Car rental companies reduced their fleets during the pandemic lockdown and have not yet fully restocked, according to the report. When the pandemic emergency was declared over in May 2023, a boom in demand for car rentals drove prices up exponentially, which is reflected by the data. This leaves corporate travel managers in a position to make difficult decisions about how to guide their employees for business trip transportation.
Eric Friedrichsen, CEO of Emburse, said the state of the car rental market is a great example of why the company is making moves like its recent acquisition of Tripbam, which ensures that companies are getting the best rates on rental cars, hotels and airfare.
Business travel continues to rebound, he said, but the economy is different from that of 2019 or even last year. “While our customers are lifting travel bans, “ said Friedrichsen, “they are still looking to maximize the value they get for each trip. And we're helping them by reducing the cost side of the ROI calculation.”
Other findings from the report included:
Volume of domestic flights booked: 30% up from Q2 2022 and 12% up from Q1 2023
Amount spent on domestic flights: 22% up from Q2 2022 and 14% up from Q1 2023
Volume of international flights booked: 86% up from Q2 2022 and 18% up from Q1 2023
Amount spent on international flights: 92% up from Q2 2022 and 46% up from Q1 2023
Volume of hotel reservations booked: 50% up from Q2 2022 and 15% up from Q1 2023
Amount spent on hotel reservations: 50% up from Q2 2022 and 27% up from Q1 2023
