Fueling Growth: CarTrawler Report Shows How Loyalty Programs Can Drive Engagement Through Car Rentals

First-of-its-kind study, based on a survey of US consumers, reveals untapped potential for loyalty programs to increase member spend and diversify rewards with car rentals

DUBLIN and NEW YORK, Oct. 8, 2024 /CNW/ -- CarTrawler, the leading B2B technology provider of car rental solutions for the global travel industry, has released a unique research report exploring the connection between loyalty programs and car rentals. Driving Loyalty: Market Insights on Car Rentals & Rewards Programs highlights a $20 billion opportunity for loyalty programs to unlock new revenue streams, capture more of their members' travel spending, and enhance engagement by incorporating car rentals as both earn-and-redeem and discounted options within their rewards frameworks.

The Driving Loyalty: Market Insights on Car Rentals & Rewards Programs report, based on a survey of over 3,500 American consumers, reveals that 45% are likely to rent a car through a loyalty program, with this rising to 56% among 25-39-year-olds. Yet only 12% of recent car renters (within the last 12 months) used their loyalty program for booking. By bridging this gap, loyalty programs could significantly boost their influence and expand their market impact.

"As a provider of car rental solutions to airlines and travel companies across the globe for the past 20 years, we know that car rentals can be a lower priority for loyalty programs and other booking platforms," says Aileen McCormack, CarTrawler's Chief Commercial Officer. "Our research shows that car rentals are a high conversion booking option, offering real value to consumers and benefits to the brands that offer them. The strong demand and the size of the car rental market highlighted in our report present a major opportunity for loyalty programs to integrate car rentals as both earn and redeem and discounted options within their rewards framework."

Car Rentals Aren't Just for Air Travel

While traditionally associated with air travel, car rentals provide loyalty programs with a unique way to increase member engagement, especially for non-travel-related purposes. Driving Loyalty shows that these "everyday" rentals account for 24% of all car rentals in the U.S. and occur year-round, unlike the seasonal nature of air travel-related rentals, making this a consistent revenue stream for loyalty programs. With the U.S. car rental market valued at $39.29 billion and projected to reach $44.7 billion in the next five years*, tapping into the everyday rental segment presents a massive revenue opportunity for loyalty programs across all categories.

Winning Trust: The Key to Engaging Everyday Renters

To capitalize on the potential of everyday car rentals, loyalty programs must prioritize trust and offer tailored options that meet members' specific needs. Trust is essential for driving engagement in loyalty programs across industries, particularly when introducing new rewards like car rentals. The survey findings reveal that:

• 43% of consumers say trust is a top reason for joining a loyalty program
• For members of financial services, retail, and affinity programs, trust is the number one factor for becoming a member (37%, 46%, 49%)
• Trust in the car rental brand is also one of the main factors consumers consider when renting a car, along with price and vehicle suitability.

These findings suggest that loyalty programs can increase member satisfaction by offering transparency, member-exclusive pricing, and personalized offers in their car rental options.

Car Rentals and the Loyalty Experience

The sheer size and growth of the U.S. car rental market, combined with consumer demand for everyday rentals, reveals a prime opportunity for loyalty programs to leverage car rentals as a high-demand reward.

Sixty-four percent of surveyed consumers said they would be more likely to book a car through a loyalty program if they could redeem points for rentals. By introducing trusted car rental options, utilizing member data to deliver personalized experiences, and providing everyday value, loyalty programs can unlock new income potential while building deeper, long-term relationships with their members.

Driving Loyalty Engagement Across Sectors with Car Rentals

From financial services to retail and affinity programs, car rentals offer a high-value addition to loyalty offerings. Integrating car rentals into their portfolios can be a positive revenue driver for financial services, increasing cardholder engagement and spending. In retail programs, offering convenient, high-conversion car rentals as everyday rewards adds tangible value for shoppers. For affinity groups, trusted, high-quality car rentals are a valuable addition to their rewards portfolio, helping to maximize member benefits.

"The loyalty landscape is shifting, and financial services, retail, and affinity loyalty programs must evolve to better meet member needs and strengthen their competitive positions," said McCormack. "Introducing car rentals that deliver everyday value and can be personalized to members' preferences will help these programs remain relevant and encourage more frequency and spending."

Driving Loyalty: Market Insights on Car Rentals & Rewards Programs is available for download here. CarTrawler's report is based on a survey of over 3,500 consumers from all 50 U.S. states and Washington, D.C, examining their usage and preferences across 64 U.S. market loyalty programs. The report also includes insights from nearly 2,000 respondents who rented a car in the past 12 months and answered additional, in-depth questions.

For more information about the Driving Loyalty study or to arrange an interview with Aileen McCormack, CarTrawler's Chief Commercial Officer, please contact Vanessa Horwell at [email protected].

About CarTrawler
CarTrawler is the leading B2B technology provider of car rental and mobility solutions to the global travel industry. CarTrawler's propriety technology, the Connect Platform, delivers unrivalled ancillary revenue to some of the largest airlines, online travel agents, hotels and travel providers in the world, including American Airlines, United Airlines, Hilton Honors, Uber and American Express Travel.

Headquartered in Dublin, Ireland, CarTrawler creates and powers customised solutions that are easily integrated into partners' websites and mobile apps, providing their customers with access to car rental and mobility options in 50,000+ locations—more than anyone else in the world. This is further enhanced by the CarTrawler revenue management system, which includes market-leading pricing models and algorithms built by the CarTrawler Data Science Team.

Leveraging all of these capabilities, CarTrawler helps the world's leading travel brands expand and enhance their loyalty programs by delivering a dynamic car rental proposition tailored and customisable to meet their specific program's needs.

Find out more at cartrawler.com. 

SOURCE CarTrawler