Car rental prices stabilize even as the market continues to expand

Car rental prices stabilize even as the market continues to expand

While car rental rates have increased in recent years, driven in part by stronger demand for leisure trips and modernized fleets, Hola Car Rentals reports that the pricing outlook is favorable to travelers in the near term.

The State of Play

The global car rental market is expected to reach $108 billion by 2029, with the U.S. leading the way and growing at a steady 7.5% annual rate. This expansion is driven largely by leisure travelers, who make up over half of all rentals worldwide.

Even with modest price increases forecasted in the U.S. (around 1.5%-1.9% in 2025), the market here remains far more stable than in countries such as the U.K. or Australia, where increases could reach up to 7%. Encouragingly, recent data from the Bureau of Labor Statistics also shows that U.S. rental prices have actually dipped 4.8% year over year—a sign that competition and better supply are keeping costs balanced.

Compared to the dramatic price spikes seen during the pandemic, today’s rates are leveling off as supply chains recover and vehicle production stabilizes.

Healthy competition also plays a role in price moderation: With more players entering the market, customers can choose from a wider range of models and price tiers.

Smart Travel Choices

For travelers mindful of budget, a number of affordable rental options are available. Compact and economy cars, for example, make up over 30% of total rentals, according to Grand View Research, offering impressive fuel efficiency and lower daily rates. Regardless of car type, online booking discounts are also available to bargain hunters.

This story was produced by Hola Car Rentals and reviewed and distributed by Stacker.