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Car rental in South Africa

Car rentals influenced by inbound arrivals

Demand for car rental services in South Africa continues to be highly influenced by rising numbers of inbound arrivals to points of entry across South Africa. Many of the country’s car rental operators have attributed growth in leisure car rental bookings to the influx of inbound leisure tourists coming to South Africa from various parts of the world. Leisure bookings are prevalent in popular holiday areas such as Cape Town and Durban, where it is often much cheaper to rent a car than to make use of taxicab services, especially among people travelling as part of a group who have multiple places to visit in the country.

Increasing in value

Car rental is expected to increase in value at a CAGR of 1% in constant 2013 terms over the forecast period, an improvement on the -1% value CAGR recorded in the category over the review period in constant 2013 terms. Growth is expected to be limited due to the increased cost of electronically collected road tolls which were recently introduced in the Gauteng province. These electronic road tolls will see customers charged to make use of the major roads in certain provinces and car rental companies would then add the cost of these tolls to each customer’s final bill.