Global Business Consulting team finds price rises restricted by competition, despite car rental providers facing cost pressures.
LONDON, UK – May 20, 2019: The Ground Monitor 2019, published by American Express Global Business Travel (GBT), finds that car rental rates will remain stable around the world for the next 12 months. Any price changes that occur are likely to be minimal.
In the US and Canada, the Ground Monitor 2019 predicts a 1% increase in car rental rates, driven by rising demand after a long period of minimal growth. In Latin America, buyers in Argentina, Brazil, Chile and Mexico can expect to see prices increasing by up to 0.75%.
In Europe, car rental rates are predicted to fall slightly in many key business destinations, with declines ranging from -0.5% in the UK to -4.5% in Belgium. France and Switzerland are forecast to face small rises of 0.5% and 2.5% respectively.
Globally, car rental rates are expected to be stable despite car rental companies facing higher costs as new technology and safety features – such as rear cameras, sensors and collision-prevention automatic breaking – make cars more expensive to buy and maintain.
The Ground Monitor 2019 also explores the rise of disruptive app-based ground transportation providers. Ride-hail services, such as Lyft and Uber, are now firmly established in the managed travel landscape. In a section on how travel buyers can optimise ground transportation in their managed programme, the report discusses how travel buyers can anticipate further impact from app-enabled innovation, driven by traveller demand and tightening environmental regulation.
Joakim Johansson, GBT Vice President, Global Business Consulting, said: “Ground transportation is often overlooked in managed travel programmes, but this dynamic and evolving sector is a key part of the traveller experience. Our consultants and analysts have developed the Ground Monitor 2019 to help clients optimise their ground programmes, gaining more control over spend and better experiences for the traveller.”
The Ground Monitor 2019 is the latest in the regular Monitor series designed by the Global Business Consulting team at GBT to help travel buyers optimise their travel policy and programme. The next edition will analyse the hotel sector and will be published in July 2019.
For comprehensive details and analysis of the conditions impacting car rental rates over the coming year, and for advice on how to optimise ground transportation, please download the Ground Monitor 2019.
About American Express Global Business Travel
American Express Global Business Travel (GBT) is the world’s leading business partner for managed travel. We help companies and their employees prosper by making sure travellers are present where and when it matters. We keep global business moving with the powerful backing of 17000 travel professionals in more than 140 countries. Companies of all sizes, and in all places, rely on GBT to provide travel management services, organize meetings and events, and deliver business travel consulting.
Learn more at amexglobalbusinesstravel.com