The inception of the car rental business makes an efficient way for people to hire car rental services affordably. The demand for economical cars is already experiencing the fastest growth and will continue to grow fast in the future as well. With the global car rental market size expected to hit $164.335 million by 2022, the car rental business is a competitive industry and makes a great business idea for any entrepreneur who intends to start a business. Considering these figures and facts, it’s no wonder that car rental businesses are popping up everywhere.
If you are serious about starting a car rental business, the first thing to consider is the niche you intend to operate. A rental car business can cater to more than just travelers at the airport, train station, or bus terminal. To start a business on car rental services in this digital world, a website is another important requirement to make your brand appear more professional and to receive a decent flow of business. With creative ideas, you can invest in new ways to create your own version of the car rental business.
Here are the top 9 lucrative car rental business ideas to launch your car rental business.
1. Tourism car rental business
Tourism is a very lucrative industry that can also be quite competitive. This industry will continue to boom due to the significant role it plays even in the International scene. People who are in a new city or country as tourists would constantly require the service of car rentals. This is exactly where tourism car rental business becomes significant. This is one lucrative car rental business idea that can consider making good returns on your investment. Ensure that you obtain a business permit and follow all insurance and regulatory requirements before renting out your first car.
2. Airport car rental business
Offering vehicles to people who want to travel and from airports is another great car rental business idea. Considering the higher price levied by Airport taxis, Airport car rentals make an affordable solution for customers. You can either offer customers a service where your drivers will drop them at the destination or allow the customers to ride themselves to the airport and back home.
3. Leisure car rental business
Being rich is not necessarily the rule when it comes to the desire to travel around in a luxurious vehicle. Yes, rich customers who own expensive cars want to drive similar types of vehicles when they travel around. But, your customer base can be broad, including both rich and normal clients who are looking for family, corporate, or business travel.
To start with this type of rental business, make sure there is a relevant demand for luxurious car rentals in the area where you want to serve. Long before you open a luxury car rental business, it is worthwhile to look at how strong the existing competition is. Starting a car rental business is an excellent entrepreneurial opportunity if you do it the right way. There is no substitute for a top quality business plan. The effort you invest in crafting a high-quality plan now will pay off later in investor attention and business growth.
4. Wedding car rental business
Wedding car rental businesses help brides turn their fantasy of chauffeuring to the wedding reception venue in a luxurious car a reality. It is yet another viable and profitable car rental business idea that any brand can start in any part of the world. This niche idea is all about renting out, preferably luxury cars to the couple who are getting married. To start with, you can invest in 2 or 3 cars and expand your car line to include new Mercedes, limousines and other expensive cars as your business grows.
5. Funeral car rental business
A funeral car rental business is one of the most thriving business ideas suitable for startups looking for launching their services in the car rental space. The service focuses on transporting the remains of people to burial sites. To generate steady revenue from your business, you must be ready to partner with mortuary operators and funeral homes. Additionally, make sure you offer different packages like a fleet of service town cars, limousine, and executive coaches to suit the needs of a broad range of customers.
6. Party bus rental business
A party bus business is one of the best car rental business idea that allows customers to book a single party bus that can accommodate many people for special events. like proms, bachelor parties, office functions, and football outings. Your customers might hire for your leisure travel or for corporate events as well. This type of business requires a specific type of license and permits, so make sure you get those, to operate your party bus business.
Before starting the business, determine the price structure and services according to your service area. You can charge per hour based on the type of event, the number of people you need to transfer, and the type of vehicle.
7. Graduation car rental business
If you want to launch your car rental business in a micro-niche, then graduation car rentals make a great business idea. Graduation is a perfect reason for people to gather together and celebrate the event. Offer luxury car services like limousines or executive coaches for high school and college graduates and their friends and families to celebrate the occasion. To beat the competition, offer more than just transportation. You can provide additional services like partying inside the vehicle, do extra several stops to drop each person, etc. Customizing your service upon customer request is the key to success in this type of business.
If you are thinking of starting a car rental business, the first and foremost step is to start with market research followed by creating a detailed business plan including your target market, startup investment, projected annual revenues, and expenses. There are great opportunities in the car rental business space, but the key is to find the right business idea to take your business to new heights. I hope these lucrative car rental business ideas gave you some inspiration to find the niche to start your new venture. Share in the comments if you have any other great picks for the car rental business.