Global rental car prices are expected to see ¡®modest¡¯ increases in the year ahead, however local factors will drive rate hikes in some European markets, according to a new American Express Global Business Travel report.

Following ¡°several years of upheaval¡± in the wake of Covid-19, Amex GBT¡¯s Ground Monitor 2025-2026 report highlighted car rental prices at the start of 2025 were beginning to stabilise but uncertainly surrounding US tariffs, coupled with varying local market conditions, have made pricing forecasts ¡°more complex than usual¡±.

¡°Fast-moving geopolitical and economic developments still have the potential to shift pricing quickly,¡± Amex GBT Consulting¡¯s director of strategy Sara Andell said.

¡°That¡¯s why it¡¯s essential to have a well-managed, flexible ground programme ¨C one that can adapt to change and continue delivering value globally.¡±

To that end, the TMC¡¯s latest report features a ¡°forecast range¡± for select countries in Europe, North America, Latin America, Africa and Asia-Pacific, rather than a single forecast value.

Europe presents a mixed outlook, according to Amex GBT, with prices in the Netherlands and Nordics expected to remain relatively stable with a maximum 2 per cent increase. Germany and France are expected to see prices rises of between 3 per cent and 5 per cent, while Belgium and the UK could see ¡°significant¡± increases of up to 6 per cent and 7 per cent, respectively.

In the UK, electric vehicle mandates will likely put upwards pressure on prices, while sustained demand for internal combustion engine (ICE) vehicles in Germany will fuel price hikes in the country.

Meanwhile, in the US, rental prices will likely remain stable, with increases of between 1.5 per cent and 1.9 per cent due to strong supply. However, the TMC said this forecast could be ¡°blown off course¡± by the impacts of trade tariffs on the wider US economy and the car rental sector.

Car rental prices in Australia could also increase by as much as 7 per cent in the coming year due to regional supply-demand imbalances, according to the report.

Sourcing tips

To combat economic uncertainty, Amex GBT suggested building strong ties with key car rental partners and advised corporates to consider adding ride-share options into their ground programme. The TMC also advised corporates to begin considering the potential impact of autonomous vehicles on travel policy, risk, and insurance.