US Luxury Car Rental Market Research Report: By Rental Type (Business, Leisure) and By Booking Mode (Online, Offline) - Forecast to 2035

US Luxury Car Rental Market Research Report: By Rental Type (Business, Leisure) and By Booking Mode (Online, Offline) - Forecast to 2035.

US Luxury Car Rental Market Overview:

As per MRFR analysis, the US Luxury Car Rental Market Size was estimated at 5.22 (USD Billion) in 2023. The US Luxury Car Rental Market Industry is expected to grow from 6.1(USD Billion) in 2024 to 13.5 (USD Billion) by 2035. The US Luxury Car Rental Market CAGR (growth rate) is expected to be around 7.489% during the forecast period (2025 - 2035).

Key US Luxury Car Rental Market Trends Highlighted

The US Luxury Car Rental Market is experiencing notable growth, primarily driven by an increase in disposable income and a rising preference for premium travel experiences. Consumers are more inclined to hire luxury vehicles for special occasions, holidays, or business trips, reflecting a shift towards personalized and high-end services. Additionally, the expanding tourism sector in the US plays a crucial role, with travelers seeking luxury rentals to enhance their overall experience. The convenience of app-based booking systems and the proliferation of digital platforms have also made it easier for consumers to access luxury vehicles, further boosting demand.Opportunities within the US Luxury Car Rental Market are abundant. Car rental companies can capitalize on the trend of experiential travel by offering curated packages that include luxury rentals combined with exclusive services such as chauffeur-driven options or custom itineraries. Moreover, partnerships with luxury hotels and lifestyle brands can enhance the visibility of rental services, attracting high-end clientele. Also, the push for sustainability is prompting rental services to explore eco-friendly luxury vehicles, which can appeal to environmentally conscious consumers. In recent times, there is a growing trend towards subscription models in the US Luxury Car Rental Market.These models offer flexible access to luxury vehicles without the long-term commitment of ownership, catering to younger consumers who value flexibility and variety. As technology advances, the incorporation of advanced features, such as in-car connectivity and enhanced safety systems, is also shaping consumer preferences. Overall, the US Luxury Car Rental Market is evolving rapidly, with trends indicating a shift towards more personalized, flexible, and sustainable luxury travel experiences.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Luxury Car Rental Market Drivers

Rising Demand for Luxury Experiences

The trend towards experiential luxury is growing in the United States, driven by consumers seeking unique travel experiences. According to a report from the United States Travel Association, luxury travel bookings in the US have seen a consistent rise of approximately 10% annually over the last five years. This shift indicates that consumers are increasingly willing to spend on premium services, including luxury car rentals. Major organizations such as American Express Travel have also reported an increase in bookings for high-end vehicles, showcasing the demand for luxury experiences among American travelers.The US Luxury Car Rental Market Industry stands to benefit significantly from this trend, as affluent consumers are more likely to rent luxury vehicles for special occasions, business trips, or leisure travel, further driving market growth.

Expansion of Online Rental Platforms

The proliferation of digital platforms for car rentals is transforming the way consumers engage with the US Luxury Car Rental Market Industry. Platforms such as Turo and Getaround have reported significant growth, with Turo experiencing a 50% year-over-year increase in listings of luxury cars. The growing reliance on technology has enabled easier access for consumers, making it convenient to book luxury vehicles online. Additionally, insights from the US Department of Transportation indicate that e-commerce in transportation services is on the rise, with about 30% of consumers preferring online bookings over traditional methods.This digital transformation is likely to boost the luxury car rental market by attracting tech-savvy customers who value convenience, efficiency, and access to a wider variety of vehicles.

Increased Corporate Spending on Travel

As the economy continues to recover, corporate spending on travel is expected to rebound strongly in the United States. According to the Global Business Travel Association, business travel spending in the US is projected to reach $1.4 trillion by 2024, which is a notable increase from previous years. Companies are increasingly opting for luxury car rentals to ensure their executives travel in comfort and style. Major corporations, particularly in the finance and tech sectors, are prioritizing luxury car services for executive travel, leading to an uptick in demand.This growing trend of corporate luxury travel is a key driver for the US Luxury Car Rental Market Industry, as businesses invest in premium services to attract top talent and maintain a competitive edge.

