Car Rental in Slovenia

TRENDS

Car rental in Slovenia showed great potential, recording 4% current value growth to reach EUR18 million in sales in 2017. In the wake of increasing numbers of tourist arrivals, both leisure and business car rental grew by 4% the former holding a 37% value share with sales reaching EUR7 million and the latter accounting for a 60% value share, reaching EUR11 million in sales. The category offers an array of opportunities, especially due to a relatively underdeveloped public transportation system and infrequency of tours on operating routes.

PROSPECTS

Car rental is predicted to record a 2% value CAGR at constant 2017 prices to reach EUR20 million sales in 2022, out of which business car rental and leisure car rental should account for EUR12 million and EUR7 million respectively. Apart from the second ranked player Alpe No 1 with its solvency issues, the category is unlikely to experience any surprises, with Avant car expected to grow further due to its unique marketing strategy. Tapping into the introduction of new energy-friendly, low carbon and zero emission vehicles, it is an opportunity and a trend to be taken into consideration by all of the major car rental operators. The overall tourism branding and destination appeal of Slovenia as a “green” country is connected to sustainable economic growth and development of eco-tourism. This is in addition to the relatively small size and easy to expand infrastructure combined with the relatively developed network of electric car charging stations. It is an opportunity for one or more players to reposition themselves as innovative and sustainable mobility providers in the coming years of the forecast period. The biggest threat therefore could be the retention of the traditional business model that does not seem to respond to the trend of sharing economy and the conscious travellers of the new generation.