Ammon News - The car rental sector in Jordan is facing significant pressure, with occupancy rates currently hovering around 20%, according to industry insiders. The beginning of the holy month of Ramadan — traditionally considered a low season for tourism and business travel — has further intensified the slowdown.

Industry representatives indicate that demand typically declines during the first half of Ramadan, as both domestic and inbound travel activity decreases. However, this year’s figures reflect deeper structural challenges that have been affecting the sector for months.

Car rental operators point to reduced travel demand, rising operational costs, and broader economic pressures as key factors contributing to the downturn. Smaller and mid-sized companies are particularly vulnerable, as lower fleet utilization directly impacts their financial sustainability.

“We are experiencing one of the most challenging periods in recent years,” said a local industry representative. “With occupancy at around 20%, companies are operating well below break-even levels, and this puts considerable strain on the sector.”

To cope with the situation, many companies are focusing on cost management, fleet optimization, and strategic pricing adjustments while maintaining service quality. Operators remain hopeful that demand will gradually improve in the latter half of Ramadan and pick up further during the post-Ramadan period and upcoming travel seasons.

Industry stakeholders emphasize the importance of supporting the tourism and transportation sectors, noting that car rental services play a vital role in facilitating visitor mobility and contributing to the broader economy.

While the current period remains challenging, operators are cautiously optimistic that seasonal recovery patterns will help restore activity levels in the coming months.