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The Car Rental Industry

in Turkey: Market Entry

Strategies and Emerging

Opportunities, Analyses and

Forecasts to 2016

Industry Forecast Report

Reference code: TT0011MR

Published: February 2012

BRICdata

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London EC4Y 0BS

United Kingdom

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EXECUTIVE SUMMARY

The Car Rental Industry in Turkey: Market Entry Strategies and Emerging Opportunities, Analyses and

Forecasts to 2016

© BRICdata. This product is licensed and is not to be photocopied Published: February 2012

1 Executive Summary

The car rental industry in Turkey grew strongly during the review period, supported by global economic growth, the

government initiatives to improve infrastructure, increasing volumes of tourism and business activity, as well as the rising

middle-class population with high disposable incomes. Turkey has a favorable economic environment, making it an

attractive destination for international car rental operators. The Turkish car rental industry grew at a CAGR of X.XX%

during the review period, and valued TRYX.X billion in 2011. The industry is expanding rapidly and is expected to grow at

a CAGR of XX.XX% over the forecast period to reach TRYX.X billion in 2016.

Increasing GDP and annual disposal income will positively impact the Turkish car rental industry

Steady growth in GDP and annual disposable income in Turkey in recent years have fueled the expansion of the country’s

car rental industry. Turkey’s gross domestic product (GDP) at constant prices grew from US$XXX.X billion in 2007 to

US$XXX.X billion in 2011, recording a CAGR of X.XX% during the review period. It is projected to grow at a CAGR of

X.XX% over the forecast period to reach US$XXX.X billion in 2016. The growing GDP, backed by a healthy economy, will

improve the confidence of both local and international companies. This, in turn, is expected to increase the volume of

business tourists, resulting in increased demand for car rental services in the business sector. The annual disposable

income in the country is expected to reach US$XXX.X billion in 2016, growing at a CAGR of X.XX% over the forecast

period. This will generate demand for car rentals among leisure customers.

Leisure and business tourist volumes remain the key drivers

Demand for rented cars in Turkey is primarily driven by the rising volume of inbound leisure or business tourists. The total

number of business tourists in Turkey increased from X.X million in 2010 to X.X million in 2011, an increase of X.X%. The

volume of business tourists is projected to reach X.X million in 2016, growing at a CAGR of X.XX% over the forecast

period. Business traffic for both domestic and inbound tourists is expected to grow rapidly over the forecast period. The

number of leisure tourists is likely to grow more quickly than that of business tourists during the forecast period, with a

CAGR of X.XX%.

Favorable government regulation intensifies competition in the industry

The Turkish car rental industry is forecast to remain competitive for both domestic and foreign companies during the

forecast period, due to favorable government regulations that allow XX% foreign investment in the car rental industry. This

will encourage foreign operators to enter Turkey. Leading companies active in the Turkish car rental industry include Sixt,

Auto Europe, Europcar, Avis and Hertz, all of which offer a range of car and fleet rental services. To remain competitive,

companies are pursuing various marketing strategies, such as partnering with airline operators and online booking service

providers to provide attractive tour packages at reduced prices.

Franchise model key to successful growth in the Turkish car rental industry

International companies are using the franchise business model as a cost-effective means of expansion in the Turkish car

rental industry. Many car rental companies use the franchise model, and agreements with local partners are widely seen

as the most effective way for a company to establish a brand throughout the country. Leading companies using this model

include Avis, which operates in Turkey through XX franchisees along with XX owned offices, while Hertz has franchise

outlets in major Turkish cities such as Istanbul and Ankara.

Domestic and inbound tourist spending on travel and transport will keep the industry buoyant

The Turkish car rental industry is expected to grow at a significant pace due to the growth in spending on domestic and

inbound travel and transportation. Total spending by domestic tourists on travel and transportation grew at a CAGR of

X.XX% during the review period to reach TRYXX.X billion, primarily driven by the country’s rising disposable incomes,

especially among the middle-class population, as well as the government’s infrastructure improvement measures.

Meanwhile, inbound travel and transport expenditure is projected to grow at a CAGR of X.XX% over the forecast period to

reach TRYXX.X billion in 2016, which will be driven by promotional activities undertaken by the ministry of tourism and the

country’s strong economy.

