Auto Rental News
MenuMENU
SearchSEARCH

South Africa: Old Market, New Growth

A weakness in the rand has spurred international inbound tourism and kept South Africans within the country on holiday, while falling fuel prices have South Africans driving more.

Chris Brown
Chris BrownAssociate Publisher
Read Chris's Posts
October 13, 2016
South Africa: Old Market, New Growth

South Africa's advanced highway infrastructure serves well-known tourist destinations such as the penguin colony at Boulders Beach in Cape Town. With car rental companies represented in all major cities and airports using "Western" car rental processes, South Africa is considered the most mature market on the African continent.

4 min to read


South Africa's advanced highway infrastructure serves well-known tourist destinations such as the penguin colony at Boulders Beach in Cape Town. With car rental companies represented in all major cities and airports using "Western" car rental processes, South Africa is considered the most mature market on the African continent.

Compared to most countries on the African continent, South Africa is a mature car rental market, with the major international brands having established footprints as far back as the 1950s (Hertz) and 1960s (Avis) through large franchise partners.

It also has a thriving mid-tier market of well-established independents, with brands such as First Car Rental (a Sixt franchisee), Tempest Car Hire, and Bidvest Car Rental.

Ad Loading...

With an advanced highway infrastructure serving well-known tourist destinations, representation in all major cities and airports and traditional “Western” car rental processes, South Africa has left behind emerging market status decades ago. Nonetheless, “The overall health of the (South African) car rental market is positive,” says Kevin Barnardo, owner of Cape Town-based RAV - Rent A Vehicle.

Barnardo says that the South African car rental market grew 20% in the first half of 2016 over 2015. Factors encouraging growth include recent weakness in the South African rand, which has had a positive impact on overseas travel to South Africa.

As well, South Africa relaxed stringent rules regarding travel with birth certificates for both South Africans and foreign visitors, which has made it easier for inbound tourists to visit. Because their money is going further, foreign visitors are staying longer and renting larger or more expensive vehicles, says Barnardo.

Kevin Barnardo owns Cape Town-based RAV - Rent A Vehicle.

The weakened rand has also led to more South Africans taking domestic holidays instead of choosing more expensive ones abroad, while falling fuel prices have helped to lower airfares and spur travel by car.

The total car rental fleet in South Africa varies from 45,000 to 65,000 depending on the season.

Ad Loading...

Adapting to Change

Rates have been helped by the recent growth of international tourism due to favorable exchange rates, though this has been dampened in certain markets as a couple of major players fight for market share, Barnardo says. Corporate rates, negotiated on a yearly basis, typically stay competitive.

Prepay options are growing, with discounts given for bookings made on branded websites in which renters’ credit cards are debited upfront. “This works in both the suppliers’ and the clients’ benefit,” Barnardo says.

In terms of remarketing, most South African car rental companies are part of auto dealer groups, so they are able to sell de-fleeted rental vehicles via their dealerships, says Monique Schlorf of Explore Africa, a family-owned car rental brokerage based in Cape Town. Today, vehicles sold from rental fleets come with vehicle history reports that provide peace of mind to prospective buyers.

Some rental companies send out promotional emails to rental clients to buy used cars from their dealer umbrella. “It’s a well-oiled system,” says Schlorf.

Schlorf says the well-known European brokers have been gaining share in South Africa. “Online booking sites such as CarTrawler, Billiger Mietwagen, and Auto Europe are dominating the market at the moment with their instant price comparisons,” she says. “They might not offer personalized service, but for a lot of travelers it’s all about saving a buck.”

Ad Loading...

Schlorf says Explore Africa, agents for RAV – Rent-A-Vehicle, Thrifty Car Rental, and others, has maintained business through relationship building and personal outreach with travel advice. “We want to put a friendly face on car rental instead of being an obscure online booking machine,” Schlorf says, though she points out that the company launched a new website and is active on social media.

Tuki Schlorf and Monique Schlorf started Explore Africa, a family-owned car rental brokerage based in Cape Town, in 1998.

Barnardo says rental companies have ramped up their marketing through social media as well, and they offer retail discounts through social media channels. Schlorf adds that another new form of competition is rate discounts offered through incentive programs provided by local airlines and Discovery Health, the country’s largest health provider.

In terms of new transportation options, Uber has had an impact, though most taxis and chauffeured transportation occur in urban areas.

Johannesburg’s Locomute is Africa’s first carsharing network, growing to 300 vehicles from its launch in November 2015.

Still, traditional car rental seems well poised for the future, owing to long travel distances between cities and attractions. Nominal drop fees make it easy for travelers to pick up a car in one city and drop off in another, Barnardo says. “Car rental offers travelers around the world the opportunity to enjoy South Africa as fast or as slow as they feel.”

Subscribe to Our Newsletter

More Rental Operations

thumbnail what does it take to succeed in b2b rentals
Rental Operations•by Chris Brown•October 12, 2026

What Does It Take to Succeed in B2B Rentals?

The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.

Read More →
Photo of Ana Laborde and world map
Rental Operations•by Chris Brown•October 12, 2026

NPR Builds on International Partnerships to Grow Rental Bookings

With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.

Read More →
Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
Ad Loading...
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
globe of world and drivers license from UK
Rental Operations•September 28, 2026

The Booking Is Confirmed, But Is Your Customer Ready to Drive?

For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.

Read More →
Scenes from Car Rental Shows past
Rental Operations•by Staff•September 23, 2026

ICRS 2027 Opens Call for Papers

The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.

Read More →
Ad Loading...
hand holding phone and Turo logo
Rental Operations•by Staff•September 21, 2026

Turo to Launch Vehicle Delivery Service

Turo Delivered will let travelers search for vehicles that hosts can deliver directly to hotels, homes, airports, train stations, and other locations.

Read More →
plane, palm trees, car rental sign
Rental Operations•by Chris Brown•September 15, 2026

Palm Beach Airport Code Change Creates Car Rental Distribution Gap

A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.

Read More →
Team members of U-Save's new franchise
Rental Operations•by Staff•September 15, 2026

U-Save Continues Dominican Republic Expansion with Launch in Punta Cana

The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.

Read More →
Ad Loading...
A traveler searches for rental cars with an AI bot
Rental Operations•September 14, 2026

When AI Books the Rental Car, Who Controls the Sale?

As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)

Read More →
Ad Loading...