CarTrawler Car Rental Market Monitor: Vol. 3 2025
Nov 14, 2025
Summer Travel Recap, AI Takes the Stage, Winter/Holiday Outlook
As global travel patterns evolve, CarTrawler’s Market Monitor series provides a snapshot of the current state of the car rental and mobility marketplace.
Based on CarTrawler aggregated global data and select third-party research these snapshots highlight trends, market demand, and customer behaviors, offering valuable insights and revealing opportunities for businesses across the travel and transportation sectors.
With the busy summer travel season well in the rearview mirror and the holiday and winter travel periods now on the horizon, global car rental markets remain resilient.
While European destinations experienced steady demand over the summer, the U.S. and Canada demonstrated notable growth in car rental booking activity.
These contrasting regional performances reflect broader shifts in travel patterns that emerged throughout the peak season and may well continue through the holidays and into 2026.
How Summer 2025 Unfolded: Strong Booking Peaks, Sunny Destinations Dominate
The anticipated softening of inbound U.S. travel materialized during summer 2025, though domestic demand has kept booking volumes buoyant. International arrivals dropped, as projected, with the number of overseas visitors during the summer months of June, July, and August declining by 3.1%, compared to the same period in 2024, according to preliminary figures from the National Travel and Tourism Office.
But the widespread prediction that Americans would opt for domestic travel during 2025 aligned closely with actual booking patterns, where 86% of year-to-date North American car rentals originated from U.S. residents.
As a result, car rental bookings in North America showed positive year-over-year growth during the peak summer period.
86%
of YTD North American rentals
Booked by U.S. residents
Top 10 European Pickup Destinations – Summer 2025
1. Mallorca
2. Malaga
3. Alicante
4. Lisbon
5. Porto
6. Faro
7. Nice
8. Barcelona
9. Sicily
10. Olbia
In Europe, the Iberian Peninsula dominated pickup destinations, with Mallorca, Malaga, and Alicante maintaining their positions as top locations. This concentration suggests travelers have gravitated toward established sun, sea, and sand destinations this summer instead of emerging vacation locales or long-haul destinations.
Pricing dynamics also reflect these pattern changes. The average price for a 5 day rental in North America during June to September 2025 decreased by 13% compared to the same period in 2024, possibly suggesting a supply increase in anticipation of greater domestic travel.
In Europe, average prices, at the peak of this year’s summer travel season, were 34% higher than in September 2025, clearly showing the summer spike in favored vacation locales, while in the UK, average prices remained consistent from year–to–year, increasing by only 1% from June-September 2024 to the same period in 2025.
The summer 2025 season also saw shifts in consumer behaviors around booking windows. European travelers extended their planning horizons to 32 days, while UK residents booked even earlier at 43 days in advance. North American consumers modestly increased lead times to 26 days. These longer booking windows and deviations compared to prior years and quarters, suggest that travelers are planning their trips earlier, possibly due to caution or a desire to secure desirable pricing. Uncertainty, both economic and logistical, may also play a role in prompting travelers to solidify their bookings much farther in advance. Whatever the impetus for this behavior, travel brands must be cognizant that travelers are making their decisions earlier than they have in the past and target their marketing and engagement strategies accordingly.
Holiday Travel Outlook: Economic Headwinds Meet Persistent Demand
Whether those booking window trends continue into the holiday season remains to be seen, but winter booking patterns suggest continued strength in leisure travel despite mounting economic pressures. Nearly two-thirds of Americans (65%) are planning to travel during the holiday season this year, according to The Points Guy, compared to just over half (51%) who said the same last year. In the global car rental market, historical CarTrawler data from the November-January period shows consistent demand, with January traditionally marking the strongest month.
Economic factors threaten to constrain holiday ambitions. Inflationary pressure and employment shifts in major markets could temper discretionary spending, though travel intent remains robust.
