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Surge in China’s tourism market fuels robust growth in car rental sector

Car Rental

China’s CAR Inc. reports a significant increase in car rental orders, benefiting from a resilient domestic tourism market. Cross-city and long-term rentals notably rise, bolstering the service sector.

BEIJING – China’s car rental services have seen robust business growth thanks to a strong recovery in the tourism market.

Domestic car rental services giant CAR Inc. said the total orders for its car rental services during the July-August period surged some 50% year on year and exceeded that of 2019, as many people chose to travel during the summer vacation.

The orders from new users climbed nearly 80%, logging a record high, and cross-city orders made up over 80% of the total orders, it added.

The company also saw a boost in long-period car rental services, with orders for rental periods of five days or more rising 70% year on year.

As the country’s new energy vehicle (NEV) infrastructure, like charging stations, improves, rental service orders for NEVs skyrocketed over 150% year on year, data from CAR Inc. showed.

The summer tourism market posted a strong recovery that surpassed that of 2019. Domestic tourist trips this summer surpassed 1.8 billion in number, generating a total tourism revenue of 1.21 trillion yuan (about 137.6 billion U.S. dollars), according to the China Tourism Academy.

The company said bookings during the Aug. 17-Sept. 15 period for car rental services for the upcoming Mid-Autumn Festival and National Day holiday gained over 200% year on year and over 30% compared with 2019.

The service sector posted remarkable performance this year, serving as a major underpinning of China’s economic growth.

Official data from the National Bureau of Statistics showed that prices related to travel and accommodation rose faster in August than in July, pointing to the strong driving force of services consumption.

Public consumption steam has been gathering, evidenced by the robust travel market,” said NBS spokesperson Fu Linghui, who estimated that services consumption growth might maintain a fast clip thanks to the upcoming 8-day-long holiday.

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George, in his capacity as an intern, diligently oversees the flow of news, assists in the publication of content, and delves into the strategies of social media distribution. He is currently pursuing his studies in Business Administration at the Athens University of Economics and Business.