RateGain Travel Technologies Limited, a leading global provider of AI-powered SaaS solutions for the travel and hospitality sector, has released its 2025 ‘State of Car Rental’ report in collaboration with Auto Rental News, a premier source of industry intelligence for car rental companies worldwide. This marks the first comprehensive global benchmarking report aimed at uncovering how car rental operators are leveraging technology and addressing operational challenges.
The report draws insights from over 150 car rental companies across multiple geographies, offering a rare, candid look into the sector’s evolving landscape. It addresses key questions car rental operators have long faced, shedding light on their use of technology, process efficiencies, and the shifting dynamics of the market. The findings underscore several systemic challenges such as overreliance on competitor pricing, lagging digital execution, inadequate AI adoption, and limited fleet visibility. Despite widespread adoption of digital tools, the report highlights that execution remains a bottleneck, with many operators relying on informal training, leading to inefficient use of technology.
Customer dissatisfaction is shown to stem more from internal inefficiencies—like slow complaint resolution and cumbersome booking systems—than from technological shortfalls. Additionally, the industry is grappling with fleet readiness issues, largely due to reactive planning and insufficient forecasting tools, which increase operational costs and missed opportunities. While artificial intelligence holds promise, only a small fraction of companies (12%) are currently using AI-driven pricing strategies, citing unclear return on investment, lack of training, and integration challenges as primary barriers.
Martin Romjue, Managing Editor at Auto Rental News and Co-Chairman of the International Car Rental Show (ICRS), emphasized that the report presents an honest reflection of the industry’s current state. He noted that it helps operators understand ongoing changes, friction points, and opportunities for strategic growth. Ankit Chaturvedi, Vice President and Global Head of Marketing at RateGain, added that the collaboration with Auto Rental News has resulted in an insightful, educational initiative, turning real-world feedback into actionable strategies for businesses navigating today’s fast-evolving landscape.