Supply chain improvements indicate corporate rates to level off into 2024 – but leisure growth keeps prices high.

• Electric vehicles go mainstream but drivers wary of renting
• Report explores rail, sustainability and modern commuter trends

American Express Global Business Travel (Amex GBT), the world’s leading B2B travel platform, has published its Ground Monitor 2023-2024, which finds significant car rental price increases continuing this year in major business destinations. However, Amex GBT’s Global Business Consulting (GBC) analysts believe prices could level off during 2024.

Ground Monitor 2023-2024 analyzes demographic changes, such as Gen Z’s dwindling attachment to the driving license, as well as the evolving travel and working patterns of the modern commuter, and the impact these factors will have on car usage.

One in seven of all cars sold globally in 2022 were electric vehicles (EVs). This proportion is expected to increase in 2023 – yet corporate travelers appear reluctant to rent EVs. The report explores the reasons behind this. Ground Monitor 2023-2024 also analyzes the challenges and opportunities of growing corporate rail travel to support sustainable objectives.

Gerardo Tejado, Senior Vice President Professional Services, Amex GBT, said, “As a core element of managed travel programs, ground transportation plays a key role in the end-to-end journey, and has significant impact on the traveler experience. Road and rail are also increasingly in the spotlight for companies wanting to make their programs more sustainable. In this report, our Global Business Consulting ground specialists share data-driven insights and advice to support the travel function as it becomes more central to organizations.”

Car rental rate forecasts around the world

In the US and Canada, the Ground Monitor 2023-24 predicts a 5% increase in car rental rates to March 2024, due to increasing high demand, largely driven by leisure. In Latin America, buyers in Argentina and Brazil can expect to see prices rise 5.5-6% for the same period, with significantly lower forecasts for Chile (1%) and Mexico (0%).

In Europe, car rental rates are also due to rise in many key business destinations, ranging from 5% in France to 6.5% in the UK and 7% in Germany. The Nordics and Benelux are forecast to face smaller rises of 1% and 3% respectively. The report forecasts a 2% rise for Australia, but says prices will vary significantly across the country, with logistics and restricted supply pushing rates higher in remote locations.

The full report is available to download here.