Research from CarTrawler sees higher demand and lower price volatility

The car rental industry is returning to a new normal of higher demand, lower price volatility and a broader return to pre-pandemic booking behaviors, according to CarTrawler’s Q1 2025 Car Rental Market Monitor. CarTrawler is a car rental technology and mobility solutions provider.

According to the report, which provides a snapshot of the current state of the car rental and mobility marketplace, global rental bookings continue to rise year over year, with average rental prices declining about 10% since last year. In North America, prices fell from $372 in March of 2023 to $321 in March of 2025.

Trends cited by the report included:

• Shorter booking windows, with average lead times dropping by more than a week since early 2024, pointing to more flexible, last-minute travel habits.
• An 81% surge in luxury rentals and growing EV demand (5% of North American bookings), reflecting a shift toward premium, sustainability-focused travel preferences.
• While North American rentals remain firmly tied to credit cards (99% of bookings), European markets show greater diversification, with credit card usage dropping from 89% to 86% between March 2024 and March 2025. The UK market demonstrates even greater payment innovation, with credit card bookings decreasing from 86% to 83% over the same period, while Apple Pay gains significant traction. Altogether, alternative payments now account for nearly 15% of global transactions processed through the CarTrawler platform.  

Looking ahead, the report said that while seasonal patterns and regional preferences persist, clear signals point toward a customer base increasingly drawn to technological advances, personalized experiences and the flexibility of car rentals as an alternative to car ownership.