Influence of Tourism Recovery

The ongoing recovery in tourism within the United States is set to significantly boost the US Luxury Car Rental Market Industry. The US Travel Association has reported that domestic travel is expected to reach pre-pandemic levels, with international visitors projected to increase by 30% by 2025. This surge in tourism is closely linked to a growing interest in luxury travel experiences. As international tourists often seek to explore the US in style, rental companies are noticing greater demand for luxury vehicle options.This increase in tourism will promote brand exposure and rental frequency for luxury cars, thereby playing a crucial role in the expansion of the luxury car rental market in the US.

US Luxury Car Rental Market Segment Insights:

Luxury Car Rental Market Rental Type Insights

The US Luxury Car Rental Market is poised for significant growth, driven largely by diverse rental types which include Business and Leisure segments. This market is characterized by an increasing preference for premium vehicles among consumers, aligning with the rising economy and disposable income. In recent years, the luxury car rental sector for business purposes has witnessed a notable surge in demand, correlated with corporate travel growth and the desire for premium experiences during business events. Moreover, this segment facilitates high-profile executive travel, which significantly contributes to customer retention and loyalty, marking its importance in the overall market landscape. Conversely, the leisure segment has also been a critical driver for the US Luxury Car Rental Market, where individuals seeking unique experiences and exclusive vehicles for vacations or special occasions are turning to luxury car rentals. This segment offers an enticing way for customers to enjoy premium vehicles without the long-term commitment of ownership, making it ideal for short-term use during trips. Various trends including the rise of experiential travel and Instagram culture are enhancing the attractiveness of luxury rentals for leisure purposes. As consumers lean towards memorable experiences, the leisure segment continues to gain traction, presenting vast opportunities for market players. Challenges in the luxury rental space include maintaining vehicle availability and managing operational costs, which could impact service delivery and consumer satisfaction. However, opportunities lie in technology integration and innovative customer service approaches that can enhance the overall rental experience. Sustainability is also emerging as a key consideration, encouraging providers to explore hybrid and electric luxury options, aligning with growing consumer demand for environmentally conscious choices. Understanding these dynamics within the Rental Type segmentation is crucial for stakeholders to navigate the evolving landscape and capitalize on potential growth avenues in the US Luxury Car Rental Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Luxury Car Rental Market Booking Mode Insights

The US Luxury Car Rental Market, particularly focusing on the Booking Mode, is witnessing significant transformations driven by technological advancements and changing consumer preferences. Online booking platforms have become increasingly popular, allowing customers to reserve luxury vehicles with ease and convenience. This mode caters to the tech-savvy consumers who value streamlined processes and instant confirmations, thus contributing to the overall growth of the industry. On the other hand, offline booking remains significant, offering personalized services that appeal to traditionalists who prefer face-to-face interactions and tailored experiences.As both modes cater to different segments of the market, the competition between them is shaping the industry's landscape. Trends such as mobile applications and online customer support systems are enhancing user experience and accessibility, further promoting market growth. Additionally, challenges such as the need for enhanced cybersecurity measures and customer data protection have emerged as key focal points for players in this sector. Overall, the evolution of the Booking Mode within the US Luxury Car Rental Market reflects the dynamic nature of consumer behavior and technological developments, pointing towards a future where both online and offline channels work in harmony to cater to diverse customer needs.

US Luxury Car Rental Market Key Players and Competitive Insights:

