By Researcher and reporter: Tanzil Fuad Anika Tahsin
Let’s say you wish to travel with your buddies to a distant location or take your family to a tourist attraction. Before buses or trains, private cars are the first item that springs to mind. When a destination is far away, the enjoyment of road trips in a car changes. Many people hire private cars these days for a variety of purposes, such as weddings, unneeded travel, and sightseeing. A large number of people are aware that having the skill can sometimes turn it into a hindrance. And the rental car dealer is the first individual we recall for this.
Bangladesh’s automobile rental market is expanding quickly. Whether for personal or professional use, short-term vehicle rentals are becoming more and more popular these days. In the nation’s transportation industry, the need for rental automobiles is growing daily. particularly among visitors, foreigners, and professionals.
The poll projects that this industry will bring in roughly 178.80 million USD in revenue for the nation by 2024. How to launch a car rental business in Bangladesh successfully and understand its different facets-
Bangladesh’s transportation sector is continuously expanding. On the other hand, ride-sharing businesses are gradually expanding in Bangladesh. But a lot of travelers are thinking that renting a car would be their best option for getting about. Because of its accessibility and ease of travel for clients, this industry has a lot of opportunities for new business owners. But, one must be aware of the market demands and competitive strategies of this industry before venturing into it.
Reasons for increasing demand for rent-a-cars
Key reasons behind the rising demand for rent-a-cars. | Photo: Collected
Travel & Tourism: One of the primary drivers of this sector’s income growth is the expansion of the tourism industry and the influx of international business visitors.
- Growth of online platforms: According to a survey, 59% of revenue from online auto rentals will come from these platforms by 2029. It suggests a significant direction for technological advancement in this sector.
- Car ownership risks: A lot of city people are scared to get a car for a variety of reasons, including the high cost of auto upkeep and accidents. For these reasons, a lot of individuals are using short-term car rentals to take advantage of the advantages even if they are not the owners of a vehicle.
Some challenges of the rent-a-car business
Considerations must be made for some factors before launching a car rental business in Bangladesh. Purchasing numerous automobiles, keeping them insured, and scheduling regular maintenance are some of the major obstacles. In that situation, you can get in touch with people who own cars if you don’t want to begin the process of buying one. Pricing should be competitive since small local businesses and big corporations compete fiercely. In the event of an accident or loss, managing liabilities and insurance can also be difficult. Furthermore useful in drawing consumers are establishing credibility with clients and offering simple booking options, particularly via online channels.
Success also depends on developing a solid marketing strategy. For affluent clients, renting luxury cars might be an unusual source of revenue.
Challenges faced in the rent-a-car business. | Photo: Collected
Points to know before starting a rent-a-car business-
- Vehicle fleet management and collection: Proper vehicle selection and routine maintenance are necessary for the rent-a-car industry. It has to be attended to.
- Communication enhancement or networking- In any business, networking and improved communication are crucial. It simplifies the process of business promotion. In this situation, starting a business is still possible even if you don’t own a car.
- Marketing Plan: One crucial component of any marketing plan is to reach consumers via online booking tools and digital marketing platforms.
- Competitive Pricing: Examining the market and determining what prices to charge draw in clients.
Bangladesh’s rent-a-car market is a burgeoning industry that is expected to grow over the next several years. Managing the company under consumer demand, technological advancements, and market growth will guarantee success.
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