A new research study by CarTrawler reveals a $20 billion opportunity for loyalty programs to boost member engagement and generate new revenue by incorporating car rentals.
The Driving Loyalty: Market Insights on Car Rentals & Rewards report, based on a survey of over 3,500 U.S. consumers, highlights how loyalty programs can diversify rewards, capture more travel spending, and enhance member satisfaction by offering car rentals as earn-and-redeem or discounted options within their rewards framework.
Key findings show that 45 percent of respondents are likely to rent a car through a loyalty program, with this rising to 56 percent among 25-39-year-olds. Yet only 12 percent of recent car renters (within the last 12 months) used their loyalty program for booking.
Car rentals also provide loyalty programs with a unique way to increase member engagement, especially for non-travel-related purposes. Driving Loyalty shows that these “everyday” rentals account for 24 percent of all car rentals in the U.S. and occur year-round, unlike the seasonal nature of air travel-related rentals, making this a consistent revenue stream for loyalty programs.
With the U.S. car rental market valued at $39.29 billion and projected to reach $44.7 billion in the next five years, loyalty programs have a prime opportunity to significantly drive deeper member engagement, expand their market impact, and boost revenue by incorporating car rentals into their offerings.
The Loyalty Landscape
With loyalty programs shifting to meet modern consumer demands, car rentals emerge as a significant yet underutilized growth opportunity. Historically focused on point accumulation and rewards, modern loyalty programs have evolved to build more meaningful relationships with customers through personalization, enhanced value propositions, and broader offerings. This shift reflects the growing need to meet changing consumer expectations and differentiate in an increasingly competitive environment.
The following report is based on a comprehensive survey of consumer attitudes in the U.S.; the findings reveal new opportunities for loyalty programs to refine and align their strategies with what matters most to consumers today. Within this dynamic landscape, car rentals emerge as a key but often overlooked offering. Ranked among the top preferences for loyalty program members—surpassing health and wellness products, clothing, and homeware—car rentals represent a valuable and untapped opportunity for loyalty programs to capture substantial growth.
The report outlines five key themes from the survey findings, offering a clear perspective on the vast potential for loyalty and membership programs within the car rental market. These insights demonstrate where loyalty providers can focus to enhance their appeal and address emerging consumer preferences.
Key Findings
- Significant Latent Demand: While not yet the go-to choice, loyalty programs are poised to capture a $20B opportunity. With 1 in 4 members renting a car annually and nearly half wanting to book through their loyalty programs, the potential for growth is undeniable.
- Tapping into Everyday Car Rentals: 24 percent of car rentals are for everyday use, a market largely untapped by traditional travel channels. Loyalty programs have a golden opportunity to fill this gap.
- Engagement Through Rewarding Redemptions: Car rental is one of most attractive product lines for driving engagement through redemption; offering split payment options with points and cash is critical for car rental redemption offerings.
- Member-Exclusive Perks and Convenience: Customers want member-only discounts, a simple booking process, and competitive pricing when shopping for car rentals. Loyalty programs that deliver these benefits can outshine traditional channels.
- Trust and Personalization Drive Success: Members trust their loyalty programs to offer curated, high-quality car rental options that meet their needs. Success hinges on a broad supply, excellent customer service, and sophisticated personalization.
Significant Latent Demand
With 1 in 4 members renting a car annually and nearly half of survey respondents wanting to book through their loyalty programs, the potential for growth is immense. Loyalty programs have the chance to capture half of the U.S. car rental market, translating to a $20B opportunity.
Market Overview
The U.S. car rental market serves a substantial customer base, with approximately 60 million loyalty members1 renting cars annually. This equates to nearly 23 percent of the total U.S. loyalty membership base having rented a car within the last 12 months. Loyalty programs stand to benefit from this projected growth over the next four years.
The Power of Loyalty Programs
Survey data reveals a significant opportunity for car rental: 45 percent of respondents indicated they are likely to rent cars through their loyalty program. This represents an estimated 27 million loyalty program members who are potential car rental customers.
Currently, around 12 percent of those who rented a car in the last 12 months did so using their loyalty program for the booking. This gap in car rental adoption highlights the latent demand, presenting a valuable opportunity for loyalty programs to expand their offering into the car rental market and better serve their members.
Repeat Business Potential
The high satisfaction among this 12 percent cohort is evident. Of those who rented a car in the last 12 months using their loyalty program for the booking, 88 percent would rent through their loyalty program again. When comparing customer willingness to repurchase other products again via their loyalty programs, car rental ranks third, only behind groceries (89 percent) and outdoor products (92 percent).
