Oman Car Rental and Leasing Market Forecast to 2020 : Ken Research

1. Oman Car Rental and Leasing Market Report – 2020 : Ken Research

2. How Oman Car Rental and Leasing Market Is Positioned? Car rental market in Oman has surged in recent times. The market has witnessed a rise in the number of car rental firms in the country along with the rise in international tourist arrivals especially in city of Muscat. Oman car rental market has witnessed a rise in the number of long term car rentals and it is expected that in future long term car rental would bypass spot rentals in Oman car rental market. The overall car rental business in the country has been growing at a compound annual growth rate of ~% during the year 2010-2015. Situational factors have kept the industry fairly buoyant in the region. It has been estimated that around ~% car rental market in Oman has been driven by leisure tourists in the country and rest from an increasing number of infrastructure projects since the year 2010. There has also been a rise in short term car rentals due to the tourist attractions in the country. The country is famous for its number of castles, forts, and towers which can easily be spotted by rented cars by the tourists.

3. Oman car rental market does not have any fixed rates and majority of the Omani population opts for a car rental service that operates at a lower price as compared to car rental services that operate at a higher price. Therefore, the demand for compact sedan has been higher as compared to luxury cars. Cars such as Nissan Micra and Mitsubishi Mirage have dominated the Oman car rental market in future. Traditionally, Oman was driven by higher car purchases as compared to car rental services in the country but with the rising car prices (at double the original prices) there has been a shift in consumer preference which has been observed with enhanced demand for car rental services. Moreover increased demand of luxury cars and limousine has also led to the higher demand of car rental services by the high income class business people and professionals. Therefore, the car rental companies keep a fleet ranging from small cars to the luxury cars to tap the complete potential and meet the demands of all types of the consumers.

4. Which Segments Have Driven Oman Car Rental And Leasing Market? The market has witnessed an increase in car leasing market and has a share of ~% in 2015 in terms of revenue. The domination of car leasing segment is primarily due to large number of enterprises in the country that takes the car on leasing to provide easy transportation facilities for their employees. In 2015, short term car rental held a share of ~% in terms of revenues due to the increase in on-airport car rental services and tourist arrivals in the country. Oman has a low proportion of online bookings as compared to the other countries in the Middle East region; this is due to the fact that the country’s car rental market is a fragmented market with a large number of unorganized players in the market due to government support to the local players. These local players rarely have an online mode of booking. The share of online bookings in the overall revenues of car rental market has been recorded as ~% in 2015 as against ~% of revenues from offline bookings. Muscat has been regarded as one of the best cities to travel and live in Oman. Therefore, the city owns a share of ~% in the overall car rental market of Oman since it provides an inter connectivity to various other cities across the country. Car rental services in Muscat provide both multinational and regional car rental suppliers in order to rent cars either online or through rental stations. Salalah is another major tourist destination in the country that holds a share of ~% followed by Sohar that held a share of ~% in 2015.

5. Some of the local companies which need the vehicles on lease opt for the unorganized local companies mainly due to the low cost of leasing they offer. It has been observed that when the organized players dispose off their fleet, sometimes the fleet is purchased by the unorganized players at lower prices which make the condition of vehicle worse than as present with the organized players. International players are preferred by the foreign tourist companies. Moreover, the supple terms and conditions of the fleet provided by organized players, collection of fleets, better car conditions has led the organized share to dominate and hence the organized players had a revenue share of ~% in overall Oman car rental market in 2015. Oil and gas revenues constituted ~% of total government revenues over the period 2010- 2015 and thereby formed a major business segment in Oman. Oil and gas companies have also formed a major revenue source for the car rental market.

6. What Is The Competition Scenario In Oman Car Rental And Leasing Market? Hertz is one of the leading players in the Oman Car Rental market with a share of ~% and a fleet size of ~ vehicles in 2015. The firm operates across various national and international airports in the sultanate of Oman. Auto rent is a second largest player in the car rental market of Oman. The firm owns a fleet size of ~ vehicles. Auto rent specializes in providing the best car leasing and long term rental solutions for corporate and large enterprises. Auto rent has got an in-house service station, which takes care of all the service needs in time. Budget Rent a car is another major player in the Sultanate of Oman which holds a share of ~% in the fleet of Oman car rental market. Sixt with a share of ~% in the Oman car rental market owns a fleet size of around ~ vehicles in 2015

7. What Is The Future Outlook For Oman Car Rental And Leasing Market? With the maintenance and insurance overheads associated with owning a car, the long-term leasing will continue to be a flexible option. This coupled with vast improvements in infrastructure will restrain people from owning a car or bearing the expense of taxis, making renting a more feasible option. Hertz is expected to be one of the leading brands in Oman car rental market. Local players such as Mark Rent a Car are also expected to grow their business by levitating tie ups with the international players. The tourism ministry is also promoting Oman as a tourist destination by conducting global awareness campaign, regional and national events such as the Muscat Festival (January to February) and the Salalah Tourism Festival (July to August) and through e marketing through its portals. High per capita income in the country has also provided an impetus to the growth of limousine services that people of the high stature demand. This provides them with the symbol for their status without having to own their own car and providing for the high maintenance cost it has. Projection for the future suggests that the market for car rental is expected to witness promising growth and revenues are expected to mount to USD ~ million by 2020.

8. Source: https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/oman-car-rental-leasing-market/42909-100.html • Contact: Ken ResearchAnkur Gupta, Head Marketing & CommunicationsAnkur@kenresearch.com+91-9015378249

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