Jakarta - Erwin Suryana, chairman of the Association of Regional Car\nRental Entrepreneurs (Asperda), has revealed that car rental demand\nahead of the Eid holiday travel period this year is showing minimal\nsignificant national growth. Most rental operators are reporting\ndeclining demand compared to the previous year, although certain regions\ncontinue to experience relatively strong demand increases.<\/p>\n
\u201cThe majority of Asperda members, approximately 50 per cent, report\nthat vehicle rental demand during the Eid travel period shows no\nincrease,\u201d Suryana said when contacted from Jakarta on Friday.<\/p>\n
He added that around 30 per cent of members are experiencing demand\ndeclines, with only approximately 20 per cent reporting increases\ncompared to the previous year.<\/p>\n
\u201cOverall, demand conditions are lower than the average demand growth\nduring previous Eid periods,\u201d said the chairman of the association,\nwhich has approximately 1,000 vehicle rental business members.<\/p>\n
Suryana identified several factors contributing to the decline in\nvehicle rental demand. One key factor is weakened consumer purchasing\npower and a tendency to curtail spending.<\/p>\n
\u201cDeclining purchasing power, a tendency to hold back spending.\nConsumers are inclined to purchase only essential items and are\nrestraining expenditure on tertiary needs such as car rentals and\ntourism travel,\u201d he said.<\/p>\n
He also noted the impact of employment terminations, which appear to\nbe influencing consumer spending patterns.<\/p>\n
\u201cThe impact of layoffs also seems to be a factor,\u201d he added.<\/p>\n
However, certain regions are demonstrating different demand dynamics.\nOne such area is Malang, East Java.<\/p>\n
Rizki, field coordinator and tour planner at Srigading Trans, a car\nrental service provider in the Jalan Bunga Srigading area in Lowokwaru,\nMalang, stated that car rental demand in his region is actually\nexperiencing significant growth ahead of the Eid holiday.<\/p>\n
According to him, most customers are using rental vehicles for family\nvisiting during Eid celebrations and for tourism in East Java regions,\nsuch as Batu City, Mount Bromo, Tumpak Sewu Waterfall, and Ijen\nCrater.<\/p>\n
Consistent with Asperda\u2019s observations, family vehicles or\nmulti-purpose vehicles (MPVs) remain the primary customer choice, such\nas Avanza and Ertiga models.<\/p>\n
With increasing demand during the travel period, rental companies are\nadjusting their tariffs accordingly.<\/p>\n
\u201cThere will definitely be increases, nearly 50 per cent price\nincreases from the standard rate, typically from seven days before to\nseven days after the holiday,\u201d Rizki said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/car-rental-demand-stagnates-ahead-of-eid-holiday-with-some-regions-experiencing-growth-1773413559", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }