Auto Rental & Leasing NAICS 532111, 532112

Jul 21, 2025 - Domestic Travel Demand Offsets Drop in International Arrivals

• Domestic summer travel demand is largely offsetting a decline in international travel to the US, according to a second-quarter report by CarTrawler, a B2B technology provider to the car rental industry. Inbound travel to the US is expected to decline by 9% in 2025 from the prior year, primarily due to shifting US trade and travel policies, according to Tourism Economics. However, in May 2025, more than 40% of Americans surveyed said they planned to take a trip within the US within the next six months, according to reporting by the New York Times. Among Americans who are planning a trip, 70% plan to travel in the US, according to Bank of America’s 2025 Summer Travel and Entertainment Outlook.
• Retail sales of new vehicles in the U.S. are projected to fall in June, marking a slowdown after a tariff-induced surge earlier in the spring, according to The Wall Street Journal. The initial spike was driven by consumers racing to avoid the 25% tariffs on imported cars and parts imposed by the Trump administration, but ongoing challenges—such as high vehicle prices, elevated interest rates, supply shortages, and economic uncertainty—have cooled demand. Although June sales dipped to their lowest in a year, automakers like Ford and Kia still saw notable gains in the first half of 2025, especially among mainstream models. Analysts remain cautious, with concerns mounting over rising prices and potential supply chain disruptions from trade tensions, which could further impact affordability and availability.

• US automotive fleet sales, which include rental, commercial, and government fleets, decreased by 2.1% in the first six months of 2025 compared to the same period in 2024, according to marketing and data firm Bobit. Fleet sales declined 3.8% in June 2025 compared to a year earlier. Rental fleet sales were a bright spot, rising 5.4% for the first half of 2025 over the same period in 2024. Rental fleet sales were up 2.5% year-over-year in June. However, rental fleet sales growth is showing signs of losing momentum and could not offset weaker demand in the commercial and government fleet segments. Buyers are increasingly cost-sensitive, so more tariffed vehicles entering the market are likely to put downward pressure on fleet vehicle demand in the coming months, according to Cox Automotive.
• In February, several trade associations and companies formed the American Vehicle Owners Alliance (AVOA) to advocate for owners – individuals and businesses – to control their vehicles’ data. Modern vehicles generate, store, and transmit troves of data, and some manufacturers limit data access and control, or charge fees for it. The executive director of the American Car Rental Association (ACRA) said, “Rental car operators rely on this data to enhance the customer experience and improve vehicle safety. Giving vehicle owners — including rental car companies — full access to their own data is essential for a competitive and consumer-friendly rental market.” Members of the AVOA include the ACRA, Hertz, the National Consumer League, the National Association of Fleet Operators, Enterprise Mobility, the Truck Renting and Leasing Association, Safelite, and The American Property Casualty Insurance Association. The AVOA aims to work with Congress and the Trump administration to ensure owners maintain control over vehicle data.