TABLE OF CONTENTS


Forecasts to 2016


TABLE OF CONTENTS

1 Executive Summary .............................................................................................................................. 2 2 Turkish Car Rental Industry Market Environment .............................................................................. 7

2.1 Market Regulations .................................................................................................................................. 7

2.2 Macroeconomic Fundamentals ............................................................................................................... 8

2.2.1 Turkey – GDP at constant prices ............................................................................................................. 8

2.2.2 Turkey – GDP by key segments .............................................................................................................. 9

2.2.3 Turkey – inflationary forecast and car rental industry outlook ............................................................... 10

2.3 Business Confidence ............................................................................................................................. 11

2.4 Consumer Confidence ........................................................................................................................... 12

2.4.1 Turkey – annual disposable income ...................................................................................................... 12

2.4.2 Turkey – unemployment rate ................................................................................................................. 13

3 Market Size and Growth Potential ...................................................................................................... 14

3.1 Turkish car rental industry – market size ............................................................................................... 14

3.2 Turkish car rental industry – airport vs non-airport locations ................................................................ 16

3.2.1 Demand comparison for rented cars at airport and non-airport locations ............................................. 16

3.2.2 Turkish car rental industry – car rental industry for airport locations ..................................................... 17

3.2.3 Turkish car rental industry – non-airport locations ................................................................................ 19

4 Turkish Car Rental Industry – Customer Category Analysis .......................................................... 21

4.1 Turkish Car Rental Industry – Individual Customers ............................................................................. 22

4.2 Turkish Car Rental Industry – Corporate Customers ............................................................................ 24

4.3 Turkish Car Rental Industry – Insurance Replacement Customers ...................................................... 26

5 Competitive Landscape and Key Performance Indicators .............................................................. 28

5.1 Competitive landscape .......................................................................................................................... 28

5.2 Key performance indicators ................................................................................................................... 29

5.2.1 Turkish car rental industry – fleet size ................................................................................................... 30

5.2.2 Turkish car rental industry – fleet size by vehicle type .......................................................................... 32

5.2.3 Turkish car rental industry – rentals ...................................................................................................... 34

5.2.4 Turkish car rental industry – rental days ............................................................................................... 36

5.2.5 Turkish car rental industry – average rental length ............................................................................... 38

5.2.6 Turkish car rental industry – average revenue per day ......................................................................... 40

6 Growth Strategy, Demand Drivers and Key Trends ......................................................................... 42

6.1 Market entry strategy ............................................................................................................................. 42

6.1.1 Market entry route.................................................................................................................................. 42

6.2 Demand drivers ..................................................................................................................................... 43

6.2.1 Leisure tourists – volumes and the car rental market ............................................................................ 43

6.2.2 Business tourists – volumes and the car rental market ......................................................................... 44

6.2.3 Spending patterns and demand for rented cars .................................................................................... 45

7 Marketing and Growth Strategy ......................................................................................................... 46 8 Key Operators ...................................................................................................................................... 47

8.1 Sixt Car Rental Company ...................................................................................................................... 47

8.1.1 Sixt Car Rental Company– key company facts ..................................................................................... 47

8.1.2 Sixt Car Rental Company – main services ............................................................................................ 47

TABLE OF CONTENTS


Forecasts to 2016


8.1.3 Sixt Car Rental Company – key employees .......................................................................................... 47

8.2 Auto Europe, LLC .................................................................................................................................. 48

8.2.1 Auto Europe, LLC – key company facts ................................................................................................ 48

8.2.2 Auto Europe, LLC – main services ........................................................................................................ 48

8.2.3 Auto Europe, LLC – key employees ...................................................................................................... 48

8.3 Europcar ................................................................................................................................................ 49

8.3.1 Europcar– key company facts ............................................................................................................... 49

8.3.2 Europcar – main services ...................................................................................................................... 49

8.3.3 Europcar – key employees .................................................................................................................... 49

8.4 Avis Rent A Car System, LLC ............................................................................................................... 50

8.4.1 Avis Rent A Car System, LLC – key company facts ............................................................................. 50

8.4.2 Avis Rent A Car System, LLC – main services ..................................................................................... 50

8.4.3 Avis Rent A Car System, LLC – key employees ................................................................................... 50

8.5 Hertz Global Holdings, Inc. .................................................................................................................... 51

8.5.1 Hertz Global Holdings, Inc. – key company facts .................................................................................. 51

8.5.2 Hertz Global Holdings, Inc. – main services .......................................................................................... 51

