Are you curious about who rents cars the most?
Rental car demographics can reveal some interesting insights about travelers’ preferences, such as age, gender, and location.
In this blog post, we’ll explore some of the key demographics behind rental car usage in the United States.
Table of Contents
Quick Demographic Facts About Rental Car Users
Rental car users in the US are mostly between the ages of 25 and 34, and are evenly split between males and females. Around 30% have a high school education or less, while 35% have some college education. The majority of rental car users have an annual income of $30,000 to $50,000.
It is evident from the data that the rental car industry is experiencing considerable growth, with significant market shares in North America and Europe. There is an increasing trend towards luxury car rentals and potential for growth in developing nations.
Let’s dig deeper.
Age Demographics Rental Car Users
|Age||Percentage of Rental Car Users|
- Around 25% of respondents aged 18 to 29 years state they use Hertz as a car rental company.
- The minimum age to rent a car is generally 25, but some companies do cater to younger drivers with additional fees.
Although specific demographics may vary among rental car companies, it appears that younger age groups are more likely to rent cars compared to older individuals.
Notably, the majority of car rental workers are aged 40 years and above, indicating a difference between the service providers and their primary customer base.
Gender Demographics Rental Car Users
|Gender||Percentage of Rental Car Users|
- Car rental agent statistics show that 53.4% of car rental agents are women, and 46.6% are men.
- There is a gender pay gap for car rental agents, with women earning 91 cents for every $1 earned by men.
- Male car rental agents have an average income of around $25K, while female car rental agents earn an average income of around $23K.
It is evident from the data that more women work as car rental agents compared to men. However, there is a gender pay gap in the industry, with women earning less than men on average.
Ethnicity Demographics of Rental Car Users
|Ethnicity||Percentage of Rental Car Users|
It’s a little different when we look at the staff at rental car companies:
- White: 56.6% of car rental agents
- Hispanic or Latino: 21.7%
- Black or African American: 12.0%
- Asian: 5.9%
- Unknown: 2.8%
These percentages reflect the diverse representation of various ethnicities in the car rental industry, with the majority being White, followed by Hispanic or Latino, and then Black or African American. The Asian community also has a notable presence, while a small percentage falls under the category of unknown.
It is essential to acknowledge that these numbers may vary depending on location, income, and other factors.
However, the data provided gives a solid representation of the ethnicity demographics within the rental car user community in the United States.
Education Level Demographics of Rental Car Users
|Education Level||Percentage of Rental Car Users|
|High School or Less||16%|
A significant number of rental car users have received some form of higher education.
- Approximately 45% of users hold a bachelor’s degree,
- 23% have a master’s or professional degree, and
- 4% possess a doctorate or equivalent degree.
- In contrast, around 16% of users have completed high school education but not pursued any further studies, and approximately 7% have some college education without obtaining a degree.
- Users with an associate degree make up about 5% of the rental car user demographic.
It is clear from the data that a large proportion of rental car users are educated at various levels, with the majority holding a college degree or higher.
Average Income Level of Rental Car Users
|Income Level||Percentage of Rental Car Users|
|Less than $30,000||20%|
|$30,000 – $50,000||20%|
|$50,000 – $75,000||35%|
|$75,000 – $100,000||15%|
|More than $100,000||10%|
- The majority of rental car users fall into the middle-income bracket, with a significant number earning between $50K and $75 per year.
- A smaller proportion of rental car users earn higher incomes, with approximately 20% earning between $75,000 and $99,999 annually.
- Those with incomes below $50,000 make up around 15% of rental car users, demonstrating that car rentals are more accessible to those with moderate to high incomes.
Despite the wide range of income levels among rental car users, it’s evident that the majority of users are in the middle-income bracket, with a substantial portion earning between $50,000 and $75,000 per year.
The data suggests that rental car services are consistently utilized by those with moderate to high incomes, but are less prevalent among individuals with lower incomes.
Other Interesting Facts About Rental Car Users
- The global market size of the car rental industry is expected to reach $104 Billion in 2023
- Car rental prices have skyrocketed nearly 278% in the last three years
- The car rental industry is predicted to accommodate 602.2 million users by 2026
- The average revenue per user (ARPU) in the car rental industry is $194.90
- About 45.51% of all vehicles in the US are foreign, while 54.49% are domestic
- The industry’s growth is largely driven by the increase in tourism, improved road infrastructure, and rising disposable income
- The car rental industry is projected to grow at a CAGR of 6.1% between 2021-2026
- Over 50% of car rentals in the US occur at airport locations
- The average rental period for a car rental is 2-3 days
- The top 5 car rental companies hold over 70% of the US car rental market share
- The car rental industry employs over 110,000 people in the US
- In the US, the most commonly rented car category is intermediate cars, followed by standard and full-size cars
- The average age of a rental car in the US is 14 months
- Car rental companies generate around 55% of their revenue from airport locations
- About 50% of rental car users prefer to book their cars online
- The Asia-Pacific region is expected to have the highest growth rate in the car rental industry between 2021-2026
- In the US, Florida has the highest number of car rental transactions
- The car rental industry accounts for around 18% of all vehicles on the road in the US
- Car rental companies are increasingly focusing on sustainability initiatives such as electric vehicles and carbon offsets
- The average daily rate for a rental car in the US is $50.85
- The US car rental industry was severely impacted by the COVID-19 pandemic, with revenue dropping by 42.3% in 2020
- The car rental industry is highly competitive, with new players frequently entering the market
- The majority of car rental users are leisure travelers, followed by business travelers
- The car rental industry in Europe is expected to recover at a slower pace than the US due to travel restrictions
- One-way rentals account for around 10% of all car rental bookings in the US
- The top car rental destinations in the US include Orlando, Las Vegas, and Los Angeles
- Luxury car rentals account for a small but growing portion of the car rental industry
- The car rental industry has been impacted by the rise of ride-sharing services such as Uber and Lyft
- Car rental companies have been investing in technology to improve the rental experience, such as mobile apps and contactless pick-up and drop-off options
- The car rental industry in the US is highly regulated at both the state and federal levels
- Car rental companies have faced criticism for their sales tactics and add-on fees, leading to increased transparency measures in some areas
These facts highlight the significant growth and trends within the car rental industry, emphasizing the impact of various factors on its expansion.