Dubai's luxury car rental industry describes an ideal Experience Economy environment. In 1999, B. Joseph Pine II and James H. Gilmore introduced the Experience economy framework. The economic principle means that consumers prefer memorable intangible experiences over tangible products. Companies therefore create products that convey high social status. Luxury super car rental Dubai services offer prestigious cars to people who desire a luxurious experience.

The research evaluates the Dubai luxury car rental sector through economic theories of luxurious goods and prominent consumption and the role of social media in growing consumer desires.

The Role of the Experience Economy in Luxury Car Rentals.

According to basic economic principles, people use products by assessing their inherent value. However, customers find the worth of Experience Economy products in the transformative experiences delivered rather than in their functional applications. The luxury car rental industry thrives in Dubai because customers desire to drive prestigious cars through temporary leases even though they cannot afford permanent vehicle ownership.

The luxury car rental industry operates on key economic variables that establish its foundations. Customers rent Ferraris and Lamborghinis because of high-status events although they do not own these vehicles.

The scarcity and premium image of high-end rental vehicles have made car rental businesses perpetrate price discrimination thus achieving premium pricing levels. People prefer to feel satisfied by using luxury vehicles instead of paying for ownership upkeep which means they do not need constant vehicle maintenance.

The unique travel experiences required by luxury tourism guests in Dubai emerge from worldwide visitors who do not want typical travel choices. The economic appeal of a luxury car rental is not in its functional transportation value but in the psychological utility of exclusivity and prestige.

Luxury Car Rentals as Positional Goods and Conspicuous Consumption

Luxury cars are regarded as positional goods because their value depends on high demand instead of their inherent value. Consumers value luxurious and exclusive goods or products over basic and useful products.

According to Thorstein Veblen, the reason people buy expensive items is to flaunt social status.

Dubai’s wealthy population and expensive brands create an ideal atmosphere for consumers who wish to display their wealth.

Elasticity demand remains low because consumers continue to buy despite price fluctuations. People rent exotic vehicles in Dubai for social validation instead of actual driving experience. The increase in luxury car rental providers increases market visibility and attracts new consumers.

The consumer behavior pattern for luxury vehicle rentals in the market is different from basic car rental. Individuals desire social validation by renting exotic vehicles instead of renting or buying an affordable car that meets their practical needs. People spend more money to have luxurious experiences through active engagement and their online presence on social media platforms.

The Influence of Social Media and Digital Marketplaces

Individuals' decisions are usually influenced by social media recommendations because they want to experience high-end digital economic lifestyles. Social media platforms contributed to the growth of luxury car rentals because influencers posted videos of tourists and entrepreneurs living luxurious lifestyles.

According to OneClick Drive, international tourists constitute 60% of total luxury rental activity in the Dubai automobile market. European, Russian, and Chinese customers account for the largest bookings.

Additionally, social media posts generate more than 40% of bookings because they display luxurious lifestyles. Also, travel seasons increase demand and usage between 50% and 70%.

The luxury car rental tradition in Dubai aligns with market dynamics that show that rental businesses thrive and remain in business because they offer exclusive cars on a short-term basis. It also shows that social media is a large contributor to peer influence causing more people to rent luxurious cars.

Conclusion

Behavioral economic theory shows that people emotionally respond to restricted access, exclusive items, limited resources, and social recognition. People choose short-term luxury car rentals to access affluent lifestyles that they believe are worth the high rental costs.

It is important to note that as the luxury travel industry around the world expands, people will continue to spend more to get luxury and this will reinforce the theory of experience consumption purchase.