8.5.3 Hertz Global Holdings, Inc. – key employees ........................................................................................ 51

9 Appendix .............................................................................................................................................. 52

9.1 About BRICdata ..................................................................................................................................... 52

9.2 Methodology .......................................................................................................................................... 53

9.3 Definitions .............................................................................................................................................. 54

9.4 Disclaimer .............................................................................................................................................. 55

TABLE OF CONTENTS


Forecasts to 2016


LIST OF FIGURES

Figure 1: Turkey – GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000) ................................................................... 8 Figure 2: Turkey – GDP by Key Segments (%), 2007 vs 2011 ..................................................................................................................... 9 Figure 3: Turkey – Inflation (%), 2007–2016 .............................................................................................................................................. 10 Figure 4: Turkey – Business Confidence Index 2008–2011 ....................................................................................................................... 11 Figure 5: Turkey – Annual Disposable Income (US$ Billion), 2007–2016 ................................................................................................... 12 Figure 6: Turkey – Unemployment Rate (%), 2007–2016 .......................................................................................................................... 13 Figure 7: Turkish Car Rental Industry – Market Size (TRY Million), 2007–2011 ......................................................................................... 14 Figure 8: Turkish Car Rental Industry – Market Size (TRY Million), 2012–2016 ......................................................................................... 15 Figure 9: Turkish Car Rental Industry – Airport vs Non-Airport Locations (TRY Million), 2007–2016 .......................................................... 16 Figure 10: Turkish Car Rental Industry – Airport Locations (TRY Million), 2007–2011 ............................................................................... 17 Figure 11: Turkish Car Rental Industry – Airport Locations (TRY Million), 2012–2016 ............................................................................... 18 Figure 12: Turkish Car Rental Industry – Non-Airport Locations (TRY Million), 2007–2011 ........................................................................ 19 Figure 13: Turkish Car Rental Industry – Non-Airport Locations (TRY Million), 2012–2016 ........................................................................ 20 Figure 14: Turkish Car Rental Industry – Market Size by Customer Category (%), 2011 ............................................................................ 21 Figure 15: Turkish Car Rental Industry – Leisure Tourist Market Size (TRY Million), 2007–2011 ............................................................... 22 Figure 16: Turkish Car Rental Industry – Leisure Tourist Market Size (TRY Million), 2012–2016 ............................................................... 23 Figure 17: Turkish Car Rental Industry – Business Tourist Market Size (TRY Million), 2007–2011 ............................................................ 24 Figure 18: Turkish Car Rental Industry – Business Tourist Market Size (TRY Million), 2012–2016 ............................................................ 25 Figure 19: Turkish Car Rental Industry – Insurance Replacement Market Size (TRY Million), 2012–2016 ................................................. 27 Figure 20: Turkish Car Rental Industry – Fleet Size, 2007–2011 ............................................................................................................... 30 Figure 21: Turkish Car Rental Industry – Fleet Size, 2012–2016 ............................................................................................................... 31 Figure 22: Turkish Car Rental Industry – Fleet Size by Vehicle Type (%), 2007–2011 ............................................................................... 32 Figure 23: Turkish Car Rental Industry – Fleet Size by Vehicle Type (%), 2012–2016 ............................................................................... 33 Figure 24: Turkish Car Rental Industry – Rentals (Thousand), 2007–2011 ................................................................................................ 34 Figure 25: Turkish Car Rental Industry – Rentals (Thousand), 2012–2016 ................................................................................................ 35 Figure 26: Turkish Car Rental Industry – Rental Days (Thousand), 2007–2011 ......................................................................................... 36 Figure 27: Turkish Car Rental Industry – Rental Days, 2012–2016 ............................................................................................................ 37 Figure 28: Turkish Car Rental Industry – Average Rental Length (Days), 2007–2011 ................................................................................ 38 Figure 29: Turkish Car Rental Industry – Average Rental Length (Days), 2012–2016 ................................................................................ 39 Figure 30: Turkish Car Rental Industry – Average Revenue per Day (TRY), 2007–2011 ........................................................................... 40 Figure 31: Turkish Car Rental Industry – Average Revenue per Day (TRY), 2012–2016 ........................................................................... 41 Figure 32: Turkish Leisure Tourist Volumes (Thousands) vs Leisure Car Rental Market (TRY Million), 2007–2016 ................................... 43 Figure 33: Turkish Business Tourist Volumes (Thousands) vs Business Car Rental Market (TRY Million), 2007–2016 ............................. 44 Figure 34: Turkish Domestic and International Tourist Expenditure on Travel and Transportation (TRY Million), 2007–2016 ..................... 45

