The Car Rental Industry

The car rental industry is a multi-billion dollar sector of the US economy. The US segment of the industry averages about $18.5 billion in revenue a year. Today, there are around 1.9 million rental vehicles that serve the US segment of the say. In assistant, there are many rental agencies in addition to the industry leaders that subdivide the total revenue, namely Dollar Thrifty, Budget and Vanguard. Unlike new times promote industries, the rental car industry is highly consolidated which naturally puts potential new comers at a cost-disadvantage since they viewpoint high input costs taking into account edited possibility of economies of scale. Moreover, most of the profit is generated by a few firms including Enterprise, Hertz and Avis. For the fiscal year of 2004, Enterprise generated $7.4 billion in unmovable revenue. Hertz came in second direction of view moreover just about $5.2 billion and Avis subsequently $2.97 in revenue.

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