Vehicle preferences show seasonal adaptations. Medium SUVs maintained a significant 28% share of North American bookings across the summer months, but grew to 31% in September, reflecting both consumers’ desire to upgrade to larger options and the greater availability of this vehicle type in the U.S. and Canada. European markets continued to favor economy and compact vehicles, though winter-specific extras will show sharp increases across markets, with snow tire bookings beginning their seasonal rise in November.
Rental duration expectations also reflect typical seasonal trends, with average rental periods hovering around 5 to 7 days, depending on region. The percentage of bookings with extras, however, may remain steady or increase through the winter as travelers prioritize common holiday travel add-ons like additional drivers, navigation systems, and child seats.
Rental Averages for Top 3 North American Car Bookings, Summer 2025
Average % of Bookings
Medium SUV
28%
Intermediate
16%
Compact
11%
Top 10 U.S. Pickup Destinations – Winter 2025 Outlook
From 15 Nov 2025 – 15 Jan 2026
1. San Fransisco, CA
2. Orlando, FL
3. Kahului, HI
4. Honolulu, HI
5. Phoenix, AZ
6. Denver, CO
7. Kona, HI
8. Las Vegas, NV
9. Lihue, HI
10. Tampa, FL
The convergence of economic uncertainty, technological adoption, and sustained travel demand creates an unusual holiday season dynamic. While overall travel booking volumes may vary by region. Engaged consumer segments will likely maintain rental activity, particularly domestically. Markets showing strength in these areas, like North America, should weather economic headwinds through the winter better than other regions.
Looking to the coming holiday travel season, we reviewed data of where Americans are planning trips by using current bookings for the November to January season. Similar to last year, Americans are planning to spend their holidays in sunnier climates, with California, Hawaii, Arizona, and Florida being the most popular destinations. Also making the list was Colorado, likely driven by winter sports participants.
Regional Disparities in EV Adoption
The change in season is unlikely to dampen travelers’ continued interest in electric and hybrid vehicle rental options, although adoption patterns continue to diverge between markets. North American renters showed a clear preference for fully electric models, with Tesla accounting for 61% of all electric and hybrid rentals in the region during peak summer months. Kia’s EV model followed in a distant second place.
European and UK markets displayed contrasting preferences. Hybrid vehicles, particularly Toyota models, commanded the largest share. In Europe, hybrid Toyotas generated more than double the monthly booking volume of electric Renaults or Cupras. UK data showed similar patterns, with hybrid Toyotas achieving three to five times the booking volume of leading electric brands like Jeep, Renault, and Polestar.
Relatively steady EV rental percentages mask underlying momentum. Consumer sentiment surveys indicate sustained appetite for EVs, even as purchase incentives sunset in the U.S. Almost half (47%) of Americans plan to purchase an EV in the next 5 years, but 70% would consider renting an EV as a way to “try before they buy” if they were considering a vehicle purchase. This suggests rental markets may serve as testing grounds for consumers evaluating specific EV models.
Average % of Top Electric/Hybrid Brands, June-September 2025
North America
61%
21%
8%
Europe
32%
13%
10%
Artificial Intelligence and Car Rental Booking Behavior
Just as they are willing to test EVs when they rent a car, Americans are also willing to use generative AI when booking one. CarTrawler recently surveyed more than 1,000 U.S. travelers who have previously used AI for trip planning, uncovering nuanced but generally positive attitudes toward artificial intelligence integration in car rental services.
For general travel planning, an overwhelming majority of survey respondents (81%) were ‘very satisfied’ or ‘completely satisfied’ with previous recommendations provided by AI tools, and 59% described their current attitude towards using an AI tool for their travel booking needs as ‘very optimistic’ or ‘extremely optimistic.’ Notably, more than half of respondents were more likely to trust an AI tool for travel planning purposes if provided by a travel brand they trust.
More than half of the travelers surveyed had previously used AI to research local experiences, restaurants, or activities (61%) and research flights and hotels (52%). In comparison, nearly half (49%) used AI to get inspiration for a destination.
