MSEs in car rentals fare better than tour and travel peers

Micro and small enterprises (MSEs) focussed on car rentals have better financial metrics compared with their peers in the tour and travel business that are focussed on ticketing and hotel bookings, a CRISIL SME Rating analysis of more than 100 rated MSEs in the sector has revealed.

Car rentals-focussed MSEs earned an average operating profit margin (OPM) of 20 per cent in the three years 2016 to 2018, compared with 14 per cent for those focussed on ticketing and hotel bookings. The trend also held for net profit margin (PAT), where these players logged 14 per cent, compared with 11