TABLE OF CONTENTS


Forecasts to 2016


LIST OF TABLES

Table 1: Turkey – GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000) .................................................................... 8 Table 2: Turkey – GDP by Key Segments (%), 2007 vs 2011 ...................................................................................................................... 9 Table 3: Turkish Car Rental Industry – Market Size (TRY Million), 2007–2011 .......................................................................................... 14 Table 4: Turkish Car Rental Industry – Market Size (TRY Million), 2012–2016 .......................................................................................... 15 Table 5: Turkish Car Rental Industry – Airport Locations (TRY Million), 2007–2011 .................................................................................. 17 Table 6: Turkish Car Rental Industry – Airport Locations (TRY Million), 2012–2016 .................................................................................. 18 Table 7: Turkish Car Rental Industry – Non-Airport Locations (TRY Million), 2007–2011 ........................................................................... 19 Table 8: Turkish Car Rental Industry – Non-Airport Locations (TRY Million), 2012–2016 ........................................................................... 20 Table 9: Turkish Car Rental Industry – Leisure Tourist Market Size (TRY Million), 2007–2011 .................................................................. 22 Table 10: Turkish Car Rental Industry – Leisure Tourist Market Size (TRY Million), 2012–2016 ................................................................ 23 Table 11: Turkish Car Rental Industry – Business Tourist Market Size (TRY Million), 2007–2011 ............................................................. 24 Table 12: Turkish Car Rental Industry – Business Tourist Market Size (TRY Million), 2012–2016 ............................................................. 25 Table 13: Turkish Car Rental Industry – Insurance Replacement Market Size (TRY Million), 2007–2011 .................................................. 26 Table 14: Turkish Car Rental Industry – Insurance Replacement Market Size (TRY Million), 2007–2011 .................................................. 26 Table 15: Turkish Car Rental Industry – Insurance Replacement Market Size (TRY Million), 2012–2016 .................................................. 27 Table 16: Turkish Car Rental Industry – Competitive Landscape ............................................................................................................... 28 Table 17: Turkish Car Rental Industry – Growth Outlook by Key Indicators, 2012–2016 ............................................................................ 29 Table 18: Turkish Car Rental Industry – Fleet Size, 2007–2011 ................................................................................................................ 30 Table 19: Turkish Car Rental Industry – Fleet Size, 2012–2016 ................................................................................................................ 31 Table 20: Turkish Car Rental Industry – Fleet Size by Vehicle Type, 2007–2011....................................................................................... 32 Table 21: Turkish Car Rental Industry – Fleet Size by Vehicle Type, 2012–2016....................................................................................... 33 Table 22: Turkish Car Rental Industry – Rentals (Thousand), 2007–2011 ................................................................................................. 34 Table 23: Turkish Car Rental Industry – Rentals (Thousand), 2012–2016 ................................................................................................. 35 Table 24: Turkish Car Rental Industry – Rental Days (Thousand), 2007–2011 .......................................................................................... 36 Table 25: Turkish Car Rental Industry – Rental Days, 2012–2016 ............................................................................................................. 37 Table 26: Turkish Car Rental Industry – Average Rental Length (Days), 2007–2011 ................................................................................. 38 Table 27: Turkish Car Rental Industry – Average Rental Length (Days), 2012–2016 ................................................................................. 39 Table 28: Turkish Car Rental Industry – Average Revenue per Day (TRY), 2007–2011 ............................................................................ 40 Table 29: Turkish Car Rental Industry – Average Revenue per Day (TRY), 2012–2016 ............................................................................ 41 Table 30: Sixt Car Rental Company – Key Facts ....................................................................................................................................... 47 Table 31: Sixt Car Rental Company – Main Services ................................................................................................................................. 47 Table 32: Sixt Car Rental Company – Key Employees .............................................................................................................................. 47 Table 33: Auto Europe, LLC – Key Facts ................................................................................................................................................... 48 Table 34: Auto Europe, LLC – Main Services ............................................................................................................................................ 48 Table 35: Auto Europe, LLC – Key Employees .......................................................................................................................................... 48 Table 36: Europcar – Key Facts ................................................................................................................................................................ 49 Table 37: Europcar – Main Services .......................................................................................................................................................... 49 Table 38: Europcar – Key Employees ........................................................................................................................................................ 49 Table 39: Avis Rent A Car System – Key Facts ......................................................................................................................................... 50 Table 40: Avis Rent A Car System – Main Services ................................................................................................................................... 50 Table 41: Avis Rent A Car System – Key Employees ................................................................................................................................ 50 Table 42: Hertz Global Holdings, Inc. – Key Facts ..................................................................................................................................... 51 Table 43: Hertz Global Holdings, Inc. – Main Services............................................................................................................................... 51 Table 44: Hertz Global Holdings, Inc. – Key Employees ............................................................................................................................ 51 Table 45: Travel and Tourism Definitions ................................................................................................................................................... 54

