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MARKET OVERVIEW

1.1 Definition and scope of the study

Short-term car rental (STC) or vehicle rental is a service offered by a company that provides customers with car rentals for short periods of time ranging from a few hours to a few weeks. Rental companies are often made up of many local branches, allowing customers to return their vehicles to a different location than the one where they were picked up.

Most rental agencies are located in airport terminals, in the immediate vicinity of railway stations and in city centres, and reservations can be made online via a website. Thus, the car rental market concerns all transactions between companies and individuals allowing the borrowing of a vehicle over a given period. Short-term car rental (SLC) or vehicle rental is a service offered by a company that provides customers with car rentals for short periods of time ranging from a few hours to several weeks. Rental companies are often made up of many local branches, allowing customers to return their vehicles to a different location than the one where they were picked up.

In 2019, it was possible to count nearly 8 million short-term vehicle renters. The combination of several phenomena, namely sustained growth in tourism activities, the emergence of short-term rental as an alternative to vehicle ownership, but also the changing behaviour of motorists, who are more inclined to adopt new forms of mobility, are contributing to the growth of the LCD market in France

The COVID-19 crisis has had a major impact on the market. Indeed, the various travel restrictions and limitations directly affected the short-term car rental sector. Thus, the leading companies in the sector, Europcar and Hertz, have declared themselves under special bankruptcy proceedings in the United States since 2020, in view of their financial difficulties.

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