The frequency of car rentals further underscores the potential benefits of focusing on this vertical within loyalty programs. Data shows that 66 percent of all adults who rent cars do so at least twice a year.
This behavior highlights a robust potential for repeat business, particularly among those who rent through loyalty programs. 88 percent would rent a car from their loyalty program again. 56 percent of 25–39-year-olds show the highest interest in renting cars through loyalty programs, highlighting the potential to acquire, engage, and retain this traditionally hard-to-reach demographic. 66 percent of adults who rent cars do so at least twice a year.
Trust and Personalization Drive Success
Common frustrations, such as high prices and hidden fees, further amplify the need for a transparent and trusted service. These pain points highlight a growing demand for a car rental proposition that offers clear pricing structures and reliable service, fostering greater consumer confidence and satisfaction.
Members trust their loyalty programs to offer curated, high-quality car rental options that meet their needs. Success hinges on a broad supply, excellent customer service, and sophisticated personalization.
Price, Vehicle Type, and Trust: The Key Decision Drivers
For consumers, three primary factors influence their decision to rent a car: price, vehicle suitability, and trust in the car rental supplier brand. Price-sensitive consumers are particularly focused on the logistics of their rental experience, such as the pickup location and the type of car available. On the other hand, customers who are less concerned with cost place greater emphasis on the reputation and reliability of the car rental supplier brand. Highlighting customer reviews and NPS scores is essential, as these elements significantly enhance trust and credibility in the decision-making process.
The Role of Personalization in Building Trust
Personalization is essential for building trust and satisfaction among loyalty program members. By leveraging data and advanced machine learning algorithms, loyalty programs can offer personalized car rental options that resonate with individual preferences. This extends to providing vehicle choices that align with the brand’s identity, such as luxury cars for premium brands or electric vehicles for eco-conscious ones. Such tailored offerings enhance the customer experience and deepen the brand’s alignment with consumer values, creating a stronger sense of loyalty.
The Impact of Demographic Targeting on EV Adoption
The survey reveals that 55 percent of renters under 50 are inclined to choose an EV, compared to just 27 percent for those aged 50 and older. This highlights the need for tailored offerings that align with the preferences of distinct age groups.
Loyalty programs with a well-developed car rental strategy can elevate the booking experience by delivering this level of personalization, meeting individual preferences while strengthening member loyalty and trust in the brand.
Trust as a Key Motivator in Loyalty Program Membership
Trust is a powerful driver of loyalty program membership, with 43 percent of respondents placing it within their top three reasons for joining a program.
In a market challenged by high prices and limited availability, consumers seek brands they can rely on. Loyalty programs that prioritize trust through personalization, transparent pricing, honest customer reviews, and tailored rental options can significantly boost member satisfaction, positioning trust as a central factor in long-term loyalty program engagement. It also remains the leading factor across almost all loyalty program categories, except Timeshares, where location edged out trust by 2 percent. This underscores the critical role trust plays in building member loyalty and engagement.
Conclusion: Evolving Loyalty & Meeting Consumer Demands for Car Rentals
This report underscores the growing demand for a more sophisticated car rental proposition within loyalty programs across the U.S., reflecting a critical shift in consumer expectations — one that brands must respond to. This change presents a valuable opportunity for loyalty programs to increase engagement and satisfaction, particularly as the U.S. car rental market — currently valued at $39 billion — is projected to grow to $44.7 billion over the next five years.
Consumers now expect more than the accumulation of points; they expect comprehensive, personalized experiences that deliver real value. By catering to the often-ignored everyday renters, loyalty programs can tap into a substantial yet underutilized market. Offering flexible payment options, competitive pricing, and emphasizing trust and personalization can reshape how members interact with these programs.
The survey findings make it clear: while points remain a valuable tool for driving customer engagement, they are no longer the sole driver of loyalty. To remain competitive, loyalty programs must offer a diverse array of rewards and benefits that are finely tuned to individual preferences.
The future success of loyalty programs will depend on their ability to innovate and meet the evolving needs of their members, particularly within the car rental segment. By closing current gaps and responding to the distinct preferences of everyday car renters, loyalty programs can realize new avenues for engagement, deepen member relationships, and secure long-term loyalty in an increasingly competitive market.
The information for this article is based on the The Driving Loyalty: Market Insights on Car Rentals & Rewards Report from CarTrawler. While the study primarily reflects the U.S. market, the principles which drive loyalty in this sector are common in most markets, including Canada.
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