The AOP Buyer Power Score is a new content offering created in partnership with ProcurementIQ that rates the balance of power between buyers and sellers for a particular spend category
Today we are reviewing U.S. domestic car rental services.
The Numbers
The current Buyer Power Score for U.S. domestic car rental services is +0.7 in favor of the buyer on a -5 to +5 continuum. Although this buyer power score suggests conditions in favor of corporate travel managers, our ‘Buy Now’ recommendation is actually based on anticipated supply constraints and price increases in the next few months. Rather than being a straight representation of buyer v. supplier power, it is an assessment of how general market conditions are being driven by a combination of leisure travel and business travel.
How to Use this Information
With the 2021 holiday season kicking off this week with Thanksgiving and running through early January, car rentals are expected to surge as travelers take to the air and roads – making up for lost time with family and friends. Demand is currently outpacing supply of cars, which is not only driving up rates, it is making it hard to find cars for the desired location and dates. Booking individual rentals as early as possible is recommended, as are any contract terms that prioritize your company’s reservations.
Dig Deeper
We have partnered with ProcurementIQ to dig into their treasure trove of over 1,000 indirect category intelligence reports, with new insights every Friday. To dig deeper into the U.S. domestic car rental services category, click here.
