Online booking is boosting car hire, says expert

Online booking systems are boosting the car hire industry, one expert has claimed this week.

According to research carried out by Global Industry Analysts, which analysed car hire statistics from Europe, the US, Japan and Canada, growth in the car hire market has been in direct correlation to the development of online booking facilities.

Furthermore, the study found that the threat of terrorism, economic cycles and political conflicts have also had an effect on the car hire industry.

The firm said: "Over the last decade, there has been considerable growth in the global travel business.

"Several major companies are cashing in on this trend by seizing the opportunity to expand their brands into other geographic markets worldwide."

It added that firms are now using integrated global car hire systems to operate in a number of countries and therefore increase their market share.

The study found that the growing sophistication of online booking systems has allowed firms to enhance the services they offer, such as better vehicle condition, improved availability information and reservation efficiency.

Global Industry Analysts added: "Online bookings, ushered in by the era of the Internet, are helping open up new business avenues in the car rental market."

It explained that purchasing and shopping for rental cars through the internet has helped firms reduce reservation costs, as the extra money they make the better deals they can afford to offer.

This benefits the consumer because while competition intensifies, comma all car hire providers are expected to slash their prices to attract customers and better deals become available.

However, slashing prices is not such good news for car hire companies - they have been forced to streamline their fleet and reorganise their business in order to remain profitable.

A number of companies have also started to offer luxury cars for hire, which can demand a higher rent, the report found.

One example of how car hire firms are diversifying in order to gain more business is a partnership struck with week between two Irish companies.

ReserveaCar.com has joined forces with Irish hospitality brand Newgrange Lodge to offer a new car hire service, from the luxury hotel.

A spokesperson for Newgrange Lodge explained how the new link-up will benefit motorists visiting Ireland.

The representative said: "Our partnership with ReservaCar-DublinAirport.com will help our visitors to look and book car rental, and they also have the opportunity to search for the best car hire price without visiting many car rental websites."