The industry for car rental is a multi-billion dollar industry in the United Kingdom. This industry averages about $18.5 billion as revenue every year and services approximately 1.9 million rental vehicles in the UK segment of the market. Additionally, there are a large number of car rental companies apart from the industry leaders subdividing the total revenue. Dissimilar to the other mature industries, the industry for car rental is consolidated and this naturally puts the newcomers at a certain cost disadvantage because they need to face high costs of input with decreased potential of economies of scale.
There are two important sources of competition within the car rental industry and these are vacation consumers and the corporate sector. It can be rightly said that the industry for car rental is basically a war zone with many rental companies engaging in the battle of the fittest.
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