Car rental rates will increase by 1.5-2% annually, according to the Ground Monitor 2026-2027 Report from American Express Global Business Travel. That hike will be a result of restrained GDP growth and improved supply in both the US and Canada.
Key takeaways from the report:
- Rising city surcharges drive up hiring costs: Amex GBT has seen a significant growth in the number and value of North American city surcharges—such as day-of-week and airport fees applied by airports—which, once limited to a handful of key cities, are becoming more common and will push up the overall cost of hiring.
- How travel managers can adapt: When the industry saw car shortages in previous years, it made sense to spread spend across several providers. Now, it’s key for businesses to explore opportunities to align rentals and fleet management with a single provider, build deeper relationships, and consider rentals vs ride hails. Amex GBT Consulting’s ground experts share additional considerations to build a strong and agile rental program:
- As auto supply chains have recovered and providers have rebuilt inventory, it becomes less risky to consolidate your car program on just one or two providers.
- Building partnerships with car rental providers can help you source for best value and get the cars you need, in your priority locations, all year round.
- Criteria for selecting a corporate car rental partner should include coverage, pricing, service and willingness to collaborate.
- When to rent, when to ride hail? Amex GBT Consulting modeled journeys in the top 10 business destinations in the US and the answer is: It depends.
- The analysis reveals that for single-day journeys, renting a car is cheaper than ride hail in almost every case—but for trips lasting two days or longer, ride hail works out cheaper in every top destination.
- Looking ahead: Sustainable innovation in last-mile travel
- EV advances drive progress: Breakthroughs in battery range, weight, and costs have halved EV lifecycle emissions versus ICE vehicles, laying the groundwork for electric air and water transport.
- Flying taxis near takeoff: eVTOL (electric vertical take-off and landing) aircraft offer low-emission airport-to-city transfers, bypassing ground traffic entirely. Key markets—including the US, China, and the Gulf—are clearing operational pathways, with Dubai launching commercial air taxi services in 2026.