TURKISH CAR RENTAL INDUSTRY MARKET ENVIRONMENT


Forecasts to 2016


2 Turkish Car Rental Industry Market Environment

The car rental industry in Turkey has performed positively, primarily due to increased economic activity, growth in tourism,

the growing civil aviation market and government investment in road infrastructure. Valuing TRYX.X billion in 2011, the

Turkish car rental industry grew at a CAGR of X.XX% during the report’s 2007–2011 review period, due to an increase in

the volume of leisure and corporate tourists, and the rise in air traffic. Car rental revenues are expected to register a

CAGR of XX.XX% over the report’s 2012–2016 forecast period and reach TRYX.X billion in 2016. The car rental industry

is highly competitive, with a large number of small, medium-sized and large enterprises operating with extensive

geographic coverage. With the car rental industry expected to grow, the number of car rental operators in the major cities

such as Istanbul, İzmir, Antalya and Ankara is expected to increase over the forecast period.

2.1 Market Regulations

FDI regulatory framework

The country’s high projected economic growth and relatively strong financial position, along with investor-friendly

regulations, have made Turkey a preferred destination for leading multinational car rental companies. The Turkish

government implemented the Foreign Direct Investment Law in August 2003, which states that foreign companies

established in accordance with the Turkish Commercial Code are regarded as local Turkish companies and are, therefore,

entitled to the same rights and exemptions granted to domestic companies. The government allows XX% foreign direct

investment (FDI) in the car rental industry which, supported by business-friendly laws and regulations, has encouraged

several foreign car rental companies to enter the industry, either through setting up branch offices, or franchising or

licensing arrangements.

License for car rental operators

The car rental industry in Turkey is regulated by the Association of Travel Agencies under the Ministry of Tourism. The

regulations allow car rental companies to set up business in the country once they receive an operation license from the

Ministry of Tourism. They are also required to become a member of the Association of Turkish Travel Agencies.

Taxation requirements

The basic corporate income tax rate levied on business profits in Turkey is XX%. Companies whose statutory domicile is

in Turkey have full tax liability, while those operating through a branch or a joint venture have limited tax liability, subject to

corporate tax on profits earned in Turkey on an annual basis. Companies are required to pay advance corporate income

tax based on their quarterly profits at the rate of XX%. Advance corporate income taxes paid during the tax year are offset

against the ultimate corporate income tax liability of the company, which is determined in the related year's corporate

income tax return.

TURKISH CAR RENTAL INDUSTRY MARKET ENVIRONMENT


Forecasts to 2016


2.2 Macroeconomic Fundamentals

The Turkish economy grew at a CAGR of X.XX% during the review period, and is expected to post a CAGR of X.XX% in

the forecast period. The economy has recorded strong through growth in several sectors across the country, aided by the

government’s infrastructure spending.

This section analyzes the various macroeconomic indicators expected to impact the Turkish car rental industry.

2.2.1 Turkey – GDP at constant prices

Turkish GDP at constant prices grew from US$XXX.X billion in 2007 to US$XXX.X billion in 2011, recording a CAGR of

X.XX% during the review period. It is projected to grow at a CAGR of X.XX% over the forecast period to reach US$XXX.X

billion in 2016. Healthy economic growth, supported by increasing levels of government spending on infrastructure, is

expected to attract further foreign investment, offering promising growth opportunities for car rental businesses in the

country.