While travelers value AI for its ability to save them effort and time, they tend to prefer human interaction when the stakes are high and they want to be reassured by a person, such as when issues arise and when they have complex needs. Respondents who expressed reservations about using an AI tool most often cited payments (49%) and data security or fraud (44%). This suggests a high level of familiarity with AI for everyday travel planning activities, but a lingering hesitation towards handing over complex or transactional tasks to AI.
AI Use for Travel Planning
Data from more than 1,000 U.S. travelers who have previously used AI for trip planning
81%
Very or Completely Satisfied with previous travel recommendations provided by AI
59%
Very or Extremely Optimistic towards using an AI tool for booking travel
52%
More likely to use an AI travel booking tool if provided by a trusted brand
30%
Have used AI to research car rentals or transfers
67%
Satisfied with their experience using AI to book car rentals
While 30% of respondents said they used AI to research car rentals or transfers, only 8% prefer using AI tools to complete a car rental booking, the fifth-most popular option. Among those who did use AI for rentals, 67% expressed satisfaction, citing improved price comparison capabilities and simplified vehicle selection processes as key benefits.
Families with children under 18 in the household were more likely (36%) to use AI to research car rentals than the survey average, and more likely to actually complete a booking. Millennials and Gen Z are most likely to use AI tools for booking travel, researching and renting cars, creating packing lists, and finding destination inspiration.
These findings suggest that AI will play a significant role in car rental booking behavior in the short and long term, and that travel brands should explore customer-centric ways to integrate AI into their booking processes.
They also signal that trust is a key factor for most travelers when considering whether and how to utilize an AI tool when booking and paying for a rental car.
Loyalty Programs Continue to Shine as Distribution Channels
Loyalty program integration reached new heights during the summer, particularly in North America, where a growing share (58%) of rentals were linked to loyalty or rewards programs. This proportion of loyalty-associated rentals in North America is more than double what it was two years ago, and while European and UK markets’ growth rates lagged in comparison, this is likely attributable to lower integration of car rental options in regional loyalty and rewards programs.
Globally, however, this highlights substantial growth potential as loyalty platforms evolve from ancillary benefits into primary distribution channels. As more consumers across markets participate in loyalty or membership programs, the potential for car rentals to play a profitable, value-driving role in those programs’ earning and redemption frameworks increases as well, representing a $20 billion opportunity, according to CarTrawler research.
The correlation between loyalty participation with AI tool usage suggests an emerging segment of digitally-engaged rental customers who interact through multiple channels and are adept at finding value through both technology and affinity incentives.
As we found in the two previous market monitor analyses, the global car rental market remains as dynamic and resilient as ever. The 2025 summer travel season exceeded expectations, though average prices continued a broad-based multi-year contraction, and EV rentals remain plateaued.
Loyalty programs, on the other hand, are fast becoming an indispensable distribution channel in North America, and generative AI is emerging as a game-changer in car rental booking behaviors. As always, we remain optimistic heading into the winter and holiday season, fully confident that car rentals will be a considerable driving force behind travel industry performance for the remainder of 2025 and well into 2026.
For a summary of key insights, download the CarTrawler Car Rental Market Monitor Vol.3 infographic. You can also find previous reports and other resources here.
Get in touch to discuss how introducing or expanding car rentals can impact your business.
CarTrawler powers car rental and mobility solutions for many of the world’s leading travel brands and loyalty programs, creating connected travel experiences through the most comprehensive network of car rental suppliers worldwide. Our Connect Platform scales to meet shifting consumer and traveller demand, giving airlines, OTAs, and loyalty programs the flexibility to offer trusted, reliable mobility services anywhere at any time. Handling over 1 billion passengers and bookings annually nearly a quarter of the world’s car rental market CarTrawler is a leader in the global travel industry.
Data Sources and Analysis
Except where otherwise noted, the data presented in this Vol. 3 2025 Car Rental Market Monitor reflects car rental activity from CarTrawler’s extensive travel partners and supply partners. While representing a focused segment of the global car rental market, the findings have been analyzed and extrapolated to offer CarTrawler’s interpretation of broader industry trends and the direction of the wider market.
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