The report titled “Costa Rica Car Rental, Leasing, Cab Aggregator and Red Taxi Market Outlook to 2023 –Driven by Inbound and Domestic Tourist Arrivals and Integration of Electric Vehicles in Current Fleet” provides a comprehensive analysis on the Car Rental, leasing, cab aggregator, red tax segments’ Business Models, Competition Scenario, market share of major players, segmentation, Regulatory Environment, Trends and Developments, Issues and Challenges. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.
Costa Rica Car Rental Market
Costa Rica Car Rental industry revenue has grown at a positive CAGR during the period 2012-2018. This growth was supported by the increase in the number of internet users, rising urban population, government initiatives to promote sustainable tourism and rise in the disposable income. The market faces challenge from the local transportation available in the country, consistent crimes and conditions of the roads.
The car rental market is concentrated among few players such as Adobe Rent A Car, National car Rental, enterprise Car Rental, Alamo Car rental and Budget Car Rental. SUV/AUV cars contributed the most to the overall car rental market in Costa Rica in the year 2018. The segment has grown due to large seating and boot space which facilitates in group travels, sturdiness and comfort and easier to maneuver on tough roads. On the other hand, Economy and Premium accounted for a limited share in car rental market. Car rental for leisure purpose contributed a major share in terms of generating revenues for the industry in 2018. Rented cars are majorly demanded by tourists who visit the country for holidays or recreational purpose. Car rental for business purpose contributed second highest revenue share; whereas insurance replacement accounted for a small share in the overall car rental market revenues in 2018.San Jose contributed the highest revenue share in the overall car rental market in Costa Rica in the year 2018 due to large population and diverse tourist attractions. This was followed by Heredia, Liberia, Puerto Limon and other regions.
In the future, it is anticipated that Costa Rica car rental industry revenue will increase at a positive CAGR during the period 2018–2023E. In Costa Rica, it is expected that the demand for rented cars will be further augmented by growth in the tourism, supported by the government initiatives to promote it and improvement in transportation infrastructure.
Costa Rica Cab Aggregator Market
Costa Rica Cab Aggregator market is at the declining stage. Costa Rica Car Rental market revenue has increased at a positive CAGR during the period 2012-2018. This growth was supported by the factors such as, lesser fare charges as compared to local taxis, professional service offered by the cab drivers, convenience experienced by customers while booking cabs and regulated prices.
The market faces opposition from the local taxi drivers in the country, pleading the government to ban the cab services owing to the negative impact it had on local taxi driver’s livelihood. Uber has a monopoly in the Cab Aggregator Market. San Jose contributed the highest revenue share in the year 2018. This was followed by Heredia, Liberia, Puerto Limon and other regions. The maximum number of Uber cabs is mainly in San Jose due to the presence of International Airport which results in higher on-airport revenue.. In future, it is anticipated that Costa Rica Cab Aggregator market will shut down after the Costa Rican Supreme Court declared the market to be illegal and the government has asked all the cab aggregator companies to halt their operations.
Costa Rica Car Leasing Market
Costa Rica Car Leasing market is at the growing stage. The growth was supported by the demand by legal entities, provision of GAP coverage by leasing companies, no maintenance responsibility, 100.0% tax deductible and wide range of car model options available. The market faces challenge from increasing price transparency owing to the advancement in technology, companies engaging in price wars and car leasing companies facing problems while reselling the used vehicles. The car leasing market is concentrated among few players including Adobe Rent a Car, National Rent A Car, Budget Rent A Car and Poas Rent A Car. SUV/AUV cars dominated the car leasing industry revenue in Costa Rica. Two year lease period is usually preferred in car leasing segment.. The segment is majorly preferred as this option is widely offered by most of the companies, the client does not have bear the cost of finding a new vendor each year and ability to upgrade to newer models. On the other hand, one year and third year lease duration accounted for the remaining revenue share in car leasing market.
In Costa Rica, it is expected that the demand for leased cars will be further augmented largely due to the cultural habit of local people of the country to experience newer car models, higher expat ratio and introduction of electric vehicles in the country.