After a volatile period defined by pandemic-induced disruptions, business travelers in the United States entering 2025 will finally find some relief at car rental counters. According to the Ground Monitor 2025-26 report by American Express Global Business Travel (Amex GBT), prices for car rentals are set to rise only marginally—a stark contrast to the significant spikes following the global health crisis.

But while U.S. market stability is promising news, global business travelers should brace for varied pricing trends around the world. Local factors, economic volatility, labor shortages, and shifting travel habits continue to exert upward pressure on rates, especially in prominent European and Latin American destinations.

U.S. Rental Market: Stability Returns, But Remain Vigilant

The U.S. car rental sector is benefitting from rebalanced supply chains and improved vehicle availability. Large providers like Hertz, Avis, and Enterprise have replenished their fleets after pandemic-era selloffs, helped by recovering automotive production flows. The Ground Monitor expects U.S. rental rates to tick upward by just 1.5% to 1.9% in 2025, tracking closely with inflation and allowing companies to better forecast travel budgets.

“After years of disruption, we’re now seeing car rental prices begin to stabilize across many countries,” says Sara Andell, Director of Consulting Strategy at Amex GBT Consulting. However, she warns that “the picture isn’t uniform.” U.S. pricing remains susceptible to factors such as potential new tariffs on Chinese electric vehicles and global supply shocks, which could reset sourcing strategies for rental companies and fleet managers.

Elsewhere in North America, Canadian travelers face slightly higher projected increases—between 2.5% and 3.0%—but these are modest compared to previous years’ volatility. Canadian markets mirror U.S. improvements in supply and recovery from the challenges of 2020-2022, including vehicle shortages and aggressive price hikes.

Europe: Diverging Trends and Regulatory Pressures

Europe’s car rental market remains highly fragmented, with divergent price forecasts driven by local labor markets, electrification policies, and economic realities. In the United Kingdom, rental rates could soar by 5% to 7% in 2025. This spike is partially attributed to ongoing labor shortages impacting delivery and collection services, and surging costs related to the electrification of fleets in response to government sustainability mandates. Urban centers, where both demand and regulatory pressure are most acute, are likely to see the sharpest increases.

Belgium is expected to see rates climb 4% to 6%, with companies seeking to recover losses from past disruptions. France and Germany will see more measured increases, between 3% and 5%, due to persistent but slowly easing supply-demand mismatches and continuing cost pressures.

Interestingly, the Netherlands and the Nordic countries are forecasted to have largely stable rental prices, with anticipated changes of 0% to 2%. Higher adoption of electric vehicles and robust, integrated transit options help temper pricing in these regions, offering some respite for multinational companies managing pan-European programs.

Latin America and Asia-Pacific: Inflation and Instability Drive Volatility

South America presents a more tumultuous picture. Argentina stands out, with rental rates projected to rise between 5% and 7%, primarily due to sustained inflation and currency fluctuations. Corporate travelers to Argentina face unpredictable pricing and should plan for last-minute changes, as economic policy can abruptly affect costs and availability.

Brazil’s market is highly fluid. The Ground Monitor’s forecast ranges from -3% to +3%, a testament to both ongoing economic instability and periods of fleet overcapacity. For Chile, a moderate increase of up to 5% is expected.

In the Asia-Pacific region, Australia is set for a steep climb—rates may increase between 3% and 7%. Seasonal demand surges, capacity constraints in remote mining and tourism hubs, and patchy recovery in metropolitan areas all play roles. Travel managers sending staff to Australia should carefully consider local conditions and book in advance, especially during peak seasons or major events.

Global Car Rental Rate Outlook: 2025–2026 Snapshot

Mobility Strategies for Business Travelers

Today’s leading mobility programs emphasize adaptability and cross-department collaboration. Travel managers are urged to look beyond price negotiation and integrate car rental decisions with broader corporate fleet management. Involvement of HR, procurement, and legal teams can boost negotiating leverage and streamline compliance and reporting efforts.

The report highlights a growing trend: incorporating ride-share platforms such as Uber and Lyft into official corporate travel policies. This reflects changing employee preferences, particularly among younger professionals, and eases compliance and expense reporting through digital receipts and real-time trip tracking. While duty-of-care concerns remain, technology is providing better visibility and control, making these platforms more attractive for managed business travel.

Travel managers are also encouraged to reassess the cost-effectiveness of delivery and collection services, which have become more expensive and less reliable due to ongoing labor shortages. Alternatives such as self-pickup, especially at non-airport locations, may help control budget creep without compromising traveler satisfaction.

Looking Forward: The Role of Technology and Flexibility

Autonomous vehicles (AVs) are beginning to shape ground transportation strategies, with several U.S. cities reporting over a million monthly AV ride-hailing trips. While mainstream adoption for business travel is likely years away, organizations are proactively considering implications such as risk management, liability, and integration with vendor selection processes.

The global car rental market is emerging from the pandemic’s shadow, but price and availability will continue to be shaped by micro-trends: regional economic shocks, evolving traveler preferences, sustainability demands, and unpredictable geopolitical factors. As a result, organizations able to maintain flexible, well-managed ground programs that balance cost, convenience, and safety will be best positioned to deliver value for their traveling workforce in 2025 and beyond.