Albania has seen a rapid growth of the car rental market, which tripled from 2019 to 2025. This is mainly related to tourism, which is considered the main growth engine of this market. The main customers are individual visitors who tend to freely explore multiple destinations within the country and in a limited time. Public transport also plays a driving role here, which in some regions preferred by tourists remains limited. As the number of companies operating car rental activities has increased, prices have entered an aggressive competition, often going below cost and questioning business plans and strategies. Operators claim that this business model, which is based only on price, is not sustainable and makes operation increasingly challenging in conditions where costs are high. The market also needs intervention so that the rules are clear, competition is fair, and price is not the only means of competition, but quality and safety become part of it.
From 840 operators in 2019, the number of companies offering car rental services more than tripled, reaching 2,785 in 2025, according to data from the National Business Center. This rapid growth is seen by operators as the result of a combination of factors, but tourism remains the main driver.
The growing influx of foreign visitors has created a market with numerous opportunities, but also with significant challenges.
2024 saw the highest number of registrations with 411 new companies joining the car rental market. In 2025, another 395 operators registered.
Increased competition has led to aggressive pricing, which has hit new lows each year, especially outside the high season. These prices, which are often below cost in some periods, force companies to review their operating strategies and business plans, leaving them with the dilemma of whether or not to expand their fleets.
But how sustainable is a business model that is based primarily on price competition? According to operators, not very much. However, they point out that operating below cost during the low season is often amortized by profits during the high season, creating an annual balance.
It is not the ideal, but the reality they have to face every day.
Albania, as a growing destination, is going through a phase typical for fast-growing tourist markets where there are great opportunities, but an uncertain future for the car rental industry. Self-regulation is not the only option that could mark a turning point.
The market needs better functioning of all links, especially from the state, so that competition is fair and equal, where in addition to price, quality of service and safety are also part of the competition.
Tourism as a growth engine for the rental car market
During 2025, 12.4 million foreigners visited Albania. Most of them are individuals who travel independently and prefer to explore the country via public transportation or a rental car.
Public transportation restrictions in some areas are driving the rental car market, as many tourists want to cover destinations from the South to the North in a few days and the best alternative is a "personal" vehicle.
"In recent years, tourism has functioned as the main engine of growth for the rental car market. From our observations on the ground and on international rental car brokerage platforms, the number of operators and franchises has doubled in the last three years," Dorian Vezuli, CEO of T-Rent sh.pk (representative of Free2move), tells "Monitor".
Transportation is a significant part of a vacation budget, and rental cars are a popular option even in markets where public transportation is well-developed. In Albania, they remain the most convenient option for those who want to explore many destinations in a short time.
Eliana Bakiri, administrator of "Top Tours", says that Albania still remains a destination of interest for tourists, but the growth of the car rental market does not always follow the same pace.
“A key factor is the lack of public transport alternatives that can provide flexibility and fast coverage of destinations. This makes car rental a practical solution. We divide our clientele into two categories: those who rent cars for long periods, mainly companies, and those for short periods, mainly individuals.
"Within short periods, we also have subdivisions: some customers rent cars for 10 days, others for less. Rental cars offer flexibility and this model is also consolidated in markets where public transport is developed, such as the case of Austria," she says.
Price competition, how sustainable is this business model?
Today, if you search for a rental car online, you can find prices so low that you question the viability of this activity. For example, one site offers a Mitsubishi vehicle (without other details) for 8 euros per day. In March, prices could be as high as 10 euros per week. It is precisely these offers that have made the price competition among the most aggressive in the market.
"This has been the main trend during the winter season for the last two years, not including additional services such as insurance or extra accessories. Personally, I consider these to be 'panic prices'. Many operators, especially those with old or depreciated fleets, offer cars at low prices just to ensure traffic.
This happens mainly because on international broker platforms, models are displayed digitally and not with real photos, without the year of manufacture, so the customer does not know how new or old the car they are reserving is and is mostly disappointed only when they see it physically", says Mr. Vezuli.
How are costs covered when prices hit rock bottom? Mainly during the high season (which includes summer, but also some other short periods during the year), profits compensate for the low prices of the low season.
"Such prices do not represent real daily costs. They often reflect market developments and the way companies amortize costs throughout the year. The car rental business has two seasons: high and low. Often, the profit of one season offsets the losses of the other, creating a fixed 'flat price'."
In Romania, for example, prices can be even lower, down to 10 cents per day. In these cases, operators survive by offering additional services. The market requires management skills more than just sales. Market knowledge and staff training are key,” underlines Ms. Bakiri.
A race with ever lower prices is not a sustainable model in the medium or long term. “In a market where the main strategy remains only price, the next step is bankruptcy or the acquisition of smaller companies by more consolidated operators,” says Mr. Vezuli.
From business costs to informality, the challenges of a growing market
The car rental business seems simple at first glance, but in practice it faces numerous challenges. First, costs. In this rush to capture customers at the lowest price, it has become increasingly difficult to cope with the many expenses, some predictable and others not.
Likewise, full insurance, loans or financing for fleet expansion, repairs, maintenance, and a long list that follows.
"If an operator has financed the business through loans, pays mandatory insurance and comprehensive insurance, performs regular maintenance, and does not evade taxes, it is extremely difficult to operate uninterrupted throughout the year.
Therefore, some operators are evaluating the possibility of operating only during the summer season, when tourist demand is higher and prices justify operational costs”, asserts Mr. Vezuli.
But this approach brings another challenge, securing qualified and trained staff, which is difficult to retain. He adds that the market is not yet in ideal conditions, leaving room for improvements in control and transparency, so that competition is fair.
In the same vein, Ms. Bakiri emphasizes that Albania is in a transitional phase and the market is not yet stabilized. Achieving stability takes time and institutions must play the main role.
