Shouqi and Homeinns announced their strategic partnership in Beijing on Thursday, aimed at easing tailored services for travelers, such as simplifying the process of picking up and returning hired cars.
Shouqi Group has joined with Homeinns Co Ltd to expand outlets into the hotel chain network, to enable travelers to hire or share pick-up and return car services at hotels, according to a news release.
Beijing Shouqi Group expects its affiliate mobility service providers, Shouqi Car Rental, Shouqi Limousine and Chauffeur, and GoFun new energy car sharing, to meet the burgeoning demands at travel destinations with its 29,500 vehicle fleets.
The pilot program is in operation in Beijing and Shanghai, the two companies' headquarter cities, and will be covering more tier-one, two and three cities. Homeinns Co Ltd is operating nearly 3,000 hotels in 355 Chinese cities.
The two companies are both controlled by the Beijing Tourism Group, after its Shanghai Stock Exchange-listed hotel arm BTG Hotel (Group) Co Ltd took over Homeinns for 11 billion yuan in December.
Roland Berger foresaw a stronger growth in Chinese customers' mobility expense, including the amount spent on business and individuals' car hiring.
The Munich-based consulting firm has noted that the industry faces issues in the number of parking spaces, and the ability to dispatch to locations and handle used vehicles.
The firm expected the car rental revenue growth to accelerate in the next five years to 65.7 billion yuan from 50.7 billion yuan in 2015, with a 29.7 percent surge, owing to a surge predicted in business rental.
However, the car hiring sector's daily volume may slow by 34.5 percent from 8.2 million last year to 5.4 million trips by 2020, according to Roland Berger's research released in April.
The research report estimated the annual revenue of mobility market may reach 1.1 trillion yuan by 2020, more than doubled last year's 563 billion yuan, but the majority growth would be contributed by the on-line chauffeured car hailing services.
Comparing with the 127 percent revenue growth rate of on-line chauffeured car hailing services, the car hiring's future development could barely bring surprise to the market.
