become easily accessible for them to search and deduce a conclusion. They also look for integrated car rental services along with the complete trip package. The car rental industries are also taking benefit of this factor to boost their business. They are working to provide right rental solutions to meet the needs of the consumers.

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