The US Luxury Car Rental Market is characterized by a dynamic and competitive landscape where companies strive to differentiate themselves through unique service offerings and premium vehicle fleets. The market is driven by an increasing demand for luxury experiences among both leisure and business travelers. Factors such as evolving consumer preferences, the rise of experiential travel, and the growing importance of brand reputation contribute to the competitive dynamics of the market. Companies within this sector are continuously innovating to meet customer expectations related to vehicle selection, responsiveness, and personalized services. As the market expands, understanding competitive insights becomes essential for firms looking to establish or strengthen their presence and capitalize on growth opportunities.Lexus stands out in the US Luxury Car Rental Market, primarily due to its strong reputation for quality, reliability, and luxurious design. The brand is synonymous with customer satisfaction, thanks to its commitment to superior craftsmanship and advanced technology features across its fleet. Lexus vehicles, characterized by their stylish aesthetics and smooth performance, attract a discerning clientele seeking both elegance and comfort during their rentals. Additionally, Lexus has a well-established brand identity in the luxury segment, enhancing its market presence while fostering customer loyalty. The brand's focus on providing a premium driving experience and exceptional customer service further solidifies its position within this competitive market. Furthermore, Lexus frequently updates its vehicle offerings and incorporates innovative sustainability initiatives, aligning with the changing preferences of eco-conscious consumers.Enterprise Holdings holds a significant position in the US Luxury Car Rental Market. The company boasts a robust portfolio that includes a range of premium and luxury vehicles catering to various customer needs. Enterprise Holdings emphasizes exceptional customer service and a seamless rental experience, reflecting its commitment to meeting high customer standards. The company is well-known for its extensive network of locations, making it convenient for customers to access luxury rental options. In recent years, Enterprise Holdings has engaged in key mergers and acquisitions that have expanded its fleet and bolstered its market presence. The company's innovative approach to service and commitment to sustainability, including initiatives to enhance its fleet with fuel-efficient and hybrid vehicles, further provides it with a competitive edge. With its multifaceted offerings and strategic growth initiatives, Enterprise Holdings continues to thrive in the dynamic US Luxury Car Rental Market.

Key Companies in the US Luxury Car Rental Market Include:

Lexus

Enterprise Holdings

Dollar Rent A Car

Avis Budget Group

Sixt SE

Turo

Alamo Rent A Car

Hertz Global Holdings

Getaround

Benz

BMW

Thrifty Car Rental

Silvercar by Audi

National Car Rental

Porsche

US Luxury Car Rental Market Industry Developments

In recent months, the US Luxury Car Rental Market has witnessed notable developments, particularly marked by the resurgence of travel demand leading to increased luxury vehicle rentals. Companies such as Enterprise Holdings and Hertz Global Holdings have expanded their luxury car offerings to include high-end models from Lexus, BMW, and Mercedes-Benz, responding to consumer preferences for premium vehicles. Furthermore, the growth in the market valuation of companies like Turo and Getaround highlights a shifting trend towards peer-to-peer car rentals, offering flexibility and a range of luxury options to renters. In terms of mergers and acquisitions, Avis Budget Group announced in August 2023 the acquisition of a luxury car rental startup to enhance its portfolio, showing an ongoing trend of consolidation within the sector. Moreover, in 2022, the collaboration between Silvercar by Audi and National Car Rental aimed at enhancing customer experience by integrating technology into rental processes. The luxury car rental segment remains vibrant, driven by evolving consumer expectations and continued investments in premium vehicle fleets by market leaders.

US Luxury Car Rental Market Segmentation Insights

Luxury Car Rental Market Rental Type Outlook

Business

Leisure

Luxury Car Rental Market Booking Mode Outlook

Online

Offline

Report Scope: ,,,,,,,,,,,,,

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	5.22(USD Billion)
MARKET SIZE 2024	6.1(USD Billion)
MARKET SIZE 2035	13.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	7.489% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Lexus, Enterprise Holdings, Dollar Rent A Car, Avis Budget Group, Sixt SE, Turo, Alamo Rent A Car, Hertz Global Holdings, Getaround, Benz, BMW, Thrifty Car Rental, Silvercar by Audi, National Car Rental, Porsche
SEGMENTS COVERED	Rental Type, Booking Mode
KEY MARKET OPPORTUNITIES	Urban tourism growth, Corporate executive rentals, Special events and weddings, Rise of eco-friendly luxury cars, Increasing popularity of subscription services
KEY MARKET DYNAMICS	growing demand for premium experiences, increasing travel and tourism activities, rise in business travel, trend towards car subscription services, impact of digital platforms on rentals
COUNTRIES COVERED	US