Table 1: Turkey – GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000)

2007 2008 2009 2010 2011

GDP XXX.X XXX.X XXX.X XXX.X XXX.X

2012 2013 2014 2015 2016

GDP XXX.X XXX.X XXX.X XXX.X XXX.X

Source: BRICdata analysis © BRICdata

Figure 1: Turkey – GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000)


TURKISH CAR RENTAL INDUSTRY – MARKET SIZE AND GROWTH

POTENTIAL


Forecasts to 2016


3 Market Size and Growth Potential

The Turkish car rental industry has performed positively in the past few years. The industry registered robust growth at a

CAGR of X.XX% during the review period, reaching TRYX.X billion in 2011, which was primarily attributed to an increase

in the volume of leisure and corporate tourists, and the increase in air traffic. The industry comprises a large number of

small, medium-sized and large enterprises, and the outlook for the car rental industry is optimistic as demand typically

increases during positive economic periods. Car rental revenues are expected to register a CAGR of XX.XX% over the

forecast period to reach TRYX.X billion in 2016. Increasing economic development and government initiatives on

infrastructural improvements offer promising growth opportunities for car rental businesses in the country.

This section provides insights into the overall market size of the Turkish car rental industry. It covers both the current

market dynamics and the future outlook for the industry.

3.1 Turkish car rental industry – market size

The Turkish car rental industry achieved strong results in 2011, increasing by XX.X% from 2010 in value terms to reach

TRYX.X billion. The industry was affected by the global financial crisis in 2009 and registered a decline in demand of

XX.X%, but recovered in 2010 with an increase of XX.X% over 2009. Overall, the industry registered robust growth at a

CAGR of X.XX% during the review period. The positive performance of the industry is primarily attributed to infrastructure

development, increased passenger inflows at airports, and rising domestic and inbound tourism.

Table 2: Turkish Car Rental Industry – Market Size (TRY Million), 2007–2011

Market 2007 2008 2009 2010 2011 CAGR 2007–2011

Market size X,XXX.X X,XXX.X X,XXX.X X,XXX.X X,XXX.X X.XX%


Figure 2: Turkish Car Rental Industry – Market Size (TRY Million), 2007–2011


TURKISH CAR RENTAL INDUSTRY – CUSTOMER CATEGORY

ANALYSIS


Forecasts to 2016


4 Turkish Car Rental Industry – Customer Category Analysis

Customers in the Turkish car rental industry are classified into three categories:

Individual or leisure tourists: This category includes individual travelers booking directly or indirectly through

tour operators, partnership arrangements, travel companies and brokers, and mainly traveling for leisure

purposes. The category is more seasonal than the corporate customer category, with demand peaking over the

key holiday periods.

Corporate customers: This category primarily includes corporate professionals using car rental services

specifically for business purposes, and booking via negotiated arrangements with their employers or through

vehicle replacement companies. This category displays a relatively stable pattern of demand throughout the

year. The primary requirements of corporate customers are competitive prices, speed and quality of service,

reliability and geographical coverage.

Insurance replacement companies: This category comprises insurance and leasing companies, vehicle

dealerships, and repair shops with which companies have a direct contractual relationship. This category also

displays a relatively even pattern of demand throughout the year and customers' requirements are similar to

those of corporate customers.

As of 2011, leisure customers formed the largest category for car rental companies in Turkey with a market size of around

TRYX.X billion, followed by business customers with TRYXXX.X million, and insurance replacements with TRYXX.X

million.

Figure 3: Turkish Car Rental Industry – Market Size by Customer Category (%), 2011


TURKISH CAR RENTAL INDUSTRY – GROWTH STRATEGY, DEMAND

DRIVERS AND KEY TRENDS


Forecasts to 2016


5 Growth Strategy, Demand Drivers and Key Trends

5.1 Demand drivers

Demand for rented cars in the Turkish car rental industry is primarily driven by the volumes of inbound leisure or business

tourists visiting the country, and the spending patterns of both domestic and international users on travel and transport.

5.1.1 Spending patterns and demand for rented cars

In 2011, total spending by domestic tourists on travel and transport reached TRYXX.X billion, an increase of X.X% in

comparison to 2010. Overall, spending on travel and transport registered a CAGR of X.XX% during the review period.

Domestic spending on travel and transport is forecast to grow from TRYXX.X billion in 2012 to TRYXX.X billion in 2016,

registering a CAGR of X.XX%. In 2011, international tourists spent TRYXX.X billion on travel and transport, an increase

of X.X% over 2010. International tourist spending on travel and transport is projected to increase from TRYXX.X billion in

2012 to TRYXX.X billion in 2016, registering a CAGR of X.XX%.

