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Bahrain Vehicle Rental Market - Overview and Forecast (2020 - 2025)

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The market for rental vehicles in Bahrain is poised to grow at a CAGR of 13.25% by 2020. It registered an estimated revenue of USD 155 million in 2014. The rise in domestic and inbound tourism within the Gulf region, compounded by the increased passenger flow at airports is a major underlying factor affecting the growth of the market.

Bahrain Vehicle Rental Market- Opportunities

Bahrain has evolved to be one of the Gulf’s leading tourism centers. The country is an established stop on the Formula 1 Grand Prix circuit, as well as a significant destination in the region for the Meetings, Incentives, Conferences and Exhibitions (MICE) sector. Thereby, with the inclusion of such events, Bahrain is seen as a gateway to customers and attendees from Saudi Arabia’s Eastern Province. With the inflow of visitors from the nearby Gulf nations, there is ample opportunity for car rental services in Bahrain, especially from the business tourism and leisure segment. In addition, weekend and holiday visitors from surrounding GCC countries are the largest contributors to the tourism sector, the majority of which are from Saudi Arabia.

By 2022, travel and tourism investment is expected to reach USD 865 million and business travel is expected to go beyond USD 449 million in the country. The forecasts and confidence in the value generated in the tourism sector have led to ample growth in the hotel and luxury vehicle rental business. The demand for luxury vehicles as a part of the fleet portfolio in the country is primarily driven by the affluence levels of the tourists and emigrants visiting the country.

 

Convenient access to long-term financing has also given an impetus to the growth of the vehicle rental market and has made the market intricately competitive. The market for new vehicle sales is expected to register a weaker growth rate owing to the present economic instability in the country (increase in government budget deficit), coupled with the decline in the vehicle demand from the luxury vehicle and SUV segment.

Vehicle rental services in the country have become significantly competitive, with  international players seeking the market advantage by providing a wide array of offerings, like discount rates for tourists through the online access system. For instance, car rental companies like Enterprise Holdings Co. and Hertz provide a special 15-20% discount for any car rental service during the summer and winter holidays, when booked online. The country has seen huge growth potential in the vehicle rental market over the years, making service providers seek diverse product portfolios and service offerings to tap the length and breadth of the market. The fleet of major companies includes diversified models such as Toyota, Nissan, Honda, Mazda, Mitsubishi, Chevrolet, Chrysler, Lexus, Mercedes, and BMW. Car rental with a chauffeur drive service is one of the most critical segments.

Capitalizing on the potential of the market, Enterprise Holdings have entered into a strategic partnership with Al Jomaih Group to launch Al Jomaih Auto Rental (Ajar) in the Gulf countries. The company will operate the enterprises Rent-A-Car, National Car Rental, Alamo Rent a Car and Ajar brands. It also intends to further sub-franchise the brand across Bahrain, along with the other states of the Gulf Cooperation. The new car rental franchise has plans to open a network of branches in city and community locations throughout the next 2 years.

The demand for flexible car hiring in the country is expected to bring about significant investment and is expected to create new employment opportunities as well. However, the fleet market in Bahrain has undergone certain challenges in the recent past due to the tentative economic landscape in the country. The sluggish growth rates are projected to have a strong impact on the fleet management business and car rental markets, with a fall in the rental market growth in the corporate or business segment. This can result in the fleet management company assets losing value (especially luxury vehicles, SUVs, MUVs), forcing these companies to reduce what they charge for the vehicles.

The market is segmented on the basis of booking type, end use, and application.

  • On the basis of booking type, the market is segmented into offline access, online access, other;
  • On the basis of end usage, the market is classified into individual rental, corporate rental, government and others;
  • On the basis of application, the market is segmented into leisure/tourism, business, and others.

 Some of the key players in the market are:

  • Avis Bahrain
  • Budget Bahrain
  • Hertz Corporation
  • Sixt SE

What the Report Offers

  • The report classifies and defines the Bahrain vehicle rental market size in terms of units.
  • Market definition along with identification of key drivers and restraints for the market. The key players in this market have also been identified and profiled. 
  • Market analysis with country-specific assessment and competition analysis on the market. It provides a comprehensive analysis and insights into car rental service segments.
  • Identification of factors instrumental in changing the market scenario and rising prospective opportunities, along with the identification of key companies that can influence the market.
  • Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market share.
  • The report also covers qualitative aspects such as value chain analysis, technological roadmap, and Porter’s five force analysis for the market 

1. INTRODUCTION

                1.1 Research Methodology

                1.2 General Study Assumptions

2. KEY FINDINGS

3. EXECUTIVE SUMMARY

4. MARKET OVERVIEW AND TECHNOLOGY TRENDS

                4.1 Current Market Scenario

                4.2 Technology Trends

                4.3 Porter's Five Forces Framework

                                4.3.1 Bargaining Power of Suppliers

                                4.3.2 Bargaining Power of Consumers

                                4.3.3 Threat of New Entrants

                                4.3.4 Threat of Substitute Products and Services

                                4.3.5 Competitive Rivalry within the industry

5. MARKET DYNAMICS

                5.1 Drivers

                5.2 Restraints

                5.3 Opportunities

                5.4 Operational Strategies

                5.5 Car Rental Trends

                5.6 Latest Market Developments

6. BAHRAIN VEHICLE RENTAL MARKET, BY APPLICATION (Growth, Innovations, and Feasibility)

                6.1 Leisure/Tourism

                6.2 Business

                6.3 Others

7. BAHRAIN VEHICLE RENTAL MARKET, BY BOOKING TYPE (Growth, Trends, and Feasibility)

                7.1 Offline access

                7.2 Online Web Access

                7.3 Other Online Access

8. BAHRAIN VEHICLE RENTAL MARKET, BY END USAGE TYPE (Growth, Trends, and Durability)

                8.1 Individual Rental

                8.2 Corporate Rental

                8.3 Government

                8.4 Others

9. COMPETITIVE LANDSCAPE

                9.1 Introduction

                9.2 Market Share Analysis

                9.3 Developments of Key players

10. KEY VENDOR ANALYSIS (Overview, Products & Services, Strategies & Developments)

                10.1 AlkoBaisic Car Rental

                10.2 Avis Bahrain.

                10.3 Budget Bahrain

                10.4 70Cars

                10.5 Dollar-Rent-a-car

                10.6 Enterprise Holdings Inc.

                10.7 Europcar

                10.8 Hertz Corporation

                10.9 Oscar-Rent-A-Car

                10.10 Limousina

                10.11 Sixt SE

                10.12 BahrainLimoR

11. FUTURE AND INVESTMENT OUTLOOK

12. DISCLAIMER

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