The Market for Car Rental Services in Cape Town

In comparison to most African nations, South Africa is a flourishing car rental market as several major international as well as mid-tier independent automobile brands offer Cape Town car rental services. The nation has a thriving highway infrastructure which serves many tourist destinations. It was reported that the South African car rental market had grown by 20% in the first half 2017 and is expected to increase further in the current year.

Growth in demand for car rental services:

The factors that have contributed to the growth of the car rental market of South Africa in the increase of foreign tourism to South Africa which has happened as a result of the weakened rand. Moreover, South Africa relaxed the strict regulations pertaining to travel for both foreign tourists as well as South African citizens. This has eased the process of travelling for inbound tourists within South Africa. Foreign tourists are staying for longer periods of time and availing of bigger and more expensive car rental services in Cape Town.

The weakening of the Rand has also encouraged more and more South Africans to take domestic holidays within South Africa instead of selecting to take overseas holidays. Declining fuel prices have also helped to elevate travel by car. The total fleet of cars available for rental services in South Africa varies from 45,000 to 65000, in accordance with the season.

Car Rental for Tourism Industry:

Cape Town is a highly popular tourist destination. As it has a temperate climate and a diverse topography, it is an ideal city for people to take domestic trips. The Cape area has several beautiful landscapes like mountain passes. These car rental services can arrange for trips to such places for its clients. There are several reasonably-priced car rental services in the city which cater to needs of such domestic trips for people. These car hire services also offer its clients the option to follow their own travelling schedule and itinerary. You can also visit some of the less-known sights in some of the remote corners of the city if you avail of these car rental services.

Other than the recent spur in foreign tourism which has happened as a result of positive movement of the exchange rates, there has also been a surge in prepaid options offered by car rental services. Price concessions being given for bookings made on reputable websites are charged upfront. This had proved to be beneficial for both the car rental companies as well as the clients. When it comes to re-marketing, most South African car rental services are part of auto dealer brands.

Many of the cars from the rental services are sold via dealerships and come with reports of the vehicles’ history. Some of the hiring companies tend to send promotional mail to rental clients, who wish to buy the used cars of the rental fleet. Car rental companies have recently strengthened their marketing strategies by taking to a plethora of social media platforms. Moreover, these car rental companies are also offering discount rates as a frequent promotional strategy.

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