Figure 4: Turkish Domestic and International Tourist Expenditure on Travel and Transportation (TRY

Million), 2007–2016


APPENDIX


Forecasts to 2016


6 Appendix

6.1 About BRICdata

BRICdata publishes in-depth strategic intelligence reports that help its customers better understand opportunities in

emerging markets and industry sectors. Its reports provide an independent, expert view supported by primary research

and access to leading data and intelligence sources.

BRICdata is a comprehensive source of insights and analysis, and publishes a broad range of reports across a number of

different industry sectors, including consumer, retail, financial services, technology, telecoms and construction.

BRICdata is headquartered in London with research, analysis and account management teams based across Europe, the

US and Asia-Pacific. Its global research footprint is supported by a network of external associates, data partners and

industry experts to give the clearest possible perspective on emerging markets.

Areas of expertise

BRICdata operates a dedicated, multilingual team of in-house industry analysts with significant experience of global and

country-level research. BRICdata also maintains data and research partnerships with other research companies, industry

experts and trade associations, along with a network of independent industry consultants and former industry participants

contributing research and reports to bring additional insight and expertise in more specialist areas.

BRICdata’s research offering spans the following industry areas:

Construction

BRICdata publishes reports covering the entire construction value chain: construction materials, equipment, construction

services, architectural services and interior design. It also covers the main value sectors of construction activity:

commercial, infrastructure, industrial, institutional and residential.

This comprehensive view of the market enables BRICdata to detail key growth sectors and countries and identify the most

attractive industry opportunities.

Consumer

Covering a broad range of areas across the consumer goods marketplace, from interior products to FMCG, ingredients,

and packaging, BRICdata offers a comprehensive insight into key consumer sectors across fast-growing markets,

identifying key trends, future innovations and growth opportunities.

Comprehensive data sets including unique primary survey-driven research creates accurate market forecasts and

understanding of the factors driving consumption behavior.

Financial Services

Providing detailed insights into insurance and banking markets, BRICdata’s financial services reports identify key market

opportunities, emerging technologies and channel strategies. The reports provide unique data combined with local

examples of best practice and expert insights into the market.

Retail

BRICdata maintains a comprehensive database of forecasts of retail spending, along with a series of unique indicators

enabling a forward view of retailers’ prospects in emerging markets. The reports identify emerging concepts in retail,

including the nascent online and mobile retail sectors in the BRIC countries and other emerging markets.

Technology

BRICdata tracks key trends and innovations, emerging technologies and markets, and the key operators in both emerging

markets and technologies. Covering a range of emerging and disruptive technologies including telecoms, social media,

online and mobile retailing, and telemedicine, BRICdata examines strategies for success, the state of the competitive

landscape and the inherent threats and opportunities in the emerging technological economy.

APPENDIX


Forecasts to 2016


6.2 Methodology

All reports are rigorously sourced and created according to a comprehensive, two-stage methodology. This includes

internal audit and primary research.

Internal audit

Review of in-house databases to gather existing data:

o Historic market databases and reports

o Company database

o projects database

A) Primary research

Review of the latest company strategy and asset management trends

1) Research

A. Sources

Collection of the latest market-specific data from a wide variety of industry sources:

o Government statistics

o Industry associations

o Company filings

o Broker reports

o International organizations

B. Expert opinion

Collation of opinion taken from leading industry experts

Analysis of third-party opinion and forecasts:

o Broker reports

o Industry associations

o Official government sources

C. Data consolidation and verification

Consolidation of data and opinion to create historical datasets

Creation of models to benchmark data across sectors and geographies

2) Research Analysis

Market forecasts

Feed of forecast data into market models:

o Macroeconomic indicators

o Industry-specific drivers

Analysis of Market Databases to identify trends by sector:

o Latest trends

o Key drivers of the market

3) Report Writing

Analysis of market data

Discussion of company and industry trends and issues

Integration of survey results

Annual review of trends

Standardization of market definitions using recognized industry classifications

APPENDIX


Forecasts to 2016


4) Quality Control

A. Templates

Detailed process manuals

Standardized report templates and accompanying style guides

Complex forecasting tool used to ensure forecast methodologies are consistently applied

QC checklists

B. QC process

Peer review

Senior-level QC

Random spot checks on data integrity

Benchmark checks across databases

Market data cross-checked for consistency with accumulated data from company filings

6.3 Definitions

Table 3: Travel and Tourism Definitions

Terms Definition

Inbound Tourist A tourist traveling to a different country from their country of residence. For instance, if a person

living in Canada travels to France, they would be an inbound tourist to France.

