The United States car rental market grew modestly in 2025 as operators navigated weaker international demand, vehicle recalls and evolving booking behavior. Phocuswright's newly released U.S. Car Rental Market Brief 2026 breaks down exactly what pressured the segment last year, where the recovery is taking shape and what structural shifts are quietly reshaping how cars get rented in America.
A decline in international demand left a mark. Airport locations generate the bulk of revenue for the major operators, which made 2025's inbound travel slump particularly painful. The U.S. saw a sharp decline in international visitors, with Canadian arrivals falling dramatically. In an industry where two thirds of revenue is airport-derived, that exposure directly affects rental-day volumes and pricing power.
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Supplier-direct online already commands the largest share of gross bookings, and that share is growing. Meanwhile, reservation and call center channels are in steady decline. Large operators are investing heavily in apps, digital keys and personalized offers to deepen the direct relationship and reduce distribution costs. Smaller independent operators, meanwhile, are increasingly relying on OTAs to expand their reach.
The broader market is forecast to grow in low single digits through 2029, but the story isn't really about growth rates. It's about who owns the customer relationship, how fleets get managed and which operators are building for the next cycle, not just surviving the current one.
U.S. Car Rental Market Brief 2026
This brief delivers top-level takeaways for the U.S. car rental travel market, featuring charts and analysis on the key trends, segment highlights and market sizing datapoints that matter most.