Outbound Tourist A tourist visiting a country other than their country of residence. For instance, a person who lives in

France would classed as an outbound tourist when they visit anywhere outside France.

Domestic Tourist A tourist who spends time away from home, but within their country or residence, such as a resident

in France traveling to different places within France.

Leisure Tourist A tourist traveling for recreational purposes, such as visiting friends or relatives, going on a holiday

or traveling for entertainment. Leisure trips are typically longer than business trips.

Business Tourist A person traveling for business-related activities such as meetings, conferences and trade shows.

Business tourists' expenses are typically paid by the travelers’ employers.

Health and Wellness Tourist A person traveling within or outside the country to improve their health or well-being. Tourists

generally seek services such as elective procedures in addition to complex specialized surgeries

that include cosmetic, dental, cardiac, and joint or knee replacement surgeries.

Other Tourists Tourists traveling for other purposes, such as health and wellness, pilgrimage, sport or education.

Medical Tourism The practice of traveling to different locations for medical aid. A person who travels outside the

country would be an outbound patient, a person who travels within the country would be a domestic

patient, and a person who arrives to a different country from their place of residence would be an

inbound patient.

Seasonality of Trips The volume of tourist arrivals at various times of the year. Tourist arrivals will typically be higher

during holiday seasons, and businesses operating in the industry generate higher revenues in peak

periods.

Spending Pattern The total spending made by a visitor on travel, lodging, food and beverages, sightseeing,

entertainment, shopping, health and wellness, and travel insurance during their visit.

Spending on Travel and

Transportation

Spending by tourists on travel by air, road, rail and sea, such as flight tickets, train fares and car

rentals.

Spending on Lodging Spending by tourists on accommodation during a visit, such as on hotels.

Travel Insurance Insurance cover taken by travelers, which covers losses such as travel delays, medical expenses,

loss of personal belongings and personal liability.

Travel Agents A business which sells travel-related products and services to both leisure and business customers

on behalf of suppliers. Products and services sold include package holidays, sightseeing tours,

flights, hotel bookings, cruise lines, car rentals, rail tickets and travel insurance. Some travel agents

also serve as sales agents for international travel companies.

Tour Operators Tour operators typically combine two or more travel services, such as transport, sightseeing,

accommodation, or food and entertainment, and sell them either directly to customers or through

travel agents as a single product, called a package tour, for a single price.

Online Travel Sites These sites provide travel portals featuring travel websites, travel deals, hotel guides and related

sites. They also offer holiday and tour packages with complete travel arrangements such as air,

train or bus ticket booking, hotel accommodation, car rental and other travel related services.

Length of Trip The average number of nights spent by tourists away from home.

Budget Hotel An establishment that provides low-price hotel accommodation on a short-term basis.

APPENDIX


Forecasts to 2016


Midscale Hotel Mid-scale hotels provide more facilities and comfort than budget hotels, and their services are

charged at higher prices.

Luxury Hotel Luxury hotels provide comfortable accommodation, with a combination of facilities and style,

typically at higher prices than standard hotels.

Room Occupancy Rate The percentage of available rooms sold during the analysis period.

Revenue per Available Room

(RevPar)

Revenue per available room is calculated by dividing room revenue by the number of rooms

available for rent during the analysis period.

Low-Cost Airline Low-cost, budget or discount airlines generally have lower fares and fewer complimentary services.

Low-cost airlines often charge for additional facilities, such as priority boarding, seat allocation, food

and baggage, to recover the revenue lost in reduced ticket prices.

Full-Service Airline Full-service airlines generally have higher fares, operate longer-distance routes and offer a full

range of in-flight services.

Charter Airline Charter airlines rent out entire aircraft for leisure or business purposes, or as an air ambulance, and

fly outside normal schedules.

Seats Available The number of seats available for purchase from an airline.

Seats Sold The number of seats sold to passengers by an airline.


6.4 Disclaimer

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,

electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, BRICdata.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the

findings, conclusions and recommendations that BRICdata delivers will be based on information gathered in good faith

from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BRICdata can,

therefore, accept no liability whatsoever for actions taken based on any information that may subsequently prove to be

incorrect.

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